FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter ended March 31, 1996
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Commission file number 0-15702
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SIERRA PACIFIC INSTITUTIONAL PROPERTIES V
(A LIMITED PARTNERSHIP)
State of California 33-0122424
- -------------------------------------------------- ---------------------------
(State or other jurisdiction of incorporation or (I.R.S. Employer
organization) Identification Number)
5850 San Felipe, Suite 500
Houston, Texas 77057
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (713) 706-6271
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Indicate by check mark whether the registrant (1) has filed all reports required
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 such filing
requirements for the past 90 days. Yes [X] . No [ ].
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following financial statements are submitted in the next pages:
PAGE
NUMBER
Consolidated Balance Sheets - March 31, 1996 and
December 31, 1995 .......................................................... 4
Consolidated Statements of Operations - For the
Three Months Ended March 31, 1996 and 1995 ................................. 5
Consolidated Statement of Changes in Partners' Equity -
from October 8, 1985 (Inception of the Partnership)
to December 31, 1995 and for the Three Months Ended March 31, 1996 ......... 6
Consolidated Statements of Cash Flows - For the Three Months Ended
March 31, 1996 and 1995 .................................................... 7
Notes to Consolidated Financial Statements ................................. 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(a) OVERVIEW
The following discussion should be read in conjunction with the Partnership's
Consolidated Financial Statements and Notes thereto appearing elsewhere in this
Form 10-Q.
The Partnership currently owns a 72.77% interest in the Sorrento II Partnership,
which operates the Sorrento II property in San Diego, California.
(b) RESULTS OF OPERATIONS
Revenues increased by $15,000, or 7%, due to the occupancy of additional space
by the property's largest tenant in July 1995. Operating expenses for the period
decreased $32,000, or 28%, in comparison to the same periods in 1995 due to
lower administrative costs and other expense cutting measures implemented by
management. Additionally, property tax expense decreased in comparison to the
same period in 1995 due to appeal costs incurred in the prior year. No such
costs were incurred in 1996. Depreciation and amortization increased $10,000, or
10%, due to increased depreciation expenses on tenant improvements associated
with the expansion of tenant space.
(c) LIQUIDITY AND CAPITAL RESOURCES
The Partnership is in an illiquid position at March 31, 1996 with cash of
$90,000 and current liabilities of $183,000. On October 1, 1993, the Partnership
created a general partnership (Sorrento II Partners) with Sierra Mira Mesa
Partners ("SMMP"), an affiliate, to facilitate cash contributions by SMMP for
the continued development and operation of the Sorrento II property. SMMP has
adequate resources to make any necessary advances during the foreseeable future.
SIERRA PACIFIC INSTITUTIONA LPROPERTIES V
(A LIMITED PARTNERSHIP)
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1996 AND DECEMBER 31, 1995
MARCH 31, DECEMBER 31
1996 1995
---------- ----------
ASSETS
Cash and cash equivalents .................. $ 89,973 $ 66,933
Receivables:
Unbilled rent ............................ 432,748 401,333
Billed rent .............................. 1,593 0
Income-producing property -
net of
accumulated depreciation of $1,704,036
and $1,606,003, respectively ............. 6,234,676 6,332,709
Other assets ............................... 296,336 329,194
---------- ----------
Total Assets ............................... $7,055,326 $7,130,169
========== ==========
LIABILITIES AND PARTNERS'
EQUITY
Accrued and other liabilities .............. $ 183,195 $ 215,837
---------- ----------
Total Liabilities .......................... 183,195 215,837
---------- ----------
Ground lessor's equity in
income-producing property .................. 3,000,000 3,000,000
---------- ----------
Minority interest in
consolidated joint venture ................. 1,275,405 1,286,896
---------- ----------
Partners' equity:
General Partner .......................... 0 0
Limited Partners:
140,000 units authorized,
30,777 issued and
outstanding ......................... 2,596,726 2,627,436
---------- ----------
Total Partners' equity ..................... 2,596,726 2,627,436
---------- ----------
Total Liabilities and
Partners' equity .......................... $7,055,326 $7,130,169
========== ==========
UNAUDITED
SEE ACCOMPANYING NOTES
4
SIERRA PACIFIC INSTITUTIONAL PROPERTIES V
(A LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
1996 1995
--------- ---------
REVENUES:
Rental income ............................ $ 239,522 $ 224,503
--------- ---------
Total Revenues ............. 239,522 224,503
--------- ---------
EXPENSES:
Operating expenses ..................... 81,739 113,308
Ground lease ........................... 88,125 95,625
Depreciation and
amortization ........................... 111,859 101,781
--------- ---------
Total costs and expenses ............. 281,723 310,714
--------- ---------
LOSS BEFORE MINORITY
INTEREST'S SHARE
OF CONSOLIDATED JOINT
VENTURE LOSS ............................... (42,201) (86,211)
--------- ---------
MINORITY INTEREST'S SHARE OF
CONSOLIDATED JOINT VENTURE
LOSS ..................................... 11,491 17,337
--------- ---------
NET LOSS ................................... $ (30,710) $ (68,874)
========= =========
Net loss per limited
partnership unit ........................... $ (1.00) $ (2.24)
========= =========
UNAUDITED
SEE ACCOMPANYING NOTES
5
SIERRA PACIFIC INSTITUTIONAL PROPERTIES V
(A LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FROM OCTOBER 8, 1985 (INCEPTION OF PARTNERSHIP) TO DECEMBER 31, 1995
AND FOR THE THREE MONTHS ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
Total
Limited
Partners General Partners'
----------------------------------
Per Unit Total Partner Equity
------------------ ------------ --------------- -------------
<S> <C> <C> <C>
Proceeds from sale of
partnership units ................................ $250.00 $ 7,694,250 -- $ 7,694,250
Underwriting commissions
and other organization
expenses ......................................... (37.21) (1,145,333) (1,145,333)
Cumulative net income (loss)
(to December 31, 1995) ........................... (124.73) (3,838,720) $ 9,193 (3,829,527)
Cumulative distributions from
operations
(to December 31, 1995) ........................... (2.69) (82,761) (9,193) (91,954)
------- ----------- ----------- -----------
Partners' equity - January 1, 1996 ................. 85.37 2,627,436 0 2,627,436
Net loss ........................................... (1.00) (30,710) -- (30,710)
------- ----------- ----------- -----------
Partners' equity - March 31, 1996 .................. $ 84.37 $ 2,596,726 $ 0 $ 2,596,726
======= =========== =========== ===========
</TABLE>
UNAUDITED
SEE ACCOMPANYING NOTES
6
SIERRA PACIFIC INSTITUTIONAL PROPERTIES V
(A LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
1996 1995
---------- -----------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss ................................. $ (30,710) $ (68,874)
Adjustments to reconcile
net loss to cash provided by (used
in) operating activities:
Depreciation and
amortization ......................... 111,859 101,781
Minority interest's share
of consolidated
joint venture loss ................... (11,491) (17,337)
Increase in rent
receivable ........................... (33,008) (56,157)
Decrease in other
receivables .......................... 0 31,958
Decrease (increase) in
other assets ......................... 19,032 (186,561)
(Decrease) increase in
accrued and other liabilities ........ (32,642) 4,875
--------- ---------
Net cash provided by
(used in) operating activities ....... 23,040 (190,315)
--------- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Contributions from minority
investor ............................... 0 188,000
--------- ---------
Net cash provided by
financing activities ................... 0 188,000
--------- ---------
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS ............... 23,040 (2,315)
CASH AND CASH EQUIVALENTS -
Beginning of period ..................... 66,933 2,815
--------- ---------
CASH AND CASH EQUIVALENTS -
End of period ........................... $ 89,973 $ 500
========= =========
UNAUDITED
SEE ACCOMPANYING NOTES
7
SIERRA PACIFIC INSTITUTIONAL PROPERTIES V
(A LIMITED PARTNERSHIP)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF FINANCIAL STATEMENTS
The accompanying unaudited consolidated condensed financial statements include
the accounts of the Partnership and Sorrento II Partners, a majority owned joint
venture at March 31, 1996. All significant intercompany balances and
transactions have been eliminated in consolidation.
In the opinion of the Partnership's management, these unaudited financial
statements reflect all adjustments which are necessary for a fair presentation
of its financial position at March 31, 1996 and results of operations and cash
flows for the periods presented. All adjustments included in these statements
are of a normal and recurring nature. These financial statements should be read
in conjunction with the financial statements and notes thereto contained in the
Annual Report of the Partnership for the year ended December 31, 1995.
2. RELATED PARTY TRANSACTIONS
In 1994, all of the common stock of S-P Properties, Inc., the General Partner of
the Partnership, was purchased by Finance Factors, Inc. from Carlsberg
Management Company ("CMC"). CMC continued to manage the affairs of the
Partnership through March 31, 1995.
Included in the financial statements for the three months ended March 31, 1996
and 1995 are affiliate transactions as follows:
March 31
--------------------------------
1996 1995
--------------- ----------------
Management fees ......................... $12,391 $ 0
Administrative fees ..................... $10,876 $ 0
Leasing fees ............................ $ 0 $ 0
3. PARTNERS' EQUITY
Equity and net loss per limited partnership unit is determined by dividing the
Limited Partners' share of the Partnership's equity and net loss by the number
of limited partnership units outstanding, 30,777.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
The following Exhibits are filed herewith pursuant to Rule 601 of
Regulation S-K.
Exhibit
Number Description of Exhibit
- -------------- ------------------------------------------
27 Financial Data Schedule
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report be signed on its behalf by the
undersigned thereunto duly authorized.
SIERRA PACIFIC INSTITUTIONAL PROPERTIES V
a Limited Partnership
S-P PROPERTIES, INC.
General Partner
Date: MAY 13, 1996 /s/ THOMAS N. THURBER
Thomas N. Thurber
President and Director
Date: MAY 13, 1996 /s/ MICHELE E. JOHNSON
Michele E. Johnson
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM SIERRA PACIFIC INSTITUTIONAL PROPERTIES V MARCH 31, 1996 FINANCIAL
STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 89,973
<SECURITIES> 0
<RECEIVABLES> 434,341
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 7,938,712
<DEPRECIATION> 1,704,036
<TOTAL-ASSETS> 7,055,326
<CURRENT-LIABILITIES> 183,195
<BONDS> 3,000,000
0
0
<COMMON> 0
<OTHER-SE> 2,596,726
<TOTAL-LIABILITY-AND-EQUITY> 7,055,326
<SALES> 239,522
<TOTAL-REVENUES> 239,522
<CGS> 0
<TOTAL-COSTS> 169,864
<OTHER-EXPENSES> 111,859
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (30,710)
<INCOME-TAX> 0
<INCOME-CONTINUING> (30,710)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (30,170)
<EPS-PRIMARY> (1.00)
<EPS-DILUTED> (1.00)
</TABLE>
