UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
- -
- ------ SECURITIES EXCHANGE ACT OF 1934
For the quarter ended
September 30, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
- ------ SECURITIES EXCHANGE ACT OF 1934
Commission File Number
0-17718
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RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Wisconsin 39-1546907
------------------ -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
20875 Crossroads Circle
Suite 800
Waukesha, Wisconsin 53186
-------------------- -------------------------
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code (414) 798-0900
--------------
Securities registered pursuant to Section 12(b) of the Act:
None
----
Securities registered pursuant to Section 12(g) of the Act:
LIMITED PARTNERSHIP INTERESTS
-----------------------------
(Title of Class)
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Sections 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
--------- ---------
RAL INCOME + EQUITY GROWTH V
LIMITED PARTNERSHIP
FORM 10-Q
TABLE OF CONTENTS
PAGES
PART I FINANCIAL INFORMATION
Item 1. Financial Statements I-1
Item 2. Management's Discussion and
Analysis of Financial Condition and
Results of Operations I-7
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K (None)
Signatures
<TABLE>
RAL INCOME + EQUITY GROWTH V
LIMITED PARTNERSHIP
BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
<CAPTION>
UNAUDITED AUDITED
SEPT 30, DECEMBER 31,
ASSETS 1995 1994
- ------------------------- --------- -----------
<S> <C> <C>
Cash $206,243 $171,656
Rents Receivable 8,067 9,372
Investment in Joint Venture 430,809 435,033
Other Assets 1,304 1,026
Investment Properties, Net of
Accumulated Depreciation of
$1,343,761 in 1995 and $1,153,696
in 1994 $6,690,280 $6,738,483
Deferred Charges 3,827 10,921
---------- ----------
TOTAL ASSETS $7,340,530 $7,366,491
========== ==========
LIABILITIES AND PARTNER CAPITAL
- -------------------------------
Accounts Payable 39,129 14,865
Accrued Liabilities 144,792 186,528
Security Deposits 91,160 85,980
Mortgage Payable 120,707 0
---------- ----------
TOTAL LIABILITIES 395,788 287,373
General Partners' Capital (106,763) (100,044)
Limited Partners' Capital 7,051,505 7,179,162
---------- ----------
Partners' Capital 6,944,742 7,079,118
---------- ----------
TOTAL LIABILITIES AND
PARTNER CAPITAL $7,340,530 $7,366,491
========== ==========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
I-1
<TABLE>
RAL INCOME + EQUITY GROWTH V
LIMITED PARTNERSHIP
Statement of Operations
For the nine months ended September 30, 1995 and 1994
UNAUDITED
<CAPTION>
3 MONTHS 9 MONTHS 3 MONTHS 9 MONTHS
ended ended ended ended
SEPT 30, SEPT 30, SEPT 30, SEPT 30,
1995 1995 1994 1994
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
REVENUE:
Rental Income $283,689 $845,295 $278,520 $830,487
Interest Income 1,992 5,297 887 3,492
Other Income 7,683 23,935 7,088 18,854
-------- -------- -------- --------
$293,364 $874,527 $286,495 $852,833
OPERATING EXPENSES:
Property operation,
maintenance, and
admin. expenses $151,868 $460,175 $146,647 $424,811
Management fees 13,350 40,050 13,350 40,050
Depreciation and
Amortization 66,667 198,408 70,063 200,252
-------- -------- -------- --------
$231,885 $698,633 $230,060 $665,113
NET INCOME BEFORE
- ------------------
PARTICIPATION
- -------------
IN JOINT VENTURE $61,479 $175,894 $56,435 $187,720
- ---------------- -------- --------- --------- ---------
PARTICIPATION IN
JOINT VENTURE $8,718 $24,660 $7,630 $22,917
------- -------- -------- --------
NET INCOME (LOSS) $70,197 $200,554 $64,065 $210,637
======= ======== ======= ========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
I-2
<TABLE>
RAL INCOME + EQUITY GROWTH V
LIMITED PARTNERSHIP
Statements of Changes in Partners' Capital
For the nine months ended September 30, 1995 and
the year ended December 31, 1994
UNAUDITED
<CAPTION>
Limited General
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
Balance, January 1, 1994 $7,444,164 ($86,097) $7,358,067
Net Income 265,298 13,963 $279,261
Cash Distributions paid (530,300) (27,910) ($558,210)
----------- ---------- ----------
Balance, December 31, 1994 $7,179,162 ($100,044) $7,079,118
---------- ---------- ----------
Net Income 190,526 10,028 $200,554
Cash Distributions paid (318,183) (16,747) ($334,930)
----------- ---------- -----------
BALANCE, Sept 30, 1995 $7,051,505 ($106,763) $6,944,742
========== ========== ==========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
I-3
<TABLE>
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP
STATEMENT OF CASH FLOWS
For the nine months ended September 30, 1995 and 1994
UNAUDITED
<CAPTION>
9 Months 9 Months
ended ended
Sept 30, Sept 30,
1995 1994
----------- -----------
<S> <C> <C>
Cash Flows from
operating activities:
Net income $200,554 $210,637
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 198,408 200,252
Participation in income
from joint venture (24,660) (22,917)
Changes in assets and liabilities:
Accounts receivable 1,305 (2,337)
Other assets (278) 0
Accounts payable 24,264 5,424
Accrued liabilities (41,736) (36,296)
Tenant security deposits 5,180 6,230
------- --------
Net Cash Provided by
Operating Activities: $363,037 $360,993
I-4
Cash flows from investing
activities:
Distributions from joint venture 28,884 36,873
Purchases of property and
equipment (141,862) (65,827)
---------- ----------
Net Cash Used for
Investing Activities: ($112,978) ($28,954)
Cash flows from financing
activities:
Proceeds from Notes Payable 125,000 0
Loan costs (1,250) 0
Payments on Notes Payable (4,293) 0
Cash distributions (334,929) (421,255)
------------ -----------
Net Cash Provided by
Financing Activities ($215,472) ($421,255)
---------- ----------
Net Increase (Decrease)
in Cash 34,587 (89,216)
----------- -----------
Cash Balance at
Beginning of Period 171,656 225,636
---------- ----------
Cash Balance at End of Period $206,243 $136,420
=========== ==========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
I-5
RAL INCOME & EQUITY GROWTH V
LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
Pursuant to Rule 10-01(a)(5) of Regulation S-X (17 CFR Part 210)
RAL Income + Equity Growth V Limited Partnership is omitting its
footnote disclosure. The Registrant has presumed that users of the
interim financial information have read or have access to the
audited financial statements for the preceding fiscal year. The
disclosure is being omitted since it substantially duplicates the
disclosure contained in the most recent annual report to security
holders, Form 10-K for the fiscal year ended December 31, 1994. No
events have occurred (other than those discussed in the
Management's Discussion and Analysis of Financial Condition and
Results of Operations) subsequent to the end of the most recent
fiscal year which would have a material impact on the
Partnership.
In the opinion of management, the unaudited interim financial
statements presented herein reflect all adjustments necessary to a
fair statement of the results for the interim periods presented.
I-6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP is a Wisconsin
Limited Partnership formed on April 1, 1988, under the Wisconsin
Revised Uniform Limited Partnership Act. The Partnership was
organized to acquire new and existing income producing properties.
Also, the Partnership may acquire undeveloped property on which
improvements are to be constructed. The Partnership will not
purchase or lease any property from, or sell or lease property to,
the General Partners or their Affiliates, other than a purchase of
property which such persons have temporarily purchased and held
title to on behalf of the Partnership, and then only at their cost.
The Partnership has purchased six income-producing properties.
Liquidity and Capital Resources:
Properties acquired by the Partnership are intended to be held for
approximately seven to ten years. During the properties' holding
periods, the investment strategy is to maintain (on the "triple net
lease" property) and improve (on the residential properties)
occupancy rates through the application of professional property
management (including selective capital improvements). Cash flow
generated from property operations is distributed to the partners
on a quarterly basis. The Partnership also accumulates working
capital reserves for normal repairs, replacements, working capital,
and contingencies.
Net cash flow from operating activities for the nine months ended
September 30 was $363,037 in 1995 and $360,993 in 1994. As of
September 30, 1995, the Partnership had cash of approximately
$206,000 representing funds held for investment in properties,
undistributed cash flow, working capital reserves, and tenant
security deposits. Total current liabilities were approximately
$275,000.
The Partnership has not experienced, and is not currently
experiencing any liquidity problems. It is not expected that the
Partnership will experience liquidity problems, in light of the
excess of current liabilities over cash on hand, due to the nature
of the current liabilities. Approximately $91,000 of the current
liabilities represent tenant security deposits. The majority of
the remaining current liabilities are accrued and escrowed real
estate taxes payable in installments, in 1995 and 1996. The
Partnership expects to meet all of its obligations as they come
due.
A distribution of cash flow from operations totaling approximately
$97,000 was made to the Limited Partners in August, 1995. The
total amount distributed to the Limited Partners in 1994 was
approximately $530,000.
I-7
In February, 1995 the Partnership acquired a bank loan of $125,000
to finance a 17 pad expansion of Camelot Mobile Home Park. The
rent from the expansion pads is expected to cover the principal and
interest payments on the note as they come due, with additional
cash flow being generated from the new pads to distribute to
investors. The new pads were completed and ready for occupancy
June 1, 1995.
Results of Operations:
Gross revenues for the nine months ended September 30 were $874,527
in 1995 and $852,833 in 1994. Cash operating expenses for the nine
months ended September 30, 1995 were $500,225 compared to $464,861
in 1994. The increase in operating expenditures is due to a number
of factors. Sewer and water expense has increased dramatically as
cities are forced to comply with new DNR regulations and are
passing the costs on to consumers. Also, repair costs at the Muir
Heights Apartment Complex continue to rise as the Partnership must
repair problems caused as a result of faulty construction. Legal
fees have also increased as the Partnership pursues legal action
against the contractor who built Muir Heights for damages caused by
the above mentioned faulty construction.
Net income for the nine months ended September 30, 1995 was
$200,554 compared to $210,637 in 1994.
<TABLE>
The following is a listing of the approximate average physical
occupancy rates for the Partnership's residential properties for
the nine months ended September 30, 1995 and calendar year 1994:
<CAPTION>
9 Months ended
Sept 30, 1995 1994
------------- ----
<S> <C> <C>
Evergreen Estates
Mobile Home Park 91% 91%
Cedar Crossing Apartments 100% 99%
Camelot Mobile Home Park 94% 99%
Muir Heights Apartments 96% 99%
Forest Downs Apartments 100% 95%
</TABLE>
I-8
Inflation:
The effect of inflation on the Partnership has not been material to
date. Should the rate of inflation increase substantially over the
life of the Partnership, it is likely to influence ongoing
operations, in particular, the operating expenses of the
Partnership. The Partnership's commercial leases contain clauses
permitting pass-through of certain increased operating costs.
Residential leases are typically of one year or less in duration;
this allows the Partnership to react quickly (through increases in
rent) to changes in the level of inflation. These factors should
serve to reduce, to a certain degree,any impact of rising costs on
the Partnership.
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.
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP
(Registrant)
Date: November 14, 1995 Robert A. Long
---------------------------
Robert A. Long
General Partner
Christine Kennedy
---------------------------
Christine Kennedy
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 206,243
<SECURITIES> 0
<RECEIVABLES> 8,067
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 215,614
<PP&E> 6,690,280
<DEPRECIATION> 1,343,761
<TOTAL-ASSETS> 7,340,530
<CURRENT-LIABILITIES> 275,081
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,944,742
<TOTAL-LIABILITY-AND-EQUITY> 7,340,530
<SALES> 0
<TOTAL-REVENUES> 874,527
<CGS> 0
<TOTAL-COSTS> 698,633
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,170
<INCOME-PRETAX> 200,554
<INCOME-TAX> 0
<INCOME-CONTINUING> 200,554
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 200,554
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
