FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File Number
March 31, 2000 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 12A
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 ____
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REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - V
Form 10-Q
INDEX
PART I - FINANCIAL INFORMATION
Page
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Item 1. Financial Statements
Balance Sheets - March 31, 2000 and December 31, 1999 3
Statements of Operations - Three months ended March 31, 2000 and 1999 4
Statement of Partners' Equity - Three months ended March 31, 2000 5
Statements of Cash Flows - Three months ended March 31, 2000 and 1999 6
Notes to Financial Statements 7 - 8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 9
Item 3. Quantitative and Qualitative Disclosures About Market Risk 10
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 2 - 5. Not applicable 10
Item 6. Exhibits and Reports on Form 8-K 10
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PART I - Item 1. Financial Statements
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REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - V
Balance Sheets
March 31, 2000 and December 31, 1999
(Unaudited)
March 31, December 31,
Assets 2000 1999
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Property and equipment, at cost:
Land and improvements $ 2,435,519 2,435,519
Buildings and improvements 26,414,459 26,386,959
Furniture, fixtures and equipment 516,411 516,411
------------ ------------
29,366,389 29,338,889
Less accumulated depreciation 11,583,111 11,326,039
------------ ------------
Net property and equipment 17,783,278 18,012,850
Investment in land 417,473 417,473
Cash and cash equivalents 1,139,133 1,004,644
Accounts receivable, less allowance for doubtful accounts of
$114,865 in 2000 and $103,576 in 1999 53,019 7,882
Escrow deposits 765,788 713,577
Mortgage costs, less accumulated amortization
of $124,345 in 2000 and $109,034 in 1999 784,864 800,175
Other assets 260,504 228,041
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Total assets $ 21,204,059 21,184,642
============ ============
Liabilities and Partners' Equity
--------------------------------
Liabilities:
Mortgage loans payable 20,401,312 20,458,106
Accounts payable and accrued expenses 223,206 154,046
Payables to affiliated parties 103,994 107,861
Accrued interest payable 111,582 111,800
Security deposits and prepaid rents 189,976 184,698
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Total liabilities 21,030,070 21,016,511
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Partners' equity (deficit):
General partners (406,717) (406,893)
Limited partners 580,706 575,024
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Total partners' equity 173,989 168,131
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Contingency
------------ ------------
Total liabilities and partners' equity $ 21,204,059 21,184,642
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See accompanying notes to financial statements.
3
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REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - V
Statements of Operations
Three months ended March 31, 2000 and 1999
(Unaudited)
Three months ended
(As restated)
March 31, March 31,
2000 1999
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Income:
Rental $ 1,183,703 1,104,977
Interest and other income 203,942 146,761
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Total income 1,387,645 1,251,738
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Expenses:
Property operations 515,549 593,357
Interest 424,981 413,171
Depreciation 257,072 276,200
Administrative:
Affiliated parties 118,567 102,973
Other 65,618 54,232
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Total expenses 1,381,787 1,439,933
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Net income (loss) $ 5,858 (188,195)
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Net income (loss) per limited partnership unit $ .27 (8.69)
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Weighted average number of limited partnership
units outstanding 21,002.8 21,002.8
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See accompanying notes to financial statements.
4
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REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - V
Statement of Partners' Equity
Three months ended March 31, 2000
(Unaudited)
General Limited Partners
Partners Units Amount
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Balance at January 1, 2000 $ (406,893) 21,002.8 575,024
Net income 176 -- 5,682
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Balance at March 31, 2000 $ (406,717) 21,002.8 580,706
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See accompanying notes to financial statements.
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REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - V
Statements of Cash Flows
Three months ended March 31, 2000 and 1999
(Unaudited)
Three months ended
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(As restated)
March 31, March 31,
2000 1999
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Cash Flows from operating activities:
Net income (loss) $ 5,858 (188,195)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 285,537 318,543
Changes in:
Accounts receivable (45,137) (11,182)
Escrow deposits (52,211) (123,996)
Other assets (45,617) 29,622
Accounts payable and accrued expenses 69,160 193,384
Payables to affiliated parties (3,867) 21,772
Accrued interest payable (218) (22,189)
Security deposits and prepaid rents 5,278 25,694
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Net cash provided by operating activities 218,783 243,453
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Cash flows from investing activities - additions to property
and equipment (27,500) (9,374)
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Cash flows from financing activities:
Mortgage costs related to refinancing -- (8,776)
Principal payments on mortgage loans (56,794) (44,767)
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Net cash used in financing activities (56,794) (53,543)
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Net increase in cash and cash equivalents 134,489 180,536
Cash and cash equivalents at beginning of period 1,004,644 188,887
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Cash and cash equivalents at end of period $ 1,139,133 369,423
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Supplemental disclosure of cash flow information -
cash paid during the period for interest $ 421,006 408,205
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See accompanying notes to financial statements.
6
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REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - V
Notes to Financial Statements
Three months ended March 31, 2000 and 1999
(Unaudited)
(1) Basis of Presentation
--------------------------
The accompanying interim financial statements have been prepared in
accordance with generally accepted accounting principles and, in the
opinion of management, contain all necessary adjustments for a fair
presentation. The Partnership's significant accounting policies are set
forth in its December 31, 1999 Form 10-K. The interim financial
statements should be read in conjunction with the financial statements
included therein. The interim results should not be considered
indicative of the annual results. Certain reclassifications of prior
period numbers may have been made to conform to the current period
presentation.
(2) Organization
-----------------
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. 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.
(3) Current Accounting Pronouncements
--------------------------------------
In June 2000, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 138 - "Accounting for Certain
Derivative Instruments and Certain Hedging Activities, an Amendment of
Statement No. 133" which amends certain provisions of Statement of
Financial Accounting Standards No. 133 - "Accounting for Derivative
Instruments and Hedging Activities." These statements establish
accounting and financial reporting standards for derivative instruments
and hedging activities. These statements become effective for the
Partnership on January 1, 2001. The effect, if any, that Statements No.
133 and 138 will have on the Partnership's operations and financial
position will not be material.
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REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - V
Notes to Financial Statements, Continued
(4) Subsequent Event - Contingency
-----------------------------------
The Partnership, as a nominal defendant, the General Partners of the
Partnership and the three individuals constituting the officers and
directors of the Corporate General Partner, as defendants, were served
with a Summons and Complaint on April 19, 2000 in a class and
derivative action instituted by Ira Gaines and on August 21, 2000 in a
class and derivative action instituted by Sean O'Reilly and Louise
Homburger, each in Supreme Court, County of Erie, State of New York.
The actions allege breaches of contract and breaches of fiduciary duty
and seek, among other things, an accounting, the removal of the General
Partners, the liquidation of the Partnership and the appointment of a
receiver to supervise the liquidation, and damages. The General
Partners and the officers and directors of the Corporate General
Partner have filed a motion to dismiss the first complaint and are
presently reviewing the second complaint and intend to vigorously
pursue their defense.
(5) Prior Period Adjustment
----------------------------
The net loss for the quarter ended March 31, 1999 has been corrected to
give effect to a year-end 1999 adjustment as follows:
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As previously reported $ (247,695)
Elimination of depreciation expense incorrectly
recorded during the quarter 59,500
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As restated $ (188,195)
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The net loss per limited partnership unit decreased $2.75 to $8.69.
8
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PART I - Item 2. 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 fund
current operations and provide for future capital improvements. No distributions
to partners were made in either the first three months of 2000 or 1999. The
General Partner hopes to resume making distributions, although it is not certain
when the Partnership will be in such a position.
Occupancies at the properties in the Partnership continued in most locations to
be favorable (i.e., exceeding 90 percent on average). Management continues to
actively pursue new tenants by making capital improvements to the properties and
through the use of rental promotions and concessions.
Results of Operations
---------------------
The results of operations improved $194,000 in the quarter ended March 31, 2000
as compared to the 1999 first quarter. The principal elements of the improvement
were: (1) an increase in rental income of $79,000 as a result of higher rates
and increased collections, particularly at the commercial properties; (2) an
increase in other income in the areas of interest and common area maintenance
charges and; (3) a significant decrease in the amount of replacement costs that
accounted for the $78,000 decrease in property operations expense.
9
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PART I - Item 3. Quantitative and Qualitative Disclosures About Market Risk
----------------------------------------------------------
The Partnership's cash equivalents are short-term, interest bearing bank
accounts and its mortgage loans are fixed-rate. It has not entered into
any derivative contracts. Therefore, it has no market risk exposure.
PART II - OTHER INFORMATION
---------------------------
Item 1. Legal Proceedings
--------------------------
The Partnership, as a nominal defendant, the General Partners of the
Partnership and the three individuals constituting the officers and
directors of the Corporate General Partner, as defendants, were served
with a Summons and Complaint on April 19, 2000 in a class and
derivative action instituted by Ira Gaines and on August 21, 2000 in a
class and derivative action instituted by Sean O'Reilly and Louise
Homburger, each in Supreme Court, County of Erie, State of New York.
The actions allege breaches of contract and breaches of fiduciary duty
and seek, among other things, an accounting, the removal of the General
Partners, the liquidation of the Partnership and the appointment of a
receiver to supervise the liquidation, and damages. The General
Partners and the officers and directors of the Corporate General
Partner have filed a motion to dismiss the first complaint and are
presently reviewing the second complaint and intend to vigorously
pursue their defense.
Items 2, 3, 4 and 5
-------------------
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
-----------------------------------------
The Partnership reported a change in independent accountants under item 4
of Form 8-K, filed on January 19, 2000 and amended on February 3, 2000,
April 17, 2000 and May 2, 2000.
10
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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 PARTNERHIP V
By: /s/ Joseph M. Jayson 11/15/2000
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Joseph M. Jayson, Date
Individual General Partner and
Principal Financial Officer
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