FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File Number
March 31, 1996 0-16561
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
(Exact Name of Registrant as specified in its charter)
Delaware 16-1275925
(State of Formation) (IRS Employer Identification Number)
2350 North Forest Road
Suite 12 A
Getzville, New York 14068
(Address of Principal Executive Office)
Registrant's Telephone Number: (716) 636-0280
Indicate by a 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
--- ---
Indicate by a check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of the 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. (X)
As of March 31, 1996 the issuer had 21,002.8 units of limited partnership
interest outstanding. The aggregate value of the units of limited partnership
interest held by non-affiliates of the Registrant was $21,001,800.
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
-------------------------------------------------
INDEX
-----
PAGE NO.
--------
PART I: FINANCIAL INFORMATION
- ------- ---------------------
Balance Sheets -
March 31, 1996 and December 31, 1995 3
Statements of Operations -
Three Months Ended March 31, 1996 and 1995 4
Statements of Cash Flows -
Three Months Ended March 31, 1996 and 1995 5
Statements of Partners' (Deficit) -
Three Months Ended March 31, 1996 and 1995 6
Notes to Financial Statements 7 - 21
PART II: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
- -------- FINANCIAL CONDITION AND RESULTS OF OPERATIONS 22 - 23
---------------------------------------------
-2-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
BALANCE SHEETS
March 31, 1996 and December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
------------ ------------
<S> <C> <C>
ASSETS
Property, at cost:
Land $ 2,221,900 $ 2,221,900
Buildings and improvements 29,191,451 29,191,450
Furniture, fixtures and equipment 2,430,000 2,430,000
------------ ------------
33,843,351 33,843,350
Less accumulated depreciation 11,012,116 10,689,782
------------ ------------
Property, net 22,831,235 23,153,568
Investments in real estate joint ventures 2,202,034 2,294,497
Cash 546,069 453,883
Accounts receivable, net of allowance for doubtful
accounts of $382,624 and $377,812, respectively 44,676 51,596
Accounts receivable - affiliate 127,132 147,846
Mortgage escrow 733,303 574,577
Mortgage costs, net of accumulated amortization
of $292,079 and $259,823 272,284 295,280
Other assets 486,643 506,056
------------ ------------
Total Assets $ 27,243,376 $ 27,477,303
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgages and notes payable $ 21,549,658 $ 21,606,473
Accounts payable and accrued expenses 853,837 769,432
Accrued interest 166,594 179,518
Security deposits and prepaid rents 360,083 365,186
------------ ------------
Total Liabilities 22,930,172 22,920,609
------------ ------------
Partners' (Deficit) Capital:
General partners (428,970) (421,665)
Limited partners 4,742,173 4,978,359
------------ ------------
Total Partners' Capital 4,313,204 4,556,694
------------ ------------
Total Liabilities and Partners' Capital $ 27,243,376 $ 27,477,303
============ ============
</TABLE>
See notes to financial statements
-3-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1996 and 1995
(Unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
----------- -----------
Income:
Rental $ 1,694,982 $ 1,633,058
Interest and other income 134,068 154,737
----------- -----------
Total income 1,829,050 1,787,795
----------- -----------
Expenses:
Property operations 835,625 819,392
Interest 536,532 558,624
Depreciation and amortization 354,589 403,544
Administrative:
Paid to affiliates 109,293 304,750
Other 144,039 141,260
----------- -----------
Total expenses 1,980,078 2,227,570
----------- -----------
Loss before allocated loss from joint venture (151,028) (439,775)
Allocated loss from joint ventures (92,462) (42,974)
----------- -----------
Net loss $ (243,490) $ (482,749)
=========== ===========
Loss per limited partnership unit $ (11.25) $ (22.30)
=========== ===========
Distributions per limited partnership unit $ -- $ --
=========== ===========
Weighted average number of
limited partnership units
outstanding 21,002.8 21,002.8
=========== ===========
See notes to financial statements
-4-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
--------- ---------
<S> <C> <C>
Cash flow from operating activities:
Net loss $(243,490) $(482,749)
Adjustments to reconcile net loss to net cash
provided by (used in) operating
activities:
Depreciation and amortization 354,589 403,544
Net loss from joint ventures 92,462 42,974
Changes in operating assets and liabilities:
Accounts receivable 6,920 (3,845)
Mortgage escrow (158,726) --
Other assets 19,413 (68,035)
Accounts payable and accrued expenses 84,405 139,946
Accrued interest (12,924) (16,575)
Security deposits and prepaid rent (5,103) (38,411)
--------- ---------
Net cash provided by (used in) operating activities 137,546 (23,151)
--------- ---------
Cash flow from investing activities:
Accounts receivable - affiliates 20,714 148,933
Capital expenditures -- --
Contributions to joint ventures, net of distributions -- (111,708)
--------- ---------
Net cash provided by investing activities 20,714 37,225
--------- ---------
Cash flows from financing activities:
Accounts payable - affiliates -- 26,747
Distributions to partners -- --
Principal payments on mortgages and notes (56,815) (62,855)
Mortgage costs related to refinancing (9,260) --
Mortgage proceeds -- --
--------- ---------
Net cash (used in) financing activities (66,075) (36,108)
--------- ---------
Increase (decrease) in cash 92,185 (22,034)
Cash - beginning of period 453,883 226,213
--------- ---------
Cash - end of period $ 546,068 $ 204,179
========= =========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 549,456 $ 558,624
========= =========
</TABLE>
See notes to financial statements
-5-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
STATEMENTS OF PARTNERS' (DEFICIT) CAPITAL
Three Months Ended March 31, 1996 and 1995
(Unaudited)
General Limited Partners
Partners
Amount Units Amount
------ ----- ------
Balance, January 1, 1995 $ (362,779) 21,002.8 $ 6,882,353
Net loss (14,482) -- (468,267)
----------- -------- -----------
Balance, March 31, 1995 $ (377,261) 21,002.8 $ 6,414,086
=========== ======== ===========
Balance, January 1, 1996 $ (421,665) 21,002.8 $ 4,978,359
Net loss (7,305) -- (236,186)
----------- -------- -----------
Balance, March 31, 1996 $ (428,970) 21,002.8 $ 4,742,173
=========== ======== ===========
See notes to financial statements
-6-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
NOTES TO FINANCIAL STATEMENTS
Three Months Ended March 31, 1996 and 1995
(Unaudited)
1. GENERAL PARTNERS' DISCLOSURE
In the opinion of the General Partners of Realmark Property Investors
Limited Partnership V, all adjustments necessary for a fair presentation of
the Partnership's financial position, results of operations and changes in
cash flows for the three month periods ended March 31, 1996 and 1995, have
been made in the financial statements. Such financial statements are
unaudited and subject to any year-end adjustments which may be necessary.
2. FORMATION AND OPERATION OF PARTNERSHIP
Realmark Property Investors Limited Partnership V (the "Partnership"), a
Delaware Limited Partnership, was formed on February 28, 1986, to invest in a
diversified portfolio of income-producing real estate investments.
In July 1986, the Partnership commenced the public offering of units of
limited partnership interest. Other than matters relating to organization, it
had no business activities and, accordingly, had not incurred any expenses or
earned any income until the first interim closing (minimum closing) of the
offering, which occurred on December 5, 1986. As of December 31, 1987,
20,999.8 units of limited partnership interest were sold and outstanding,
excluding 3 units held by an affiliate of the General Partners. The offering
terminated on October 31, 1987 with gross offering proceeds of $20,999,800.
The General Partners are Realmark Properties, Inc., a wholly-owned subsidiary
of J.M. Jayson & Company, Inc. and Joseph M. Jayson, the Individual General
Partner. Joseph M. Jayson is the sole shareholder of J.M. Jayson & Company,
Inc.
Under the partnership agreement, the general partners and their affiliates
can receive compensation for services rendered and reimbursement for expenses
incurred on behalf of the Partnership.
-7-
<PAGE>
FORMATION AND OPERATION OF PARTNERSHIP (CONTINUED)
Net income or loss and proceeds arising from a sale or refinancing shall be
distributed first to the limited partners in amounts equivalent to a 7%
return on the average of their adjusted capital contributions, then an amount
equal to their capital contributions, then an amount equal to an additional
5% of the average of their adjusted capital contributions after the general
partners receive a disposition fee, then to all partners in an amount equal
to their respective positive capital balances and, finally, in the ratio of
87% to the limited partners and 13% to the general partners.
The partnership agreement also provides that distribution of funds,
revenues, costs and expenses arising from partnership activities, exclusive
of any sale or refinancing activities, are to be allocated 97% to the limited
partners and 3% to the general partners.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash
----
For purposes of reporting cash flows, cash includes the following items:
cash on hand; cash in checking; and money market savings.
Property and Depreciation
-------------------------
Depreciation is provided using the straight-line method over the estimated
useful lives of the respective assets. Expenditures for maintenance and
repairs are expensed as incurred, and major renewals and betterment's are
capitalized. The Accelerated Cost Recovery System and Modified Accelerated
Cost Recovery System are used to determine depreciation expense for tax
purposes.
Investments in Real Estate Joint Ventures
-----------------------------------------
The investments in real estate joint ventures are accounted for on the
equity method.
Rental Income
-------------
Leases for residential properties have terms of one year or less. Commercial
leases generally have terms of from one to five years. Rental income is
recognized on the straight line method over the term of the lease.
-8-
<PAGE>
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Other Assets
------------
Amortization of other assets includes amortizing mortgage costs that are
incurred in obtaining property mortgage financing and are being amortized
over the terms of the respective mortgages.
4. ACQUISITION AND DISPOSITION OF RENTAL PROPERTY
In May 1987 the Partnership acquired a 65,334 square foot office building
(The Paddock Building) located in Nashville, Tennessee for a purchase price
of $3,163,323, which included $148,683 in acquisition fees.
In December 1987 the Partnership acquired a 192 unit apartment complex
(Williamsburg) located in Columbus, Indiana for a purchase price of
$3,525,692, which included $285,369 in acquisition fees.
In February 1988 the Partnership acquired a 215 unit apartment complex (The
Fountains) located in Westchester, Ohio for a purchase price of $5,293,068,
which included $330,155 in acquisition fees.
In May 1988 the Partnership acquired a 100 unit apartment complex (Pelham
East) located in Greenville, South Carolina for a purchase price of
$2,011,927, which included $90,216 in acquisition fees. In March 1990 the
Partnership sold the apartment complex for a sale price of $2,435,000.
In May 1988 the Partnership acquired a 205 unit apartment complex (Camelot
East) located in Louisville, Kentucky for a purchase price of $6,328,363,
which included $362,540 in acquisition fees.
In June 1988 the Partnership acquired a 100 unit apartment complex (O'Hara)
located in Greenville, South Carolina for a purchase price of $2,529,390,
which included $498,728 in acquisition fees.
In July 1988 the Partnership acquired a 158 unit apartment complex (Wayne
Estates) located in Huber Heights, Ohio for a purchase price of $4,250,013,
which included $793,507 in acquisition fees.
-9-
<PAGE>
ACQUISITION AND DISPOSITION OF RENTAL PROPERTY (CONTINUED)
In April 1989 the Partnership acquired a 102 unit apartment complex (Jackson
Park) located in Seymour, Indiana for a purchase price of $1,911,585, which
included $111,585 in acquisition fees.
In June 1991 the Partnership acquired a 115,021 square foot office complex
(Commercial Park West) located in Research Triangle Park, North Carolina for
a purchase price of $5,773,633, which included $273,663 in acquisition fees.
In September 1992 Inducon East Phase III Joint Venture (the "Phase III
Venture") was formed pursuant to an agreement dated September 8, 1992 between
the Partnership and Inducon Corporation. The primary purpose of the Phase III
Venture is to acquire land and construct office/warehouse buildings as
income-producing property. The development, located in Amherst, New York,
consists of 4.2 acres of land and two buildings measuring approximately
25,200 and 21,300 square feet, respectively. As of March 31, 1996, both
buildings have been fully constructed and placed in service.
5. NOTE RECEIVABLE
In connection with the sale of Pelham East, the Partnership received a
$250,000 promissory note bearing interest at an annual rate of 9%. Interest
only was due in quarterly installments through May 1, 1995 when the entire
principal balance was paid.
6. INVESTMENTS IN JOINT VENTURES
Inducon East Joint Venture (the "Venture") was formed pursuant to an
agreement dated April 22, 1987 between the Partnership and Curtlaw
Corporation, a New York Corporation (the "Corporation"). The primary purpose
of the Venture is to acquire land and construct office/warehouse buildings as
income-producing property. The development consists of two parcels of land
measuring approximately 8.4 acres for Phase I and 6.3 acres for Phase II.
Phase I consists of two (2) buildings of approximately 38,000 and 52,000
square feet, while Phase II consists of four (4) buildings totaling
approximately 75,000 square feet, with each building approximately 19,000
square feet. At March 31, 1996, both buildings had been placed in service in
Phase I and all four buildings in Phase II were also in service.
-10-
<PAGE>
INVESTMENTS IN JOINT VENTURES (CONTINUED)
The Partnership contributed capital of $2,414,592 to the Venture. The
remaining funds needed to complete Phase I came from a $3,950,000 taxable
industrial revenue bond which the Venture received in 1989. The Venture
completed the financing of Phase II with an additional $3,200,000 taxable
industrial revenue bond.
The total cost of Phase I and Phase II was approximately $4,425,000 and
$4,600,000, respectively.
The Joint Venture agreement provides for the following:
Ownership of the Joint Venture is divided equally between the Partnership
and Curtlaw. The Joint Venture agreement provides that the Partnership will
be allocated 95% of any losses incurred.
Net cash flow from the Joint Venture is to be distributed in the following
order:
To the Partnership until it has received a return of 7% per annum on
its underwritten equity (the Partnership's "underwritten equity" is
defined to be the initial contributable capital divided by sixty-five
(65) percent). To the extent a 7% return is not received from year to
year, it will accumulate and be paid from the next available cash flow.
To Curtlaw in an amount equal to that paid to the other Partnership. No
amount will accumulate in favor of the other venturer.
Any remaining amount will be divided equally.
To the extent there are net proceeds from any sale or refinancing of the
subject property, said net proceeds will be payable in the following order of
priority:
To the Partnership to the extent the 7% per annum return on its
underwritten equity is unpaid.
Next, to the Partnership until it has received an overall 9% cumulative
return on its underwritten equity.
Next, to the Partnership until it has received an amount equal to its
total underwritten equity, reduced by any prior distribution of sale,
finance or refinancing proceeds.
-11-
<PAGE>
INVESTMENTS IN JOINT VENTURES (CONTINUED)
Next, to the Partnership until it has received a cumulative 20% per
year return on its total underwritten equity.
Thereafter, any remaining net proceeds will be divided 50% to the
Partnership and 50% to Curtlaw.
A summary of the assets, liabilities, and capital of the Inducon East Joint
Venture 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 follows:
-12-
<PAGE>
INDUCON-EAST JOINT VENTURE
BALANCE SHEETS
March 31, 1996 and December 31, 1995
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
----------- -----------
<S> <C> <C>
ASSETS
Property, at cost:
Land $ 500,100 $ 500,100
Land improvements 435,769 435,769
Buildings 8,423,516 8,427,089
----------- -----------
9,359,385 9,362,958
Less accumulated depreciation 2,217,176 2,110,752
----------- -----------
Property, net 7,142,209 7,252,206
Cash and cash equivalents 84,749 123,643
Mortgage costs, net of amortization 129,490 140,365
Other assets 206,155 117,502
----------- -----------
Total Assets $ 7,562,603 $ 7,633,716
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Bonds payable $ 6,689,677 $ 6,705,044
Accounts payable and accrued expenses 309,284 297,691
Accounts payable - affiliates 153,942 126,946
----------- -----------
Total Liabilities 7,152,903 7,129,681
----------- -----------
Partners' Capital (Deficit):
The Partnership 532,827 622,445
Other joint venturer (123,127) (118,410)
----------- -----------
Total Partners' Capital 409,700 504,035
----------- -----------
Total Liabilities and Partners' Capital $ 7,562,603 $ 7,633,716
=========== ===========
</TABLE>
-13-
<PAGE>
INDUCON-EAST JOINT VENTURE
STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1996 and 1995
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
--------- ---------
Income:
Rental $ 335,465 $ 318,343
Interest and other income 37 1,480
--------- ---------
Total income 335,502 319,823
--------- ---------
Expenses:
Property operations 131,200 86,107
Interest 166,426 168,297
Depreciation and amortization 117,074 109,926
Administrative 15,137 16,283
--------- ---------
Total expenses 429,837 380,613
--------- ---------
Net loss $ (94,335) $ (60,790)
========= =========
Allocation of net loss:
The Partnership $ (89,618) $ (57,751)
Other Joint Venturer (4,717) (3,040)
--------- ---------
$ (94,335) $ (60,790)
========= =========
A reconciliation of the Partnership's investment in the Joint Venture is as
follows:
1996
----
Investment in joint venture - beginning of period $ 622,445
Capital contributions --
Allocated loss (89,618)
---------
Investment in joint venture - end of period $ 532,827
=========
-14-
<PAGE>
INVESTMENTS IN JOINT VENTURES (CONTINUED)
Inducon East Phase III Joint Venture (the "Phase III Venture") was formed
pursuant to an agreement dated September 8, 1992 between the Partnership and
Inducon Corporation. The primary purpose of the Phase III Venture is to
acquire land and construct office/warehouse buildings as income producing
property. The proposed development consists of 4.2 acres of land and two
buildings with approximately 25,200 and 21,300 square feet, respectively. As
of March 31, 1996, both buildings have been fully constructed and placed in
service.
The Partnership has contributed $1,582,316 to the Phase III Venture. The
remaining funds needed to complete construction came from a $750,000
construction loan. The balance of this loan at March 31, 1996 is $ .
The total cost of the Phase III Venture was approximately $2,450,000.
The Joint Venture agreement provides for the following:
Ownership of the Joint Venture is divided equally between the Partnership
and the Corporation. The Joint Venture agreement provides that income and
losses be allocated 95% to the Partnership and 5% to the Corporation. Net
cash flow from the Joint Venture is to be distributed to the Partnership and
the Corporation in accordance with the terms of the Joint Venture agreement.
A summary of the assets, liabilities and partners' capital of the Phase III
Venture as of March 31, 1996 and December 31, 1995 and the results of
operations for the three months ended March 31, 1996 and 1995 is as follows:
-15-
<PAGE>
INDUCON-EAST PHASE III JOINT VENTURE
BALANCE SHEETS
March 31, 1996 and December 31, 1995
March 31, December 31,
1996 1995
---------- ----------
ASSETS
Property, at cost:
Land $ 141,400 $ 141,400
Buildings 2,407,873 2,300,806
---------- ----------
2,549,273 2,442,206
Less accumulated depreciation 110,221 100,426
---------- ----------
Property, net 2,439,051 2,341,780
Cash and cash equivalents -- --
Accounts receivable -- 3,665
Accounts receivable - affiliates 113,058 117,805
Other assets 5,829 5,346
Deferred financing cost, net of accumulated amortization
of $10,231 and $7,870 36,991 39,352
Leasing commissions, net of accumulated amortization
of $25,590 and $23,289 38,885 46,207
---------- ----------
Total Assets $2,633,814 $2,554,155
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Cash overdraft $ 149,073 $ 130,584
Construction loan payable 619,779 619,779
Accounts payable and accrued expenses 191,183 127,019
---------- ----------
Total Liabilities 960,035 877,382
---------- ----------
Partners' Capital:
The Partnership 1,669,207 1,672,051
Other joint venturer 4,572 4,722
---------- ----------
Total Partners' Capital 1,673,779 1,676,773
---------- ----------
Total Liabilities and Partners' Capital $2,633,814 $2,554,155
========== ==========
-16-
<PAGE>
INDUCON-EAST PHASE III JOINT VENTURE
STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1996 and 1995
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
-------- --------
Income:
Rental $ 68,439 $ 45,179
Interest and other income 1,745 3,680
-------- --------
Total income 70,184 48,859
-------- --------
Expenses:
Property operations 42,046 16,486
Interest 10,043 --
Depreciation and amortization 14,457 12,096
Administrative 6,632 4,723
-------- --------
Total expenses 73,178 33,305
-------- --------
Net (loss) income $ (2,994) $ 15,554
======== ========
Allocation of net (loss) income:
The Partnership $ (2,844) $ 14,776
Other Joint Venturer (150) 778
-------- --------
$ (2,994) $ 15,554
======== ========
A reconciliation of the Partnership's investment in the Phase III Venture is as
follows:
1996
----
Investment in joint venture - beginning of period $ 1,672,051
Capital contributions --
Allocated loss (2,844)
-----------
Investment in joint venture - end of period $ 1,669,207
===========
-17-
<PAGE>
7. MORTGAGES AND NOTES PAYABLE
The Partnership has the following mortgages and notes payable:
The Paddock Building
--------------------
An 8.75% mortgage with a balance of $1,742,363 and $1,868,281 at March 31,
1996 and 1995, respectively, which provides for annual principal and interest
payments of $219,612 payable in equal monthly installments with a final
payment of $1,589,511 due in June 1998. Also, an 8% note payable with a
balance of $160,682 and $171,869 as of March 31, 1996 and 1995, respectively,
providing for monthly payments of $2,216, including interest at 8%, with a
balloon payment due June 1998.
The Williamsburg North Apartments
---------------------------------
A 10.445% mortgage with a balance of $1,864,833 and $1,887,310 at March 31,
1996 and 1995, respectively, which provides for annual principal and interest
payments of $218,556 payable in equal monthly installments with a final
payment of $1,833,241 due on July 1, 1997.
The Fountains Apartments
------------------------
A 9.815% mortgage with a balance of $3,494,284 and $3,542,663 at March 31,
1996 and 1995, respectively, which provides for annual principal and interest
payments of $393,953 payable in equal monthly installments with a final
payment of $3,450,193 due on February 1, 1997.
Camelot East Apartments, O'Hara Apartments, Wayne Estates Apartments
--------------------------------------------------------------------
A 10% mortgage with a balance of $9,248,048 and $8,221,506 at March 31, 1996
and 1995, respectively, allocated $4,141,706 to Camelot East, $1,326,323 to
O'Hara and $2,668,919 to Wayne Estates. The loan provides for annual
principal and interest payments of $899,616 payable in equal monthly
installments with the remaining balance of $7,894,059 due October 1998.
Jackson Park
------------
A 12.375% mortgage note with a balance of $1,249,356 and $1,263,461 at March
31, 1996 and 1995, respectively, which provides for annual principal and
interest payments of $169,680 payable in equal monthly installments with a
final payment of $1,159,223 due on October 1, 2000.
-18-
<PAGE>
MORTGAGES AND NOTES PAYABLE (CONTINUED)
Commercial Park West
--------------------
A 9.25% mortgage with a balance of $ 4,882,144 and $4,900,000 at March 31,
1996 and 1995, respectively, which provided for annual principal and interest
payments through June 1995. On July 1, 1995, interest changed to 10% with
annual principal and interest payments of $516,012 payable in equal monthly
installments. The remaining balance of $4,691,234 is due June 2001.
The mortgages described above are secured by the individual apartment
complexes to which they relate.
The Partnership's mortgages and note payable are of a non-recourse nature.
The aggregate maturities of mortgages and note payable for each of the next
five years and thereafter are as follows:
Year Amount
---- ------
1996 $ 290,052
1997 5,536,388
1998 9,788,213
1999 60,978
2000 1,220,551
Thereafter 4,710,291
--------------
TOTAL $ 21,606,473
8. RELATED PARTY TRANSACTIONS
Management fees for the management of certain of the Partnership's
properties are paid to an affiliate of the General Partners. The management
agreement provides for 5% of gross monthly receipts of the complexes to be
paid as fees for administering the operations of the properties. These fees
totaled $121,880 and $91,466 for the three months ended March 31, 1996 and
1995, respectively.
-19-
<PAGE>
RELATED PARTY TRANSACTIONS (CONTINUED)
The Partnership entered into a management agreement with unrelated third
parties for the management of The Paddock and Commercial Park West. The
agreements provide for the payment of a management fee equal to 3% and 2% of
monthly gross rental income, respectively.
According to the terms of the Partnership Agreement, the Corporate General
Partner is also entitled to receive a partnership management fee equal to 7%
of net cash flow (as defined in the Partnership Agreement). This fee totaled
approximately $0 for the three months ended March 31, 1996.
Computer service charges for the partnerships are paid or accrued to an
affiliate of the General Partner. The fee is based upon the number of
apartment units and totaled $5,000 for the three months ended March 31, 1996
and 1995, respectively.
9. INCOME TAXES
No provision has been made for income taxes since the income or loss of the
partnership is to be included in the tax returns of the Individual Partners.
The tax returns of the Partnership are subject to examination by the Federal
and state taxing authorities. Under federal and state income tax laws,
regulations and rulings, certain types of transactions may be accorded
varying interpretations and, accordingly, reported partnership amounts could
be changed as a result of any such examination.
-20-
<PAGE>
10.INCOME TAXES (CONTINUED)
The reconciliation of net loss for the three months ended March 31, 1996 and
1995 as reported in the statements of operations, and as would be reported
for tax purposes, is as follows:
March 31, March 31,
1996 1995
---- ----
Net loss - statement of operations $ (267,038) $ (482,749)
Add to (deduct from):
Difference in depreciation 86,212 78,320
Difference in investment in
Joint Ventures 26,855 26,500
Allowance for doubtful accounts 24,598 7,050
----------- -----------
Net loss - tax return purposes $ (129,373) $ (370,879)
The reconciliation of Partners' (Deficit) Capital as of March 31, 1996 and
December 31, 1995 as reported in the balance sheet, and as reported for tax
purposes, is as follows:
March 31, December 31,
1996 1995
---- ----
Partners' Capital - balance sheet $ 4,289,656 $ 4,556,694
Add to (deduct from):
Accumulated difference in
depreciation 1,470,141 1,383,929
Accumulated difference in investments
in Joint Ventures 343,031 316,176
Syndication fees 2,352,797 2,352,797
Accumulated difference in amortization
of organization costs 21,738 21,738
Allowance for doubtful accounts 283,181 258,583
----------- -----------
Partners' Capital -
tax return purposes $ 8,760,544 $ 8,889,917
-21-
<PAGE>
PART II MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources
- -------------------------------
The Partnership continues to maintain sufficient cash availability and escrow
reserves for the ongoing operations of the Partnership. The Partnership expects
to use the funds to complete capital improvements throughout the Partnership`s
properties or to subsidize any short-term negative cash flow if it were to
arise.
The Partnership has been unsuccessful in refinancing the Paddock, however, the
original mortgage has been extended for three years expiring in June, 1998.
The Partnership did not make any distributions for the three month periods ended
March 31, 1996 and 1995. The partnership anticipates resuming distributions when
it is able to generate sufficient excess cash.
Results of Operations
- ---------------------
Partnership operations for the three month period ended March 31, 1996 resulted
in a net loss of $243,490 or $11.25 per limited partnership unit versus a first
quarter 1995 net loss of $482,749 or $22.30 per unit.
Tax basis loss for the three month period ended March 31, 1996 amounted to
$129,373 or $5.98 per limited partnership unit compared to a tax loss of
$370,879 or $17.13 per unit for the corresponding period in 1995.
Total revenue for the three month period ended March 31, 1996 amounted to
$1,829,050 for the three month period ended March 31, 1996. There was an almost
$62,000 increase in rental revenue which was directly attributable to higher
occupancy levels and rental rate increases at the Paddock, the Fountains,
Camelot East, O'Hara and Commercial Park West. Interest and other income
meanwhile decreased approximately $21,000 due to decreases in common area
maintenance reimbursements.
-22-
<PAGE>
For the three month period ended March 31, 1996, expenses totaled $1,980,078,
decreasing slightly over $247,000 from the corresponding quarter ended March 31,
1995. Property operations expenses rose approximately $16,000, largely the
result of increases in payroll, repairs, maintenance, contracted services,
utility charges and real estate taxes. Total administrative expenses meanwhile,
decreased approximately $192,000 between the two periods, due primarily to
across the board decreases in legal fees, credit check costs, accounting and
audit fees, advertising, property management fees, communication charges and
portfolio management and accounting fees. Depreciation and amortization expense
jumped about $50,000 due to the reduction of write-offs related to previously
capitalized items. Interest expense dropped roughly $22,000 due to the lower
debt service associated with the Partnership's mortgages.
Management is hopeful that overall occupancy will increase in future months,
with an anticipated 2% jump in total rental revenue. Occupancy levels have
decreased but the Partnership has been successful in increasing rental rates
charged at several properties. Expenses meanwhile, are also expected to rise,
but they should run slightly behind the first quarter level.
For the three month period ended March 31, 1996, the Inducon East Joint Venture
generated a net loss of $94,335 versus a net loss of $60,790 for the three
months ended March 31, 1995. This jump was primarily due to increases in
property operational expenses.
The Inducon East Phase III Joint Venture generated a net loss of $2,994 for the
three month period ended March 31, 1996. Net income for the joint venture for
the three month period ended March 31, 1995 amounted to $15,554.
-23-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
-------------------------------------------------
PART II
-------
OTHER INFORMATION
-----------------
Item 1 - Legal Proceedings
- --------------------------
The Partnership is not party to, nor is it the subject of, any material pending
legal proceedings other than ordinary routine litigation incidental to the
Partnership's business.
Item 2, 3, 4 and 5
- ------------------
Not applicable.
Item 6 - Exhibits and reports on Form 8-K
- -----------------------------------------
Exhibit 27 - Financial Data Schedule (Electronic filing only).
-24-
<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.
REALMARK PROPERTY INVESTORS
LIMITED PARTNERSHIP V
By: /s/Joseph M. Jayson July 12, 1996
------------------------------ ------------------------
Joseph M. Jayson, Date
Individual General Partner
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
By: REALMARK PROPERTIES, INC.
Corporate General Partner
/s/Joseph M. Jayson July 12, 1996
------------------------------ ------------------------
Joseph M. Jayson, Date
President and Director
/s/Michael J. Colmerauer July 12, 1996
------------------------------ ------------------------
Michael J. Colmerauer Date
Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V FOR
THE QUARTER ENDED MARCH 31, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 546,069
<SECURITIES> 0
<RECEIVABLES> 554,432
<ALLOWANCES> 382,624
<INVENTORY> 0
<CURRENT-ASSETS> 1,937,823
<PP&E> 33,843,351
<DEPRECIATION> 11,012,116
<TOTAL-ASSETS> 27,243,376
<CURRENT-LIABILITIES> 1,380,514
<BONDS> 21,549,658
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 27,243,376
<SALES> 0
<TOTAL-REVENUES> 1,829,050
<CGS> 0
<TOTAL-COSTS> 1,980,078
<OTHER-EXPENSES> 92,462
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 536,532
<INCOME-PRETAX> (243,490)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (243,490)
<EPS-PRIMARY> (11.25)
<EPS-DILUTED> 0
</TABLE>
