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, 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 39-1618677
- ------------------------------- -------------------------
(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, 1996 AND DECEMBER 31, 1995
<CAPTION>
UNAUDITED AUDITED
SEPTEMBER 30, DECEMBER 31,
ASSETS 1996 1995
------ ---------- ------------
<S> <C> <C>
Cash 361,958 255,037
Rents receivable 11,937 7,429
Investment in joint venture 413,097 419,781
Other assets 570 2,726
Investment properties, net of
accumulated depreciation of
$1,579,574 in 1996 and $1,406,611
in 1995 6,464,074 6,633,186
Deferred charges 583 1,021
---------- ----------
TOTAL ASSETS 7,252,219 7,319,180
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Accounts payable and accrued expenses 167,375 183,676
Security deposits 95,630 94,385
Mortgage payable 112,547 118,718
---------- ----------
TOTAL LIABILITIES 375,552 396,779
General partners' capital (110,168) (107,879)
Limited partners' capital 6,986,835 7,030,280
---------- -----------
Partners' capital 6,876,667 6,922,401
TOTAL LIABILITIES AND
PARTNER CAPITAL 7,252,219 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 nine months ended September 30, 1996 and 1995
<CAPTION>
UNAUDITED
3 Months 9 Months 3 Months 9 Months
ended ended ended ended
SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30,
1996 1996 1995 1995
--------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUE:
Rental income 291,547 890,920 283,689 845,295
Interest income 3,961 10,977 1,992 5,297
Other income 8,437 26,028 7,683 23,935
------- ------- ------- -------
303,945 927,925 293,364 874,527
OPERATING EXPENSES:
Property operation,
maintenance, and
admin. expenses 161,175 436,343 151,868 460,175
Management fees 14,559 44,556 13,350 40,050
Depreciation and
amortization 57,878 173,400 66,667 198,408
------- ------- ------- -------
Total expenses 233,612 654,299 231,885 698,633
------- ------- ------- -------
Net income before
participation in
joint venture 70,333 273,626 61,479 175,894
------- ------- ------- -------
Participation in
joint venture 9,241 24,657 8,718 24,660
------- ------- ------- -------
NET INCOME 79,574 298,283 70,197 200,554
======= ======= ======= =======
<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, 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 283,369 14,914 298,283
Cash Distributions paid (326,815) (17,202) (344,017)
----------- ---------- -----------
BALANCE, September 30, 1996 6,986,835 (110,168) 6,876,667
========== ========== ==========
<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, 1996 and 1995
<CAPTION>
UNAUDITED
9 Months 9 Months
ended ended
June 30, June 30,
1996 1995
----------- -----------
<S> <C> <C>
Cash Flows from
operating activities:
Net income 298,283 200,554
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization expense 173,400 198,408
Participation in income
from joint venture (24,657) (24,660)
Increase (decrease) in assets:
Rents receivable (4,508) 1,305
Other assets 2,156 (278)
Increase (decrease) in liabilities:
Accounts payable and
accrued liabilities (16,300) (17,472)
Tenant security deposits 1,244 5,180
-------- --------
Net Cash Provided by
Operating Activities: 429,618 363,037
Cash flows from investing
activities:
Distributions from joint venture 31,342 28,884
Purchases of property and
equipment (3,851) (141,862)
Net Cash Used for --------- ---------
Investing Activities: 27,491 (112,978)
I-4
Cash flows from financing
activities:
Cash distributions (344,017) (334,929)
Loan costs 0 (1,250)
Proceeds from notes payable 0 125,000
Payments on notes payable (6,171) (4,293)
---------- ---------
Net Cash Provided by
Financing Activities (350,188) (215,472)
Net Increase (Decrease)
in Cash 106,921 34,587
---------- ---------
Cash Balance at
Beginning of Period 255,037 171,656
---------- ---------
Cash Balance at End of Period 361,958 206,243
========== =========
<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 nine months
ended September 30 was $429,618 in 1996 and $363,037 in 1995.
Improved cash flow is a result of the following items:
1. A $53,000 increase in revenues as a result of rent increases
at the mobile home parks and apartment complexes and strong
leasing activity.
2. 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).
Repair expenses at the Muir Heights apartment complex continue to
be high. Many of the repairs that need to be made are a result of
faulty construction methods and materials. 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
I-7
the problems. The tests determined that the problems arose as a
result of faulty construction and will help the Partnership in its
case against the developer.
As of September 30, 1996, the Partnership had cash of approximately
$362,000 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 August,
1996. The total amount distributed to the Limited Partners in
1995 was approximately $416,000.
Results of Operations:
Gross revenues for the nine months ended September 30 were $927,925
in 1996 and $874,527 in 1995. As discussed above, this increase of
over $50,000 is a result of rent increases at all the Partnership's
properties and strong leasing activity.
Cash operating expenses for the nine months ended September 30,
1996 were $480,899 compared to $500,225 in 1995. The cause of the
decrease in operating expenditures is due to a decrease in legal
fees for the Muir Heights law suit as mentioned in the Liquidity
and Capital Resources section above.
Net income for the nine months ended September 30, 1996 was
$298,283 compared to $200,554 in 1995. As a result of the
increased revenues and decreased cash expenses, net income
increased substantially. Non-cash expenses (depreciation and
amortization) have decreased $25,000 over the prior year, further
increasing net income. The decrease in non-cash expenses was a
result of certain assets becoming fully depreciated during 1995.
I-8
<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, 1996 and calendar year 1995:
<CAPTION>
6 Months ended
June 30, 1996 1995
-------------- ----
<S> <C> <C>
1. Evergreen Estates
Mobile Home Park 92% 92%
2. Cedar Crossing Apartments 99% 100%
3. Camelot Mobile Home Park 94% 90%
4. Muir Heights Apartments 93% 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: November 8, 1996 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-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 361,958
<SECURITIES> 0
<RECEIVABLES> 11,937
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 374,465
<PP&E> 6,464,074
<DEPRECIATION> 1,579,574
<TOTAL-ASSETS> 7,252,219
<CURRENT-LIABILITIES> 263,005
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,876,667
<TOTAL-LIABILITY-AND-EQUITY> 7,252,219
<SALES> 0
<TOTAL-REVENUES> 927,925
<CGS> 0
<TOTAL-COSTS> 654,299
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,307
<INCOME-PRETAX> 298,283
<INCOME-TAX> 0
<INCOME-CONTINUING> 298,283
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 298,283
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
