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 MARCH 31, 1996
COMMISSION FILE NUMBER 2-95118
GRIFFIN REAL ESTATE FUND-V, A LIMITED PARTNERSHIP
MINNESOTA 41-1507989
SUITE 300
510 MARQUETTE AVENUE, MINNEAPOLIS, MINNESOTA 55402
REGISTRANT'S TELEPHONE NUMBER (612) 338-2828
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
March 31, 1996 and December 31, 1995.......................... 1
Condensed Statements of Operations
for the three months ended
March 31, 1996 and 1995....................................... 2
Condensed Statements of Cash Flows
for the three months ended
March 31, 1996 and 1995....................................... 3
Condensed Statements of Changes
in Partners' Equity for the
three months ended March 31, 1996............................. 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)
March 31, December 31,
1996 1995
------------ ------------
ASSETS
Cash and cash equivalents $ 542,212 $ 501,306
Receivables and other assets 557,175 571,812
------------ ------------
Total 1,099,387 1,073,118
------------ ------------
PROPERTY:
Land 3,046,000 3,046,000
Buildings and improvements 17,142,929 17,088,531
Furniture and equipment 1,587,926 1,587,926
------------ ------------
Total 21,776,855 21,722,457
Less accumulated depreciation 7,774,009 7,594,027
------------ ------------
Property - net 14,002,846 14,128,430
------------ ------------
TOTAL ASSETS $ 15,102,233 $ 15,201,548
============ ============
LIABILITIES AND PARTNERSHIP EQUITY
LIABILITIES:
Accounts payable and accrued liabilities $ 254,535 $ 289,719
Security deposits 118,806 117,687
Mortgage notes payable 13,136,833 13,171,774
------------ ------------
Total liabilities 13,510,174 13,579,180
------------ ------------
PARTNERS' EQUITY:
General Partner (209,055) (208,891)
Limited Partners 1,801,114 1,831,259
------------ ------------
Total partners' equity 1,592,059 1,622,368
------------ ------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 15,102,233 $ 15,201,548
============ ============
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months
Ended March 31,
1996 1995
----------- -----------
REVENUES
Rental income $ 1,015,860 $ 973,120
Interest income 4,986 3,583
Recognition of deferred revenue -- 246,635
Other income 18,094 21,692
----------- -----------
Total revenues 1,038,940 1,245,030
----------- -----------
OPERATING EXPENSES
Operating expenses 585,844 601,294
Interest expense 287,251 311,609
Depreciation and amortization 182,281 182,690
----------- -----------
Total operating expenses 1,055,376 1,095,593
----------- -----------
NET INCOME (LOSS) (16,436) 149,437
NET INCOME (LOSS) ALLOCATED TO
GENERAL PARTNER (164) 1,494
----------- -----------
NET INCOME (LOSS) ALLOCATED TO
LIMITED PARTNERS $ (16,272) $ 147,943
=========== ===========
PER UNIT: (weighted average basis)
NET INCOME (LOSS) $ (.43) $ 3.87
=========== ===========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
For the Three Months
Ended March 31,
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (16,436) $ 149,437
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Deferred gain on sale -- (246,635)
Depreciation and amortization 182,281 182,690
Decrease in other assets-net 12,338 26,477
Decrease in accounts payable
and accrued liabilities (35,184) (40,004)
Increase (decrease) in security deposits 1,119 (1,711)
--------- ---------
Net cash provided by
operating activities 144,118 70,254
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property (54,398) (14,270)
--------- ---------
Net cash used by investing activities (54,389) (14,270)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction of notes receivable -- 308,993
Redemption of Partnership Units (13,873) --
Reduction in mortgage notes payable (34,941) (13,401)
--------- ---------
Net cash provided (used) by financing activities (48,814) 295,592
--------- ---------
INCREASE IN CASH AND
CASH EQUIVALENTS 40,906 351,576
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 501,306 306,890
--------- ---------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 542,212 $ 658,466
========= =========
CASH PAID DURING THE PERIOD FOR INTEREST $ 288,015 $ 325,202
========= =========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1996
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT)
JANUARY 1, 1996 $ (208,891) $ 1,831,259 $ 1,622,368
NET LOSS (164) (16,272) (16,436)
REDEMPTION OF THIRTY
PARTNERSHIP UNITS -- (13,873) (13,873)
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT)
MARCH 31, 1996 $ (209,055) $ 1,801,114 $ 1,592,059
=========== =========== ===========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1996
(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 Fund-V, A Limited Partnership's financial position as of March
31, 1996 and December 31, 1995 and the results of its operations for the
three months ended March 31, 1996 and 1995 and its cash flows for the
three months ended March 31, 1996 and 1995.
The accounting policies followed by the Partnership are set forth in Note
1 to the Partnership financial statements in the 1995 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 three months ended March
31, 1996 and 1995 relating to the Griffin Companies and its affiliates:
1996 1995
---- ----
Management fees $ 56,545 $ 59,594
Supervisory fees $ 14,518 $ 19,095
3. TAXABLE INCOME (LOSS)
The net income (loss) shown on the statement of operations is reconciled
to the taxable income (loss) as follows:
For the Three Months
Ended March 31,
1996 1995
---- ----
Net income (loss) per statement
of operations $(16,436) $149,437
Excess of tax depreciation
over book depreciation (3,054) $ (5,684)
-------- --------
Taxable income (loss) $(19,490) $143,753
======== ========
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 March 31, 1996, the Partnership had cash and cash equivalents of $542,212
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 1996.
Distributions to partners were not made during the first quarter of 1996. 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.
Gross rental income was $1,091,846 and $1,036,950 for the first quarter of 1996
and 1995 respectively. This is an increase of $54,896 or 5.3% in the average
apartment rental rates for the properties. Vacancy was $75,986 or 7.0% and
$63,830 or 6.2% for the first quarter of 1996 and 1995 respectively. Although
there was an increase in vacancy, this was more than offset by increased rental
rates resulting in a $42,740 increase in rental income.
Operating expenses were $585,844 and $601,294 for the first quarter of 1996 and
1995 respectively. The decrease of $15,450 was a result of decreased repair and
maintenence costs and carpet and appliance replacement. Interest expense was
$287,251 and $311,609 for the first quarter of 1996 and 1995 respectively. This
is a decrease of $24,358 due essentially to the reduction in interest paid for
the Country Club Apartments loan which was refinanced during the fourth quarter
of 1995. The refinancing reduced the interest rate on the debt from 11.45% to
7.94%.
The results of operations was a net loss of $16,436 and net income of $149,437
in the first quarter of 1996 and 1995 respectively. However, during the first
quarter of 1995 the Partnership collected a note receivable which arose from the
disposition of Lantern Square Apartments in 1991. The collection of the note
resulted in receipt of over $308,000 and the recognition of deferred revenue of
$246,635. If the deferred revenue were excluded from the results of operations,
first quarter 1995 would have had a net loss of $97,198 compared to a net loss
of $16,436 for the first quarter of 1996.
Ravenwood Apartments is being marketed for sale. A sale of the property is
presently being negotiated, however, the property is not currently under any
formal purchase contract.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
OCCUPANCY TABLE
Approximate occupancy levels of the Partnership's investment property by
quarter.
<TABLE>
<CAPTION>
1995 1996
--------------------------------- ---------------------------------
at at
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
1. Ravenwood Apts.
Cincinnati, OH 86% 91% 91% 86% 87%
2. Country Club
Apartments
Anderson, SC 97% 98% 98% 99% 99%
3. Savannah Oaks
Apartments
Marietta, GA 97% 99% 99% 97% 97%
6. Desert Pines
Apartments
Tucson, AZ 99% 95% 96% 95% 94%
</TABLE>
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 partner of Griffin Real
Estate Fund-V, A Limited Partnership ("Partnership"). The lawsuit
alleged that the General Partner had wrongfully denied Everest access
to the books and records of the Partnership. The court granted, in
part, Everest's request for access to the books and records and ordered
the General Partner to provided Everest access to these records. The
General Partner complied with this court order. Everest continued to
seek access to additional books and records of the Partnership beyond
the scope of the court order. The General Partner vigorously defended
the Partnership's right to keep its proprietary records from being
reviewed by Everest, who is not a limited partner of the Partnership.
The General Partner filed for a dismissal of the matter. The court
heard arguments on September 29, 1995, October 26, 1995 and November
17, 1995. On November 27, 1995 the court dismissed Everest's lawsuit.
Everest appealed the dismissal on March 12, 1996 and a decision is
pending.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) 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: May 15, 1996 By /s/ Larry D. Fransen
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
Date: May 15, 1996 By /s/ Larry D. Fransen
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 542,212
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,099,387
<PP&E> 21,776,855
<DEPRECIATION> 7,774,009
<TOTAL-ASSETS> 15,102,233
<CURRENT-LIABILITIES> 373,341
<BONDS> 13,136,833
0
0
<COMMON> 0
<OTHER-SE> 1,592,059<F1>
<TOTAL-LIABILITY-AND-EQUITY> 15,102,233
<SALES> 0
<TOTAL-REVENUES> 1,033,954
<CGS> 0
<TOTAL-COSTS> 768,125
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 282,265
<INCOME-PRETAX> (16,436)
<INCOME-TAX> 0
<INCOME-CONTINUING> (16,436)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (16,436)
<EPS-PRIMARY> (.43)<F2>
<EPS-DILUTED> 0
<FN>
<F1>This entity is a limited partnership. The Other Stockholders Equity line
represents total Partnership equity.
<F2>The EPS-Primary line represents net loss per limited partnership unit.
</FN>
</TABLE>
