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, 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
JUNE 30, 1997 AND DECEMBER 31, 1996
<CAPTION>
UNAUDITED AUDITED
JUNE 30, DECEMBER 31,
ASSETS 1997 1996
------ ---------- ------------
<S> <C> <C>
Cash 461,655 430,686
Rents receivable 11,271 8,800
Investment in joint venture 398,234 403,748
Other assets 0 188
Investment properties, net of
accumulated depreciation of
$1,741,897 in 1997 and $1,637,220
in 1996 6,303,350 6,406,428
Deferred charges 521 771
---------- ----------
TOTAL ASSETS 7,175,031 7,250,621
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Accounts payable and accrued expenses 151,124 166,874
Security deposits 100,472 95,262
Deferred rent 5,904 10,923
Mortgage payable 105,722 110,448
---------- ----------
TOTAL LIABILITIES 363,222 383,507
General partners' capital (113,411) (110,645)
Limited partners' capital 6,925,220 6,977,759
---------- -----------
Partners' capital 6,811,809 6,867,114
TOTAL LIABILITIES AND
PARTNER CAPITAL 7,175,031 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 three months and six months ended June 30, 1997 and 1996
<CAPTION>
UNAUDITED
3 Months 6 Months 3 Months 6 Months
ended ended ended ended
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1997 1996 1996
--------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUE:
Rental income 304,606 606,105 296,831 599,373
Interest income 5,204 10,070 3,749 7,016
Gain on sale of assets 300 300 0 0
Other income 8,560 17,603 7,703 17,591
------- ------- ------- -------
318,670 634,078 308,283 623,980
OPERATING EXPENSES:
Property operation,
maintenance, and
admin. expenses 188,367 334,169 147,218 275,168
Management fees 15,238 30,352 14,812 29,997
Depreciation and
amortization 54,110 107,802 57,824 115,523
------- ------- ------- -------
Total expenses 257,715 472,323 219,854 420,688
------- ------- ------- -------
Net income before
participation in
joint venture 60,955 161,755 88,429 203,292
------- ------- ------- -------
Participation in
joint venture 7,998 16,610 8,075 15,417
------- ------- ------- -------
NET INCOME 68,953 178,365 96,504 218,709
======= ======= ======= =======
<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, 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 169,447 8,918 178,365
Cash Distributions paid (221,986) (11,684) (233,670)
----------- ---------- -----------
BALANCE, June 30, 1997 6,925,220 (113,411) 6,811,809
========== ========== ==========
<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, 1997 and 1996
<CAPTION>
UNAUDITED
6 Months 6 Months
ended ended
June 30, June 30,
1997 1996
----------- -----------
<S> <C> <C>
Cash Flows from
operating activities:
Net income 178,365 218,709
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization expense 107,802 115,523
Participation in income
from joint venture (16,610) (15,417)
Gain on sale of assets (300) 0
(Increase) decrease in assets:
Rents receivable (2,471) (2,894)
Other assets 188 747
Increase (decrease) in liabilities:
Accounts payable and
accrued liabilities (20,769) (18,802)
Tenant security deposits 5,210 3,330
-------- --------
Net Cash Provided by
Operating Activities: 251,415 301,196
Cash flows from investing
activities:
Distributions from joint venture 22,124 25,197
Purchases of property and
equipment (4,474) 0
Proceeds from sale of assets 300 0
Net Cash Used for --------- ---------
Investing Activities: 17,950 25,197
I-4
Cash flows from financing
activities:
Cash distributions (233,670) (227,182)
Payments on notes payable (4,726) (4,063)
---------- ---------
Net Cash Provided by
Financing Activities (238,396) (231,245)
Net Increase (Decrease)
in Cash 30,969 95,148
---------- ---------
Cash Balance at
Beginning of Period 430,686 255,037
---------- ---------
Cash Balance at End of Period 461,655 350,185
========== =========
<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 six months
ended June 30 was $251,415 in 1997 and $301,196 in 1996.
Declining cash flow is a result of the following items:
1. Cash flow declined 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.
2. Legal fees and consulting expenses have increased $24,000 over
last year related to the Partnership's case against the builders of
the Muir Heights apartment complex (discussed below).
3. Increase in repair and maintenance expense of $13,600 at the
Partnership's Pulaski, Wisconsin Mobile Home Park to repair water
main leaks.
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 certain buildings in order to
determine the exact nature of the problems and the cost to correct
them. The physical work has been completed and the cost to
correct the problems is being calculated.
As of June 30, 1997, the Partnership had cash of approximately
$462,000 representing funds held for investment in property
improvements, undistributed cash flow, working capital reserves,
and tenant security deposits. Total current liabilities were
approximately $257,000.
A distribution of cash flow from operations totaling
approximately $111,000 was made to the Limited Partners in May,
1997. The total amount distributed to the Limited Partners in
1996 was approximately $438,000.
Results of Operations:
Gross revenues for the six months ended June 30 were $634,078
in 1997 and $623,980 in 1996. Cash operating expenses for the
six months ended June 30, 1997 were $364,521 compared to $305,165
in 1996. The increase 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 and at the
mobile home park in Pulaski, Wisconsin have increased. Legal and
consulting fees have also increased for the reasons mentioned in
the Liquidity and Capital Resources section above.
Net income for the six months ended June 30, 1997 was $178,365
compared to $218,709 in 1996.
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, 1997 and calendar year 1996:
<CAPTION>
6 Months ended
June 30, 1997 1996
-------------- ----
<S> <C> <C>
1. Evergreen Estates
Mobile Home Park 90% 93%
2. Cedar Crossing Apartments 98% 98%
3. Camelot Mobile Home Park 98% 91%
4. Muir Heights Apartments 87% 97%
5. Forest Downs Apartments 97% 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 6, 1997 Robert A. Long
-----------------
Robert A. Long
General Partner
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 461,655
<SECURITIES> 0
<RECEIVABLES> 11,271
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 472,926
<PP&E> 8,045,247
<DEPRECIATION> 1,741,897
<TOTAL-ASSETS> 7,175,031
<CURRENT-LIABILITIES> 257,500
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,811,809
<TOTAL-LIABILITY-AND-EQUITY> 7,175,031
<SALES> 0
<TOTAL-REVENUES> 634,078
<CGS> 0
<TOTAL-COSTS> 472,323
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,017
<INCOME-PRETAX> 178,365
<INCOME-TAX> 0
<INCOME-CONTINUING> 178,365
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 178,365
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
