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, 1998
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, 1998 AND DECEMBER 31, 1997
<CAPTION>
UNAUDITED AUDITED
JUNE 30, DECEMBER 31,
ASSETS 1998 1997
------ ---------- ------------
<S> <C> <C>
Cash 1,574,450 1,694,720
Note receivable 13,721 10,113
Rents receivable 142,500 142,500
Investment in joint venture 403,490 402,830
Other assets 9,181 564
Investment properties, net of
accumulated depreciation of
$760,938 in 1998 and $1,400,882
in 1997 2,774,121 4,995,981
Deferred charges 41,258 25,272
---------- ----------
TOTAL ASSETS 4,958,721 7,271,980
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Accounts payable and accrued expenses 78,004 132,980
Security deposits 48,080 83,684
Deferred rent 6,090 9,742
Mortgage payable 96,259 101,215
---------- ----------
TOTAL LIABILITIES 228,433 327,621
General partners' capital 45,546 0
Limited partners' capital 4,684,742 6,944,359
---------- -----------
Partners' capital 4,730,288 6,944,359
TOTAL LIABILITIES AND
PARTNER CAPITAL 4,958,721 7,271,980
========== ==========
<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, 1998 and 1997
<CAPTION>
UNAUDITED
3 Months 6 Months 3 Months 6 Months
ended ended ended ended
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1998 1997 1997
--------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUE:
Rental income 150,801 405,146 304,606 606,105
Interest income 43,658 69,631 5,204 10,070
Gain on sale of assets 857,961 857,961 300 300
Other income 4,713 9,378 8,560 17,603
------- ------- ------- -------
1,057,133 1,342,116 318,670 634,078
OPERATING EXPENSES:
Property operation,
maintenance, and
admin. expenses 94,934 212,495 188,367 334,169
Management fees 7,322 19,821 15,238 30,352
Depreciation and
amortization 22,582 86,389 54,110 107,802
------- ------- ------- -------
Total expenses 124,838 318,705 257,715 472,323
------- ------- ------- -------
Net income before
participation in
joint venture 932,295 1,023,411 60,955 161,755
------- --------- ------- -------
Participation in
joint venture 9,305 19,097 7,998 16,610
------- ------- ------- -------
NET INCOME 941,600 1,042,508 68,953 178,365
======= ========= ======= =======
<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, 1998 and
the year ended December 31, 1997
<CAPTION>
UNAUDITED
Limited General
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
Balance, January 1, 1997 6,977,759 (110,645) 6,867,114
Net Income 438,586 135,486 574,072
Cash Distributions paid (471,986) (24,841) (496,827)
----------- ---------- -----------
Balance, December 31, 1997 6,944,359 0 6,944,359
----------- ---------- -----------
Net Income 990,383 52,125 1,042,508
Cash Distributions paid (3,250,000) (6,579) (3,256,579)
----------- ---------- -----------
BALANCE, June 30, 1998 4,684,742 45,546 4,730,288
========== ========== ==========
<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, 1998 and 1997
<CAPTION>
UNAUDITED
6 Months 6 Months
ended ended
June 30, June 30,
1998 1997
----------- -----------
<S> <C> <C>
Cash Flows from
operating activities:
Net income 1,042,508 178,365
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization expense 86,389 107,802
Participation in income
from joint venture (19,097) (16,610)
Gain on sale of assets (857,961) (300)
(Increase) decrease in assets:
Rents receivable (3,608) (2,471)
Other assets (24,727) 188
Increase (decrease) in liabilities:
Accounts payable and
accrued liabilities (58,628) (20,769)
Tenant security deposits (35,604) 5,210
-------- --------
Net Cash Provided by
Operating Activities: 129,272 251,415
Cash flows from investing
activities:
Distributions from joint venture 18,437 22,124
Purchases of property and
equipment (9,719) (4,474)
Proceeds from sale of assets 3,003,275 300
Net Cash Provided by ---------- ---------
Investing Activities: 3,011,993 17,950
I-4
Cash flows from financing
activities:
Cash distributions (3,256,579) (233,670)
Payments on notes payable (4,956) (4,726)
---------- ---------
Net Cash Used by
Financing Activities (3,261,535) (238,396)
Net Increase (Decrease)
in Cash (120,270) 30,969
---------- ---------
Cash Balance at
Beginning of Period 1,694,720 430,686
---------- ---------
Cash Balance at End of Period 1,574,450 461,655
========== =========
<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, 1997.
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 originally purchased six income-producing
properties. In December 1997 the Partnership sold an apartment
complex known as Forest Downs. In April 1998 the Partnership
sold Muir Heights Apartments to the original developers to settle
the Partnership's lawsuit against the developer.
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 $129,272 in 1998 and $251,415 in 1997.
Cash flow declined in large part due to the sale of the apartment
complexes in December 1997 and April 1998.
I-7
As of June 30, 1998, the Partnership had cash of approximately
$1,574,000 representing funds held for investment in property
improvements, undistributed cash flow, working capital reserves,
and tenant security deposits. Total current liabilities were
approximately $132,000.
A cash distribution of $3,125,000 consisting of $125,000 from
operations and $3,000,000 from sales proceeds was made to the
Limited Partners in May, 1998. The total amount distributed to the
Limited Partners in 1997 was approximately $472,000.
Results of Operations:
Gross revenues for the six months ended June 30 were $1,342,116
in 1998 and $634,078 in 1997. The increase in gross revenues is
due to the gain reported on the sale of Muir Heights in April 1998.
Otherwise gross income would have decreased by approximately
$200,000 as a result of the sale of the two apartment complexes.
Cash operating expenses for the six months ended June 30, 1998 were
$232,316 compared to $364,521 in 1997. The decrease in operating
expenditures is due to a number of factors. First, as mentioned
above, the two apartment complesxes were sold. Second, maintenance
and repair costs at Camelot Mobile Home Park decreased by $17,000.
Net income for the six months ended June 30, 1998 was $1,042,508
compared to $178,365 in 1997.
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, 1998 and calendar year 1997:
<CAPTION>
6 Months ended
June 30, 1998 1997
-------------- ----
<S> <C> <C>
1. Evergreen Estates
Mobile Home Park 95% 91%
2. Cedar Crossing Apartments 100% 97%
3. Camelot Mobile Home Park 99% 98%
</TABLE>
In May 1998, the Partnership was notified by Champion Auto, its
tenant in Ashwaubenon, Wisconsin, that it is declaring bankruptcy.
Rent is currently being paid by the bankruptcy trustee.
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.
Potential Sale of Partnership Properties
The Partnership has received an offer from a prospective purchaser
for all or substantially all of the Partnership's properties.
Accordingly, the Partnership has entered into an asset purchase
agreement with the potential purchaser subject to Securities and
Exchange Commission review of the necessary proxy statement/consent
document, approval of the limited partners and the receipt of an
acceptable fairness opinion.
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, 1998 Robert A. Long
-----------------
Robert A. Long
General Partner
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 1,574,450
<SECURITIES> 0
<RECEIVABLES> 156,221
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,739,852
<PP&E> 3,535,059
<DEPRECIATION> 760,938
<TOTAL-ASSETS> 4,958,721
<CURRENT-LIABILITIES> 132,174
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,730,288
<TOTAL-LIABILITY-AND-EQUITY> 4,958,721
<SALES> 0
<TOTAL-REVENUES> 1,342,116
<CGS> 0
<TOTAL-COSTS> 318,705
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,451
<INCOME-PRETAX> 1,042,508
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,042,508
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,042,508
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
