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, 1997
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
MARCH 31, 1997 AND DECEMBER 31, 1996
<CAPTION>
UNAUDITED AUDITED
MARCH 31, DECEMBER 31,
ASSETS 1997 1996
------ ---------- ------------
<S> <C> <C>
Cash 449,456 430,686
Rents receivable 7,947 8,800
Investment in joint venture 401,298 403,748
Other assets 0 188
Investment properties, net of
accumulated depreciation of
$1,698,850 in 1997 and $1,637,220
in 1996 6,352,798 6,406,428
Deferred charges 708 771
---------- ----------
TOTAL ASSETS 7,212,207 7,250,621
========== ==========
LIABILITIES AND PARTNER CAPITAL
- -------------------------------
Accounts payable and accrued expenses 129,885 166,874
Security deposits 102,130 95,262
Deferred rents 12,419 10,923
Mortgage payable 108,082 110,448
---------- ----------
TOTAL LIABILITIES 352,516 383,507
General partners' capital (111,016) (110,645)
Limited partners' capital 6,970,707 6,977,759
---------- -----------
Partners' capital 6,859,691 6,867,114
TOTAL LIABILITIES AND
PARTNER CAPITAL 7,212,207 7,250,621
========== ==========
<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, 1997 and 1996
<CAPTION>
UNAUDITED
3 Months 3 Months
ended ended
MARCH 31, MARCH 31,
1997 1996
--------- ---------
<S> <C> <C>
REVENUE:
Rental income 301,499 302,543
Interest income 4,865 3,267
Other income 9,044 9,887
------- -------
315,408 315,697
OPERATING EXPENSES:
Property operation,
maintenance, and
administrative expenses 145,802 127,950
Management fees 15,114 15,185
Depreciation and
Amortization 53,692 57,699
--------- ---------
Total expenses 214,608 200,834
--------- ---------
Net income before
participation in
joint venture 100,800 114,863
--------- ---------
Participation in
joint venture 8,612 7,342
--------- ---------
NET INCOME 109,412 122,205
========= =========
<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, 1997 and
the year ended December 31, 1996
<CAPTION>
UNAUDITED
Limited General
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
Balance, January 1, 1996 7,030,281 (107,880) 6,922,401
Net Income 385,286 20,278 405,564
Cash Distributions paid (437,808) (23,043) (460,851)
----------- ---------- -----------
Balance, December 31, 1996 6,977,759 (110,645) 6,867,114
----------- ---------- -----------
Net Income 103,941 5,471 109,412
Cash Distributions paid (110,993) (5,842) (116,835)
----------- ---------- -----------
BALANCE, March 31, 1997 6,970,707 (111,016) 6,859,691
========== ============ ==========
<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, 1997 and 1996
<CAPTION>
UNAUDITED
3 Months 3 Months
ended ended
MARCH 31, MARCH 31,
1997 1996
----------- -----------
<S> <C> <C>
Cash Flows from
operating activities:
Net income 109,412 122,205
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization expense 53,692 57,699
Participation in income
from joint venture (8,612) (7,342)
Increase (decrease) in assets:
Rents receivable 853 583
Other assets 188 365
Increase (decrease) in liabilities:
Accounts payable and
accrued liabilities (36,988) (37,409)
Deferred rents 1,496 1,351
Tenant security deposits 6,868 3,610
-------- --------
Net Cash Provided by
Operating Activities: 126,909 141,062
Cash flows from investing
activities:
Distributions from joint venture 11,062 13,520
Purchases of property and
equipment 0 0
Net Cash Used for --------- ---------
Investing Activities: 11,062 13,520
I-4
Cash flows from financing
activities:
Cash distributions (116,835) (110,346)
Payments on Notes Payable (2,366) (2,006)
---------- ----------
Net Cash Provided by
Financing Activities (119,201) (112,352)
Net Increase (Decrease)
in Cash 18,770 42,230
---------- ----------
Cash Balance at
Beginning of Period 430,686 255,037
---------- ----------
Cash Balance at End of Period 449,456 297,267
=========== ==========
<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, 1996. 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 $126,909 in 1997 and $141,062 in 1996. Cash flow has
decreased in large part due to increased repair and maintenance
expense at the Partnership's Madison, Wisconsin apartment complex.
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, 1997, the Partnership had cash of approximately
$449,456 representing funds held for investment in property
improvements, undistributed cash flow, working capital reserves,
and tenant security deposits. Total current liabilities were
approximately $244,000.
A distribution of cash flow from operations totaling approximately
$111,000 was made to the Limited Partners in March, 1997. The
total amount distributed to the Limited Partners in 1996 was
approximately $438,000.
I-7
Results of Operations:
Gross revenues for the three months ended March 31 were $315,408 in
1997 and $315,697 in 1996. Cash operating expenses for the three
months ended March 31, 1997 were $160,916 compared to $143,135 in
1996. The increase in operating expenditures is due to repair
costs at the Muir Heights Apartment Complex in Madison, Wisconsin.
Legal fees have also increased. 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, 1997 was $109,412
compared to $122,205 in 1996.
<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, 1997 and calendar year 1996:
<CAPTION>
3 Months ended
March 31, 1997 1996
-------------- ----
<S> <C> <C>
1. Evergreen Estates
Mobile Home Park 89% 90%
2. Cedar Crossing Apartments 99% 97%
3. Camelot Mobile Home Park 99% 94%
4. Muir Heights Apartments 87% 87%
5. Forest Downs Apartments 97% 96%
</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 12, 1997 Robert A. Long
---------------------------
Robert A. Long
General Partner
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 449,456
<SECURITIES> 0
<RECEIVABLES> 7,947
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 458,111
<PP&E> 8,051,648
<DEPRECIATION> 1,698,850
<TOTAL-ASSETS> 7,212,207
<CURRENT-LIABILITIES> 352,516
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,859,691
<TOTAL-LIABILITY-AND-EQUITY> 7,212,207
<SALES> 0
<TOTAL-REVENUES> 315,408
<CGS> 0
<TOTAL-COSTS> 214,608
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,807
<INCOME-PRETAX> 109,412
<INCOME-TAX> 0
<INCOME-CONTINUING> 109,412
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 109,412
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
