UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
for the fiscal year ended December 31, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
Commission file number 0-11985
Krupp Realty Limited Partnership-V
(Exact name of registrant as specified in its charter)
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)
(Registrant's telephone number, including area code) (617) 423-2233
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Units of
Investor Limited Partner Interest
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
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ].
Aggregate market value of voting securities held by non-affiliates: Not
applicable, as securities are non-voting.
Documents incorporated by reference: See Part IV, Item 14(b) on pages 9-
11 of this report.
The exhibit index is located on pages 8 - 11.
<PAGE>
PART I
ITEM 1. BUSINESS
Krupp Realty Limited Partnership-V ("KRLP-V") was formed on June 16,
1983 by filing a Certificate of Limited Partnership in The Commonwealth of
Massachusetts. The Krupp Corporation (a Massachusetts corporation) and
The Krupp Company Limited Partnership-II (a Massachusetts limited
partnership) are the General Partners of KRLP-V. KRLP-V has issued all
of the Original Limited Partner Interests to The Krupp Company Limited
Partnership-II. On September 6, 1983, KRLP-V, pursuant to a sales agent
agreement, commenced the marketing and sale of units of Investor Limited
Partner Interest ("Units") for $1,000 per unit, 35,200 of which were sold.
For further details, see Note A to Consolidated Financial Statements
included in Appendix A to this report.
KRLP-V considers itself to be engaged only in the industry segment of
investment in real estate. KRLP-V invested the net proceeds from the
offering in leveraged real estate. KRLP-V originally invested in four
multi-family apartment complexes (Century II, Marine Terrace, Fieldcrest
Apartments and Park Place Tower Apartments "Park Place") and a joint
venture in Lakeview Towers with Krupp Realty Limited Partnership-IV, an
affiliated limited partnership. The aggregate purchase price of the
properties was approximately $67 million and KRLP-V originally funded
approximately $2.3 million to the joint venture.
On March 20, 1989 the General Partners formed Krupp Realty Park Place-
Chicago Limited Partnership ("Realty-V") as a prerequisite for the
refinancing of Park Place. At the same time the General Partners
transferred ownership of Park Place to Realty-V. The General Partner of
Realty-V is The Krupp Corporation ("Krupp Corp."). The Limited Partner of
Realty-V is KRLP-V. Krupp Corp. has beneficially assigned its interest
in Realty-V to KRLP-V. KRLP-V and Realty-V are collectively known as
Krupp Realty Limited Partnership-V and Subsidiary (collectively referred
to herein as the "Partnership").
The Partnership sold two of its apartment complexes, Fieldcrest
Apartments and Marine Terrace, in 1992 and 1995, respectively. The
Partnership also received a distribution of proceeds from the sale of
Lakeview Towers in 1992.
The Partnership's real estate investments are subject to some material
seasonal fluctuations resulting from changes in utility consumption and
seasonal maintenance expenditures. However, the future performance of the
Partnership will depend upon factors which cannot be predicted. Such
factors include general economic and real estate market conditions, both
on a national basis and in those areas where the Partnership's real estate
investments are located, real estate tax rates, operating expenses, energy
costs, government regulations and federal and state income tax laws. The
requirements for compliance with federal, state and local regulations to
date have not had an adverse effect on the Partnership's operations, and
no adverse effect therefrom is anticipated in the future.
The Partnership's investments in real estate are also subject to such
risks as (i) competition from existing and future projects held by other
owners in the locations of the Partnership's properties, (ii)
fluctuations <PAGE>
in rental income due to changes in occupancy levels, (iii) possible
adverse changes in mortgage interest rates, (iv) possible adverse changes
in general economic and local conditions, such as competitive
over-building, increases in unemployment, or adverse changes in real
estate zoning laws, (v) the possible future adoption of rent control
legislation which would not permit the full amount of increased costs to
be passed on to tenants in the form of rent increases, and (vi) other
circumstances over which the Partnership may have little or no control.
As of December 31, 1995, there were 40 full and part-time on-site
personnel employed by the Partnership.
ITEM 2. PROPERTIES
As of December 31, 1995, the Partnership has leveraged investments in
two apartment complexes having an aggregate of 1,369 units. One of the
complexes has an additional 20,000 square feet of leasable commercial
space.
A summary of the Partnership's real estate investments is presented
below. Schedule III included in Appendix A to this report contains
additional detailed information with respect to individual properties.
<TABLE>
<CAPTION>
Total Units/
Current Average Occupancy
Year of Leasable December 31,
Description Acquisition Square Footage 1995 1994 1993 1992 1991
Century II Apts.
<S> <C> <C> <C> <C> <C> <C> <C>
Cockeysville, Maryland 1984 468 Units 92% 92% 91% 93% 93%
Park Place Tower Apts. 901 Units 94% 94% 94% 92% 91%
Chicago, Illinois 1984 20,000 Sq. Ft. 83% 83% 80% 83% 83%
</TABLE>
ITEM 3. LEGAL PROCEEDINGS
The Partnership is a defendant in a class action suit related to the
practice of giving discounts for the early or timely payments of rent at
Park Place. The central issue of the complaint was whether the operative
lease violated a Chicago municipal ordinance relating to late fee charges
because it allowed tenants a discount if rent was paid on or before the
first day of the month. The ordinance in question limited late fee
charges to $10 per month if the rent was more than 5 days late. The
allegation was that, notwithstanding the stated rental rate and printed
discount, the practice represented an unlawful means of exacting late fee
charges. In addition to seeking damages for any "forfeited" discounts,
Plaintiffs seek statutory damages of two months rent per lease violation
plus reasonable attorneys' fees. To be eligible for such punitive damages
Plaintiffs must prove that the Defendant deliberately used a provision
prohibited by the ordinance. During 1994, the Court ruled in favor of the
Defendant, and accepted the Partnership's Motion to Dismiss the
Plaintiffs' Third Amended Complaint. The Plaintiffs have filed an appeal
with the Appellate Court of Illinois, First District, which is pending.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
<PAGE>
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
The transfer of Units is subject to certain limitations contained in the
Partnership Agreement. There is no public market for the Units and it is
not anticipated that any such public market will develop.
The number of Investor Limited Partners as of December 31, 1995 was
approximately 2,500.
One of the objectives of the Partnership is to generate cash available
for distribution. The General Partners discontinued distributions during
1990 due to insufficient operating cash flow. However, during 1993, the
Partnership distributed $27,888 which was equivalent to the required
withholding tax for the state of Maryland which arose from the sale of
Fieldcrest Apartments. This amount was paid to the state of Maryland for
the benefit of all Partners.
In 1995 the General Partners determined that there was sufficient Cash
Flow, as calculated under section 8.2 (a) of the Partnership Agreement
("Cash Flow"), and working capital reserves to reinstate distributions.
These semiannual distributions, which will commence in the first quarter
of 1996, are to be paid semiannually at a semiannual rate of $10.00 per
unit.
ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth selected financial information regarding
the Partnership's consolidated financial position and operating results.
This information should be used in conjunction with Management's
Discussion and Analysis of Financial Condition and Results of Operations
and the Consolidated Financial Statements and Supplementary Data, which
are included in Items 7 and 8 of this report, respectively.
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Total revenue $13,839,760 $13,652,413 $13,684,206 $14,117,452 $14,517,166
Loss before
gain (loss) from
capital transactions (795,377) (1,450,214) (3,921,897) (2,786,658) (3,869,880)
Partnership's share of
gain on sale of Joint
Venture - - - 3,875,915 -
Gain (loss) on sale
of property 3,265,789 - - (399,316) -
Income (loss) before
extraordinary loss 2,470,412 (1,450,214) (3,921,897) 689,941 (3,869,880)
Extraordinary loss (93,215) - - - -
Net income (loss) 2,377,197 (1,450,214) (3,921,897) 689,941 (3,869,880)
<PAGE>
Allocation of net
income (loss):
Investor Limited
Partners ("ILP") 2,353,425 (1,435,712) (3,882,678) 683,042 (3,831,181)
Per Unit - ILP 66.86 (40.79) (110.30) 19.41 (108.84)
Original Limited
Partner - - - - -
General Partners 23,772 (14,502) (39,219) 6,899 (38,699)
Total assets at
December 31, 38,555,732 42,604,180 45,011,823 48,787,088 53,123,075
Long-term obligations
at December 31, 42,273,669 46,805,538 47,392,245 47,225,125 47,509,912
Distributions to
Partners:
Investor Limited
Partners - - 25,936 - -
Per Unit - Investor
Limited Partners - - .74 - -
Original
Limited Partner - - 1,673 - -
General Partners - - 279 - -
</TABLE>
The Selected Financial Data results for the periods presented is not
comparable due to the following events:
(a) Marine Terrace was sold on July 19, 1995.
(b) Lakeview Towers, a property owned in a Joint Venture with an
affiliate, was sold on August 28, 1992.
(c) Fieldcrest Apartments was sold on August 5, 1992.
Prior performance of the Partnership is not necessarily indicative of
future operations.
ITEM 7. 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 operating performance of its real estate
investments. Such ability would also be impacted by the future
availability of bank borrowing sources as current debt matures. 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 <PAGE>
flow, if any, as calculated under Section 8.2(a) of the Partnership
Agreement, will then be available for distribution to the Partners. In
1995, the General Partners determined that there was sufficient Cash Flow
and working capital reserves to reinstate distributions. These
distributions will commence in the first quarter of 1996 and are to be
paid semiannually thereafter.
On July 19, 1995, the Partnership sold Marine Terrace Apartments, a 187
unit apartment complex located in Chicago, Illinois, for cash proceeds and
other considerations which totaled $6,436,505. Proceeds from the sale
were used to pay closing costs of $44,152, to repay the existing mortgage
note on the property of $4,050,721 and to satisfy other Partnership
liabilities. For financial reporting purposes the Partnership realized a
gain of $3,265,789 on the sale. The gain was calculated as the difference
between net consideration received less net book value of the property.
The Partnership's major capital improvement project, the repair of Park
Place's building facade, was completed in the fourth quarter of 1995. The
external improvements, along with extensive interior improvements, were
funded from established reserves and cash generated by the property. The
completion of these improvements has greatly enhanced the appearance of
the property and has resulted in both increased rents and occupancy.
Cash Flow
Shown below, as required by the Partnership Agreement, is the
calculation of Cash Flow for the year ended December 31, 1995. The
General Partners provide certain of the information below to meet
requirements of the Partnership Agreement and because they believe that it
is an appropriate supplemental measure of operating performance. However,
Cash Flow and Net Cash Proceeds From Capital Transactions should not be
considered by the reader as a substitute to net income, as an indicator of
the Partnership's operating performance or to cash flows as a measure of
liquidity.
<TABLE>
<CAPTION>
Rounded to $1,000
<S> <C>
Net income for tax purposes $ 3,340,000
Items not requiring (requiring)
the use of operating funds:
Tax basis depreciation and amortization 3,420,000
Tax gain on sale of Marine Terrace (4,228,000)
Principal payments on mortgage notes payable (539,000)
Expenditures for capital improvements (1,540,000)
Working capital reserves (75,000)
Cash Flow $ 378,000
</TABLE>
Operations
The following discussion relates to the operations of the Partnership
and its properties (Park Place, Marine Terrace and Century II) for the
years ended December 31, 1995, 1994 and 1993, or portion thereof. The
results of operations of the Partnership are not comparable due to the
sale of Marine Terrace on July 19, 1995.
<PAGE>
1995 compared to 1994
Cash Flow has been impacted favorably due to decreased expenditures for
capital improvements resulting from the completion of the Park Place
capital improvement project. The increase in rental revenue is even more
significant after giving effect to the sale of Marine Terrace and is
primarily due to rental rate increases at Park Place and Century II during
the second half of 1994. Rental revenue also increased as a result of
higher occupancy at Park Place in 1995. Interest income for the
Partnership increased in 1995 due to a rise in short term interest rates
coupled with an increase in investments in cash and cash equivalents as a
result of the sale of Marine Terrace.
Total expenses of the Partnership for 1995, after giving effect to the
disposition of Marine Terrace, have remained stable with the exception of
operating expense and real estate taxes. The decrease in operating
expense is primarily due to management s efforts to reduce reimbursable
operating costs. The increase in real estate taxes is primarily due to an
increase in assessed property value at Park Place which is directly
related to the capital improvement project completed in 1995.
Depreciation expense has also increased as a result of the extensive
improvements at Park Place.
1994 compared to 1993
Cash flow deficits decreased from 1993 to 1994 as a result of a decline
in operating expenses and interest expense. The decline in expense is
somewhat offset by a increase in capital expenditures.
The slight increase in rental revenue in 1994 is primarily due to an
increase in rental rates at Park Place and Marine Terrace, and increased
occupancy at Century II, offset by decreased occupancy at Marine Terrace.
Interest income 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 and a decrease in interest earned on capital
improvement escrows.
Operating expenses in 1994 decreased due to savings in parking garage
expenses as a result of management subcontracting the parking garage
operations at Park Place. Additionally, a portion of this decrease
resulted from a rate reduction in electric costs by the local utility
company. 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 at Park Place due to a prior year revaluation by the taxing
authority. However, real estate taxes are expected to increase upon the
completion of the building facade repair.
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 $1,454,000 for the year ended December
31, 1994, as compared to the same period in 1993. The decrease in
depreciation and amortization is primarily due to a mortgage premium paid
and fully amortizing deferred mortgage costs in 1993 related to the
mortgage loan held prior to Park Place's refinanced mortgage.
General
<pag>
In accordance with Financial Accounting Standards No. 121, "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed Of", which is effective for fiscal years beginning after December
15, 1995, the Partnership has implemented policies and practices for
assessing impairment of its real estate assets.
The Partnership's investments in properties are carried at cost less
accumulated depreciation, unless the General Partners believe there is a
significant impairment in value, in which case a provision to write down
investments in properties to fair value will be charged against income.
At this time, the General Partners do not believe that any assets of the
Partnership are significantly impaired.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
See Appendix A to this report.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The Partnership has no directors or executive officers. Information as
to the directors and executive officers of The Krupp Corporation, which is
a General Partner of KRLP-V and is the General Partner of The Krupp
Company Limited Partnership-II, which is the other General Partner of
KRLP-V, is as follows:
Position with
Name and Age The Krupp Corporation
Douglas Krupp (49) Co-Chairman of the Board
George Krupp (51) Co-Chairman of the Board
Laurence Gerber (39) President
Robert A. Barrows (38) Senior Vice President and Corporate
Controller
Douglas Krupp is Co-Chairman and Co-Founder of The Berkshire Group.
Established in 1969 as the Krupp Companies, this real estate-based firm
expanded over the years within its areas of expertise including investment
program sponsorship, property and asset management, mortgage banking,
healthcare facility ownership and the management of the Company. Today,
The Berkshire Group is an integrated real estate, mortgage and healthcare
company which is headquartered in Boston with regional offices throughout
the country. A staff of approximately 3,400 are responsible for the more
than $4 billion under management for institutional and individual clients.
Mr. Krupp is a graduate of Bryant College. In 1989 he received an
honorary Doctor of Science in Business Administration from this
institution and was elected trustee in 1990. Mr. Krupp is Chairman of the
Board and a Director of Berkshire Realty Company, Inc. (NYSE-BRI). George
Krupp is Douglas
<PAGE>
Krupp's brother.
George Krupp is the Co-Chairman and Co-Founder of The Berkshire Group.
Established in 1969 as the Krupp Companies, this real estate-based firm
expanded over the years within its areas of expertise including investment
program sponsorship, property and asset management, mortgage banking and
healthcare facility ownership. Today, The Berkshire Group is an
integrated real estate, mortgage and healthcare company which is
headquartered in Boston with regional offices throughout the country. A
staff of approximately 3,400 are responsible for more than $4 billion
under management for institutional and individual clients. Mr. Krupp
attended the University of Pennsylvania and Harvard University. Mr. Krupp
also serves as Chairman of the Board and Trustee of Krupp Government
Income Trust and as Chairman of the Board and Trustee of Krupp Government
Income Trust II.
Laurence Gerber is the President and Chief Executive Officer of The
Berkshire Group. Prior to becoming President and Chief Executive Officer
in 1991, Mr. Gerber held various positions with The Berkshire Group which
included overall responsibility at various times for: strategic planning
and product development, real estate acquisitions, corporate finance,
mortgage banking, syndication and marketing. Before joining The Berkshire
Group in 1984, he was a management consultant with Bain & Company, a
national consulting firm headquartered in Boston. Prior to that, he was a
senior tax accountant with Arthur Andersen & Co., an international
accounting and consulting firm. Mr. Gerber has a B.S. degree in Economics
from the University of Pennsylvania, Wharton School and an M.B.A. degree
with high distinction from Harvard Business School. He is a Certified
Public Accountant. Mr. Gerber also serves as President and Director of
Berkshire Realty Company, Inc. (NYSE-BRI) and President and Trustee of
Krupp Government Income Trust and President and Trustee of Krupp
Government Income Trust II.
Robert A. Barrows is Senior Vice President and Chief Financial Officer
of Berkshire Mortgage Finance and Corporate Controller of The Berkshire
Group. Mr. Barrows has held several positions within The Berkshire Group
since joining the company in 1983 and is currently responsible for
accounting and financial reporting, treasury, tax, payroll and office
administrative activities. Prior to joining The Berkshire Group, he was
an audit supervisor for Coopers & Lybrand L.L.P. in Boston. He received
a B.S. degree from Boston College and is a Certified Public Accountant.
ITEM 11. EXECUTIVE COMPENSATION
The Partnership has no directors or executive officers.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
As of December 31, 1995, no person of record owned or was known by the
General Partners to own beneficially more than 5% of the Partnership's
35,200 outstanding Units. On that date, the General Partners or their
affiliates owned 116 Units (.33% of the total outstanding) of the
Partnership in addition to their General and Original Limited Partner
Interests.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
<PAGE>
The Partnership does not have any directors, executive officers or
nominees for election as director. Additionally, as of December 31, 1995
no person of record owned or was known by the General Partners to own
beneficially more than 5% of the Partnership s outstanding Units.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) 1. Consolidated Financial Statements - see Index to
Consolidated Financial Statements and Consolidated
Financial Statement Schedule included under Item 8,
Appendix A, on page F-2 to this Report.
2. Consolidated Financial Statement Schedule - see Index to
Consolidated Financial Statements and Consolidated
Financial Statement Schedule included under Item 8,
Appendix A, on page F-2 to this Report. All other
schedules are omitted as they are not applicable, not
required or the information is provided in the
Consolidated Financial Statements or the notes thereto.
(b) Exhibits:
Number and Description
Under Regulation S-K
The following reflects all applicable Exhibits required under
Item 601 of Regulation S-K.
(4) Instruments defining the rights of security holders
including indentures:
(4.1) Amended Agreement of Limited Partnership dated as
of July 27, 1983 [Exhibit A to Prospectus included
in Registrant's Registration Statement on Form S-11
(File 2-84645)].*
(4.2) Amended Certificate of Limited Partnership filed
with the Massachusetts Secretary of State on
December 16, 1983 [Exhibit 4.2 to Registrant's
Report on Form 10-K for 1983 (File 2-84645)].*
(10) Material Contracts:
Park Place Apartments
(10.1) Purchase and Sale Agreement dated April 24, 1984
between Douglas Krupp and Sheldon J. Mandell,
Howard J. Mandell, Jerome W. Mandell and Norman
Mandell [Exhibit 1 to Registrant's Report on
Form 8-K dated May 4, 1984 (File No. 2-84645)].*
(10.2) Assignment of Beneficial Interest in Land Trust
dated May 1, 1984 by Sheldon J. Mandell, Howard
J. Mandell, Jerome W. Mandell and Norman Mandell
to Krupp Realty Limited Partnership-V. [Exhibit
<PAGE>
10.9 to Registrant's Report on Form 10-K for the
year ended November 30, 1984 (File No.
0-11985)].*
(10.3) Addendum to Management Agreement between Krupp
Realty Park Place - Chicago Limited Partnership
and Krupp Asset Management Company, now known as
Berkshire Property Management [Exhibit 2 to
Registrant's Report on Form 8-K dated April 27,
1989 (File No. 0-11985)].*
(10.4) Agreement of Limited Partnership of Krupp Realty
Park Place -Chicago Limited Partnership dated
March 15, 1989 [Exhibit 5 to Registrant's Report
on Form 8-K dated April 27, 1989 (File No. 0-
11985)].*
(10.5) Assignment of General Partners interests in
Krupp Realty Park Place - Chicago Limited
Partnership by The Krupp Corporation to Krupp
Realty Limited Partnership-V dated March 15,
1989 [Exhibit 6 to Registrant's Report on Form
8-K dated April 27, 1989 (File No. 0-11985)].*
(10.6) Written Consent of Directors of The Krupp
Corporation dated April 18, 1989 assigning
beneficial interest in Park Place Apartments to
Krupp Realty Park Place - Chicago Limited
Partnership [Exhibit 7 to Registrant's Report
on Form 8-K dated April 27, 1989 (File No. 0-
11985)].*
(10.7) Management Agreement dated May 4, 1984 between
Krupp Realty Limited Partnership-V, as Owner,
and Krupp Asset Management Company, now known as
Berkshire Property Management [Exhibit 10.18 to
Registrant's Report on Form 10-K for the year
ended November 30, 1984 (File No. 0-11985)].*
(10.8) Loan Modification/Cancellation Agreement dated
September 14, 1993 between South Chicago Bank,
as Trustee, and Krupp Realty Park Place -
Chicago Limited Partnership (File No. 0-11985).*
(10.9) Modification to mortgage note dated September
14, 1993 between South Chicago Bank, as Trustee,
and Government National Mortgage Association
(File No. 0-11985).*
(10.10) Modification of mortgage dated September 14,
1993 between South Chicago
Bank, as Trustee, and Government National
Mortgage Association (File No.
0-11985).*
(10.11) Regulatory Agreement for Multifamily Housing
Projects dated September 14, 1993, between South
<PAGE>
Chicago Bank, as Trustee, and Krupp Realty Park
Place - Chicago Limited Partnership (File No. 0-
11985).*
Century II Apartments
(10.12) Agreement of Sale, dated September 18, 1984
between the Partners of Century III Associates
and Douglas Krupp and related exhibits including
Mortgage Notes and Related Mortgages [Exhibit 1
to Registrant's Report on Form 8-K dated October
11, 1984 (File No. 0-11985)].*
(10.13) Assignment of Partnership Interest in Century
III Associates dated October 10, 1984 by the
Partners of Century III Associates to The Krupp
Company Limited Partnership-II, The Krupp
Corporation and Krupp Realty Limited
Partnership-V [Exhibit 2 to Registrant's Report
on Form 8-K dated October 11, 1984 (File No.
0-11985)].*
(10.14) Fifth, Sixth and Seventh Amended and Restated
Limited Partnership Agreement of Century III
Associates Limited Partnership [Exhibit 3 to
Registrant's Report on Form 8-K dated October
11, 1984 (File No. 0-11985)].*
(10.15) Assignment of Beneficial Interest in Century III
Associates from The Krupp Company Limited
Partnership-II and The Krupp Corporation to
Krupp Realty Limited Partnership-V. [Exhibit
10.32 to Registrant's Report on Form 10-K for
the year ended November 30, 1984 (File No.
0-11985)].*
(10.16) Management Agreement dated October 11, 1984
between Krupp Realty Limited Partnership-V, as
Owner, and Krupp Asset Management Company, now
known as Berkshire Property Management [Exhibit
10.33 to Registrant's Report on Form 10-K for
the year ended November 30, 1984 (File No.
0-11985)].*
(10.17) Third Amended and Restated Promissory Note dated
April 27, 1989 between Century III Associates
Limited Partnership and Bankers United Life
Assurance Company. [Exhibit 8 to Registrant's
Report on Form 8-K dated April 27, 1989 (File
No. 0-11985)].*
(10.18) Third Amended and Restated Deed of Trust dated
April 27, 1989 between Century III Associated
Limited Partnership and Bankers United Life
Assurance Company. [Exhibit 9 to Registrant's
Report on Form 8-K dated April 27, 1989 (File
No. 0-11985)].*
<PAGE>
*Incorporated by reference
(c) Reports on Form 8-K
During the last quarter of the fiscal year ended December 31,
1995, the Partnership did not file any reports on Form 8-K.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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, on the
21st day of March, 1996.
KRUPP REALTY LIMITED PARTNERSHIP-V
By: The Krupp Corporation, a General
Partner
By: /s/Douglas Krupp
Douglas Krupp, Co-Chairman
(Principal Executive Officer)
and Director of The Krupp Corporation
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated, on the 21st day of March,
1996.
Signatures Title(s)
/s/Douglas Krupp Co-Chairman (Principal Executive Officer)
Douglas Krupp and Director of The Krupp Corporation, a
General Partner.
/s/George Krupp Co-Chairman (Principal Executive Officer)
George Krupp and Director of The Krupp Corporation, a
General Partner.
/s/Laurence Gerber President of The Krupp Corporation, a
Laurence Gerber General Partner.
/s/Robert A. Barrows Senior Vice President and Corporate
Robert A. Barrows Controller of the Krupp Corporation (a
General Partner of the Registrant).
<PAGE>
APPENDIX A
KRUPP REALTY LIMITED PARTNERSHIP-V AND SUBSIDIARY
CONSOLIDATED FINANCIAL STATEMENTS
ITEM 8 OF FORM 10-K
ANNUAL REPORT TO THE SECURITIES AND EXCHANGE COMMISSION
For the Year Ended December 31, 1995
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V AND SUBSIDIARY
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND
CONSOLIDATED FINANCIAL STATEMENT SCHEDULE
Report of Independent Accountants F-3
Consolidated Balance Sheets at December 31, 1995 and 1994 F-4
Consolidated Statements of Operations for the years ended
December 31, 1995, 1994 and 1993 F-5
Consolidated Statements of Changes in Partners' Deficit for the years
ended December 31, 1995, 1994 and 1993 F-6
Consolidated Statements of Cash Flows for the years ended
December 31, 1995, 1994 and 1993 F-7
Notes to Consolidated Financial Statements F-8 - F-14
Schedule III - Real Estate and Accumulated Depreciation F-15 - F-16
All other schedules are omitted as they are not applicable, not required,
or the information is provided in the consolidated financial statements or
the notes thereto.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Krupp Realty Limited Partnership-V and Subsidiary:
We have audited the consolidated financial statements and
consolidated financial statement schedule of Krupp Realty Limited
Partnership-V and Subsidiary (the "Partnership") listed in the index on
page F-2 of this Form 10-K. These financial statements and financial
statement schedule are the responsibility of the Partnership's management.
Our responsibility is to express an opinion on these financial statements
and financial statement schedule based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the consolidated financial
position of Krupp Realty Limited Partnership-V and Subsidiary as of
December 31, 1995 and 1994 and the consolidated results of its operations
and its cash flows for each of the three years in the period ended
December 31, 1995 in conformity with generally accepted accounting
principles. In addition, in our opinion, the financial statement schedule
referred to above, when considered in relation to the basic financial
statements taken as a whole, presents fairly, in all material respects,
the information required to be included therein.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
February 6, 1996
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31, 1995 and 1994
<TABLE>
<CAPTION>
ASSETS
1995 1994
<S> <C> <C>
Multi-family apartment complexes, net of
accumulated depreciation of $34,745,814
and $34,905,809, respectively (Note D) $33,505,527 $38,419,783
Cash and cash equivalents 2,022,328 598,443
Cash restricted for tenant security deposits 438,249 516,327
Cash restricted for capital improvements (Note D) 729,508 919,047
Prepaid expenses and other assets 1,370,882 1,568,572
Deferred expenses, net of accumulated
amortization of $401,925 and $463,623,
respectively (Note E) 489,238 582,008
Total assets $38,555,732 $42,604,180
LIABILITIES AND PARTNERS' DEFICIT
Mortgage notes payable (Notes C and D) $42,800,954 $47,390,488
Accounts payable 37,435 370,107
Accrued real estate taxes 1,660,000 1,895,473
Accrued expenses and other liabilities 1,183,468 1,219,501
Due to affiliates (Note E) 34,327 1,266,260
Total liabilities 45,716,184 52,141,829
Commitments and contingencies (Note F)
Partners' deficit (Note G):
Investor Limited Partners
(35,200 Units outstanding) (6,550,285) (8,903,710)
Original Limited Partner (234,539) (234,539)
General Partners (375,628) (399,400)
Total Partners deficit (7,160,452) (9,537,649)
Total liabilities and Partners' deficit $38,555,732 $42,604,180
</TABLE>
The accompanying notes are an integral
part of the consolidated financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
1995 1994 1993
Revenue:
<S> <C> <S> <C> <C> <C>
Rental (Note I) $13,695,050 $13,577,822 $13,524,281
Interest income 144,710 74,591 159,925
Total revenue 13,839,760 13,652,413 13,684,206
Expenses:
Operating (Note E) 3,732,763 4,103,984 4,469,090
Maintenance 895,329 941,189 871,079
General and administrative (Note E) 170,943 141,403 120,758
Real estate taxes 2,201,309 2,101,222 2,169,575
Management fees to an affiliate
(Note E) 512,462 438,049 440,403
Depreciation and amortization 3,405,153 3,421,941 4,125,915
Interest (Note D) 3,717,178 3,954,839 5,409,283
Total expenses 14,635,137 15,102,627 17,606,103
Loss before gain on sale of
property and extraordinary loss (795,377) (1,450,214) (3,921,897)
Gain on sale of property (Note C) 3,265,789 - -
Income (loss) before
extraordinary loss 2,470,412 (1,450,214) (3,921,897)
Extraordinary loss from early
extinguishment of debt (Note D) (93,215) - -
Net income (loss) (Note J) $ 2,377,197 $(1,450,214) $(3,921,897)
Allocation of net income (loss) (Note G):
Investor Limited Partners
(35,200 Units outstanding) $ 2,353,425 $(1,435,712) $(3,882,678)
Per Unit - Investor
Limited Partners:
Loss before gain on sale of
property and extraordinary
loss $ (22.37) $ (40.79) $ (110.30)
Gain on sale of property 91.85 - -
Extraordinary loss (2.62) - -
Net income $ 66.86 $ (40.79) $ (110.30)
Original Limited Partner:
Loss before gain on sale of
property and extraordinary
loss $ - $ - $ -
Gain on sale of property - - -
Extraordinary loss - - -
Net income $ - $ - $ -
General Partners:
Loss before gain on sale of
property and extraordinary
loss $ (7,954) $ (14,502) $ (39,219)
Gain on sale of property 32,658 - -
Extraordinary loss (932) - -
Net income $ 23,772 $ (14,502) $ (39,219)
</TABLE>
The accompanying notes are an integral
part of the consolidated financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' DEFICIT
For the Years Ended December 31, 1995, 1994 and 1993
_____________
<TABLE>
<CAPTION>
Investor Original Total
Limited Limited General Partners'
Partners Partner Partners Deficit
Balance at
<S> <C> <C> <C> <C>
December 31, 1992 $(3,559,384) $(232,866) $(345,400) $(4,137,650)
Distributions
(Note H) (25,936) (1,673) (279) (27,888)
Net loss (3,882,678) - (39,219) (3,921,897)
Balance at
December 31, 1993 (7,467,998) (234,539) (384,898) (8,087,435)
Net loss (1,435,712) - (14,502) (1,450,214)
Balance at
December 31, 1994 (8,903,710) (234,539) (399,400) (9,537,649)
Net income 2,353,425 - 23,772 2,377,197
Balance at
December 31, 1995 $(6,550,285) $(234,539) $(375,628) $(7,160,452)
</TABLE>
The accompanying notes are an integral
part of the consolidated financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
1995 1994 1993
Operating activities:
<S> <C> <C> <C>
Net income (loss) $ 2,377,197 $(1,450,214) $(3,921,897)
Adjustments to reconcile
net income (loss) to net
cash provided by operating
activities:
Depreciation and amortization 3,405,153 3,421,941 4,125,915
Gain on sale of property (3,265,789) - -
Extraordinary loss from early
extinguishment of debt 93,215 - -
Amortization of mortgage
premium - - 326,164
Decrease (increase) in cash
restricted for tenant
security deposits 78,078 50,299 (44,789)
Decrease in prepaid expenses
and other assets 197,690 42,165 425
Increase (decrease) in accounts
payable (143,652) (412,993) 419,671
Increase (decrease) in accrued
real estate taxes (235,473) (30,880) 53,511
Increase (decrease) in accrued
expenses and other
liabilities (36,033) 70,505 (1,188,156)
Increase (decrease) in
due to affiliates (1,231,933) (119,068) 382,922
Net cash provided by
operating activities 1,238,453 1,571,755 153,766
Investing activities:
Additions to fixed assets (1,539,727) (3,016,777) (1,619,113)
Decrease (increase) in cash
restricted for capital
improvements 189,539 1,361,295 (1,329,701)
Net consideration received from
the sale of property 6,392,353 - -
Increase (decrease) in accounts
payable related to fixed
asset additions (189,020) 77,846 111,174
Net cash provided by (used
in) investing activities 4,853,145 (1,577,636) (2,837,640)
Financing activities:
Proceeds from mortgage note
payable - - 33,000,000
Repayment of mortgage notes
payable (4,050,721) - (32,626,898)
Payment of prepayment premium (78,179) - -
Principal payments on
mortgage notes payable (538,813) (542,839) (303,868)
Increase in deferred expenses - (12,138) (316,471)
Distributions - - (27,888)
Net cash used in
financing activities (4,667,713) (554,977) (275,125)
Net increase (decrease) in
cash and cash equivalents 1,423,885 (560,858) (2,958,999)
Cash and cash equivalents,
beginning of year 598,443 1,159,301 4,118,300
Cash and cash equivalents,
end of year $ 2,022,328 $ 598,443 $ 1,159,301
</TABLE>
The accompanying notes are an integral
part of the consolidated financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A. Organization
Krupp Realty Limited Partnership-V ("KRLP-V") was formed on June 16,
1983 by filing a Certificate of Limited Partnership in The
Commonwealth of Massachusetts. KRLP-V terminates on December 31,
2020, unless earlier terminated upon the sale of the last of KRLP-V's
properties or the occurrence of certain other events as set forth in
the Partnership Agreement. KRLP-V issued all of the General Partner
Interests to two General Partners in exchange for capital
contributions aggregating $1,000. The Krupp Corporation (a
Massachusetts corporation) and The Krupp Company Limited
Partnership-II (a Massachusetts limited partnership) are the General
Partners of KRLP-V. Except under certain limited circumstances upon
termination of KRLP-V, the General Partners are not required to make
any additional capital contributions. KRLP-V has also issued all of
the Original Limited Partner Interests to The Krupp Company Limited
Partnership-II in exchange for a capital contribution of $4,000.
On September 6, 1983, KRLP-V commenced the marketing and sale of
units of Investor Limited Partner Interest ("Units") for $1,000 per
unit. The public offering was closed on December 2, 1983 at which
time a total of 35,200 Units had been sold for $35,200,000.
On March 20, 1989 the General Partners formed Krupp Realty Park
Place-Chicago Limited Partnership ("Realty-V") as a prerequisite for
the refinancing of Park Place Tower Apartments ("Park Place"). At
the same time the General Partners transferred ownership of Park
Place to Realty-V. The General Partner of Realty-V is The Krupp
Corporation ("Krupp Corp."). The Limited Partner of Realty-V is
KRLP-V. Krupp Corp. has beneficially assigned its interest in
Realty-V to KRLP-V. KRLP-V and Realty-V are collectively known as
Krupp Realty Limited Partnership-V and Subsidiary (collectively
referred to herein as the "Partnership").
B. Significant Accounting Policies
The Partnership uses the following accounting policies for financial
reporting purposes, which may differ in certain respects from those
used for federal income tax purposes (see Note J).
Basis of Presentation
The consolidated financial statements present the consolidated
assets, liabilities and operations of the Partnership. All
intercompany balances and transactions have been eliminated.
<PAGE>
Risks and Uncertainties
The Partnership invests its cash primarily in deposits and money
market funds with commercial banks. The Partnership has not
experienced any losses to date on its invested cash.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amount of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amount of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Cash Equivalents
The Partnership includes all short-term investments with maturities
of three months or less at the date of acquisition in cash and cash
equivalents. The cash investments are recorded at cost, which
approximates current market values.
Rental Revenues
Leases require the payment of base rent monthly in advance. Rental
revenues are recorded on the accrual basis. Leases generally
contain provisions for additional rent based on a percentage of
tenant sales and other provisions which are also recorded on the
accrual basis, but are billed in arrears. Minimum rental revenue
for long term commercial leases is recognized on a straight-line
basis over the life of the related lease.
Depreciation
Depreciation is provided for by the use of the straight-line method
over estimated useful lives of the related assets as follows:
Buildings and improvements 5-25 years
Appliances, carpeting and equipment 3-5 years
Impairment of Long-Lived Assets
In accordance with Financial Accounting Standards No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of", which is effective for fiscal years
beginning after December 15, 1995, the Partnership has implemented
policies and practices for assessing impairment of its real estate
assets.
The investments in properties are carried at cost less accumulated
depreciation unless the General Partners believe there is a
significant impairment in value, in which case a provision to write
down investments in properties to fair value will be charged against
income. At this time, the General Partners do not believe that any
assets of the Partnership are impaired.
Deferred Expenses
<PAGE>
Costs of obtaining and recording mortgages on the properties are
amortized over the term of the related mortgage notes using the
straight-line method.
Income Taxes
The Partnership is not liable for federal or state income taxes as
Partnership income or loss is allocated to the partners for income
tax purposes. In the event that the Partnership's tax returns are
examined by the Internal Revenue Service or state taxing authority
and the examination results in a change in the Partnership's taxable
income or loss, such change will be reported to the partners.
Reclassification
Certain prior year balances have been reclassified to conform with
the current year consolidated financial statement presentation.
C. Disposition of Real Estate Investment
On July 19, 1995, the Partnership sold Marine Terrace Apartments, a
187 unit apartment complex located in Chicago, Illinois, for cash
proceeds and other considerations which totalled $6,436,505.
Proceeds from the sale were used to pay closing costs of $44,152, to
repay the existing mortgage note on the property of $4,050,721 and to
satisfy other Partnership liabilities. For financial reporting
purposes the Partnership realized a gain of $3,265,789 on the sale.
The gain was calculated as the difference between net consideration
received less net book value of the property.
D. Mortgage Notes Payable
Substantially all of the properties owned by the Partnership is
pledged as collateral for the mortgage notes outstanding at December
31, 1995 and 1994 which consisted of the following:
<TABLE>
<CAPTION>
Annual
Principal Interest
Property 1995 1994 Rate Maturity Date
Century II
<S> <C> <C> <C> <C> <C>
Apartments $10,590,450 $10,715,999 10.625% May 1, 1999
Marine Terrace
Apartments - 4,098,302 10.5% -
Park Place
Tower Apartments 32,210,504 32,576,187 6.75% May 1, 2024
Total $42,800,954 $47,390,488
</TABLE>
Century II Apartments
The property is subject to a non-recourse first mortgage note of
$11,000,000, which is payable in equal monthly installments of
principal <PAGE>
and interest of $104,844, based on a 25-year amortization schedule.
The note matures on May 1, 1999, at which point all unpaid principal
(approximately $10,077,000) and any accrued interest is due. The
note may be prepaid, in whole, beginning May 1, 1994, subject to a
prepayment premium equal to 10% of the outstanding balance.
Beginning June 1, 1994 the prepayment premium shall equal 10% of the
outstanding principal balance, less 0.185% of the outstanding balance
per each calendar month expired after June 1, 1994. There shall be
no prepayment premium for any prepayment made during the six month
period prior to the maturity date of the note.
Based on the borrowing rates currently available to the Partnership
for bank loans with similar terms and average maturities, the fair
value of long term debt is approximately $13,300,000.
Marine Terrace Apartments
In conjunction with the sale of the property on July 19, 1995, the
Partnership prepaid the non-recourse first mortgage note of
$4,050,721. As a result of the retirement of debt, the Partnership
incurred a prepayment premium of $78,179. The prepayment premium, as
well as unamortized deferred mortgage costs of $15,036, are reported
in the Statement of Operations as an extraordinary loss from early
extinguishment of debt.
Park Place Tower Apartments
The property is subject to a non-recourse mortgage note of
$33,000,000, dated September 15, 1993, held by the U.S. Department of
Housing and Urban Development ("HUD"). The note is payable in equal
monthly installments of principal and interest of $212,783, based on
a 31-year amortization. At maturity, all unpaid principal
(approximately $1,457,000) and any accrued interest is due. The
note may not be prepaid prior to October 1, 1998. In the event
prepayment of principal occurs any time after this date, a prepayment
premium shall be due, based on a declining premium rate of 5% to 0%
of the outstanding principal balance over a period of 5 years.
As
stipulated in the regulatory agreement with HUD, the Partnership
makes monthly deposits of $17,743 in an established reserve for
replacements to be used for improvements. Under the terms of the
loan, HUD restricts the distribution of funds to Surplus Cash, as
defined by HUD in the regulatory agreement.
Based on the borrowing rates currently available to the Partnership
for bank loans with similar terms and average maturities, the fair
value of long-term debt is approximately $28,600,000.
The aggregate scheduled principal amounts of long-term borrowings due
during the five years ending December 31, 2000 are $527,285,
$569,802, $615,927, $10,614,413 and $509,135.
During the years ended December 31, 1995, 1994 and 1993, the
Partnership paid $3,555,694, $3,792,109 and $6,124,243 of interest on
its mortgage notes, respectively.
E. Related Party Transactions
<PAGE>
Commencing with the date of acquisition of the Partnership's
properties, the Partnership entered into agreements under which
property management fees are paid to an affiliate of the General
Partners for services as management agent. Such agreements provide
for management fees payable monthly at a rate of 5% of the gross
receipts from the properties under management. The Partnership also
reimburses affiliates of the General Partners for certain expenses
incurred in connection with the operation of the Partnership and its
properties including accounting, computer, insurance, travel, legal
and payroll; and with the preparation and mailing of reports and
other communications to the limited partners.
Amounts accrued or paid to the General Partners or their affiliates
during the years ended December 31, 1995, 1994 and 1993 were as
follows:
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Property management
fees $512,462 $438,049 $440,403
Expense
reimbursements 267,147 435,467 443,303
Charged to
operations $779,609 $873,516 $883,706
</TABLE>
Due to affiliates consists of the following as of December 31, 1995
and 1994:
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
Property management fees $ - $ 739,200
Expense reimbursements 34,327 527,060
$ 34,327 $1,266,260
</TABLE>
In addition to the amounts above, during 1994 and 1993 costs of
$14,083 and $27,658 respectively, were accrued or paid to the General
Partners or their affiliates. These costs related to refinancing the
debt on the Partnership's properties.
F. Legal Proceeding
The Partnership is a defendant in a class action suit related to the
practice of giving discounts for the early or timely payments of rent
at Park Place. The central issue of the complaint was whether the
operative lease violated a Chicago municipal ordinance relating to
late fee charges because it allowed tenants a discount if rent was
paid on or before the first day of the month. The ordinance in
question limited late fee charges to $10 per month if the rent was
more than 5 days late. The allegation was that, notwithstanding the
stated rental rate and printed discount, the practice represented an
unlawful means of exacting late fee charges. In addition to seeking
damages for any "forfeited" discounts, Plaintiffs seek statutory
damages of two months rent per <PAGE>
lease violation plus reasonable attorneys' fees. To be eligible for
such punitive damages Plaintiffs must prove that the Defendant
deliberately used a provision prohibited by the ordinance.
During 1994, the Court ruled in favor of the Defendant, and accepted
the Partnership's Motion to Dismiss the Plaintiffs' Third Amended
Complaint. The Plaintiffs have filed an appeal with the Appellate
Court of Illinois, First District, which is pending. Although
management believes that the defendant will prevail on the issue of
statutory damages, the ultimate outcome of this litigation, including
an estimate of any potential loss, cannot be presently determined and
accordingly no provision for loss has been made in the accompanying
consolidated financial statements.
G. Partners' Deficit
Under the terms of the Partnership Agreement, losses from operations
are allocated 99% to the Investor Limited Partners and 1% to the
General Partners and profits from operations are allocated 93% to the
Investor Limited Partners, 6% to the Original Limited Partner and 1%
to the General Partners until such time that the Investor Limited
Partners have received a return of their total invested capital plus
a 9% per annum cumulative return thereon and thereafter, 65% to the
Investor Limited Partners, 28% to the Original Limited Partner and 7%
to the General Partners. Profits or losses from capital transactions
are allocated in accordance with the Partnership Agreement.
Under the Partnership Agreement, cash distributions are generally
made on the same basis as the allocations of profits described above.
Pursuant to the Partnership Agreement, proceeds from Capital
Transactions shall first be applied to the payment of all debts and
liabilities of the Partnership and second to fund reserves for
contingent liabilities. The remaining net cash proceeds shall then
be distributed in accordance with the Partnership Agreement.
As of December 31, 1995 the following cumulative partner
contributions and allocations have been made since inception of the
Partnership:
<TABLE>
<CAPTION>
Investor Original
Limited Limited General
Partners Partner Partners Total
<S> <C> <C> <C> <C>
Capital contributions $ 35,200,000 $ 4,000 $ 1,000 $35,205,000
Syndication costs (4,501,000) - - (4,501,000)
Cash distributions (4,099,303) (251,479) (41,912) (4,392,694)
Net gains on capital
transactions 6,674,964 - 67,424 6,742,388
Net income (loss)
before capital
transactions (39,824,946) 12,940 (402,140) (40,214,146)
Balance at
<PAGE>
December 31, 1995 $ (6,550,285) $(234,539) $(375,628) $(7,160,452)
</TABLE>
H. Distributions
During 1993, the Partnership distributed $27,888 which was equivalent
to the required withholding tax for the state of Maryland which arose
from the sale of Fieldcrest Apartments. This amount was paid to the
state of Maryland for the benefit of all Partners.
I. Future Base Rents Due Under Commercial Operating Leases
Future base rent receivable under commercial operating leases for the
years 1996 through 2000 are as follows:
<TABLE>
<CAPTION>
<S> <C>
1996 $124,251
1997 $ 97,254
1998 $ 69,228
1999 $ 69,639
2000 $ 70,902
Thereafter $347,187
J. Federal Income Taxes
The reconciliations of the income (loss) reported in the accompanying
Consolidated Statement of Operations with the net income (loss)
reported in the Partnership's federal income tax return for the years
ended December 31, 1995, 1994 and 1993 are as follows:
</TABLE>
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Net income (loss) per Consolidated
Statement of Operations $2,377,197 $(1,450,214) $(3,921,897)
Difference between book and tax
depreciation 540 5,917 (6,885)
Difference between book and tax
gain on sale of property 962,454 - -
Net income (loss) for federal
income tax purposes $3,340,191 $(1,444,297) $(3,928,782)
</TABLE>
The allocation of the net loss for federal income tax purposes for 1995
is as follows:
<TABLE>
<CAPTION>
Portfolio Passive
Income Income Total
<S> <C> <C> <C>
General Partners $ 1,447 $ 31,955 $ 33,402
Original Limited Partner - - -
Investor Limited Partners 143,263 3,163,526 3,306,789
<PAGE>
$144,710 $3,195,481 $3,340,191
</TABLE>
During the years ended December 31, 1995, 1994 and 1993 the per Unit
net income (loss) to the Investor Limited Partners for federal income
tax purposes was $93.94, ($40.62) and $(111.61), respectively.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V AND SUBSIDIARY
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
<TABLE>
<CAPTION>
December 31, 1995
Costs
Capitalized
Subsequent to
Initial cost to Partnership Acquisition
Buildings & Buildings & Depreciable
Description Encumbrances Land Improvements Improvements Life
<S> <C> <C> <C> <C> <C>
Century II Apts
Cockeysville,
Maryland $10,590,450 $1,049,868 $13,948,246 $ 2,979,165 3 to 25 Yrs.
Park Place Apts
Chicago, Illinois 32,210,504 2,877,561 38,230,448 9,166,053 3 to 25 Yrs.
TOTAL $42,800,954 $3,927,429 $52,178,694 $12,145,218
</TABLE>
<TABLE>
<CAPTION>
Gross Amounts Carried at
End of Year
Buildings Year
and Accumulated Construction Year
Description Land Improvements Total Depreciation Completed Acquired
<S> <C> <C> <C> <C> <C> <C>
Century II Apts
Cockeysville,
Maryland $1,049,868 $16,927,411 $17,977,279 $ 9,817,661 1971 1984
Park Place Apts
Chicago,
Illinois 2,877,561 47,396,501 50,274,062 24,928,153 1973 1984
TOTAL $3,927,429 $64,323,912 $68,251,341 $34,745,814
</TABLE>
<PAGE> KRUPP REALTY LIMITED PARTNERSHIP-V AND SUBSIDIARY
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
(Continued)
December 31, 1995
Reconciliation of Real Estate and Accumulated Depreciation for each of the
three years in the period ended December 31, 1995:
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Real Estate
Balance at
beginning of year $73,325,592 $70,308,815 $68,689,702
Acquisitions and
improvements 1,539,727 3,016,777 1,619,113
Sale of property (6,613,978) - -
Balance at
end of year $68,251,341 $73,325,592 $70,308,815
Accumulated Depreciation
Balance at
beginning of year $34,905,809 $31,569,120 $28,403,204
Depreciation expense 3,327,419 3,336,689 3,165,916
Sale of property (3,487,414) - -
Balance at end of year $34,745,814 $34,905,809 $31,569,120
</TABLE>
Note: The aggregate cost of the Partnership's real estate for federal
income tax purposes was $68,255,163, and the aggregate accumulated
depreciation for federal income tax purposes was $43,097,392, at
December 31, 1995.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Fund 5
Financial Staements for the year ended December 31, 1995 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 2,460,577
<SECURITIES> 0
<RECEIVABLES> 105573
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,994,817
<PP&E> 69,142,504<F1>
<DEPRECIATION> (35,147,739)<F2>
<TOTAL-ASSETS> 38,555,732
<CURRENT-LIABILITIES> 2,915,230
<BONDS> 42,500,954<F3>
<COMMON> (7,160,452)<F4>
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 38,555,732
<SALES> 13,839,760
<TOTAL-REVENUES> 13,839,760
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 10,917,959<F5>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,717,178
<INCOME-PRETAX> 2,470,412<F6>
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,470,412<F6>
<DISCONTINUED> 0
<EXTRAORDINARY> (93,215)<F7>
<CHANGES> 0
<NET-INCOME> 2,377,197<F8>
<EPS-PRIMARY> 0<F8>
<EPS-DILUTED> 0<F8>
<FN>
<F1>Includes apartment complexes of $68,251,341 and deferred expenses of $89,163.
<F2>Includes depreciation of $34,745,814 and amortization of $401,925.
<F3>Represents mortgage notes payable.
<F4>Represents total deficit of general partners and limited partners of $375,628
and $6,784,824, respectively.
<F5>Included operating expeses of $5,311,497, real estate tax expense of $2,201,309
and depreciation and amortization of $3,4105,153.
<F6>Includes gain on sale of peroperty of $3,265,789.
<F7>Represents an extraordinary loss on the early extinguishment of debt.
<F8>Net income allocated $23,772 to the General Parnters and $2,353,425 to the
Limited Partners for the year ended 12/31/95. Average net income per unit of
Limited Partners interest is $66.86 on 35,200 units outstanding.
</FN>
</TABLE>
