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
June 30, 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 June 30, 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 -
June 30, 1996 and December 31, 1995 3
Statements of Operations -
Three Months Ended June 30, 1996 and 1995 4
Statements of Operations -
Six Months Ended June 30, 1996 and 1995 5
Statements of Cash Flows -
Six Months Ended June 30, 1996 and 1995 6
Statements of Partners' (Deficit) Capital -
Six Months Ended June 30, 1996 and 1995 7
Notes to Financial Statements 8 - 22
PART II: MANAGEMENT'S DISCUSSION & ANALYSIS OF
- -------- FINANCIAL CONDITION & RESULTS OF OPERATIONS 23 - 24
-------------------------------------------
-2-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
BALANCE SHEETS
June 30, 1996 and December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Property, at cost:
Land $ 2,221,900 $ 2,221,900
Buildings and improvements 29,198,142 29,191,450
Furniture, fixtures and equipment 2,430,000 2,430,000
------------ ------------
33,850,042 33,843,350
Less accumulated depreciation 11,297,432 10,689,782
------------ ------------
Property, net 22,552,610 23,153,568
Investments in real estate joint ventures 2,168,892 2,294,497
Cash 539,068 453,883
Accounts receivable, net of allowance for doubtful
accounts of $435,068 and $377,812, respectively 4,234 51,596
Accounts receivable - affiliate 174,543 147,846
Mortgage escrow 760,925 574,577
Mortgage costs, net of accumulated amortization
of $315,521 and $259,823 244,500 295,280
Other assets 606,678 506,056
------------ ------------
Total Assets $ 27,051,450 $ 27,477,303
============ ============
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Liabilities:
Mortgages and notes payable $ 21,481,146 $ 21,606,473
Accounts payable and accrued expenses 1,026,260 769,432
Accrued interest 180,568 179,518
Security deposits and prepaid rents 382,895 365,186
------------ ------------
Total Liabilities 23,070,869 22,920,609
------------ ------------
Partners' (Deficit) Capital:
General partners (438,948) (421,665)
Limited partners 4,419,529 4,978,359
------------ ------------
Total Partners' Capital 3,980,581 4,556,694
------------ ------------
Total Liabilities and Partners' Capital $ 27,051,450 $ 27,477,303
============ ============
</TABLE>
See notes to financial statements
-3-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
STATEMENTS OF OPERATIONS
Three Months Ended June 30, 1996 and 1995
(Unaudited)
Three Months Three Months
Ended Ended
June 30, June 30,
1996 1995
---- ----
Income:
Rental $ 1,584,388 $ 1,648,799
Interest and other income 109,252 128,020
----------- -----------
Total income 1,693,640 1,776,819
----------- -----------
Expenses:
Property operations 621,673 673,042
Interest 558,512 557,790
Depreciation and amortization 317,573 360,671
Administrative:
Paid to affiliates 325,177 299,181
Other 170,186 84,722
----------- -----------
Total expenses 1,993,121 1,975,406
----------- -----------
Loss before allocated loss from joint venture (299,481) (198,587)
Allocated loss from joint ventures (425,056) (18,827)
----------- -----------
Net loss $ (724,537) $ (217,414)
=========== ===========
Loss per limited partnership unit $ (33.46) $ (10.04)
=========== ===========
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 OPERATIONS
Six Months Ended June 30, 1996 and 1995
(Unaudited)
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
---- ----
Income:
Rental $ 3,279,370 $ 3,281,857
Interest and other income 243,320 282,757
----------- -----------
Total income 3,522,690 3,564,614
----------- -----------
Expenses:
Property operations 1,457,298 1,653,889
Interest 1,095,044 1,116,414
Depreciation and amortization 672,162 764,215
Administrative:
Paid to affiliates 434,470 462,476
Other 314,225 205,982
----------- -----------
Total expenses 3,973,199 4,202,976
----------- -----------
Loss before allocated loss from joint venture (450,509) (638,362)
Allocated loss from joint ventures (125,604) (61,801)
----------- -----------
Net loss $ (576,113) $ (700,163)
=========== ===========
Loss per limited partnership unit $ (26.61) $ (32.34)
=========== ===========
Distributions per limited partnership unit $ -- $ --
=========== ===========
Weighted average number of
limited partnership units
outstanding 21,002.8 21,002.8
=========== ===========
See notes to financial statements
-5-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
---- ----
<S> <C> <C>
Cash flow from operating activities:
Net loss $ (576,113) $ (700,163)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 672,162 764,215
Net loss from joint ventures 125,604 61,801
Changes in operating assets and liabilities:
Accounts receivable 47,362 49,042
Mortgage escrow (186,348) --
Other assets (105,093) (313,426)
Accounts payable and accrued expenses 256,828 382,783
Accrued interest 1,050 (16,575)
Security deposits and prepaid rent 17,709 (31,026)
----------- -----------
Net cash provided by (used in) operating activities 253,161 196,651
----------- -----------
Cash flow from investing activities:
Accounts receivable - affiliates (26,697) 148,933
Capital expenditures (6,692) --
Contributions to joint ventures, net of distributions -- (111,708)
----------- -----------
Net cash provided by investing activities (33,389) 37,225
----------- -----------
Cash flows from financing activities:
Accounts payable - affiliates -- 13,326
Distributions to partners -- --
Principal payments on mortgages and notes (125,327) --
Mortgage costs related to refinancing (9,260) --
Mortgage proceeds -- (153,488)
----------- -----------
Net cash (used in) financing activities (134,587) (140,162)
----------- -----------
Increase (decrease) in cash 85,185 93,714
Cash - beginning of period 453,883 226,213
----------- -----------
Cash - end of period $ 539,068 $ 319,927
=========== ===========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 1,093,994 $ 558,624
=========== ===========
</TABLE>
See notes to financial statements
-6-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
STATEMENTS OF PARTNERS' (DEFICIT) CAPITAL
Six Months Ended June 30, 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 (21,005) -- (679,158)
----------- -------- -----------
Balance, June 30, 1995 $ (383,784) 21,002.8 $ 6,203,195
=========== ======== ===========
Balance, January 1, 1996 $ (421,665) 21,002.8 $ 4,978,359
Net loss (17,283) -- (558,830)
----------- -------- -----------
Balance, June 30, 1996 $ (438,948) 21,002.8 $ 4,419,529
=========== ======== ===========
See notes to financial statements
-7-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP V
NOTES TO FINANCIAL STATEMENTS
Six Months Ended June 30, 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 six month periods ended June 30, 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.
-8-
<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.
-9-
<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.
-10-
<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
June 30, 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 June 30, 1996, both buildings had been placed in
service in Phase I and all four buildings in Phase II were also in service.
-11-
<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.
-12-
<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 June 30, 1996 and December 31, 1995 and the results of its
operations for the six months ended June 30, 1996 and 1995 follows:
-13-
<PAGE>
INDUCON-EAST JOINT VENTURE
BALANCE SHEETS
June 30, 1996 and December 31, 1995
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Property, at cost:
Land $ 500,100 $ 500,100
Land improvements 435,768 435,769
Buildings 8,423,610 8,427,089
----------- -----------
9,359,478 9,362,958
Less accumulated depreciation 2,274,280 2,110,752
----------- -----------
Property, net 7,085,198 7,252,206
Cash and cash equivalents 271,637 123,643
Mortgage costs, net of amortization 121,615 140,365
Other assets 89,927 117,502
----------- -----------
Total Assets $ 7,568,377 $ 7,633,716
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Liabilities:
Bonds payable $ 6,673,976 $ 6,705,044
Accounts payable and accrued expenses 411,192 297,691
Accounts payable - affiliates 119,728 126,946
----------- -----------
Total Liabilities 7,204,896 7,129,681
----------- -----------
Partners' Capital (Deficit):
The Partnership 488,919 622,445
Other joint venturer (125,438) (118,410)
----------- -----------
Total Partners' Capital 363,481 504,035
----------- -----------
Total Liabilities and Partners' Capital $ 7,568,377 $ 7,633,716
=========== ===========
</TABLE>
-14-
<PAGE>
INDUCON-EAST JOINT VENTURE
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1996 and 1995
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
---- ----
Income:
Rental $ 565,645 $ 549,372
Interest and other income 115,040 105,260
--------- ---------
Total income 680,685 654,632
--------- ---------
Expenses:
Property operations 245,410 38,444
Interest 332,850 220,430
Depreciation and amortization 198,359 336,238
Administrative 44,620 166,241
--------- ---------
Total expenses 821,239 761,353
--------- ---------
Net loss $(140,554) $(106,721)
========= =========
Allocation of net loss:
The Partnership $(133,526) $(101,385)
Other Joint Venturer (7,028) (5,335)
--------- ---------
$(140,554) $(106,720)
========= =========
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 (133,526)
----------
Investment in joint venture - end of period $ 488,919
==========
-15-
<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 June 30, 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 June 30, 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 June 30, 1996 and December 31, 1995 and the results of
operations for the six months ended June 30, 1996 and 1995 is as follows:
-16-
<PAGE>
INDUCON-EAST PHASE III JOINT VENTURE
BALANCE SHEETS
June 30, 1996 and December 31, 1995
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Property, at cost:
Land $ 141,400 $ 141,400
Buildings 2,427,677 2,300,806
---------- ----------
2,569,077 2,442,206
Less accumulated depreciation 120,016 100,426
---------- ----------
Property, net 2,449,061 2,341,780
Cash and cash equivalents -- --
Accounts receivable -- 3,665
Accounts receivable - affiliates 103,812 117,805
Other assets 15,928 5,346
Deferred financing cost, net of accumulated amortization
of $12,592 and $7,870 34,630 39,352
Leasing commissions, net of accumulated amortization
of $27,891 and $23,289 39,605 46,207
---------- ----------
Total Assets $2,643,036 $2,554,155
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Liabilities:
Cash overdraft $ 189,758 $ 130,584
Construction loan payable 622,982 619,779
Accounts payable and accrued expenses 145,184 127,019
---------- ----------
Total Liabilities 957,924 877,382
---------- ----------
Partners' Capital:
The Partnership 1,679,973 1,672,051
Other joint venture 5,139 4,722
---------- ----------
Total Partners' Capital 1,685,112 1,676,773
---------- ----------
Total Liabilities and Partners' Capital $2,643,036 $2,554,155
========== ==========
</TABLE>
-17-
<PAGE>
INDUCON-EAST PHASE III JOINT VENTURE
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1996 and 1995
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
---- ----
Income:
Rental $ 131,761 $ 90,359
Interest and other income -- 8,404
---------- ----------
Total income 131,761 98,763
---------- ----------
Expenses:
Property operations 56,988 24,910
Interest 25,380 --
Depreciation and amortization 28,914 24,192
Administrative 12,140 8,024
---------- ----------
Total expenses 123,422 57,126
---------- ----------
Net (loss) income $ 8,339 $ 41,637
========== ==========
Allocation of net (loss) income:
The Partnership $ 7,922 $ 39,555
Other Joint Venturer 417 2,082
---------- ----------
$ 8,339 $ 41,637
========== ==========
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 7,922
----------
Investment in joint venture - end of period $1,679,973
==========
-18-
<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 $1,731,131 and $1,816,636 at June 30,
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 $153,565 and $167,803 as of June 30, 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 $1,858,839 and $1,881,908 at June 30,
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 $3,481,432 and $3,531,008 at June 30,
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 $8,115,289 and $8,207,130 at June 30, 1996
and 1995, respectively, allocated $4,175,214 to Camelot East, $1,342,715 to
O'Hara and $2,689,201 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 $1,245,551 and $1,260,096 at June
30, 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.
-19-
<PAGE>
MORTGAGES AND NOTES PAYABLE (CONTINUED)
Commercial Park West
--------------------
A 9.25% mortgage with a balance of $4,872,762 and $4,900,000 at June 30,
1996 and 1995, respectively, which provided for interest only 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 $165,857 and $183,934 for the six months ended June 30, 1996 and
1995, respectively.
Accounts receivable - affiliates amounted to $174,543 at June 30, 1996.
This balance is in the process of being reimbursed.
-20-
<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 six months ended June 30, 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 $10,000 for the six months ended June 30, 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.
-21-
<PAGE>
10. INCOME TAXES (CONTINUED)
The reconciliation of net loss for the six months ended June 30, 1996 and
1995 as reported in the statements of operations, and as would be reported
for tax purposes, is as follows:
June 30, June 30,
1996 1995
---- ----
Net loss - statement of operations $ (991,575) $ (700,163)
Add to (deduct from):
Difference in depreciation 172,424 156,640
Difference in investment in
Joint Ventures 53,710 53,000
Allowance for doubtful accounts 49,196 20,158
---------- ----------
Net loss - tax return purposes $ (716,245) $ (470,365)
=========== ===========
The reconciliation of Partners' Capital as of June 30, 1996 and December
31, 1995 as reported in the balance sheet, and as reported for tax
purposes, is as follows:
June 30, December 31,
1996 1995
---- ----
Partners' Capital - balance sheet $ 3,565,119 $ 4,556,694
Add to (deduct from):
Accumulated difference in
depreciation 1,556,353 1,383,929
Accumulated difference in investments
in Joint Ventures 369,886 316,176
Syndication fees 2,352,797 2,352,797
Accumulated difference in amortization
of organization costs 21,738 21,738
Allowance for doubtful accounts 307,779 258,583
----------- -----------
Partners' Capital -
tax return purposes $ 8,173,672 $ 8,889,917
=========== ===========
-22-
<PAGE>
PART II MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources
- -------------------------------
The Partnership has maintained sufficient cash to enable it to not only fund
current operations, but also to provide for future capital improvements. No
distributions to partners were made in either the first six months of 1996 or
1995. The General Partner does hope to resume making distributions at some time
during 1996. Although the Partnership experienced a loss for the first six
months of 1996, management feels that with scheduled rent increases and efforts
to control and manage expenses, profitability should increase.
Occupancies at the properties in the Partnership continued in most locations to
be favorable (i.e exceeding 90 percent on average); Williamsburg North
Apartments and The Paddock Office Building experienced lower occupancies during
the second quarter of 1996, but management is actively pursuing and attracting
new tenants by making capital improvements to the properties and through the use
of rental promotions and concessions. Subsequent to June 30, 1996 a new tenant
has taken space at The Paddock, thus improving their occupancy level
significantly.
Results of Operations
- ---------------------
Partnership operations for the three month period ended June 30, 1996 resulted
in a net loss of $724,537 or $33.46 per limited partnership unit compared to a
loss of $217,414 or $10.04 per limited partnership unit for the same period in
1995. The Partnership operations for the six month period ended June 30, 1996
resulted in a net loss of $576,113 or $26.61 per limited partnership unit versus
a second quarter 1995 net loss of $700,163 or $32.34 per unit.
Tax basis loss for the six month period ended June 30, 1996 amounted to $716,245
or $33.08 per limited partnership unit compared to a tax loss of $470,365 or
$21.72 per unit for the corresponding period in 1995. For the second quarter of
1996, the tax basis loss amounted to $586,872 or $27.10 per limited partnership
unit.
-23-
<PAGE>
Results of Operations (continued)
- ----------------------------------
Total revenue for the three month period ended June 30, 1996 amounted to
$1,693,640 decreasing approximately $83,000 from the three month period ended
June 30, 1995. For the first six months of 1996 there was a decrease in total
partnership revenue of slightly less than $42,000 as compared to the same period
in 1995. Of this total, there was only a slight decrease in rental income of
$2,500 which primarily resulted from a decrease in commercial property
occupancy. Interest and other income meanwhile decreased approximately $39,000
due to decreases in common area maintenance reimbursements at commercial
properties.
For the six month period ended June 30, 1996, expenses totaled $3,973,199,
decreasing just over $229,000 from the corresponding period in 1995. For the
quarter ended June 30, 1996, Partnership expenses amounted to $1,993,121,
increasing by $17,715 from the 1995 quarter amount. For the first six months of
1996, a large decrease in property operations expenditures resulted from a
tightening of controls over spending. Specifically, payroll and associated costs
decreased by over $30,000 and repairs and maintenance expenses decreased by more
than $200,000. Contracted services and utility costs experienced only slight
decreases overall. Total administrative expenses decreased by approximately
$30,000 almost completely the result of lower management fees earned.
For the six month period ended June 30, 1996, the Inducon East Joint Venture
generated a net loss of $140,554 versus a net loss of $106,721 for the six
months ended June 30, 1995. This jump was primarily due to increases in property
operational and interest expenses.
The Inducon East Phase III Joint Venture generated net income of $8,339 for the
six month period ended June 30, 1996. Net income for the joint venture for the
six month period ended June 30, 1995 amounted to $41,637.
-24-
<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)
Reports on Form 8-K - None.
-25-
<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 January 2, 1997
------------------------------ ------------------------
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 January 2, 1997
------------------------------ ------------------------
Joseph M. Jayson, Date
President and Director
/s/Michael J. Colmerauer January 2, 1997
------------------------------ ------------------------
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
SIX MONTHS ENDED JUNE 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 539,068
<SECURITIES> 0
<RECEIVABLES> 613,845
<ALLOWANCES> 435,068
<INVENTORY> 0
<CURRENT-ASSETS> 4,498,840
<PP&E> 33,850,042
<DEPRECIATION> 11,297,432
<TOTAL-ASSETS> 27,051,450
<CURRENT-LIABILITIES> 1,589,723
<BONDS> 23,070,869
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 27,051,450
<SALES> 0
<TOTAL-REVENUES> 3,522,690
<CGS> 0
<TOTAL-COSTS> 3,973,199
<OTHER-EXPENSES> 125,604
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,095,044
<INCOME-PRETAX> (576,113)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (576,113)
<EPS-PRIMARY> (26.61)
<EPS-DILUTED> 0
</TABLE>
