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, 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
SEPTEMBER 30, 1997 AND DECEMBER 31, 1996
<CAPTION>
UNAUDITED AUDITED
SEPTEMBER 30, DECEMBER 31,
ASSETS 1997 1996
------ ---------- ------------
<S> <C> <C>
Cash 447,923 430,686
Rents receivable 10,629 8,800
Investment in joint venture 400,624 403,748
Other assets 564 188
Investment properties, net of
accumulated depreciation of
$1,795,604 in 1997 and $1,637,220
in 1996 6,249,643 6,406,428
Deferred charges 333 771
---------- ----------
TOTAL ASSETS 7,109,716 7,250,621
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Accounts payable and accrued expenses 121,448 166,874
Security deposits 102,646 95,262
Deferred rent 7,694 10,923
Mortgage payable 103,364 110,448
---------- ----------
TOTAL LIABILITIES 335,152 383,507
General partners' capital (114,572) (110,645)
Limited partners' capital 6,889,136 6,977,759
---------- -----------
Partners' capital 6,774,564 6,867,114
TOTAL LIABILITIES AND
PARTNER CAPITAL 7,109,716 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 nine months ended September 30, 1997 and 1996
<CAPTION>
UNAUDITED
3 Months 9 Months 3 Months 9 Months
ended ended ended ended
SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30,
1997 1997 1996 1996
--------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUE:
Rental income 304,956 911,061 291,547 890,920
Interest income 5,098 15,168 3,961 10,977
Gain on sale of assets 0 300 0 0
Other income 9,076 26,679 8,437 26,028
------- ------- ------- -------
319,130 953,208 303,945 927,925
OPERATING EXPENSES:
Property operation,
maintenance, and
admin. expenses 165,897 500,066 161,175 436,343
Management fees 15,508 45,860 14,559 44,556
Depreciation and
amortization 53,894 161,696 57,878 173,400
------- ------- ------- -------
Total expenses 235,299 707,622 233,612 654,299
------- ------- ------- -------
Net income before
participation in
joint venture 83,831 245,586 70,333 273,626
------- ------- ------- -------
Participation in
joint venture 9,765 26,375 9,241 24,657
------- ------- ------- -------
NET INCOME 93,596 271,961 79,574 298,283
======= ======= ======= =======
<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, 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 258,363 13,598 271,961
Cash Distributions paid (346,986) (17,525) (364,511)
----------- ---------- -----------
BALANCE, September 30, 1997 6,889,136 (114,572) 6,774,564
========== ========== ==========
<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, 1997 and 1996
<CAPTION>
UNAUDITED
9 Months 9 Months
ended ended
September 30, September 30,
1997 1996
----------- -----------
<S> <C> <C>
Cash Flows from
operating activities:
Net income 271,961 298,283
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization expense 161,696 173,400
Participation in income
from joint venture (26,375) (24,657)
Gain on sale of assets (300) 0
(Increase) decrease in assets:
Rents receivable (1,829) (4,508)
Other assets (376) 2,156
Increase (decrease) in liabilities:
Accounts payable and
accrued liabilities (48,653) (16,300)
Tenant security deposits 7,384 1,244
-------- --------
Net Cash Provided by
Operating Activities: 363,508 429,618
Cash flows from investing
activities:
Distributions from joint venture 29,498 31,342
Purchases of property and
equipment (4,474) (3,851)
Proceeds from sale of assets 300 0
Net Cash Used for --------- ---------
Investing Activities: 25,324 27,491
I-4
Cash flows from financing
activities:
Cash distributions (364,511) (344,017)
Payments on notes payable (7,084) (6,171)
---------- ---------
Net Cash used for
Financing Activities (371,595) (350,188)
Net Increase (Decrease)
in Cash 17,237 106,921
---------- ---------
Cash Balance at
Beginning of Period 430,686 255,037
---------- ---------
Cash Balance at End of Period 447,923 361,958
========== =========
<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 nine months
ended September 30 was $363,508 in 1997 and $429,618 in 1996.
Decreased 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 $12,400 at the
Partnership's Pulaski, Wisconsin mobile home park to repair water
main leaks.
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
I-7
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 September 30, 1997, the Partnership had cash of approximately
$448,000 representing funds held for investment in property
improvements, undistributed cash flow, working capital reserves,
and tenant security deposits. Total current liabilities were
approximately $232,000.
A distribution of cash flow from operations totaling approximately
$125,000 was made to the Limited Partners in August, 1997. The
total amount distributed to the Limited Partners in 1996 was
approximately $438,000.
Results of Operations:
Gross revenues for the nine months ended September 30 were $953,208
in 1997 and $927,925 in 1996. The increase is the result of rent
increases at all the Partnership's properties.
Cash operating expenses for the nine months ended September 30,
1997 were $545,926 compared to $480,899 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 Muir Heights for the
reasons mentioned in the Liquidity and Capital Resources section
above. In addition, partnership administration expenses have
increase by approximately $14,000.
Net income for the nine months ended September 30, 1997 was
$271,961 compared to $298,283 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 nine months ended September 30, 1997 and calendar year 1996:
<CAPTION>
9 Months ended
September 30, 1997 1996
------------------ ----
<S> <C> <C>
1. Evergreen Estates
Mobile Home Park 90% 93%
2. Cedar Crossing Apartments 99% 98%
3. Camelot Mobile Home Park 98% 91%
4. Muir Heights Apartments 86% 97%
5. Forest Downs Apartments 94% 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, 1997 Robert A. Long
-----------------
Robert A. Long
General Partner
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 447,923
<SECURITIES> 0
<RECEIVABLES> 10,629
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 459,116
<PP&E> 8,045,247
<DEPRECIATION> 1,795,604
<TOTAL-ASSETS> 7,109,716
<CURRENT-LIABILITIES> 231,788
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,774,564
<TOTAL-LIABILITY-AND-EQUITY> 7,109,716
<SALES> 0
<TOTAL-REVENUES> 953,208
<CGS> 0
<TOTAL-COSTS> 707,622
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,137
<INCOME-PRETAX> 271,961
<INCOME-TAX> 0
<INCOME-CONTINUING> 271,961
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 271,961
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
