UNITED STATES
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 THE QUARTER ENDED SEPTEMBER 30, 1995
COMMISSION FILE NUMBER 2-95118
GRIFFIN REAL ESTATE FUND-V, A LIMITED PARTNERSHIP
MINNESOTA 41-1507989
750 NORTHLAND PLAZA
3800 WEST 80TH STREET, MINNEAPOLIS, MINNESOTA 55431
REGISTRANT'S TELEPHONE NUMBER (612) 896-3800
WATS NUMBER 800-328-3788
Indicate by check mark whether the registrant (1) has filed reports 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 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 (229.405 of this chapter) 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-Q
or any amendment to this Form 10-Q. [ ]
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
INDEX
PART 1. Financial Information
Condensed Balance Sheets
September 30, 1995 and December 31, 1994.................. 1
Condensed Statements of Operations
for the three months and the nine months ended
September 30, 1995 and 1994............................... 2
Condensed Statements of Cash Flows
for the nine months ended
September 30, 1995 and 1994............................... 3
Condensed Statements of Changes
in Partners' Equity for the
nine months ended September 30, 1995...................... 4
Notes to Financial Statements............................... 5
Management's Discussion and Analysis of
Financial Conditions and Results
of Operations............................................. 6-7
PART II. Other Information........................................... 8
SIGNATURES........................................................... 9
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS
(unaudited)
September 30, December 31,
1995 1994
ASSETS
Cash and cash equivalents $ 582,945 $ 306,890
Receivables and other assets 283,959 701,420
Total 866,904 1,008,310
PROPERTY:
Land 3,046,000 3,046,000
Buildings and improvements 16,924,193 16,691,679
Furniture and equipment 1,587,926 1,587,926
Total 21,558,119 21,325,605
Less accumulated depreciation 7,409,504 6,880,418
Property - net 14,148,615 14,445,187
TOTAL ASSETS $ 15,015,519 $ 15,453,497
LIABILITIES AND PARTNERSHIP EQUITY
LIABILITIES:
Accounts payable and accrued liabilities $ 277,568 $ 535,502
Security deposits 116,506 112,512
Mortgage notes payable 13,008,485 13,055,496
Total liabilities 13,402,559 13,703,510
PARTNERS' EQUITY:
General Partner (208,985) (207,615)
Limited Partners 1,821,945 1,957,602
Total partners' equity 1,612,960 1,749,987
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 15,015,519 $ 15,453,497
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1995 1994 1995 1994
REVENUES
Rental income $1,009,069 $ 962,682 $2,980,065 $2,844,661
Interest income 9,154 10,095 24,744 29,719
Other income 17,454 20,536 61,658 90,842
Total revenues 1,035,677 993,313 3,066,467 2,965,222
OPERATING EXPENSES
Operating expenses 684,437 623,889 1,923,845 1,946,115
Interest expense 329,981 270,196 978,216 777,780
Depreciation and
amortization 182,690 178,604 548,068 528,915
Total operating expenses 1,197,108 1,072,689 3,450,129 3,252,810
NET LOSS BEFORE
EXTRAORDINARY ITEM 161,431 79,376 383,662 287,588
EXTRAORDINARY ITEM
Deferred gain on sale -- -- 246,635 --
NET LOSS 161,431 79,376 137,027 287,588
NET LOSS
ALLOCATED TO
GENERAL PARTNER 1,614 794 1,370 2,876
NET LOSS
ALLOCATED TO
LIMITED PARTNERS $ 159,817 $ 78,582 $ 135,657 $ 284,712
NET LOSS
PER LIMITED
PARTNERSHIP UNIT $ 4.18 $ 2.06 $ 3.54 $ 7.43
(weighted average basis)
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
For the Nine Months
Ended September 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(137,027) $(287,588)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Depreciation and amortization 548,068 528,915
Decrease in other assets-net 89,486 178,856
Decrease in accounts payable
and accrued liabilities (257,934) (119,224)
Increase in security deposits 3,994 7,599
Net cash provided by
operating activities 246,587 308,558
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property (232,514) (176,935)
Net cash used by investing activities (232,514) (176,935)
CASH FLOWS FROM FINANCING ACTIVITIES:
Collection of notes receivable 308,993 --
Reduction in mortgage payable (47,011) (47,092)
Redemption of Partnership units -- (9,304)
Net cash provided (used) by
financing activities 261,982 (56,396)
INCREASE IN CASH AND
CASH EQUIVALENTS 276,055 75,227
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 306,890 267,228
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 582,945 $ 342,455
CASH PAID DURING THE PERIOD FOR INTEREST $ 975,792 $ 777,780
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
PARTNERS' EQUITY (DEFICIT)
JANUARY 1, 1995 $ (207,615) $ 1,957,602 $ 1,749,987
NET LOSS (1,370) (135,657) (137,027)
PARTNERS' EQUITY (DEFICIT)
SEPTEMBER 30, 1995 $ (208,985) $ 1,821,945 $ 1,612,960
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(unaudited)
1. Griffin Real Estate Fund-V, A Limited Partnership (the Partnership) was
formed by the general partners, Griffin Equity Partners, A Minnesota
partnership and Guardian Investment Corporation, a Minnesota corporation on
March 5, 1985 under the laws of the State of Minnesota. The limited
partnership offering terminated on March 4, 1986 at which time 38,346 units
had been sold.
In the opinion of management, the accompanying unaudited financial
statements contain all adjustments necessary to present fairly Griffin Real
Estate FundV, A Limited Partnership's financial position as of September
30, 1995 and December 31, 1994 and the results of its operations for the
three months and nine months ended September 30, 1995 and 1994 and its cash
flows for the nine months ended September 30, 1995 and 1994.
The accounting policies followed by the Partnership are set forth in Note 1
to the Partnership financial statements in the 1994 Griffin Real Estate
Fund-V, A Limited Partnership Form 10K.
2. RELATED PARTY TRANSACTIONS
The partners of Griffin Equity Partners and the shareholders, of Guardian
Investment Corporation, the general partners of the Partnership are also
owners and/or employees of the Griffin Companies, a Minnesota corporation.
The following is summary of fees incurred for the nine months ended
September 30, 1995 and 1994 relating to the Griffin Companies and its
affiliates:
1995 1994
Management fee $171,357 $157,113
Supervisory fee $ 58,397 $ 67,260
3. TAXABLE LOSS
The net loss shown on the statement of operations is reconciled to the
taxable loss as follows:
For the Nine Months
Ended September 30,
1995 1994
Net loss per statement of operations $ 137,027 $ 287,588
Excess of tax depreciation
over book depreciation 17,051 50,837
Taxable loss $ 154,078 $ 338,425
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1995, the Partnership had cash and cash equivalents of $582,945
which will be used for working capital requirements of the Partnership and its
properties. It is anticipated that the Partnership will be able to meet current
obligations and commitments from cash on hand and from cash generated from
operations during 1995.
Distributions to partners were not made during the first nine months of 1995.
Future cash distributions will depend on future property operations.
RESULTS OF OPERATIONS
The General Partner, after reasonable inquiry, is not aware of any material
factors relating to any of the Partnership's properties or the operations of the
Partnership that would cause the financial information of the Partnership not to
be indicative of future operating results or of future financial conditions.
Overall, gross rental income was $3,151,047 and $2,996,340 for the first three
quarters of 1995 and 1994 respectively. This is an increase of $154,707 or 5% in
the overall average rents for the properties. Vacancy for the same periods was
just over 5% of gross rents.
Operating expenses were $1,923,845 and $1,946,115 for the first three quarters
of 1995 and 1994 respectively. This is a decrease of $22,270 primarily due to
fewer appliance and carpet replacements. On the other hand, interest expense was
$978,216 and $777,780 for the first three quarters of 1995 and 1994
respectively. This is an increase of $200,436 due to the increasing interest
rate environment during 1994 and 1995. Interest rates on the adjustable rate
mortgages increased by as much as 3.88% from the rates in place during the third
quarter of 1994 as compared to the rates in place during the third quarter of
1995.
During the first quarter, the Partnership collected a note receivable which
arose from the disposition of Lantern Square Apartments in 1991. The collection
of the note resulted in the receipt of approximately $308,000 and the
recognition of deferred revenue of $246,635.
During the second quarter, the Partnership completed the third modification of
the Savannah Oaks Apartments' Confederation Life first mortgage loan. Briefly,
the terms of the $4,363,252 loan modification called for the continuation of
monthly interest only payments through July 15, 1995 at $40,951. On July 15,
1995 the interest rate was reduced from 11.26% to 9.25% and the loan began
amortization over 25 years resulting in a new fixed monthly payment of principal
and interest commencing August 15, 1995 of $37,367. The loan maturity date was
changed to February 15, 2000.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
OCCUPANCY TABLE
Approximate occupancy levels of the Partnership's investment property by
quarter.
1994 1995
at at
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
1. Ravenwood Apts.
Cincinnati, OH 89% 92% 90% 90% 86% 91% 91%
2. Country Club
Apartments
Anderson, SC 94% 98% 98% 98% 97% 98% 98%
3. Savannah Oaks
Apartments
Marietta, GA 97% 95% 99% 99% 97% 99% 99%
6. Desert Pines
Apartments
Tucson, AZ 98% 95% 96% 96% 99% 95% 96%
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
On September 20, 1995 Everest Investors, LLC ("Everest") filed a
lawsuit against Griffin Equity Partners and Guardian Investment
Corporation ("General Partner"), the general partners of Griffin Real
Estate Fund-V, A Limited Partnership ("Partnership"). The lawsuit
alleges that the General Partner has wrongfully denied Everest access
to the books and records of the Partnership. The court has granted, in
part, Everest's request for access to the books and records and
ordered the General Partner to provide Everest access to these
records. The General Partner has complied with this court order.
Everest continues to seek access to additional books and records of
the Partnership beyond the scope of the court order. The General
Partner is vigorously defending The Partnership's right to keep its
proprietary records from being reviewed by Everest, who is not limited
partner of the Partnership and, therefore, we believe, not entitled to
access to the books and records.
Although the Partnership was not a named defendant in the action, the
General Partner believes that it has a right to be indemnified for the
costs of this litigation by the Partnership under the Partnership
Agreement. Everest is contesting the General Partner's right to
indemnification.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial data schedule - for SEC use only.
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter for
which this report is filed.
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.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
Date: November 15, 1995 By /s/ Larry D. Fransen
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
Date: November 15, 1995 By /s/ Larry D. Fransen
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
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<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 582,945
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<RECEIVABLES> 0
<ALLOWANCES> 0
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<PP&E> 21,558,119
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<OTHER-SE> 1,612,960<F1>
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