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
June 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF
- ------- THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number
0-17718
-------
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
JUNE 30, 1996 AND DECEMBER 31, 1995
<CAPTION>
UNAUDITED AUDITED
JUNE 30, DECEMBER 31,
ASSETS 1996 1995
------ ---------- ------------
<S> <C> <C>
Cash 350,185 255,037
Rents receivable 10,323 7,429
Investment in joint venture 410,002 419,781
Other assets 1,979 2,726
Investment properties, net of
accumulated depreciation of
$1,521,884 in 1996 and $1,406,611
in 1995 6,517,913 6,633,186
Deferred charges 770 1,021
---------- ----------
TOTAL ASSETS 7,291,172 7,319,180
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Accounts payable and accrued expenses 164,874 183,676
Security deposits 97,715 94,385
Mortgage payable 114,655 118,718
---------- ----------
TOTAL LIABILITIES 377,244 396,779
General partners' capital (108,304) (107,879)
Limited partners' capital 7,022,232 7,030,280
---------- -----------
Partners' capital 6,913,928 6,922,401
TOTAL LIABILITIES AND
PARTNER CAPITAL 7,291,172 7,319,180
========== ==========
<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 three months and six months ended June 30, 1996 and 1995
<CAPTION>
UNAUDITED
3 Months 6 Months 3 Months 6 Months
ended ended ended ended
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1996 1995 1995
--------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUE:
Rental income 296,831 599,373 277,847 561,606
Interest income 3,749 7,016 1,973 3,305
Other income 7,703 17,591 6,867 16,252
------- ------- ------- -------
308,283 623,980 286,687 581,163
OPERATING EXPENSES:
Property operation,
maintenance, and
admin. expenses 147,218 275,168 155,170 308,307
Management fees 14,812 29,997 13,350 26,700
Depreciation and
amortization 57,824 115,523 66,416 131,740
------- ------- ------- -------
Total expenses 219,854 420,688 234,936 466,747
------- ------- ------- -------
Net income before
participation in
joint venture 88,429 203,292 51,751 114,416
------- ------- ------- -------
Participation in
joint venture 8,075 15,417 8,034 15,941
------- ------- ------- -------
NET INCOME 96,504 218,709 59,785 130,357
======= ======= ======= =======
<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 six months ended June 30, 1996 and
the year ended December 31, 1995
<CAPTION>
UNAUDITED
Limited General
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
Balance, January 1, 1995 7,179,162 (100,044) 7,079,118
Net Income 266,731 14,038 280,769
Cash Distributions paid (415,612) (21,874) (437,486)
----------- ---------- -----------
Balance, December 31, 1995 7,030,281 (107,880) 6,922,401
----------- ---------- -----------
Net Income 207,774 10,935 218,709
Cash Distributions paid (215,823) (11,359) (227,182)
----------- ---------- -----------
BALANCE, June 30, 1996 7,022,232 (108,304) 6,913,928
========== ========== ==========
<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 six months ended June 30, 1996 and 1995
<CAPTION>
UNAUDITED
6 Months 6 Months
ended ended
June 30, June 30,
1996 1995
----------- -----------
<S> <C> <C>
Cash Flows from
operating activities:
Net income 218,709 130,357
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization expense 115,523 131,740
Participation in income
from joint venture (15,417) (15,941)
Increase (decrease) in assets:
Rents receivable (2,894) 4,116
Other assets 747 610
Increase (decrease) in liabilities:
Accounts payable and
accrued liabilities (18,802) (34,027)
Tenant security deposits 3,330 3,204
-------- --------
Net Cash Provided by
Operating Activities: 301,196 220,059
Cash flows from investing
activities:
Distributions from joint venture 25,197 25,197
Purchases of property and
equipment 0 (117,106)
Net Cash Used for --------- ---------
Investing Activities: 25,197 (91,909)
I-4
Cash flows from financing
activities:
Cash distributions (227,182) (232,373)
Loan costs 0 (1,250)
Proceeds from notes payable 0 125,000
Payments on notes payable (4,063) (2,519)
---------- ---------
Net Cash Provided by
Financing Activities (231,245) (111,142)
Net Increase (Decrease)
in Cash 95,148 17,008
---------- ---------
Cash Balance at
Beginning of Period 255,037 171,656
---------- ---------
Cash Balance at End of Period 350,185 188,664
========== =========
<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, 1995.
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 six months
ended June 30 was $301,196 in 1996 and $220,059 in 1995.
Improved cash flow is a result of the following items:
1. A $40,000 increase in revenues as a result of rent increases
at the mobile home parks and apartment complexes and strong
leasing activity.
2. Cash flow has also improved in large part due to decreased
repair and maintenance expense at the Partnership's Madison,
Wisconsin apartment complex. Many of the minor items which
needed fixing as a result of faulty construction have now been
fixed although continuing repairs will still be necessary.
However, operating cash flow must now be built up and used to
fund capital repairs of cement sidewalks and parking lots which,
due to settling, are in need of major repair.
3. Legal fees have decreased by $17,000 over last year as there
has been some downtime in the Partnership's case against the
builders of the Muir Heights apartment complex (discussed below).
I-7
The Partnership has brought a law suit against the developer of
the Muir Heights Apartments in Madison, Wisconsin. The developer
has brought its subcontractors into the suit which has created
delays in the case as the subcontractors now need to go through
the discovery process. The Partnership retained an engineering
firm to dig test pits adjacent to each building in order to
determine the exact nature of the problems and the cost to
correct them. We expect to receive the completed report sometime
in September, 1996.
As of June 30, 1996, the Partnership had cash of approximately
$350,000 representing funds held for investment in property
improvements, undistributed cash flow, working capital reserves,
and tenant security deposits. Total current liabilities were
approximately $263,000.
A distribution of cash flow from operations totaling
approximately $111,000 was made to the Limited Partners in May,
1996. The total amount distributed to the Limited Partners in
1995 was approximately $416,000.
Results of Operations:
Gross revenues for the six months ended June 30 were $623,980
in 1996 and $581,163 in 1995. Cash operating expenses for the
six months ended June 30, 1996 were $305,165 compared to $335,007
in 1995. The decrease in operating expenditures is due to a
number of factors. First, as mentioned above, repair costs at
the Muir Heights Apartment Complex in Madison, Wisconsin have
decreased as many of the chronic problems due to faulty
construction have been brought under control to some degree.
Legal fees have also decreased for the reasons mentioned in the
Liquidity and Capital Resources section above.
Net income for the six months ended June 30, 1996 was $218,709
compared to $130,357 in 1995.
I-8
<TABLE>
The following is a listing of the approximate average physical
occupancy rates for the Partnership's residential properties for
the six months ended June 30, 1996 and calendar year 1995:
<CAPTION>
6 Months ended
June 30, 1996 1995
-------------- ----
<S> <C> <C>
1. Evergreen Estates
Mobile Home Park 93% 92%
2. Cedar Crossing Apartments 98% 100%
3. Camelot Mobile Home Park 91% 90%
4. Muir Heights Apartments 97% 95%
5. Forest Downs Apartments 99% 99%
</TABLE>
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.
I-9
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: August 13, 1996 Robert A. Long
-----------------
Robert A. Long
General Partner
Christine Kennedy
-----------------
Christine Kennedy
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 350,185
<SECURITIES> 0
<RECEIVABLES> 10,323
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 362,487
<PP&E> 6,517,913
<DEPRECIATION> 1,521,884
<TOTAL-ASSETS> 7,291,172
<CURRENT-LIABILITIES> 262,589
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,913,928
<TOTAL-LIABILITY-AND-EQUITY> 7,291,172
<SALES> 0
<TOTAL-REVENUES> 623,980
<CGS> 0
<TOTAL-COSTS> 420,688
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,728
<INCOME-PRETAX> 218,709
<INCOME-TAX> 0
<INCOME-CONTINUING> 218,709
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 218,709
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
