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, 1996
COMMISSION FILE NUMBER 2-95118
GRIFFIN REAL ESTATE FUND-V, A LIMITED PARTNERSHIP
MINNESOTA 41-1507989
510 MARQUETTE AVENUE, SUITE 300
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
September 30, 1996 and December 31, 1995...................... 1
Condensed Statements of Operations
for the three and nine months ended
September 30, 1996 and 1995................................... 2
Condensed Statements of Cash Flows
for the nine months ended
September 30, 1996 and 1995................................... 3
Condensed Statements of Changes
in Partners' Equity for the
nine months ended September 30, 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)
September 30, December 31,
1996 1995
------------ ------------
ASSETS
Cash and cash equivalents $ 509,158 $ 501,306
Receivables and other assets 398,781 571,812
------------ ------------
Total 907,939 1,073,118
------------ ------------
PROPERTY:
Land 3,046,000 3,046,000
Buildings and improvements 17,513,054 17,088,531
Furniture and equipment 1,587,926 1,587,926
------------ ------------
Total 22,146,980 21,722,457
Less accumulated depreciation 8,133,972 7,594,027
------------ ------------
Property - net 14,013,008 14,128,430
------------ ------------
TOTAL ASSETS $ 14,920,947 $ 15,201,548
============ ============
LIABILITIES AND PARTNERSHIP EQUITY
LIABILITIES:
Accounts payable and accrued liabilities $ 253,766 $ 289,719
Security deposits 130,365 117,687
Mortgages, contracts for deed 13,062,254 13,171,774
------------ ------------
Total liabilities 13,446,385 13,579,180
------------ ------------
PARTNERS' EQUITY:
General Partner (210,230) (208,891)
Limited Partners 1,684,792 1,831,259
------------ ------------
Total partners' equity 1,474,562 1,622,368
------------ ------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 14,920,947 $ 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 For the Nine Months
Ended September 30, Ended September 30,
1996 1995 1996 1995
---- ---- ---- ----
REVENUES
Rental income $1,022,915 $1,009,069 $3,047,938 $2,980,065
Interest income 4,403 9,154 13,729 24,744
Recognition of
deferred revenue -- -- -- 246,635
Other income 20,178 17,454 60,926 61,658
---------- ---------- ---------- ----------
Total revenues 1,047,496 1,035,677 3,122,593 3,313,102
---------- ---------- ---------- ----------
OPERATING EXPENSES
Operating expenses 649,435 684,437 1,858,710 1,923,845
Interest expense 280,615 329,981 850,971 978,216
Depreciation and
amortization 182,282 182,690 546,845 548,068
---------- ---------- ---------- ----------
Total operating
expenses 1,112,332 1,197,108 3,256,526 3,450,129
---------- ---------- ---------- ----------
NET LOSS 64,836 161,431 133,933 137,027
NET LOSS ALLOCATED TO
GENERAL PARTNER 648 1,614 1,339 1,370
---------- ---------- ---------- ----------
NET LOSS ALLOCATED TO
LIMITED PARTNERS $ 64,188 $ 159,817 $ 132,594 $ 135,657
========== ========== ========== ==========
NET LOSS PER LIMITED
PARTNERSHIP UNIT $ 1.68 $ 4.18 $ 3.47 $ 3.54
(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,
1996 1995
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(133,933) $(137,027)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Deferred revenue recognized -- (246,635)
Depreciation and amortization 546,845 548,068
Decrease in other assets-net 166,131 89,486
Decrease in accounts payable
and accrued liabilities (35,953) (11,299)
Increase in security deposits 12,678 3,994
--------- ---------
Net cash provided by operating activites 555,768 246,587
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITES:
Purchase of property (424,523) (232,514)
--------- ---------
Net cash used by investing activities (424,523) (232,514)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Collection of notes receivable -- 308,993
Reduction in mortgage payable (109,520) (47,011)
Repurchased partnership units (13,873) --
--------- ---------
Net cash provided (used) by financing activities (123,393) 261,982
INCREASE IN CASH AND CASH EQUIVALENTS 7,852 276,055
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 501,306 306,890
--------- ---------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 509,158 $ 582,945
========= =========
CASH PAID DURING THE PERIOD FOR INTEREST $ 853,862 $ 975,792
========= =========
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, 1996
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
------- -------- -----------
PARTNERS' EQUITY (DEFICIT)
JANUARY 1, 1996 $ (208,891) $ 1,831,259 $ 1,622,368
NET LOSS (1,339) (132,594) (133,933)
REDEMPTION OF THIRTY
PARTNERSHIP UNITS -- (13,873) (13,873)
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT)
SEPTEMBER 30, 1996 $ (210,230) $ 1,684,792 $ 1,474,562
=========== =========== ===========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 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
September 30, 1996 and December 31, 1995 and the results of its
operations for the three months and nine months ended September 30, 1996
and 1995 and its cash flows for the nine months ended September 30, 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 nine
months ended September 30, 1996 and 1995 relating to the Griffin
Companies and its affiliates:
1996 1995
---- ----
Management fees $ 166,801 $ 171,357
Supervisory fees $ 64,493 $ 58,397
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,
1996 1995
---- ----
Net loss per statement
of operations $ 133,933 $ 137,027
Excess of tax depreciation over
book depreciation 9,161 17,051
---------- ----------
Taxable loss $ 143,094 $ 154,078
========== ==========
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, 1996, the Partnership had cash and cash equivalents of $509,158
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 third 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.
Overall, gross rental income was $1,113,725 and $1,064,907 for the third quarter
of 1996 and 1995 respectively. This is an increase of $48,818 or 4.6% increase
in the overall average rents for the properties. Vacancy was $90,810 or 8.2% of
gross rents and $55,838 or 5.2% of gross rents for the third quarter of 1996 and
1995 respectively.
Operating expenses were $649,435 and $684,437 for the third quarter of 1996 and
1995 respectively. This is a decrease of $35,002 primarily due to reduced repair
and maintenance costs and fewer appliance and carpet replacements. The decrease
comes despite increases in utilities and , to a lesser extent, real estate
taxes.
Expenditures continue to be made to upgrade the Partnership's properties.
$424,523 was expended during the first nine months of 1996 on property
improvements, including the exterior upgrades of Country Club Apartments and
Desert Pines Apartments.
Ravenwood Apartments is currently being marketed for sale. A contract for the
sale of the property was executed on July 1, 1996. However, the agreement for
the sale was canceled by the buyer.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
OCCUPANCY TABLE
Approximate occupancy levels of the Partnership's investment property by
quarter.
1995 1996
---------------------------- ----------------------------
at at
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% 87% 87%
2.Country Club
Apartments
Anderson, SC 97% 98% 98% 99% 99% 97% 97%
3.Savannah Oaks
Apartments
Marietta, GA 97% 99% 99% 97% 97% 98% 96%
4.Desert Pines
Apartments
Tucson, AZ 99% 95% 96% 95% 94% 89% 93%
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 in Hennepin County Minnesota's Fourth Judicial District Court
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 provide 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 has not been admitted as a limited partner of the Partnership
despite having been assigned a financial interest in 10 units by some
original limited partners. 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 in the
Minnesota Court of Appeals on March 12, 1996. Briefs were filed and
oral arguments were heard by the court on July 1, 1996. On September
10, 1996 the court affirmed the dismissal.
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: November 15, 1996 By /s/ Larry D. Fransen
-------------------------------
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
Date: November 15, 1996 By /s/ Larry D. Fransen
-------------------------------
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 509,158
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<RECEIVABLES> 0
<ALLOWANCES> 0
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<CURRENT-ASSETS> 398,781
<PP&E> 22,146,980
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<COMMON> 0
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<INCOME-PRETAX> (133,933)
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<FN>
<F1>This entity is a limited partnership. The Other Stockholders Equity line
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<F2>The EPS - Primary line represents net loss per limited partnership unit.
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