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
March 31, 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
MARCH 31, 1996 AND DECEMBER 31, 1995
<CAPTION>
UNAUDITED AUDITED
MARCH 31, DECEMBER 31,
ASSETS 1996 1995
------ ---------- ------------
<S> <C> <C>
Cash 297,267 255,037
Rents receivable 6,846 7,429
Investment in joint venture 413,603 419,781
Other assets 2,361 2,726
Investment properties, net of
accumulated depreciation of
$1,464,248 in 1996 and $1,406,611
in 1995 6,575,550 6,633,186
Deferred charges 958 1,021
---------- ----------
TOTAL ASSETS 7,296,585 7,319,180
========== ==========
LIABILITIES AND PARTNER CAPITAL
- -------------------------------
Accounts payable and accrued expenses 139,473 176,882
Security deposits 97,995 94,385
Deferred rents 8,145 6,794
Mortgage payable 116,712 118,718
---------- ----------
TOTAL LIABILITIES 362,325 396,779
General partners' capital (107,288) (107,879)
Limited partners' capital 7,041,548 7,030,280
---------- -----------
Partners' capital 6,934,260 6,922,401
TOTAL LIABILITIES AND
PARTNER CAPITAL 7,296,585 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 the three months ended March 31, 1996 and 1995
<CAPTION>
UNAUDITED
3 Months 3 Months
ended ended
MARCH 31, MARCH 31,
1996 1995
--------- ---------
<S> <C> <C>
REVENUE:
Rental income 302,543 283,759
Interest income 3,267 1,332
Other income 9,887 9,385
------- -------
315,697 294,476
OPERATING EXPENSES:
Property operation,
maintenance, and
administrative expenses 127,950 153,137
Management fees 15,185 13,350
Depreciation and
Amortization 57,699 65,324
--------- ---------
Total expenses 200,834 231,811
--------- ---------
Net income before
participation in
joint venture 114,863 62,665
--------- ---------
Participation in
joint venture 7,342 7,907
--------- ---------
NET INCOME 122,205 70,572
========= =========
<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 three months ended March 31, 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 116,095 6,110 122,205
Cash Distributions paid (104,828) (5,518) (110,346)
----------- ---------- -----------
BALANCE, March 31, 1996 7,041,548 (107,288) 6,934,260
========== ============ ==========
<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 three months ended March 31, 1996 and 1995
<CAPTION>
UNAUDITED
3 Months 3 Months
ended ended
MARCH 31, MARCH 31,
1996 1995
----------- -----------
<S> <C> <C>
Cash Flows from
operating activities:
Net income 122,205 70,572
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization expense 57,699 65,324
Participation in income
from joint venture (7,342) (7,907)
Increase (decrease) in assets:
Rents receivable 583 5,926
Other assets 365 (554)
Increase (decrease) in liabilities:
Accounts payable and
accrued liabilities (37,409) (48,390)
Deferred rents 1,351 0
Tenant security deposits 3,610 49
-------- --------
Net Cash Provided by
Operating Activities: 141,062 85,020
Cash flows from investing
activities:
Distributions from joint venture 13,520 12,291
Purchases of property and
equipment 0 (102,470)
Net Cash Used for --------- ---------
Investing Activities: 13,520 (90,179)
I-4
Cash flows from financing
activities:
Cash distributions (110,346) (129,816)
Proceeds from Notes Payable 0 123,750
Payments on Notes Payable (2,006) (656)
---------- ----------
Net Cash Provided by
Financing Activities (112,352) (6,722)
Net Increase (Decrease)
in Cash 42,230 (11,881)
---------- ----------
Cash Balance at
Beginning of Period 255,037 171,656
---------- ----------
Cash Balance at End of Period 297,267 159,775
=========== ==========
<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 three months ended
March 31 was $141,062 in 1996 and $85,020 in 1995. Improved cash
flow is partially due to increased revenues as a result of rent
increases at the mobile home parks and apartment complexes. 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 (discussed below) have now been
fixed. 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.
As of March 31, 1996, the Partnership had cash of approximately
$297,000 representing funds held for investment in property
improvements, undistributed cash flow, working capital reserves,
and tenant security deposits. Total current liabilities were
approximately $246,000.
A distribution of cash flow from operations totaling approximately
$105,000 was made to the Limited Partners in March, 1996. The
total amount distributed to the Limited Partners in 1995 was
approximately $416,000.
I-7
Results of Operations:
Gross revenues for the three months ended March 31 were $315,697 in
1996 and $294,476 in 1995. Cash operating expenses for the three
months ended March 31, 1996 were $143,135 compared to $166,487 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. The Partnership continues to pursue legal action
against the contractor who built Muir Heights for damages caused by
the above mentioned faulty construction. However, a current
downtime in the case has caused a corresponding decrease in the
legal fees associated with it.
Net income for the three months ended March 31, 1996 was $122,205
compared to $70,572 in 1995.
<TABLE>
The following is a listing of the approximate average physical
occupancy rates for the Partnership's residential properties for
the three months ended March 31, 1996 and calendar year 1995:
<CAPTION>
3 Months ended
March 31, 1996 1995
-------------- ----
<S> <C> <C>
1. Evergreen Estates
Mobile Home Park 93% 92%
2. Cedar Crossing Apartments 97% 100%
3. Camelot Mobile Home Park 90% 90%
4. Muir Heights Apartments 99% 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-8
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: May 8, 1996 Robert A. Long
---------------------------
Robert A. Long
General Partner
Christine Kennedy
---------------------------
Christine Kennedy
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 297,267
<SECURITIES> 0
<RECEIVABLES> 6,846
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 306,474
<PP&E> 6,575,550
<DEPRECIATION> 1,464,248
<TOTAL-ASSETS> 7,296,585
<CURRENT-LIABILITIES> 245,613
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,934,260
<TOTAL-LIABILITY-AND-EQUITY> 7,296,585
<SALES> 0
<TOTAL-REVENUES> 315,697
<CGS> 0
<TOTAL-COSTS> 200,834
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,087
<INCOME-PRETAX> 122,205
<INCOME-TAX> 0
<INCOME-CONTINUING> 122,205
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 122,205
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
