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 JUNE 30, 1997
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. [ ]
<PAGE>
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
INDEX
PART 1. Financial Information
Condensed Balance Sheets
June 30, 1997 and December 31, 1996........................ 1
Condensed Statements of Operations
for the three and six months ended
June 30, 1997 and 1996..................................... 2
Condensed Statements of Cash Flows
for the six months ended
June 30, 1997 and 1996..................................... 3
Condensed Statements of Changes
in Partners' Equity for the
six months ended June 30, 1997............................. 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
<PAGE>
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS
(unaudited)
June 30, December 31,
1997 1996
------------ ------------
ASSETS
- ------
Cash and cash equivalents $ 780,587 $ 450,906
Receivables and other assets 284,057 461,189
------------ ------------
Total 1,064,644 912,095
------------ ------------
PROPERTY:
Land 2,724,000 3,046,000
Buildings and improvements 15,299,900 17,646,870
Furniture and equipment 1,313,086 1,592,170
------------ ------------
Total 19,336,986 22,285,040
Less accumulated depreciation 7,210,556 8,325,543
------------ ------------
Property - net 12,126,430 13,959,497
------------ ------------
TOTAL ASSETS $ 13,191,074 $ 14,871,592
============ ============
LIABILITIES AND PARTNERSHIP EQUITY
- ----------------------------------
LIABILITIES:
Accounts payable and accrued liabilities $ 235,814 $ 302,614
Security deposits 105,907 125,235
Mortgage loans 10,833,166 13,025,497
------------ ------------
Total liabilities 11,174,887 13,453,346
------------ ------------
PARTNERS' EQUITY:
General Partner (204,814) (210,793)
Limited Partners 2,221,001 1,629,039
------------ ------------
Total partners' equity 2,016,187 1,418,246
------------ ------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 13,191,074 $ 14,871,592
============ ============
See notes to condensed financial statements.
<PAGE>
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
---------- ----------- ---------- -----------
REVENUES
Rental income $ 999,762 $ 1,009,163 $2,031,516 $ 2,025,023
Interest income 7,526 4,340 15,713 9,326
Other income 18,275 22,654 37,431 40,748
Gain on sale of property 679,203 -- 679,203 --
---------- ----------- ---------- -----------
Total revenues 1,704,766 1,036,157 2,763,863 2,075,097
---------- ----------- ---------- -----------
OPERATING EXPENSES
Operating expenses 556,820 623,431 1,161,752 1,209,275
Interest expense 281,432 283,105 563,961 570,356
Depreciation and
amortization 247,375 182,282 440,209 364,563
---------- ----------- ---------- -----------
Total operating
expenses 1,085,627 1,088,818 2,165,922 2,144,194
---------- ----------- ---------- -----------
NET INCOME (LOSS) 619,139 (52,661) 597,941 (69,097)
NET INCOME (LOSS)
ALLOCATED TO
GENERAL PARTNER 6,191 (527) 5,979 (691)
---------- ----------- ---------- -----------
NET INCOME (LOSS)
ALLOCATED TO
LIMITED PARTNERS $ 612,948 $ (52,134) $ 591,962 $ (68,406)
========== =========== ========== ===========
NET INCOME (LOSS)
PER LIMITED
PARTNERSHIP UNIT
(weighted average
basis) $ 16.03 $ ( 1.36) $ 15.48 $ (1.79)
========== =========== ========== ===========
See notes to condensed financial statements.
<PAGE>
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
For the Six Months
Ended June 30,
1997 1996
----------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 597,941 $ (69,097)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Gain on sale of property (679,203) --
Depreciation and amortization 440,209 364,563
Decrease (increase) in other assets-net 96,730 (35,357)
Decrease in accounts payable
and accrued liabilities (66,800) (4,499)
Increase (decrease) in security deposits (19,328) 6,830
----------- ---------
Net cash provided by operating activites 369,549 262,440
----------- ---------
CASH FLOWS FROM INVESTING ACTIVITES:
Proceeds from sale of property & equipment 2,333,788 --
Purchase of property (181,325) (270,808)
----------- ---------
Net cash provided (used) by investing activities 2,152,463 (270,808)
----------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction in mortgage payable (2,192,331) (71,045)
Repurchased Partnership units -- (13,873)
----------- ---------
Net cash used by financing activities (2,192,331) (84,918)
----------- ---------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 329,681 (93,286)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 450,906 501,306
----------- ---------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 780,587 $ 408,020
=========== =========
CASH PAID DURING THE PERIOD FOR INTEREST $ 581,615 $ 573,021
=========== =========
See notes to condensed financial statements.
<PAGE>
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 1997
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
--------- ---------- ----------
PARTNERS' EQUITY (DEFICIT) $(210,793) $1,629,039 $1,418,246
JANUARY 1, 1997
NET INCOME 5,979 591,962 597,941
--------- ---------- ----------
PARTNERS' EQUITY (DEFICIT) $(204,814) $2,221,001 $2,016,187
JUNE 30, 1997 ========= ========== =========
See notes to condensed financial statements.
<PAGE>
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 1997
(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 June 30,
1997 and December 31, 1996 and the results of its operations for the three
months and six months ended June 30, 1997 and 1996 and its cash flows for
the six months ended June 30, 1997 and 1996.
The accounting policies followed by the Partnership are set forth in Note 1
to the Partnership financial statements in the 1996 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 six months ended June 30,
1997 and 1996 relating to the Griffin Companies and its affiliates:
1997 1996
---- ----
Management fees $ 112,653 $ 111,736
Supervisory fees $ 23,341 $ 38,073
3. TAXABLE LOSS
The net income (loss) shown on the statement of operations is reconciled to
the taxable loss as follows:
For the Six Months
Ended June 30,
1997 1996
---- ----
Net income (loss) per statement
of operations $ 597,941 $(69,097)
Excess of tax depreciation over
book depreciation (13,987) (6,108)
--------- --------
Taxable income (loss) $ 583,954 $(75,205)
========= ========
<PAGE>
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 June 30, 1997, the Partnership had cash and cash equivalents of $780,587
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 1997.
Distributions to partners were not made during the second quarter of 1997. On
July 23, 1997 distributions of $5 per Limited Partnership unit were made
representing the proceeds form the sale of Ravenwood Apartments on June 16,
1997. 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.
The sale of Ravenwood Apartments on June 16, 1997 had a small impact on the
comparability of results of operations from one period to the next. Excluding
the gain on the sale of Ravenwood, revenues and expenses for the three month and
six month periods ended June 30, 1997 are quite similar to the same periods a
year earlier. Capital improvements to the remaining properties total $181,325 so
far in 1997. Even after these investments, and after subtracting proceeds from
property sales, cash increased $136,519 from the beginning of the year. This
compares with a drop in cash of $93,286 in the first six months of 1996.
<PAGE>
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
OCCUPANCY TABLE
Approximate occupancy levels of the Partnership's investment property by
quarter.
<TABLE>
<CAPTION>
1996 1997
------------------------------ ------------------------------
at at
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1.Ravenwood Apts.
Cincinnati, OH 87% 87% 87% 85% 85% *
2.Country Club
Apartments
Anderson, SC 99% 97% 97% 98% 97% 92%
3.Savannah Oaks
Apartments
Marietta, GA 97% 98% 96% 96% 97% 97%
4.Desert Pines
Apartments
Tucson, AZ 94% 89% 93% 90% 90% 88%
</TABLE>
* Indicates Partnership did not own this property at the end of the quarter.
<PAGE>
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. However, on July 1, 1997
Form 8-K was filed to report the sale of the Partnership's
70% interest in Ravenwood Apartments on June 16, 1997.
<PAGE>
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: August 14, 1997 By /s/ Larry D. Fransen
--------------------
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
Date: August 14, 1997 By /s/ Larry D. Fransen
--------------------
Larry D. Fransen, for the
Managing General Partner
of the General Partner
Griffin Equity Partners
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 780,587
<SECURITIES> 0
<RECEIVABLES> 284,057
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,064,644
<PP&E> 19,336,986
<DEPRECIATION> 7,210,556
<TOTAL-ASSETS> 13,191,074
<CURRENT-LIABILITIES> 341,721
<BONDS> 10,833,166
0
0
<COMMON> 0
<OTHER-SE> 2,016,187<F1>
<TOTAL-LIABILITY-AND-EQUITY> 13,191,074
<SALES> 0
<TOTAL-REVENUES> 2,748,150
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,601,961
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 548,248
<INCOME-PRETAX> 597,941
<INCOME-TAX> 0
<INCOME-CONTINUING> 597,941
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 597,941
<EPS-PRIMARY> 15.48<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 INCOME PER LIMITED PARTNERSHIP UNIT.
</FN>
</TABLE>
