<PAGE>
FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the Fiscal Year Ended December 31, 1997
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES AND EXCHANGE ACT OF 1934. (NO FEE
REQUIRED)
Commission File Number 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 No.)
2350 North Forest Road
Suite 21-B
Getzville, New York 14068
(Address of Principal Executive Office)
Registrant's Telephone Number: (716) 636-9090
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Units of Limited
Partnership Interest
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-K or any
amendment to this Form 10-K. (X)
DOCUMENTS INCORPORATED BY REFERENCE
See item 14 for a list of all documents incorporated by reference
1
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PART I
------
ITEM 1: BUSINESS
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The Registrant, Realmark Property Investors Limited Partnership-V (the
"Partnership"), is a Delaware limited partnership organized in 1986, pursuant to
an Agreement and Certificate of Limited Partnership (the "Partnership
Agreement"), under the Revised Delaware Uniform Limited Partnership Act. The
Partnership's general partners are Realmark Properties, Inc. (the "Corporate
General Partner"), a Delaware corporation, and Joseph M. Jayson (the "Individual
General Partner").
The Registrant commenced the public offering of its limited partnership
units, registered with the Securities and Exchange Commission under the
Securities Act of 1933, as amended, on July 14, 1986, and concluded the offering
on October 31, 1987, having raised a total of $20,999,800 before deducting sales
commissions and expenses of the offering.
The Partnership's primary business and its only industry segment is to
own and operate income-producing real property for the benefit of its limited
partners. As of December 31, 1997, the Partnership owned one (1) 205 unit
apartment complex in Louisville, KY, one (1) 65,334 square foot office/warehouse
building in Nashville, Tennessee, one (1) 115,021 square foot office complex in
Durham, North Carolina, and two (2) office/warehouse complexes in Amherst, New
York, totaling 196,500 square feet.
In November 1997, the Partnership acquired an additional 50% interest
in Inducon East and Inducon East Phase III through a buyout of the other joint
venturer. At December 31, 1997, the Partnership owned 100% of the properties.
In December 1997, the Partnership sold Williamsburg North, Fountains,
O'Hara, Wayne Estates and Jackson Park to an affiliate of the General Partners.
These properties were apartment complexes with a total of 767 units. The sale of
these properties generated a gain for financial statement purposes of $5,009,787
for the year ended December 31, 1997.
The business of the Partnership is not seasonal. As of December 31,
1997, the Partnership did not directly employ any persons in a full-time
position. All persons who regularly rendered services on behalf of the
Partnership through December 31, 1997 were employees of the Corporate General
Partner or its affiliates.
The Partnership's objectives are to (1) provide a return of capital
plus capital gains from the sale of appreciated properties; (2) provide partners
with cash distributions until properties are sold; (3) preserve and protect
partners' capital and (4) achieve a build-up of equity through the reduction of
mortgage loans.
The occupancy for each complex as of December 31, 1997, 1996 and 1995
was as follows:
1997 1996 1995
---- ---- ----
Williamsburg North - 88% 92%
Fountains - 89% 97%
Camelot 98% 97% 98%
O'Hara - 92% 95%
Wayne Estates - 93% 96%
Jackson Park - 97% 99%
The Paddock 86% 89% 100%
Commercial Park West 100% 99% 98%
Inducon East 89% - -
Inducon East Phase III 100% - -
2
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The percentage of total Partnership revenue generated from each complex
as of December 31, 1997, 1996 and 1995 was as follows:
1997 1996 1995
---- ---- ----
Williamsburg North 12% 14% 14%
Fountains 15% 17% 17%
Camelot 18% 18% 18%
O'Hara 7% 7% 7%
Wayne Estates 11% 12% 12%
Jackson Park 7% 8% 8%
The Paddock 6% 5% 5%
Commercial Park West 20% 19% 19%
Inducon East 3% - -
Inducon East Phase III 1% - -
ITEM 2: PROPERTIES
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The following is a list of properties owned by the Partnership at December 31,
1997:
<TABLE>
<CAPTION>
Property Name
- -------------
and Location General Character of Property Purchase Date
- -------------- ----------------------------- -------------
<S> <C> <C>
Camelot East Apts. Apartment complex; 23 buildings on 6 acres; May 1988
Louisville, KY 205 units. The outstanding mortgage balance
at December 31, 1997 was $4,896,290
providing for annual principal and interest
payments of approximately $408,000 including
interest at 7.4%. The mortgage matures
November 2027.
The Paddock Building Office/Warehouse Building; 65,334 square May 1987
Nashville, TN feet. The property is currently managed by
an unrelated third party. Realmark
Corporation, an affiliate of the Corporate
General Partner, closely monitors the
operations. The outstanding mortgage balance
at December 31, 1997 was $1,615,870. The
mortgage provides for monthly principal and
interest payments of $18,301 including
interest at 8.75% and matures June 1998. In
addition, a $180,000 demand note is
outstanding with monthly interest payments
of $1,500 at a rate of 10%.
</TABLE>
3
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ITEM 2: PROPERTIES (Con't.)
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<TABLE>
<CAPTION>
Property Name
- -------------
and Location General Character of Property Purchase Date
- --------------- ----------------------------- -------------
<S> <C> <C>
Commercial Park West Office complex; 3 buildings totaling June 1991
Durham, NC 115,021 square feet. The property is
managed by an unrelated third party, with
Realmark Corporation, an affiliate of the
Corporate General Partner, closely
monitoring the operations. The outstanding
mortgage balance at December 31, 1997 was
$4,826,425 providing for monthly principal
and interest payments of $43,001 including
interest at 10%. The mortgage matures June
2001.
Inducon East Office/warehouse complex; 6 buildings on April 1987
Amherst, NY 15 acres; approximately 150,000 sq. ft of
rentable space. There are three bonds
payable outstanding in the amounts of
$2,874,507, $671,139, and $2,920,000 at
December 31, 1997 with interest at 10.25%,
10.25% and 9.45%, respectively. These bonds
mature November 1999, November 1999 and
December 1999, respectively.
Inducon East Phase III The development consists of two buildings totaling September 1992
Amherst, NY 46,500 sq. ft. There are total demand
notes outstanding of $523,433 at December
31, 1997, providing for monthly principal
and interest payments of $14,888 at a rate
of prime plus 1.5% (10% at December 31,
1997).
</TABLE>
ITEM 3: LEGAL PROCEEDINGS
- ------- -----------------
The Partnership is not a party to, nor is any of the Partnership's
property the subject of, any material pending legal proceedings.
4
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ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
- ------- ----------------------------------------------------
On November 4, 1997 the Partnership issued a Consent Solicitation
Statement to the limited partners to request consent for the sale of five
residential properties to U.S. Apartments LLC, an affiliate of the General
Partners.
5
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PART II
ITEM 5: MARKET FOR REGISTRANT'S UNITS OF LIMITED PARTNERSHIP INTEREST.
- ------- --------------------------------------------------------------
There is currently no established trading market for the units of
Limited Partnership Interest of the Partnership and it is not anticipated that
any will develop in the future.
There were no Partnership distributions for the years ended December
31, 1997, 1996 or 1995. As discussed in Note 14, distributions of approximately
$3,591,000 were made to the partners in the first quarter of 1998.
As of December 31, 1997, there were 2,264 record holders of units of
Limited Partnership Interest.
6
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ITEM 6: SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>
Realmark Properties Investors Limited Partnership-V
---------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993
----------------- ----------------- ----------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
Total assets $ 25,243,111 $ 26,050,643 $ 27,477,303 $ 29,432,301 $ 29,925,512
================= ================= ================= ================ ================
Notes payable and
long-term obligations $ 18,507,664 $ 21,337,592 $ 21,606,473 $ 21,918,069 $ 21,165,091
================= ================= ================= ================ ================
- -----------------------------------------------------------------------------------------------------------------------------------
Revenue $ 7,068,782 $ 7,012,767 $ 7,213,894 $ 6,799,739 $ 6,309,766
Expenses 9,151,387 7,919,987 8,782,511 7,745,256 7,115,460
----------------- ----------------- ----------------- ---------------- ----------------
Loss before allocated
loss from joint ventures and
gain on sale of properties (2,082,605) (907,220) (1,568,617) (945,517) (805,694)
Loss from Joint Ventures (625,953) (354,921) (394,263) (338,372) (280,969)
Gain on sale of properties 5,009,787 - - - -
----------------- ----------------- ----------------- ---------------- ----------------
Net income (loss) $ 2,301,229 $ (1,262,141) $ (1,962,880) $ (1,283,889) $ (1,086,663)
================= ================= ================= ================ ================
- -----------------------------------------------------------------------------------------------------------------------------------
Net cash (used in) provided
by operating activities $ (1,179,623) $ 733,884 $ 360,672 $ 81,380 $ 689,790
Principal payments on
mortgages (270,610) (268,881) (311,596) (1,412,022) (275,568)
Proceeds from refinancing 19,310,000 - - 8,250,000 -
Principal payments at
refinancing (14,563,042) - - (6,085,000) -
----------------- ----------------- ----------------- ---------------- ----------------
Net cash (used in) provided
by operating activities
plus proceeds less
principal payments on
long-term debt $ 3,296,725 $ 465,003 $ 49,076 $ 834,358 $ 414,222
================= ================= ================= ================ ================
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) per limited
partnership unit $ 99.31 $ (58.29) $ (90.65) $ (59.30) $ (50.19)
================= ================= ================= ================ ================
Distributions per limited
partnership unit $ - $ - $ - $ 5.00 $ 18.7500
================= ================= ================= ================ ================
Weighted average number
of limited partnership
units outstanding 21,002.8 21,002.8 21,002.8 21,002.8 21,002.8
================= ================= ================= ================ ================
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Entity Receiving Type of
Compensation Compensation 1997 1996 1995
------------ ------------ ---- ---- ----
<S> <C> <C> <C> <C>
US Capital Corp. Loan placement fees $ 234,500 $ - $ 18,311
---------------- ------------- -------------
(An affiliate of the
General Partners)
Realmark Properties, Inc.
(The Corporate
General Partner) Reimbursement for
allocated partnership
administration expenses:
Investor Services Fees 14,261 12,699 10,116
Brokerage 51,765 34,571 22,255
Portfolio Management
& Accounting Fees 269,171 271,526 501,531
Partnership Mgmt. Fees 30,600 56,100 31,969
Realmark Corporation Property Management Fees 333,322 365,877 492,487
Computer Service Fees 20,842 20,592 20,592
---------------- ------------- -------------
719,961 761,365 1,078,950
---------------- ------------- -------------
Total $ 954,461 $ 761,365 $ 1,097,261
================ ============= =============
</TABLE>
7
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ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
- ------ -----------------------------------------------------------------------
OF OPERATIONS.
-------------
Liquidity and Capital Resources:
- -------------------------------
The Partnership continues to maintain sufficient cash to enable it to
not only fund current operations, but also to provide for future capital
improvements. The Partnership made no distributions during 1997. Management
hopes to make additional distributions (i.e. in addition to those made from the
sale of the five residential properties) in the coming year once the capital
improvement work scheduled at the properties is either completed or the full
costs may be measured. Additionally, management is aware that the mortgage on
the Paddock Office/Warehouse Building matures in June 1998, and is currently
requesting an extension of this mortgage with the lender until alternative
financing may be obtained or a sale of the property is completed.
During November of 1997, the Partnership acquired 100% interest in
Inducon East and Inducon East Phase III. Prior to this time, the Partnership had
a 50% interest in each of these commercial properties. These properties began to
be consolidated in the Partnership's financial statements in November 1997. The
properties' financial statements are presented for informational purposes in
Note 9 to these financial statements.
On November 4, 1997, a consent solicitation statement was sent to all
Limited Partners of this Partnership. The offering was for the purchase of five
of the residential complexes in the Partnership: Williamsburg North Apartments,
The Fountains Apartments, O'Hara Apartments, Wayne Estates Apartments, and
Jackson Park Apartments. The price offered in the document for the properties,
including the proceeds from the sale and distributions from other sources, was
$16,107,000 or approximately $171 per Limited Partnership unit. The purchaser is
an affiliate by common ownership of the General Partners. Consent under the
offering was received and the sale was finalized on December 5, 1997. The sale
resulted in a gain of $5,009,787. A distribution of a portion of the proceeds
from the sale of approximately $3,591,000 was made during the first quarter of
1998.
During 1997 and prior to the sale previously discussed, the Partnership
successfully refinanced all of the residential complexes in the Partnership. The
result was additional cash provided by the new financing and significantly lower
interest rates. With the only residential complex remaining in the Partnership
being Camelot East Apartments located in Louisville, Kentucky, management feels
that the new financing will allow it to continue to complete the capital
improvements necessary at the property. Escrow accounts were set up as part of
the new mortgages; these accounts were to be used to cover the costs of the
improvements necessary. Although the release of escrowed funds for Camelot East
is not immediate due to administrative filing requirements under the
mortgage/escrow agreement, cash from operations is initially needed to pay for
the improvements.
Management continues to search for buyers for the remaining properties
in the Partnership as this is deemed to be in the best interests of the Limited
Partners. A contract for the sale of Camelot East Apartments was signed during
1997, but subsequently expired during October 1997.
The Partnership has conducted a review of its computer systems to
identify the systems that could be affected by the "year 2000 issue" and has
substantially developed an implementation plan to resolve such issues.
8
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ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
- ------- ---------------------------------------
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Con't.)
------------------------------------------------------
Liquidity and Capital Resources:
- --------------------------------
The year 2000 issue is the result of computer programs being written
using two digits rather than four digits to define the applicable year. Computer
programs that have time-sensitive software may recognize a date using "00" as
the year 1900 rather than the year 2000. This could result in a system failure
or miscalculations causing disruptions of operations, including, among other
things, a temporary inability to process transactions, send invoices, or engage
in similar normal business activities. Management has confirmed with its
software providers that all software currently in use is either "2000 compliant"
or will be with little adaptation and at no significant cost.
Results of Operations:
- ----------------------
For the year ended December 31, 1997, the Partnership reported net
income of $2,301,229 or $99.31 per limited partnership unit. The income was the
result of a large gain from the sale of five residential apartment complexes.
The gain reported from the sale was $5,009,787; without considering the gain,
the Partnership incurred a net loss of $2,708,558. This is a significant
increase from the year ended December 31, 1996 when the loss incurred totaled
$1,262,141 or $58.29 per limited partnership unit, and the same is true when
compared to the loss which resulted in 1995 totaling $1,962,880 or $90.65 per
limited partnership unit.
Partnership revenues for the year ended December 31, 1997 totaled
$7,068,782, consisting of rental income of $6,685,019 and other income, which
includes interest, laundry income, and other miscellaneous sources of income of
$383,763. There was a slight increase in rental revenue from that of the
previous year when total rental income amounted to $6,661,327; both years were
less when compared to 1995 when rental revenue totaled $6,826,595. For the
months prior to the sale, the Partnership experienced some decreases in
occupancies at several of the five complexes which were sold during 1997.
Occupancy continued the decline it began in 1996 at The Paddock, which was 100%
occupied as of December 31, 1995. Commercial Park West and Camelot East were
once again the stronger performers during 1997 due to high occupancies and
strong cash collections. Other income increased slightly from the year ended
December 31, 1996, yet remained very close to that which was reported in 1995.
The increase amounted to approximately $32,000 or 9%. The increase between 1996
and 1997 can primarily be attributed to increased security deposit forfeitures
at Wayne Estates, Jackson Park, O'Hara Apartments and The Fountains (all prior
to the sale), as well as increased late charges reported at The Fountains,
O'Hara Apartments, Williamsburg North Apartments and Wayne Estates (also prior
to the sale). Camelot East Apartments also reported increased security deposit
forfeitures and late charges for the year ended December 31, 1997 as compared to
those of 1996.
Partnership expenses for the year ended December 31, 1997 totaled
$9,151,387, a considerable increase over the expenses of the years ended
December 31, 1996 and 1995 which were $7,919,987 and $8,782,511, respectively.
The increase can be attributed to a significant increase in depreciation and
amortization expense, as well as a substantial increase in administrative
expenses. Additional amortization expense in 1997 was the result of new
financing obtained during the year on all of the residential complexes in the
Partnership and the sale of the five properties as discussed above. The new
financing and sale led to the write-off of the majority of the previously
capitalized mortgage acquisition costs. The write-off of such costs amounted to
approximately $1,000,000.
9
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ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
- ------- ---------------------------------------
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Con't.)
------------------------------------------------------
Results of Operations (Con't.):
- -------------------------------
Administrative expenses increased due to increased legal expenses at
virtually all of the properties in the Partnership. The increase in legal
expenses was the result of higher eviction costs and volume at many of the
residential complexes. There was also slight increases noted in advertising and
promotion expenses and finance charges at several of the properties. The
decrease in administrative fees paid to affiliates of approximately $41,000 or
5.4% is on account of lower management fees due to an affiliate of the General
Partner(s) resulting from the decreased occupancies and higher bad debts at
several complexes. A decrease in accounting and portfolio expenses was also a
contributing factor to the decline in administrative costs paid to affiliates.
Property operations costs increased from 1996 to 1997 by over $331,000,
yet were $202,278 lower than those incurred for the year ended December 31,
1995. The increase over those operations expenses of the previous year was the
result of increased payroll and associated expenses, as well as due to the
considerable amounts of capital improvements and repair work done at the
properties in this partnership. Such work was necessary due to the properties'
age. All residential complexes did a significant amount of interior and exterior
painting and appliance and carpet replacement. The increase in payroll was
similarly the result of more repair and maintenance work being done at the
properties. Management has hired on-site personnel to perform this work as
opposed to hiring outside contractors who typically would cost much more. Other
operations expenses which increased include utility costs. On a positive note,
decreases were seen in insurance expense at all properties, while most
properties likewise benefited from decreased real estate taxes; Williamsburg
North Apartments saw the largest decrease of the properties in real estate taxes
(over $14,000). Both The Fountains Apartments and The Paddock Warehouse/Office
Building, however, incurred increased real estate tax expenses during 1997 as
compared to those of the two previous years. Management is continually looking
for new ways to save on expenses at the properties; as an example, utility costs
are "regularly" measured, and cost-savings ideas are implemented wherever
possible and practical. Insurance costs are also reviewed regularly, as are real
estate taxes with appeals being filed as deemed practical.
The Partnership expects to continue to incur slightly higher property
operations expenses at Camelot East Apartments in the coming year due to the
costs associated with preparing the residential units for new tenants (i.e.
cleaning, painting, appliance and carpeting costs). Although this work is
necessary in order to increase rental revenue(s) generated, management continues
to keep in mind that expenditures must be closely monitored so as not to hurt
the cash flow from operations of the Partnership.
Inducon East generated a net loss of $498,894 for the year ended
December 31, 1997 as compared to the loss which resulted in the years ended
December 31, 1996 and 1995 of $328,299 and $439,442, respectively. In November
1997, the Partnership acquired an additional 50% interest in Inducon East
through a buyout of the other joint venturer. At December 31, 1997, the
Partnership owned 100% of the properties. For the year ended December 31, 1997,
the loss from Inducon East was allocated $479,068 to the Partnership and $19,826
to the other venturer. The other joint venturer was allocated a portion of the
loss through the date of the buyout.
Inducon East Phase III Joint Venture generated net income of $29,050
for the year ended December 31, 1997 as compared to the loss which resulted in
the year ended December 31, 1996 of $45,302 and the income reported in 1995 of
$24,428. In November 1997, the Partnership acquired an additional 50% interest
in Inducon East through a buyout of the other joint venturer. At December 31,
1997, the Partnership owned 100% of the properties. For the year ended December
31, 1997, income from Inducon East Phase III was allocated $29,904 to the
Partnership and a loss of $854 to the other venturer. The other joint venturer
was allocated a portion of the loss through the date of the buyout.
10
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ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
- ------- ---------------------------------------
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Con't.)
------------------------------------------------------
Results of Operations (Con't.):
- -------------------------------
For the year ended December 31, 1997, the tax basis income was
$1,461,448 or $67.50 per limited partnership unit compared to a tax loss of
$721,465 or $33.32 per unit for the year ended December 31, 1996 and a tax loss
of $1,412,223 or $65.22 per limited partnership unit for the year ended December
31, 1995.
ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
- ------- --------------------------------------------
Listed under Item 14 of the report.
ITEM 9: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
- ------- ---------------------------------------------------------------
FINANCIAL DISCLOSURE.
---------------------
None.
11
<PAGE>
PART III
ITEM 10: DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
- -------- ---------------------------------------------------
The Partnership, as an entity, does not have any directors or officers.
The Individual General Partner of the Partnership is Joseph M. Jayson. The
directors and executive officers of Realmark Properties, Inc., the Partnership's
Corporate General Partner, as of March 1, 1998, are listed below. Each director
is subject to election on an annual basis.
Title of All Positions Year First
Name Held With the Company Elected Director
- ---- --------------------- ----------------
Joseph M. Jayson President and Director 1979
Judith P. Jayson Vice President and Director 1979
Michael J. Colmerauer Secretary
Joseph M. Jayson, President and Director of Realmark Properties, Inc.
and Judith P. Jayson, Vice President and Director of Realmark Properties, Inc.,
are married to each other.
The Directors and Executive Officers of the Corporate General Partner
and their principal occupations and affiliations during the last five years or
more are as follows:
Joseph M. Jayson, age 59, is Chairman and Director and sole stockholder
of J.M. Jayson & Company, Inc. and certain of its affiliated companies: U.S.
Apartments LLC, Westmoreland Capital Corporation, Oilmark Corporation and U.S.
Energy Development Corporation. In addition, Mr. Jayson is President and
Director of Realmark Corporation and Realmark Properties, Inc., wholly owned
subsidiaries of J.M. Jayson & Company, Inc. and co-general partner of Realmark
Property Investors Limited Partnership, Realmark Property Investors Limited
Partnership-II, Realmark Property Investors Limited Partnership-III, Realmark
Property Investors Limited Partnership-IV, Realmark Property Investors Limited
Partnership-V, Realmark Property Investors Limited Partnership-VI A and Realmark
Property Investors Limited Partnership-VI B. Mr. Jayson is a member of the
Investment Advisory Board of the Corporate General Partner. Mr. Jayson has been
engaged in real estate business for the last 35 years and is a Certified
Property Manager as designated by the Institute of Real Estate Management
("I.R.E.M."). Mr. Jayson received a B.S. Degree in Education in 1961 from
Indiana University, a Masters Degree from the University of Buffalo in 1963, and
has served on the Educational Faculty of the Institute of Real Estate
Management. Mr. Jayson has for the last 35 years been engaged in various aspects
of real estate brokerage investment. He brokered residential properties from
1962 to 1964, commercial and investment properties from 1964 to 1967, and in
1967, left commercial real estate to form his own investment firm. Since that
time, Mr. Jayson and J.M. Jayson & Company, Inc. have formed, or participated in
various ways, in forming over 30 real estate related limited partnerships. For
the past seventeen years, Mr. Jayson and J.M. Jayson & Company, Inc. and an
affiliate have also engaged in developmental drilling for gas and oil.
12
<PAGE>
ITEM 10: DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT. (Con't.)
- -------- ------------------------------------------------------------
Judith P. Jayson, age 58, is currently Vice-President and Director of
Realmark Properties, Inc. She is also a Director of the property management
affiliate, Realmark Corporation. Mrs. Jayson has been involved in property
management for the last 36 years and has extensive experience in the hiring and
training of property management personnel and in directing, developing and
implementing property management systems and programs. Mrs. Jayson, prior to
joining the firm in 1973, taught business in the Buffalo, New York high school
system. Mrs. Jayson graduated from St. Mary of the Woods College in Terre Haute,
Indiana, with a degree in Business Administration. Mrs. Jayson is the wife of
Joseph M. Jayson, the Individual General Partner.
Michael J. Colmerauer, 39, is Secretary and in-house legal counsel for
J.M. Jayson & Company, Inc., Realmark Corporation, Realmark Properties, Inc. and
other companies affiliated with the General Partners. He received a Bachelor's
Degree (BA) from Canisius College in 1980 and a Juris Doctors (J.D.) from the
University of Tulsa in 1983. Mr. Colmerauer is a member of the American and Erie
County Bar Association and has been employed by the Jayson group of companies
for the last 14 years.
ITEM 11: EXECUTIVE COMPENSATION.
- -------- -----------------------
No direct remuneration was paid or payable by the Partnership to
directors and officers (since it has no directors or officers) for its fiscal
years ended December 31, 1997, 1996 or 1995; nor was any direct remuneration
paid or payable by the Partnership to directors or officers of Realmark
Properties, Inc., the Corporate General Partner and sponsor, for the years ended
December 31, 1997, 1996 or 1995.
The following table sets forth for the years ended December 31, 1997,
1996 and 1995 the compensation paid by the Partnership, directly or indirectly,
to affiliates of the General Partners:
13
<PAGE>
ITEM 11: EXECUTIVE COMPENSATION. (Con't.)
- -------- --------------------------------
The Corporate General Partner is entitled to a continuing Partnership
Management Fee equal to 7% of net cash flow as defined in the Partnership
Agreement. This fee totaled $30,600 for the year ended December 31, 1997. No
such fees were paid in the years ended December 31, 1996 and 1995. The General
Partners are also entitled to 3% of Distributable Cash, as defined in the
Partnership Agreement (no such amounts were distributed for the years ended
December 31, 1997, 1996 and 1995) and to certain expense reimbursements with
respect to Partnership operations.
The General Partners are also allowed to collect a property disposition
fee upon sale of acquired properties. This fee is not to exceed the lesser of
50% of amounts customarily charged in arm's-length transactions by others
rendering similar services for comparable properties or 2.75% of the sales
price. The property disposition fee is subordinate to payments to the Limited
Partners of a cumulative annual return (not compounded) equal to 7% of their
average adjusted capital balances and to repayment to the Limited Partners of an
amount equal to their original capital contributions.
Since the conditions described above have not been met, no disposition
fee was paid or accrued on the March 1990 sale of Pelham East or on the five
properties sold in 1997 as described in Note 3.
The General Partners may also be entitled to 13% of any remaining sale
or refinancing proceeds after payments to the Limited Partners pursuant to the
terms outlined in the Partnership Agreement.
ITEM 12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
- -------- ---------------------------------------------------------------
No person owns of record or beneficially more than five percent (5%) of
the units of Limited Partnership Interest of the Partnership. The General
Partners, as of December 31, 1997, owned three (3) units of Limited Partnership
Interest.
ITEM 13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS:
- -------- -----------------------------------------------
No transactions have occurred between the Partnership and the officers
and directors of Realmark Properties, Inc. All transactions between the
Partnership and Realmark Properties, Inc. (the Corporate General Partner) and
any other affiliated organization are described in Item 11 of this report and in
Note 4 to the Financial Statements.
As discussed in Note 3, the Partnership sold five residential
properties to U.S. Apartments LLC, a wholly-owned affiliate of the General
Partners, in December 1997.
14
<PAGE>
ITEM 14: EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES AND REPORTS ON FORM 8-K.
- -------- ------------------------------------------------------------------
(a) Financial Statements and Schedules.
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS PAGE
-------------------- ----
<S> <C>
(i) Independent Auditors' Report 15
(ii) Balance Sheets at December 31, 1997 and 1996 16
(iii) Statements of Operations for the years ended
December 31, 1997, 1996 and 1995 17
(iv) Statements of Partners' Capital (Deficit) for the
years ended December 31, 1997, 1996 and 1995 18
(v) Statements of Cash Flows for the years ended
December 31, 1997, 1996 and 1995 19
(vi) Notes to Financial Statements 20 - 37
<CAPTION>
FINANCIAL STATEMENT SCHEDULE
----------------------------
<S> <C>
(i) Schedule III - Real Estate and Accumulated Depreciation 38 - 39
</TABLE>
All other schedules are omitted because they are not applicable or the
required information is shown in the financial statements or the notes thereto.
(b) Reports on Form 8-K
Form 8-K, dated December 5, 1997, reporting in Item 2, the disposition
of certain properties and in Item 7, proforma financial information as of
September 30, 1997, incorporated herein by reference.
(c) Exhibits
4. Instruments defining the rights of security holder,
including indentures
(a) Certificate of Limited Partners filed with
the Registration Statement of the Registrant
Form S-11, filed February 28, 1986, and
subsequently amended, incorporated herein by
reference.
10. Material Contracts
(a) Property Management Agreement with Realmark
Corporation included with the Registration
Statement, Form S-11, of the Registrant as
filed and amended to date, incorporated
herein by reference.
(b) Partnership Agreement included with the
Registration Statement of the Registrant as
filed and amended to date, incorporated
herein by reference.
(c) Joint Venture Agreements as filed and
amended to date, incorporated herein by
reference.
15
PAGI<PAGE>
INDEPENDENT AUDITORS' REPORT
The Partners
Realmark Property Investors Limited Partnership-V
We have audited the accompanying balance sheets of Realmark Property Investors
Limited Partnership-V as of December 31, 1997 and 1996, and the related
statements of operations, partners' capital (deficit), and cash flows for each
of the three years in the period ended December 31, 1997. Our audits also
included the financial statement schedule listed in the index at Item 14. These
financial statements and financial statement schedules are the responsibility of
the General Partners. Our responsibility is to express an opinion on the
financial statements and the financial statement schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
General Partners, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of Realmark Property Investors Limited
Partnership-V at December 31, 1997 and 1996 and the results of its operations
and its cash flows for each of the three years in the period ended December 31,
1997 in conformity with generally accepted accounting principles. Also, in our
opinion, such financial statement schedule, when considered in relation to the
basic financial statements taken as a whole, present fairly in all material
respects the information set forth therein.
/s/ Deloitte & Touche L.L.P.
April 7, 1998
16
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
BALANCE SHEETS
--------------
DECEMBER 31, 1997 AND 1996
--------------------------
<TABLE>
<CAPTION>
Assets 1997 1996
----------------- -----------------
<S> <C> <C>
Property, at cost:
Land $ 2,435,519 $ 2,221,900
Buildings 25,722,116 29,491,904
Furniture, fixtures and equipment 512,500 2,430,000
----------------- -----------------
28,670,135 34,143,804
Less accumulated depreciation 9,010,190 12,087,478
----------------- -----------------
Property, net 19,659,945 22,056,326
Investments in real estate joint ventures - 1,939,576
Investment in land 397,946 373,282
Cash 2,165,489 665,373
Investments in mutual funds 1,695,559 -
Accounts receivable, net of allowance for doubtful accounts of
$140,390 and $541,099 in 1997 and 1996, respectively 202,412 19,588
Accounts receivable - affiliates - 152,601
Mortgage escrow 356,953 483,107
Mortgage costs, net of accumulated amortization
of $566,754 and $364,296 in 1997 and 1996, respectively 421,663 230,581
Other assets 343,144 130,209
----------------- -----------------
Total Assets $ 25,243,111 $ 26,050,643
================= =================
Liabilities and Partners' Capital
Liabilities:
Mortgages and note payable $ 18,507,664 $ 21,337,592
Accounts payable and accrued expenses 723,160 874,387
Interest payable 159,020 177,135
Security deposits and prepaid rents 257,485 366,976
----------------- -----------------
Total Liabilities 19,647,329 22,756,090
----------------- -----------------
Partners' capital (deficit):
General partners (244,064) (459,529)
Limited partners 5,839,846 3,754,082
----------------- -----------------
Total Partners' Capital 5,595,782 3,294,553
----------------- -----------------
Total Liabilities and Partners' Capital $ 25,243,111 $ 26,050,643
================= =================
</TABLE>
See notes to financial statements
17
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
STATEMENTS OF OPERATIONS
------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
<TABLE>
<CAPTION>
1997 1996 1995
---------------- ---------------- ----------------
<S> <C> <C> <C>
Income:
Rental $ 6,685,019 $ 6,661,327 $ 6,826,595
Interest and other 383,763 351,440 387,299
---------------- ---------------- ----------------
Total income 7,068,782 7,012,767 7,213,894
---------------- ---------------- ----------------
Expenses:
Property operations 3,326,437 2,994,570 3,528,715
Interest 2,149,177 2,160,419 2,153,643
Depreciation and amortization 2,251,774 1,533,249 1,545,222
Administrative:
Paid to affiliates 719,961 761,365 1,078,950
Other 704,038 470,384 475,981
---------------- ---------------- ----------------
Total expenses 9,151,387 7,919,987 8,782,511
---------------- ---------------- ----------------
Loss before allocated loss from joint ventures and
gain on sale of properties (2,082,605) (907,220) (1,568,617)
Allocated loss from joint ventures (625,953) (354,921) (394,263)
Gain on sale of properties 5,009,787 - -
---------------- ---------------- ----------------
Net income (loss) $ 2,301,229 $ (1,262,141) $ (1,962,880)
================ ================ ================
Income (loss) per limited partnership unit $ 99.31 $ (58.29) $ (90.65)
================ ================ ================
Distributions per limited partnership unit $ - $ - $ -
================ ================ ================
Weighted average number of limited partnership
units outstanding 21,002.8 21,002.8 21,002.8
================ ================ ================
</TABLE>
See notes to financial statements
18
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
-----------------------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
<TABLE>
<CAPTION>
General Limited Partners
Partners ---------------------------------
Amount Units Amount
------ ----- ------
<S> <C> <C> <C>
Balance, January 1, 1995 $ (362,779) 21,002.8 $ 6,882,353
Net loss (58,886) - (1,903,994)
------------- ------------ ---------------
Balance, December 31, 1995 (421,665) 21,002.8 4,978,359
Net loss (37,864) - (1,224,277)
------------- ------------ ---------------
Balance, December 31, 1996 (459,529) 21,002.8 3,754,082
Net income 215,465 - 2,085,764
------------- ------------ ---------------
Balance, December 31, 1997 $ (244,064) 21,002.8 $ 5,839,846
============= ============ ===============
</TABLE>
See notes to financial statements
19
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
<TABLE>
<CAPTION>
1997 1996 1995
---------------- ---------------- ----------------
<S> <C> <C> <C>
Cash Flows from operating activities:
Net income (loss) $ 2,301,229 $ (1,262,141) $ (1,962,880)
Adjustments to reconcile net income (loss) to net cash
(used in) provided by operating activities:
Depreciation and amortization 2,251,774 1,533,249 1,545,222
Net loss from joint ventures 625,953 354,921 394,263
Gain on sale of properties (5,009,787) - -
Changes in operating assets and liabilities:
Accounts receivable (94,691) 32,008 63,131
Other assets (94,903) (28,516) 1,458
Accounts payable and accrued expenses (801,974) 104,956 338,081
Interest payable (169,523) (2,383) (2,079)
Security deposits and prepaid rents (187,701) 1,790 (16,524)
---------------- ---------------- ----------------
Net cash (used in) provided by operating activities (1,179,623) 733,884 360,672
---------------- ---------------- ----------------
Cash flows from investing activities:
Investments in mutual funds (1,695,559) - -
Decrease (increase) in accounts receivable - affiliates 135,988 (4,755) 1,087
Decrease in mortgage escrow deposits 126,154 91,470 42,261
Property acquisitions (571,010) (300,454) (83,610)
Investments in land (24,664) - -
Buyout of investment in joint venture (80,000) - -
Proceeds from note receivable - - 250,000
Proceeds from dispositions of properties 1,491,340 - -
---------------- ---------------- ----------------
Net cash (used in) provided by investing activities (617,751) (213,739) 209,738
---------------- ---------------- ----------------
Cash flows from financing activities:
Principal payments on mortgages (270,610) (268,881) (311,596)
Principal payments upon refinancing (14,563,042) - -
Mortgage costs related to refinancing (1,178,858) (39,774) (31,144)
Mortgage proceeds from refinancing 19,310,000 - -
---------------- ---------------- ----------------
Net cash provided by (used in) financing activities 3,297,490 (308,655) (342,740)
---------------- ---------------- ----------------
Net increase in cash 1,500,116 211,490 227,670
Cash - beginning of year 665,373 453,883 226,213
---------------- ---------------- ----------------
Cash - end of year $ 2,165,489 $ 665,373 $ 453,883
================ ================ ================
</TABLE>
See notes to financial statements
20
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
1. 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. All items of income and expense
arose subsequent to this date. 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., the Corporate General Partner, and Joseph M. Jayson,
the Individual General Partner. Joseph M. Jayson is the sole shareholder of J.M.
Jayson & Company, Inc. Realmark Properties, Inc. is a wholly-owned subsidiary 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 (See Note 4).
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.
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 corporate
general partner receives a 2.75% property 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.
21
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
- ----------------------------------------------
(a) Use of Estimates
----------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
(b) Property and Depreciation
-------------------------
Depreciation is provided using the straight-line method over the
estimated useful lives of the respective assets and totaled $1,094,232,
$1,397,696 and $1,419,825 for the years ended December 31, 1997, 1996 and 1995,
respectively. The estimated useful lives of the Partnership's assets range from
5 to 25 years. Expenditures for maintenance and repairs are expensed as
incurred; major renewals and betterments are capitalized. The Accelerated Cost
Recovery System and Modified Accelerated Cost Recovery System are used to
calculate depreciation expense for tax purposes.
(c) Rental Income
-------------
Leases for residential properties have terms of one year or less.
Commercial leases have terms of from one to six years. Rental income is
recognized on the straight line method over the term of the lease.
(d) Investments in Real Estate Joint Ventures
-----------------------------------------
The investments in real estate joint ventures are accounted for on the
equity method.
(e) Cash
----
For purposes of reporting cash flows, cash includes the following
items: cash on hand; cash in checking; and cash in savings.
(f) Mortgage Costs
--------------
Mortgage costs incurred in obtaining property mortgage financing have
been deferred and are being amortized over the terms of the respective
mortgages.
(g) Investments in Mutual Funds
---------------------------
The investments in mutual funds are stated at fair value, which
approximates cost, at December 31, 1997.
22
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
3. ACQUISITION AND DISPOSITIONS OF RENTAL PROPERTY:
- ---------------------------------------------------
In April 1987, the Partnership acquired a 50% interest in Inducon -
East Joint Venture, a 150,000 square foot office/warehouse located in Amherst,
New York. The Partnership contributed $2,414,592 of capital to the joint
venture.
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 $3,163,324, which included $148,683 in acquisition fees.
In December 1987, the Partnership acquired a 192 unit apartment complex
(Williamsburg North) 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 100 unit apartment complex for a sale price of $2,435,000
which generated a net gain for financial statement purposes of $572,562.
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.
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.
23
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
-----------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
3. ACQUISITION AND DISPOSITIONS OF RENTAL PROPERTY (Con't.):
- ------------------------------------------------------------
In June 1991, the Partnership acquired a 115,021 square foot office
complex (Commercial Park West) located in Durham, 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 between the Partnership and
Inducon Corporation. Each held a 50% interest in the Phase III Venture. The
Phase III Venture developed two buildings totaling approximately 46,500 square
feet on 4.2 acres of land in Amherst, New York.
In November 1997, the Partnership acquired an additional 50% interest
in Inducon East and Inducon East Phase III through a buyout of the other joint
venturers. At December 31, 1997, the Partnership owned 100% of the properties.
In December 1997, the Partnership sold Williamsburg North, the
Fountains, O'Hara, Wayne Estates and Jackson Park for a total purchase price of
$16,107,000, which generated a net gain for financial statement purposes of
$5,009,787. The properties were sold to U.S. Apartments LLC, a wholly-owned
affiliate of Joseph M. Jayson, Individual General Partner.
In June 1997, the Partnership entered into a plan to dispose of the
property, plant and equipment of Camelot East with a carrying amount of
$3,825,407 at December 31, 1997. Management had determined that a sale of the
property was in the best interests of the limited partners. An agreement was
signed with a potential buyer for the purchase of the property. The agreement
expired in October 1997. No additional agreements have been signed.
Financial Accounting Standards Statement No. 121, Accounting for the
Impairment of Long-lived Assets and for Long-lived Assets to be Disposed Of (the
"Statement") requires that assets to be disposed of be recorded at the lower of
carrying value or fair value, less costs to sell. The Statement also requires
that such assets not be depreciated during the disposal period, as the assets
will be recovered through sale rather than through operations. In accordance
with this Statement, the long-lived assets of the Partnership, classified as
held for sale on the balance sheet, are recorded at the carrying amount which is
the lower of carrying value or fair value less costs to sell, and have not been
depreciated during the disposal period. Depreciation expense, not recorded
during the disposal period, for the year ended December 31, 1997 totaled
approximately $55,000 for Camelot East Apartments. Depreciation expense not
recorded during the disposal period for the five properties sold to U.S.
Apartments LLC totaled approximately $281,000.
24
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
-----------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
4. RELATED PARTY TRANSACTIONS:
- ------------------------------
The corporate general partner and its affiliates earned the following
fees and commissions as provided for in the partnership agreement for the years
ended December 31, 1997, 1996 and 1995:
<TABLE>
<CAPTION>
1997 1996 1995
---------- ---------- ----------
<S> <C> <C> <C>
Loan placement fees equal to 1% of loan balance
at time service is rendered $ 234,500 $ -- $ 18,311
---------- ---------- ----------
Partnership management fee - equal to 7% of the
net cash flow of the partnership as defined in the
partnership agreement 30,600 56,100 31,969
Reimbursement for allocated administrative expenses of the
corporate general partner including payroll, legal, rent,
depreciation, printing, audit, travel and communications
related to partnership accounting, partner communications
and property marketing 335,197 318,796 533,902
Computer service charges based on number of
apartment units 20,842 20,592 20,592
Property management fees computed at 3 - 6% of gross monthly
rental receipts on properties managed 333,322 365,877 492,487
---------- ---------- ----------
719,961 761,365 1,078,950
---------- ---------- ----------
$ 954,461 $ 761,365 $1,097,261
========== ========== ==========
</TABLE>
25
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
4. RELATED PARTY TRANSACTIONS (Con't.):
------------------------------------
Partnership accounting and portfolio management fees, investor services
fees and brokerage fees are allocated based on total assets, the number of
partners, and number of units, respectively. In addition to the above, other
property specific expenses, such as payroll, benefits, etc. are charged to
property operations on the Statement of Operations.
The General Partners are also allowed to collect a property disposition
fee upon sale of acquired properties. This fee is not to exceed the lesser of
50% of amounts customarily charged in arm's-length transactions by others
rendering similar services for comparable properties or 2.75% of the sales
price. The property disposition fee is subordinate to payments to the Limited
Partners of a cumulative annual return (not compounded) equal to 7% of their
average adjusted capital balances and to repayment to the Limited Partners of an
amount equal to their original capital contributions. Since these conditions
described above have not been met, no disposition fees were paid or accrued on
the March 1990 sale of Pelham East or on the five properties sold in 1997 as
described in Note 3..
Accounts receivable - affiliates totaled $152,601 as of December 31,
1996.
5. INVESTMENT IN LAND:
-------------------
The Partnership owns approximately 96 acres of vacant land in Amherst,
New York. The investment totaled $397,946 and $373,282 as of December 31, 1997
and 1996, respectively. The balance as of December 31, 1997 approximates the
investment's fair value.
6. MORTGAGES AND NOTE PAYABLE:
---------------------------
The Partnership has the following mortgages and notes payable:
The Paddock Building
- --------------------
An 8.75% mortgage with a balance of $1,615,870 and $1,690,505 at
December 31, 1997 and 1996, 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, a 10% demand note payable
with a balance of $180,000 as of December 31, 1997 and 1996, providing for
monthly interest payments of $1,500.
26
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
6. MORTGAGES AND NOTES PAYABLE (Con't.):
-------------------------------------
The Williamsburg North Apartments
- ---------------------------------
The property's mortgage outstanding of $1,846,372 at December 31, 1996
was refinanced during 1997. The mortgage was assumed by the buyer when the
property was sold in December 1997.
The Fountains Apartments
- ------------------------
The property's mortgage outstanding of $3,454,767 at December 31, 1996
was refinanced during 1997. The mortgage was assumed by the buyer when the
property was sold in December 1997.
Camelot East Apartments, O'Hara Apartments, Wayne Estates Apartments
- --------------------------------------------------------------------
The mortgage allocated to these complexes totaled $8,070,319 at
December 31, 1996. The mortgage was refinanced during 1997 into three separate
mortgages. The mortgages on O'Hara Apartments and Wayne Estates Apartments were
assumed by the buyer when the properties were sold in December 1997.
Camelot East Apartments' mortgage had an outstanding balance of
$4,896,290 at December 31, 1997 providing for annual principal and interest
payments of approximately $408,000 including interest at 7.4%. The mortgage
matures November 2027.
Jackson Park
- ------------
The property's mortgage outstanding of $1,237,578 at December 31, 1996
was refinanced during 1997. The mortgage was assumed by the buyer when the
property was sold in December 1997.
Commercial Park West
- --------------------
A mortgage with a balance of $4,826,425 and $4,858,051 at December 31,
1997 and 1996, respectively. The mortgage provided for annual principal and
interest payments through June 1996 at a rate of 9.25%. On July 1, 1996,
interest changed to 10%, with annual principal and interest payments of $516,012
payable in equal monthly installments. The remaining balance is due June 2001.
Inducon East
- ------------
The construction of the property's buildings were financed through
proceeds of $3,200,000 and $750,000, 10.25% revenue bonds issued by the Town of
Amherst Industrial Development Agency, both payable through November 1999. The
principal balance due on the bonds at December 31, 1997 was $2,874,507 and
$671,139, respectively. The principal balances at December 31, 1996 were
$2,931,564 and $684,859, respectively. Collateral on the bonds is the property,
an assignment of leases and subleases, a security interest in machinery and
equipment, and a conditional guarantee.
27
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
6. MORTGAGES AND NOTES PAYABLE (Con't.):
-------------------------------------
Inducon East (Con't.)
- --------------------
Additional financing was obtained through proceeds of a $3,200,000,
9.45% bond issued by the Town of Amherst Industrial Development Agency, payable
though December 1999. The principal balance due on the bond at December 31, 1997
and 1996 was $2,920,000 and $2,975,000, respectively. Collateral is the property
and an assignment of rents.
The bonds payable are also secured by a letter of credit with the Home
& City Savings Bank of Albany.
Inducon East Phase III
- ----------------------
Construction was financed through $750,000 demand loans. In the absence
of such a demand, the terms of the loans require monthly principal and interest
payments of $14,888 at a rate of prime plus 1.5% (10% at December 31, 1997) with
a five year amortization. The loans are collateralized by the building. Draws on
the loans totaled $523,433 and $622,077 at December 31, 1997 and 1996,
respectively.
The mortgage notes are secured by the individual 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
1998 $ 2,535,296
1999 6,411,061
2000 91,707
2001 4,763,161
2002 56,964
4,649,475
-------------
TOTAL $ 18,507,664
=============
28
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
7. FAIR VALUE OF FINANCIAL INSTRUMENTS:
------------------------------------
Statement of Financial Accounting Standards No. 107 requires disclosure
about fair value of certain financial instruments. The fair values of cash,
accounts receivable, accounts receivable - affiliates, accounts payable, accrued
expenses and deposit liabilities approximate the carrying value due to the
short-term nature of these instruments.
Management has estimated fair values of the mortgage payable on
Commercial Park West based on currently available rates, to approximate
$5,100,000. The carrying value of the mortgage is $4,826,425 at December 31,
1997.
The fair value of the mortgage and note payable on The Paddock cannot
be determined because it is uncertain if a comparable mortgage could be obtained
in the current market due to significant impending vacancies anticipated at the
property.
The fair value of the bonds payable on Inducon East cannot be
determined because it is uncertain if comparable bonds could be obtained in the
current market. The bonds were issued by the Amherst Industrial Development
Agency.
Management has estimated that the fair values of the construction loans
payable on Inducon East Phase III approximate their carrying values as they are
due and payable on demand and have adjustable interest rates.
29
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
8. 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.
Partners' capital as of December 31, 1997, 1996 and 1995, as reported
in the balance sheet, and as reported for tax return purposes, is as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------- ----------- -----------
<S> <C> <C> <C>
Partners' Capital - Balance Sheet $ 5,595,782 $ 3,294,553 $ 4,556,694
Add to (deduct from):
Accumulated difference in depreciation 2,240,303 1,635,883 1,383,929
Gain on sale of properties (905,955) - -
Difference in investment in Joint Venture 543,845 429,468 316,176
Syndication fees 2,352,797 2,352,797 2,352,797
Accumulated difference in amortization
of organization costs 21,738 21,738 21,738
Other nondeductible expenses (218,605) 434,017 258,583
----------- ----------- -----------
Partners' Capital - tax return purposes $ 9,629,905 $ 8,168,456 $ 8,889,917
=========== =========== ===========
</TABLE>
The reconciliation of net loss for the years ended December 31, 1997,
1996 and 1995 as reported in the statement of operations, and as reported for
tax return purposes, is as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------- ----------- -----------
<S> <C> <C> <C>
Net income (loss) -
Statement of operations $ 2,301,229 $(1,262,141) $(1,962,880)
Add to (deduct from):
Difference in depreciation 604,420 251,954 344,849
Gain on sale of properties (905,955) - -
Difference in investment in
joint venture 114,377 113,292 107,418
Other nondeductible expenses (652,623) 175,430 98,390
----------- ----------- -----------
Net income (loss) - tax return purposes $ 1,461,448 $ (721,465) $(1,412,223)
=========== =========== ===========
</TABLE>
30
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
9. 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
was to acquire land and construct office/warehouse buildings as income-producing
property. The development consists of two parcels of land being 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 being approximately 19,000 square feet.
The Partnership had contributed capital of $2,744,901 to the Venture.
The remaining funds needed to complete Phase I came from $3,950,000 taxable
industrial revenue bonds which the Venture received in 1989. The Venture
completed the financing of the Phase II project with an additional $3,200,000
taxable industrial revenue bond.
The total cost of Phase I and Phase II were approximately $4,425,000
and $4,600,000, respectively.
The Joint Venture agreement provided that income and losses be
allocated 95% to the Partnership and 5% to the Corporation. Net cash flow from
the Joint Venture was to be distributed to the Partnership and Corporation in
accordance with the terms of the Joint Venture Agreement.
In November 1997, the Partnership acquired the interest of Curtlaw
Corporation for $40,000. At December 31, 1997, the Partnership owned 100% of the
Inducon East property. The results of the property's operations from January 1,
1997 through October 31, 1997 were allocated in accordance with the Joint
Venture Agreement. The property began to be consolidated in the Partnership's
financial statements beginning November 1, 1997.
31
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
9. INVESTMENTS IN JOINT VENTURES (Con't.):
---------------------------------------
A summary of the assets, liabilities and partners' capital of the
Inducon East Joint Venture as of December 31, 1997 and 1996 and the results of
its operations for the years ended December 31, 1997, 1996 and 1995 are
presented for informational purposes as follows:
32
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
9. INVESTMENT IN JOINT VENTURES (Con't.):
--------------------------------------
INDUCON EAST JOINT VENTURE
--------------------------
STATEMENTS OF OPERATIONS
------------------------
For the Years Ended December 31, 1997, 1996 and 1995
----------------------------------------------------
<TABLE>
<CAPTION>
1997 1996 1995
--------------- --------------- ---------------
<S> <C> <C> <C>
Income:
Rental $ 1,047,529 $ 1,417,963 $ 1,319,591
Interest and other 254,463 6,159 6,511
--------------- --------------- ---------------
Total Income 1,301,992 1,424,122 1,326,102
--------------- --------------- ---------------
Expenses:
Property operations 449,884 359,998 460,494
Interest 655,040 659,497 672,149
Depreciation and amortization 518,295 489,395 488,073
Administrative:
Affiliates 63,697 63,104 98,639
Other 113,970 180,427 46,189
--------------- --------------- ---------------
Total Expenses 1,800,886 1,752,421 1,765,544
--------------- --------------- ---------------
Loss from operations $ (498,894) $ (328,299) $ (439,442)
=============== =============== ===============
Allocation of net loss:
The Partnership $ (479,068) $ (311,884) $ (417,470)
The Corporation (19,826) (16,415) (21,972)
--------------- --------------- ---------------
Total $ (498,894) $ (328,299) $ (439,442)
=============== =============== ===============
</TABLE>
33
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
9. INVESTMENT IN JOINT VENTURES (Con't.):
--------------------------------------
A reconciliation of the investments in Inducon East Joint Venture:
<TABLE>
<CAPTION>
1997 1996 1995
----------- ----------- -----------
<S> <C> <C> <C>
Investment in joint venture at beginning of year $ 310,561 $ 622,445 $ 1,039,915
Allocation of net loss (through October 31 for 1997) (376,687) (311,884) (417,470)
Purchase of remaining interest 40,000 - -
Adjustment to fair value (194,652) - -
Elimination to Partners' Capital 220,778 - -
----------- ----------- -----------
Investment in joint venture at end of year $ 0 $ 310,561 $ 622,445
=========== =========== ===========
</TABLE>
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 (Inducon). The primary purpose of the Phase III Venture
was to acquire land and construct office/warehouse buildings as income-producing
property. The development consists of 4.2 acres of land and two buildings with
approximately 25,200 and 21,300 square feet, respectively.
The Partnership contributed $1,582,316 to the Phase III Venture. The
remaining funds needed to complete construction came from a $750,000
construction loan described in Note 6.
The Total cost of the Phase III venture was approximately $2,450,000.
The Joint Venture agreement provided that income and losses be
allocated 95% to the Partnership and 5% to Inducon. Net cash flow from the Joint
Venture was to be distributed to the Partnership and Inducon in accordance with
the terms of the Joint Venture Agreement.
In November 1997, the Partnership acquired the interest of Inducon for
$40,000. At December 31, 1997 the Partnership owns 100% of the Phase III
property. The results of the property's operations from January 1, 1997 through
October 31, 1997 were allocated in accordance with the Joint Venture Agreement.
The property began to be consolidated in the Partnership's financial statements
beginning November 1, 1997.
34
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
9. INVESTMENT IN JOINT VENTURES (Con't.):
--------------------------------------
A summary of the assets, liabilities and partners' capital of the Phase
III Venture as of December 31, 1997 and 1996 and the results of its operations
for the years ended December 31, 1997, 1996 and 1995 are presented for
informational purposes as follows:
35
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
9. INVESTMENT IN JOINT VENTURES (Con't.):
--------------------------------------
A summary of the assets, liabilites and partners' capital of Inducon
East Phase III Joint Venture as of December 31, 1997 and 1996 and the results of
its operations for the years ended December 31, 1997, 1996 and 1995 are
presented for informational purposes as follows:
INDUCON EAST PHASE III JOINT VENTURE
------------------------------------
BALANCE SHEETS
--------------
December 31, 1997 and 1996
--------------------------
<TABLE>
<CAPTION>
1997 1996
--------------- ---------------
<S> <C> <C>
Assets
- ------
Property, at cost:
Land $ 141,400 $ 141,400
Building 2,469,665 2,465,057
--------------- ---------------
2,611,065 2,606,457
Less accumulated depreciation 231,344 164,743
--------------- ---------------
Property net 2,379,721 2,441,714
Accounts receivable 32,507 1,149
Accounts receivable - affiliates - 116,475
Prepaid expenses 13,156 2,204
Deferred financing costs, net of accumulated amortization
of $32,441 and $17,314 20,463 35,589
Leasing commissions, net of accumulated amortization
of $56,677 and $38,547 36,427 42,942
--------------- ---------------
Total Assets $ 2,482,274 $ 2,640,073
=============== ===============
Liabilities and Partners' Capital
- ---------------------------------
Liabilities:
Cash overdraft $ 223,691 $ 272,928
Construction loan payable 523,433 622,077
Accounts payable and accrued expenses 74,629 113,597
--------------- ---------------
Total liabilities 821,753 1,008,602
--------------- ---------------
Partners' Capital:
The Partnership 1,660,521 1,629,015
The Corporation - 2,456
--------------- ---------------
Total Partner's Capital 1,660,521 1,631,471
--------------- ---------------
Total Liabilities and Partner's Capital $ 2,482,274 $ 2,640,073
=============== ===============
</TABLE>
36
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
9. INVESTMENT IN JOINT VENTURES (Con't.):
--------------------------------------
A reconciliation of the Partnership's investment in the Phase III
Venture is as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------- ----------- -----------
<S> <C> <C> <C>
Investment in joint venture at beginning of year $ 1,629,015 $ 1,672,052 $ 1,648,845
Allocation of net (loss) income (through October 31 for 1997) (16,218) (43,037) 23,207
Purchase of remaining interest 40,000 - -
Adjustment to fair value (38,396) - -
Elimination to Partners' Capital (1,614,401) - -
----------- ----------- -----------
Investment in joint venture at end of year $ 0 $ 1,629,015 $ 1,672,052
=========== =========== ===========
</TABLE>
10. LEASES:
-------
In connection with the commercial properties owned, the Partnership has
entered into lease agreements with terms of one to five years. Minimum future
rentals to be received for each of the next five years, under noncancelable
operating leases are as follows:
Year Amount
1998 $ 3,197,547
1999 1,885,078
2000 1,109,286
2001 604,155
2002 265,696
11. SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION:
-----------------------------------------------
1997 1996 1995
---- ---- ----
Cash paid for interest $ 2,167,292 $ 2,162,802 $ 2,155,722
============ ============ ===========
12. RECLASSIFICATIONS:
------------------
Certain reclassifications have been made to 1995 and 1996 balances to
conform to the classifications used for 1997 balances.
37
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
----------------------------------------------------
(Continued)
13. PRO-FORMA FINANCIAL INFORMATION:
--------------------------------
In December 1997, the Partnership sold Williamsburg North, Fountains,
O'Hara, Wayne Estates and Jackson Park to U.S. Apartments LLC, an affiliate
wholly-owned by the individual General Partner. The sale of the properties
resulted in a gain for financial statement purposes of $5,009,787. These
properties contributed revenues of $3,696,537 and incurred expenses totaling
$4,799,406 during the year ended December 31, 1997.
In addition, the Partnership acquired the remaining interest in Inducon
East and Inducon East Phase III Joint Ventures in November 1997. These
properties began to be consolidated in the Partnership's financial statements
beginning in November, 1997. The properties' financial statements are presented
for informational purposes in Note 9. Had the properties been consolidated
throughout 1997, they would have contributed an additional $1,357,255 in
revenues and caused the Partnership to incur additional expenses of $1,770,841.
A separate loss from joint ventures would not have been reported as the results
of the joint ventures would have been included in the revenues and expenses of
the Partnership's financial statements.
14. SUBSEQUENT EVENTS
-----------------
In conjunction with the sale of properties to U.S. Apartments LLC in
December 1997, the Partnership distributed approximately $3,591,000 to the
partners in the first quarter of 1998.
38
<PAGE>
SCHEDULE III
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 1997
<TABLE>
<CAPTION>
Gross amounts at which
Carried at Close of Period
------------------------------------
Initial Cost to Cost
Partnership Capitalized (1) (2) 1)(2) (3)(4)
----------------------- Subsequent Land Buildings
Property to and and Accumulated
Description Encumbrances Land Buildings Acquisition Improvements Improvements Total Depreciation
<S> <C> <C> <C> <C> <C> <C> <C> <C>
The Paddock
Building
Nashville,
TN $ 1,795,870 $ 261,000 $ 2,902,324 $ 287,870 $ 261,000 $ 3,190,196 $ 3,451,196 $ 1,373,753
Camelot
Apartments
Louisville, KY 4,896,290 297,250 5,518,613 93,321 297,250 5,611,934 5,909,184 2,083,777
Commercial
Park West
Durham, NC 4,826,425 800,000 5,191,538 752,301 800,000 5,943,839 6,743,839 1,883,070
Inducon East
Amherst, NY 6,465,646 177,709 - 9,264,642 935,869 8,506,482 9,442,351 2,925,746
Inducon East
Phase III
Amherst, NY 523,433 141,400 - 2,469,665 141,400 2,469,665 2,611,065 231,344
------------- ------------ ------------- ------------- ------------ ------------- ------------- ------------
Total $ 18,507,664 $ 1,677,359 $ 13,612,475 $ 12,867,799 $ 2,435,519 $ 25,722,116 $ 28,157,635 $ 8,497,690
============= ============ ============= ============= ============ ============= ============= ============
</TABLE>
<TABLE>
<CAPTION>
Life on Which
Depreciation
In Latest
Statement
Property Date of Of Operations
Description Construction Is Computed
<S> <C> <C>
The Paddock
Building
Nashville,
TN 5/87 25 Years
Camelot
Apartments
Louisville, KY 5/88 25 Years
Commercial
Park West
Durham, NC 6/91 25 Years
Inducon East
Amherst, NY 4/87 25 Years
Inducon East
Phase III
Amherst, NY 9/92 25 Years
Total
</TABLE>
39
<PAGE>
SCHEDULE III
- ------------
(Continued)
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP-V
-------------------------------------------------
REAL ESTATE AND ACCUMULATED DEPRECIATION
----------------------------------------
DECEMBER 31, 1997
-----------------
(1) Cost for Federal income tax purposes is $28,157,635.
(2) A reconciliation of the carrying amount of land and buildings for the years
ended December 31, 1997, 1996 and 1995 follows:
Partnership Properties
1997 1996 1995
------------ ------------ ------------
Balance at beginning of period $ 31,713,804 $ 31,413,350 $ 31,329,740
Additions 12,563,819 300,454 83,610
Dispositions (16,119,988) - -
------------ ------------ ------------
Balance at end of period $ 28,157,635 $ 31,713,804 $ 31,413,350
============ ============ ============
Joint Venture Properties
1997 1996 1995
------------ ------------ ------------
Balance at beginning of period $ 11,970,308 $ 11,805,164 $ 10,989,647
Additions 83,108 165,144 815,517
Dispositions (12,053,416) - -
------------ ------------ ------------
Balance at end of period $ 0 $ 11,970,308 $ 11,805,164
============ ============ ============
(3) A reconciliation of accumulated depreciation for the years ended
December 31, 1997, 1996 and 1995 follows:
Partnership Properties
1997 1996 1995
------------ ------------ ------------
Balance at beginning of period $ 9,639,620 $ 8,257,160 $ 6,968,497
Additions charged to cost and
expenses during the period 1,094,232 1,382,460 1,288,663
Additions of joint ventures 3,078,424 - -
Dispositions (5,314,586) - -
------------ ------------ ------------
Balance at end of period (4) $ 8,497,690 $ 9,639,620 $ 8,257,160
============ ============ ============
Joint Venture Properties
1997 1996 1995
------------ ------------ ------------
Balance at beginning of period $ 2,682,384 $ 2,211,178 $ 1,746,750
Additions charged to cost and
expenses during the period 396,040 471,206 464,428
Dispositions (3,078,424) - -
------------ ------------ ------------
Balance at end of period (4) $ 0 $ 2,682,384 $ 2,211,178
============ ============ ============
(4) Balance applies entirely to buildings and improvements.
40
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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
------------------------------- --------------------
JOSEPH M. JAYSON, Date
Individual General Partner
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below 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
------------------------------- --------------------
JOSEPH M. JAYSON, Date
President and Director
/s/ Michael J. Colmerauer
------------------------------- --------------------
MICHAEL J. COLMERAUER Date
Secretary
<PAGE>
Supplemental Information to be Furnished with Reports Filed Pursuant to
-----------------------------------------------------------------------
Section 15(d) of the Act by Registrants Which Have Not Registered Securities
- ----------------------------------------------------------------------------
Pursuant to Section 12 of the Act.
- ----------------------------------
The form 10-K is sent to security holders. No other annual report is
distributed. No proxy statement, form of proxy or other proxy soliciting
material was sent to any of the registrant's security holders with respect to
any annual or other meeting of security holders.
<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 year ended December 31, 1997, and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<CASH> 2,165,489
<SECURITIES> 0
<RECEIVABLES> 342,802
<ALLOWANCES> 140,390
<INVENTORY> 0
<CURRENT-ASSETS> 4,763,557
<PP&E> 28,670,135
<DEPRECIATION> 9,010,190
<TOTAL-ASSETS> 25,243,111
<CURRENT-LIABILITIES> 1,139,665
<BONDS> 18,507,664
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 25,243,111
<SALES> 0
<TOTAL-REVENUES> 7,068,782
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 9,777,340
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,149,177
<INCOME-PRETAX> 2,301,229
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 5,009,787
<CHANGES> 0
<NET-INCOME> 7,311,016
<EPS-PRIMARY> 99.31
<EPS-DILUTED> 0.00
</TABLE>
