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, 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.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
INDEX
PART 1. Financial Information
Condensed Balance Sheets
March 31, 1997 and December 31, 1996........................... 1
Condensed Statements of Operations
for the three months ended
March 31, 1997 and 1996........................................ 2
Condensed Statements of Cash Flows
for the three months ended
March 31, 1997 and 1996........................................ 3
Condensed Statements of Changes
in Partners' Equity for the
three months ended March 31, 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
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS
(unaudited)
March 31, December 31,
1997 1996
------------ ------------
ASSETS
Cash and cash equivalents $ 584,418 $ 450,906
Receivables and other assets 403,930 461,189
------------ ------------
Total 988,348 912,095
------------ ------------
PROPERTY:
Land 3,046,000 3,046,000
Buildings and improvements 17,686,891 17,646,870
Furniture and equipment 1,592,170 1,592,170
------------ ------------
Total 22,325,061 22,285,040
Less accumulated depreciation 8,507,696 8,325,543
------------ ------------
Property - net 13,817,365 13,959,497
------------ ------------
TOTAL ASSETS $ 14,805,713 $ 14,871,592
============ ============
LIABILITIES AND PARTNERSHIP EQUITY
LIABILITIES:
Accounts payable and accrued liabilities $ 297,258 $ 302,614
Security deposits 124,309 125,235
Mortgage loans 12,987,098 13,025,497
------------ ------------
Total liabilities 13,408,665 13,453,346
------------ ------------
PARTNERS' EQUITY (DEFICIT):
General Partner (211,005) (210,793)
Limited Partners 1,608,053 1,629,039
------------ ------------
Total partners' equity 1,397,048 1,418,246
------------ ------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 14,805,713 $ 14,871,592
============ ============
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,
1997 1996
----------- -----------
REVENUES
Rental income $ 1,031,754 $ 1,015,860
Interest income 8,187 4,986
Other income 19,156 18,094
----------- -----------
Total revenues 1,059,097 1,038,940
----------- -----------
OPERATING EXPENSES
Operating expenses 604,932 585,844
Interest expense 282,529 287,251
Depreciation and amortization 192,834 182,281
----------- -----------
Total operating expenses 1,080,295 1,055,376
----------- -----------
NET LOSS (21,198) (16,436)
NET LOSS ALLOCATED TO GENERAL PARTNER (212) (164)
----------- -----------
NET LOSS ALLOCATED TO LIMITED PARTNERS $ (20,986) $ (16,272)
=========== ===========
PER UNIT: (weighted average basis)
NET LOSS $ (.55) $ (.43)
=========== ===========
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,
1997 1996
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (21,198) $ (16,436)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Depreciation and amortization 192,834 182,281
Decrease in other assets - net 46,578 12,338
Decrease in accounts payable
and accrued liabilities (5,356) (35,184)
Increase (decrease) in security deposits (926) 1,119
--------- ---------
Net cash provided by
operating activities 211,932 144,118
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property (40,021) (54,398)
--------- ---------
Net cash used by investing activities (40,021) (54,398)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Redemption of Partnership Units -- (13,873)
Reduction in mortgage notes payable (38,399) (34,941)
--------- ---------
Net cash used by financing activities (38,399) (48,814)
--------- ---------
INCREASE IN CASH AND
CASH EQUIVALENTS 133,512 40,906
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 450,906 501,306
--------- ---------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 584,418 $ 542,212
========= =========
CASH PAID DURING THE PERIOD FOR INTEREST $ 283,247 $ 288,015
========= =========
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, 1997
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT)
JANUARY 1, 1997 $ (210,793) $ 1,629,039 $ 1,418,246
NET LOSS (212) (20,986) (21,198)
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT)
MARCH 31, 1997 $ (211,005) $ 1,608,053 $ 1,397,048
=========== =========== ===========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 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 March 31,
1997 and December 31, 1996 and the results of its operations for the three
months ended March 31, 1997 and 1996 and its cash flows for the three
months ended March 31, 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 three months ended March
31, 1997 and 1996 relating to the Griffin Companies and its affiliates:
1997 1996
---- ----
Management fees $ 57,120 $ 56,545
Supervisory fees $ 11,040 $ 14,518
3. TAXABLE LOSS
The net loss shown on the statement of operations is reconciled to the
taxable loss as follows:
For the Three Months
Ended March 31,
1997 1996
--------- ---------
Net loss per statement of operations $ (21,198) $ (16,436)
Excess of tax depreciation over
book depreciation (7,506) (3,054)
--------- ---------
Taxable loss $ (28,704) $ (19,490)
========= =========
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, 1997, the Partnership had cash and cash equivalents of $584,418
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 first quarter of 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.
Overall, net rental income was $1,031,754 and $1,015,860 for the first quarter
of 1997 and 1996 respectively. This increase of $15,894 or 1.6% was the result
of overall rental rate increases offsetting vacancy increases for the
properties. Operating expenses were $1,080,295 and $1,055,376 for the first
quarter of 1997 and 1996 respectively. This is an increase of $24,919 or 2.4%.
This increase can be traced mainly to increases in depreciation and utilities.
Expense increases more than offset the increased revenues and resulted in a net
loss of $21,198 for the first quarter of 1997, compared with a net loss of
$16,436 for the same period of 1996. Overall, operations of the Partnership and
its properties resulted in an increase in cash and cash equivalents for the
first quarter of $133,512 in 1997 compared to an increase of $40,906 for the
same period in 1996.
Expenditures continue to be made to upgrade the Partnership's properties.
$40,021 was expended during the first three months of 1997 on property
improvements, including the exterior upgrade of Desert Pines Apartments.
Ravenwood Apartments is currently under a purchase agreement dated February 11,
1997. Although the last contingencies to the sale were removed by May 1, 1997
there can still be no definite assurance that a closing will take place. If a
closing takes place it would occur during the second quarter.
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
<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 87% 87% 87% 85% 85%
2. Country Club
Apartments
Anderson, SC 99% 97% 97% 98% 97%
3. Savannah Oaks
Apartments
Marietta, GA 97% 98% 96% 96% 97%
4. Desert Pines
Apartments
Tucson, AZ 94% 89% 93% 90% 90%
</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 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: May 15, 1997 By /s/ Larry D. Fransen
--------------------
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
Date: May 15, 1997 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-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 584,418
<SECURITIES> 0
<RECEIVABLES> 403,930
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 988,348
<PP&E> 22,325,061
<DEPRECIATION> 8,507,696
<TOTAL-ASSETS> 14,805,713
<CURRENT-LIABILITIES> 421,567
<BONDS> 12,987,098
0
0
<COMMON> 0
<OTHER-SE> 1,397,048<F1>
<TOTAL-LIABILITY-AND-EQUITY> 14,805,713
<SALES> 0
<TOTAL-REVENUES> 1,050,910
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 797,766
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 274,342
<INCOME-PRETAX> (21,198)
<INCOME-TAX> 0
<INCOME-CONTINUING> (21,198)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (21,198)
<EPS-PRIMARY> (.55)<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>
