UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
- ------ SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended
December 31, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
- ------ THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
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 Section 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 requirement
for the past 90 days.
Yes X No
--------- ---------
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP
1997 FORM 10-K
TABLE OF CONTENTS
-----------------
Part I
Item 1 Business
Item 2 Properties
Item 3 Legal Proceedings
Item 4 Submission of Matters to a Vote of
Security Holders
Part II
Item 5 Market for Registrant's Common Equity and
Related Stockholder Matters
Item 6 Selected Financial Data
Item 7 Management's Discussion and Analysis of
Financial Condition and Results of
Operations
Item 8 Financial Statements and Supplementary
Data
Item 9 Changes in and Disagreements with
Accountants on Accounting and Financial
Disclosure
Part III
Item 10 Directors and Executive Officers of the
Registrant
Item 11 Executive Compensation
Item 12 Security Ownership of Certain Beneficial
Owners and Management
Item 13 Certain Relationships and Related
Transactions
Part IV
Item 14 Exhibits, Financial Statement Schedules,
and Reports on Form 8-K
Financial Statements and Supplementary Data
Signatures
PART 1
Item 1. BUSINESS
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP (the "Registrant"
or "Partnership") is a Wisconsin Limited Partnership formed on
April 1, 1988, under the Wisconsin Revised Uniform Limited
Partnership Act. The Registrant was originally organized to
acquire, for cash (no debt), real estate projects, including real
estate for restaurants, mobile home communities, apartment
complexes and other commercial properties. The Partnership raised
$9,866,000 in Limited Partnership Interests (9,866 Interests at
$1,000 per unit) pursuant to a registration statement on Form S-11
under the Securities Act of 1933. The Partnership has utilized the
net offering proceeds to acquire the real property investments
described under "Properties" (Item 2).
The officers and employees of RAL Asset Management Group, a
Wisconsin general partnership, and its affiliates performed
services for the Registrant until June 1, 1993. RAL Asset
Management Group is controlled by the General Partners of the
Partnership. Effective June 1, 1993 the Partnership made separate
property and partnership management agreements.
The Partnership management agreement is with an unrelated
management company. The property management agreement is with a
related entity with the same general partners as the Partnership.
The related property management firm simultaneously subcontracted
with the same unrelated management company handling the Partnership
management. The terms and conditions of these agreements are
similar to the above related party agreements, which they replace.
The Registrant itself employs individual onsite managers and
maintenance personnel in the mobile home parks and apartment
complexes. The Registrant employed six at March 27, 1998.
The Partnership utilized the net offering proceeds to acquire the
real property investments as described under "Properties" (Item 2).
The Registrant originally acquired six real property investments,
utilizing the net offering proceeds available for investment. The
Registrant sold one of the original properties on December 30,
1997.
<TABLE>
Provided below is certain financial information by property type
for the three years covered by this report:
<CAPTION>
Apartment Mobile Home Commercial
Complexes Parks Properties
---------------- ---------------- --------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Number of properties
owned at December 31:
2 3 3 2 2 2 1 1 1
Gross rental
revenues (000's) $627 $617 $623 $535 $507 $463 $52 $51 $51
</TABLE>
Item 2. PROPERTIES
As of March 27, 1998, the Registrant owned the following
properties:
Date of
Property Name Purchase Approximate Size
- ------------------- --------- -----------------------------
Evergreen Estates 07/29/88 161 mobile home sites on
Mobile Home Park approximately 32 acres of land
Faribault, MN*
Cedar Crossing 12/23/88 Minority ownership (12.291%) in
Apartments a 109 unit garden apartment
Frederick, MD complex (RAL Yield + Equities IV
Limited Partnership, an
affiliated limited partnership
owns the remaining interest)
Champion Auto Center 02/28/89 A 7,176 square foot building
Ashwaubenon, WI 28,800 sq. ft. of land
Camelot Homes 10/17/89 73 mobile home sites on 39 acres
Mobile Home Park of land
Pulaski, WI*
Muir Heights 01/12/90 66 unit apartment complex
Apartments
Madison, WI*
*Denotes a material property, having gross revenues greater than
10% of total revenues.
The real estate business is highly competitive and the Partnership
competes with other real estate investment entities many of which
have greater financial resources. No one firm or group of firms,
in the opinion of the General Partners, is dominate in the
industry. The Partnership, therefore, faces substantial
competition from a variety of sources for attractive real estate
investment opportunities and attracting and retaining tenants for
its existing properties.
Any commercial, residential or mobile home community properties
acquired by the Partnership have competition for tenants from
similar properties in the vicinity. To the extent that the
Partnership owns or acquires commercial properties, such as
restaurants or shopping centers, which have leases entitling the
Partnership to participate in gross receipts of tenants above fixed
minimum amounts, the success of the Partnership will depend in part
on the success of its tenants in competing with similar businesses
in the vicinity.
Leases on Investment Properties:
The mobile home parks and apartments lease out rental spaces
(apartments) and receive income on a monthly basis from tenant
leases which normally have lease terms of one year or less.
In the opinion of management of the Partnership, all properties are
adequately covered by insurance.
MATERIAL PROPERTIES
- -------------------
Following is information with respect to each property whose
revenues are greater than 10% of total revenues as denoted above.
<TABLE>
The following is a listing of the approximate average physical
occupancy rates for the Partnership's material properties during
each of the last five years:
<CAPTION>
Occupancy Rate
------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Camelot MHP 98% 94% 90% 99% 98%
Evergreen MHP 91% 90% 92% 91% 88%
Muir Heights Apts. 85% 87% 95% 99% 96%
</TABLE>
<TABLE>
The following is a listing of the average annual per unit rental
rates for the Partnership's material properties for each of the
last five years:
<CAPTION>
Annual Per Unit Rental Rate
------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Camelot MHP $1,986 1,873 1,610 1,643 1,559
Evergreen MHP $2,459 2,399 2,248 2,179 2,269
Muir Heights Apts. $6,924 6,803 6,367 6,242 6,086
</TABLE>
The Federal tax basis for each of the material properties is
identical to the book basis as listed in Schedule III on page F-16
of this report. Depreciation information for tax purposes on the
properties is as follows:
Type of Asset Rate Method Depreciable Life
------------- ---- ------ ----------------
Land Improvements SL MACRS 15-40 Year
Building SL MACRS 31.5-40 Year
Equipment DDB MACRS 7-12 Year
<TABLE>
Real estate tax information for the three years covered by this
report for material properties is as follows:
<CAPTION>
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Camelot MHP
Tax rate .036411 .033981 .03517
Real estate taxes $22,559 21,198 20,834
Evergreen MHP
Tax rate .027986 .028409 .029600
Real estate taxes $19,260 18,122 18,882
Muir Heights Apts.
Tax rate .027369 .027998 .032068
Real estate taxes $60,622 60,195 68,945
</TABLE>
Item 3. LEGAL PROCEEDINGS
The Partnership is not subject to any material pending legal
proceedings.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted to a vote of security holders
during 1997.
PART II
Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS
(a)&(b) As of March 27, 1998, there were approximately 1,150
record holders of Interests of the Partnership. There
is no public market for Interests and it is not
anticipated that a public market for Interests will
develop. The General Partners will not redeem or
repurchase Interests.
(c) All cash available for distribution other than sale or
refinancing proceeds is distributed 95% to the Limited
Partners and 5% to the General Partners, at least semi
-annually. See attached financial statements and footnotes
for a detailed discussion of amounts and timing of
distributions to Limited Partners.
Item 6. SELECTED FINANCIAL DATA
<TABLE>
Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/97 12/31/96 12/31/95 12/31/94 12/31/93
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Rental Income
$1,213,683 $1,174,732 $1,136,844 $1,109,467 $1,071,488
Interest Income 21,846 15,495 8,176 4,676 5,959
Net Income 574,072 405,564 280,769 279,261 268,031
Total Assets 7,271,980 7,250,621 7,319,180 7,366,491 7,642,215
Note Payable 101,215 110,448 118,718 0 0
Distributions to
Limited Ptnrs:
Cash Flow 471,986 437,808 415,612 530,300 604,295
Return of Capital
0 0 0 0 0
Per Interest Data:(A)
Distributions 47.84 44.38 42.13 53.75 61.25
Net Income 44.45 39.05 27.04 26.89 25.81
<FN>
The above selected financial data should be read in conjunction
with financial statements and related footnotes elsewhere herein.
</FN>
</TABLE>
(A) The Net Income per Interest is computed on the basis of the
net income allocated to the Limited Partners divided by the
outstanding Interests at the end of the period.
Item 7. 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 Registrant was
organized to acquire new and existing income producing properties
for cash. 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 to-
date (see Item (2)). The Partnership sold one of the mobile home
parks on December 30, 1997.
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" properties) 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 or semi-annual basis. The Partnership also
accumulates working capital reserves for normal repairs,
replacements, working capital, and contingencies.
Net cash flow provided from operating activities was $505,000 in
1997, $598,000 in 1996, and $501,000 in 1995. As of December 31,
1997, the Partnership had cash of approximately $1,695,000
representing undistributed cash flow, working capital reserves, and
tenant security deposits. Total short term liabilities were
approximately $227,000.
The Partnership has not experienced, and is not currently
experiencing any liquidity problems. It is not expected that the
Partnership will experience liquidity problems due to the nature of
the current liabilities. Approximately $84,000 of the current
liabilities represent tenant security deposits. The majority of
the remaining current liabilities are accrued and escrowed real
estate taxes payable in installments in 1998. The Partnership
expects to meet all of its obligations as they come due.
Total distributions to Limited Partners in 1997 were approximately
$472,000.
During 1995, the Partnership financed a 17 pad expansion of the
Camelot mobile home park in Pulaski, Wisconsin, with a $125,000
bank loan. The note has a 5 year term with a 9.95% interest rate
and is secured by a real estate mortgage on the improved lots and
a general business security agreement. The pads were completed and
ready for occupancy June 1, 1995.
Results of Operations:
<TABLE>
Net income for the year ended December 31, 1997 was $574,000
compared to $406,000 in 1996 and $281,000 in 1995. This included
$36,000 of income in 1997, $34,000 in 1996 and $34,000 in 1995
related to the investment in the Cedar Crossings apartment complex.
On December 30, 1997 the Partnership sold the Forest Downs
Apartment Complex which resulted in a gain on the sale of the
property of $154,000.
The following is a listing of approximate average physical
occupancy rates for the Partnership's residential properties for
the periods covered by this report:
<CAPTION>
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
1. Evergreen Estates
Mobile Home Park 91% 90% 92%
2. Cedar Crossing Apartments 96% 97% 100%
3. Camelot Mobile Home Park 98% 94% 90%
4. Muir Heights Apartments 85% 87% 95%
5. Forest Downs Apartments 96% 96% 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. All of 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.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
See Index to Financial Statements and Financial Statement Schedule
on page F-1, incorporated herein by reference.
The supplemental financial information specified by Item 302 of
Regulation S-K is not applicable.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
a. None.
b. None.
PART III
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE PARTNERSHIP
The General Partners of RAL Income + Equity Growth V Limited
Partnership are Robert A. Long, John A. Hanson, Thomas R. Brophy,
and Bart Starr. The General Partners manage and control the
Partnership's affairs and have the general responsibility and the
ultimate authority in all matters affecting the partnership's
business. The Partnership has available to it the services,
personnel, and experience of certain other organizations affiliated
with the General Partners, including RAL Asset Management Group.
The relationship of the General Partners to their affiliates is
described under the caption "Conflicts of Interest" on pages 10
through 12 of the Prospectus, a copy of which is filed with Form S-
11 for this Partnership and is incorporated herein by reference.
The general partners and significant employee of First Financial
Realty Management are as follows:
Position with RAL Asset
Name Management Group
- ---- -----------------------
Robert A. Long General Partner
John A. Hanson General Partner
Thomas R. Brophy General Partner
Bart Starr General Partner
Douglas C. Heston President (FFRM)
There is no family relationship among any of the foregoing
officers. The business experience of the General Partners and
significant employees includes the following:
Robert A. Long, age 56, has, since January 1982, been a partner in
RAL Asset Management Group. He is co-founder of RAL Asset
Management Group. Since 1966 Mr. Long has been involved in real
estate consulting, development and syndication. Mr. Long is a
licensed securities agent. Since 1981 Mr. Long has been involved
as an individual, general partner, or affiliate in ownership and
management of twenty-six (26) mobile home parks totaling over 2,600
pads in the states of Wisconsin and Minnesota. Prior to 1981, Mr.
Long developed or purchased over 200 commercial properties in six
states and currently owns individually or through partnerships over
50 restaurants (land and building) leased to restaurant operators,
including Pizza Hut, Hardee's, Taco Bell, and Rocky Rococo (or
their franchisees). Mr. Long also played professional football for
the Green Bay Packers, Atlanta Falcons, and Washington Redskins.
Mr. Long received a Bachelor of Science Degree in Business from
Wichita State University in 1965 and is currently Executive
Director of the Vince Lombardi Scholarship Fund for Wichita State
University. Mr. Long is also on the Board of Directors of Roundy's
Inc., a major Midwest food distributor and originator of the Pick
'N Save stores.
John A. Hanson, age 56, has, since March 1982, been a partner in
RAL Asset Management Group. Mr. Hanson is involved individually,
as a general partner, or as an affiliate, in the ownership and
management of twenty-six (26) mobile home parks in the states of
Wisconsin and Minnesota. Mr. Hanson has been involved in pension
and profit-sharing and tax consulting for 25 years. In 1975 he
founded, and since that time has been president of Pension
Designers, Inc., of Appleton, Wisconsin, a firm that specializes in
structuring and consulting with respect to qualified retirement
plans, estate planning, investment sales and sales of life, health
and disability insurance products to individuals, groups or
corporations. From 1966 to 1971 Mr. Hanson was engaged in tax
consulting, having management and tax accounting responsibilities
for a farm management firm with approximately 200 clients. Mr.
Hanson is past president of the Fox River Valley Association of
Life Underwriters, and the General Agents and Managers Association,
an associate member of the American Society of Pension Actuaries,
a member of the International Association of Financial Planners, a
qualifying and life member of the Million Dollar Round Table, and
a registered principal with the National Association of Securities
Dealers. Mr. Hanson received his Bachelor of Science Degree in
Agri-Business from the University of Wisconsin - River Falls in
1966. Mr. Hanson is a licensed securities agent.
Thomas R. Brophy, CLU, ChFC., age 52, has, since March 1982, been
a partner of RAL Asset Management Group. Mr. Brophy is involved
individually, as a general partner, or as an affiliate in the
ownership and management of twenty-six (26) mobile home parks in
the states of Wisconsin and Minnesota which total approximately
2,600 pads. Mr. Brophy has been a NASD registered securities
representative since 1969, active in the marketing and sales of
mutual funds, unit investment trusts, stocks, bonds, limited
partnerships and private ventures. Since 1967 Mr. Brophy has also
been active in the marketing, selling, training, supervising and
managing of personnel, with respect to qualified retirement plans
and personal or business life, health and disability insurance
plans. He is active in the financial planning field, having been
conferred the degree of Chartered Financial Consultant, by the
American College, Bryn Mawr, PA, in 1984. He is associated with
the Principal Financial Group. Mr. Brophy is an active member of
the National and Wisconsin Association of Life Underwriters,
Million Dollar Round Table, Fox Valley Estate Planning Council and
International Association of Financial Planners. He is recipient
of the Fox River Valley Association of Life Underwriters' 1983
"Agent of the Year" award. A 1967 Bachelor of Science graduate
from Marquette University, Mr. Brophy went on for advanced studies
in insurance, receiving his Chartered Life Underwriter (CLU) degree
from the American College, Bryn Mawr, PA, in 1975. Mr. Brophy is
a licensed securities agent.
Bart Starr, age 65, has, since January 1984, been a partner in RAL
Asset Management Group. He is a University of Alabama graduate
with a B.S. Degree in Education. Since 1970, he has been a partner
in the Bart Starr Motor Company, Birmingham, Alabama. Since 1979
he has been a member of the Board of Directors of the Sentry
Insurance Company, Stevens Point, Wisconsin. He was a Green
Bay Packer football player from 1956-1972, the Green Bay Packer
Head Coach from 1975-1983, the NFL Most Valuable Player in 1966,
and the Most Valuable Player in Super Bowls I and II. Mr. Starr
was a CBS Game Analyst in 1973 and 1974 and the first winner of the
Byron White Award in 1967. Mr. Starr has been the recipient of
numerous civic and sports awards and is actively engaged in many
charitable and public service organizations.
The following individual is an employee of the unaffiliated
property management firm who makes significant contributions to the
business of the Partnership:
Douglas C. Heston, age 44, is President of First Financial Realty
Management (FFRM). FFRM and affiliates own and/or manage over 50
investment properties. Mr. Heston received a B.A. degree from Duke
University (North Carolina) with a double major in Economics and
Public Policy Analysis (Statistics) in 1975. He received an M.S.
degree in Real Estate Investment Analysis from the University of
Wisconsin in 1979. Previously he worked for real estate appraisal
firms in Atlanta and Milwaukee. He co-founded RAL Asset Management
Group in 1981 and left at the end of 1984 to found his current
firm.
Item 11. EXECUTIVE COMPENSATION
(a,b,c, and d)
The Registrant has not paid and does not propose to pay any
executive compensation to the General Partners or any of
their affiliates (other than described in Item 13 below).
(e) There are no compensatory plans or arrangements regarding
termination of employment or change of control.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
(a) No person owns of record or is known by the Registrant to own
beneficially more than 5% of the outstanding Interests of the
Registrant as of March 27, 1998.
<TABLE>
(b) As of March 27, 1998, the General Partners beneficially owned
the following Interests in the Partnership:
<CAPTION>
Title of Class Name of Partner Percent of Class
- -------------- --------------- ----------------
<S> <C> <C>
General Partnership Robert A. Long 53.79%
Interests John A. Hanson 19.20
Thomas R. Brophy 17.07
Bart Starr 9.94
------
100.00
========
</TABLE>
As of March 27, 1998, the General Partners own 3 Limited
Partnership Interests in the Registrant.
(c) None
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
(a and b)
The Partnership sold Forest Downs Apartments to Great Lakes
Investors, LLC during 1997. Doug Heston is a member of Great Lakes
Investors, LLC. Mr. Heston is also the President of First
Financial Realty Management, Inc. which is the company contracted
by the Partnership to perform certain property and partnership
management services.
Certain General Partners own or control businesses which have
agreed to perform a variety of services for the Partnership.
The Partnership also has various agreements with businesses owned
by, controlled by, or affiliated with certain General Partners
which entitle such businesses to receive fees for services rendered
on terms established by the General Partners as summarized below:
- Real estate commissions of up to 3% of the contract price
subject to certain limitations.
The General Partners receive 5% of all Cash Available for
Distribution. Distributions paid to the General Partners were
$25,000 in 1997, $23,000 in 1996, and $22,000 in 1995.
(c) No management person is indebted to the Registrant.
(d) Not applicable.
PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM 8-K
(a) (1 and 2) See Index to Financial Statements and Financial
Statement Schedule on Page F-1
(b) Reports on Form 8-K
None
(c) Exhibits
See Exhibit 27.
(d) Financial Statement Schedule
See Index to Financial Statements and Financial Statement
Schedule on Page F-1.
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP
(A Wisconsin Limited Partnership)
INDEX TO FINANCIAL STATEMENTS
AND FINANCIAL STATEMENT SCHEDULE
COVERED BY REPORTS OF INDEPENDENT AUDITORS
Report of Independent Auditors F-2
Balance Sheets at December 31, 1997 and 1996 F-3
Statements of Income for the years ended
December 31, 1997, 1996 and 1995 F-4
Statements of Partners' Equity for the
years ended December 31, 1997, 1996 and 1995 F-5
Statements of Cash Flows for the years ended
December 31, 1997, 1996 and 1995 F-6
Notes to Financial Statements F-7 to F-15
Financial statement schedule: III - Real estate
and accumulated depreciation F-16 to F-20
Schedules, other than those listed, are omitted for the reason that
they are inapplicable or equivalent information has been included
elsewhere herein.
F-1
INDEPENDENT AUDITOR'S REPORT
February 20, 1998
To the Partners of
RAL Income + Equity Growth V Limited Partnership
We have audited the accompanying Balance Sheets of RAL Income +
Equity Growth V Limited Partnership (a Wisconsin Limited
partnership) as of December 31, 1997 and 1996, and the related
Statements of Income, Partners' Equity and Cash Flows for each of
the three years in the period ended December 31, 1997. Our audits
also included the financial statement schedule listed in the Index
at Item 14. These financial statements are the responsibility of
the Partnership's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of RAL
Income + Equity Growth V Limited Partnership as of December 31,
1997 and 1996, and the results of its operations and cash flows for
each of the three years in the period ended December 31, 1997 in
conformity with generally accepted accounting principles. Also, in
our opinion, such financial statement schedule, when considered in
relation to the basic financial statements taken as a whole,
presents fairly in all material respects the information set forth
therein.
Kolb Lauwasser & Co., S.C.
Milwaukee, Wisconsin
F-2
<TABLE>
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP
Balance Sheets
As of December 31,
<CAPTION>
ASSETS - Note #5 1997 1996
------ ---- ----
<S> <C> <C>
Income-Producing Properties - Notes #1, #3, and #4
- ---------------------------
Buildings and land improvements 5,149,016 6,420,132
Equipment 90,657 256,111
--------- ---------
5,239,673 6,676,243
Less: Accumulated depreciation 1,400,882 1,637,220
--------- ---------
3,838,791 5,039,023
Land 1,157,190 1,367,405
--------- ---------
Total Income-Producing Properties 4,995,981 6,406,428
--------- ---------
Other
- -----
Cash and cash equivalents - Note #1 1,694,720 430,686
Rent and other receivables - Note #1 10,113 8,800
Note receivable - related party
- Notes #1 and #6 142,500 -
Investment in joint venture - Note #2 402,830 403,748
Deferred charges - Note #1 25,272 771
Prepaid expenses 564 188
--------- ---------
Total Other 2,275,999 844,193
--------- ---------
Total Assets 7,271,980 7,250,621
========= =========
LIABILITIES AND PARTNERS' EQUITY
--------------------------------
Liabilities
- -----------
Accounts payable and accrued expenses -
Note #6 132,980 166,874
Deferred rents 9,742 10,923
Tenants' security deposits 83,684 95,262
Note payable - Note #5 101,215 110,448
--------- ---------
Total Liabilities 327,621 383,507
--------- ---------
Partners' Equity (Deficit)
- --------------------------
General partners - (110,645)
Limited partners 6,944,359 6,977,759
--------- ---------
Total Partners' Equity 6,944,359 6,867,114
--------- ---------
Total Liabilities
and Partners' Equity 7,271,980 7,250,621
========= =========
<FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.
F-3
</FN>
</TABLE>
<TABLE>
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP
Statements of Income
--------------------
For the years ended December 31,
<CAPTION>
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Revenue
- -------
Rental income 1,213,683 1,174,732 1,136,844
Gain on sale of investment
property 153,512 - -
--------- --------- ---------
Total Revenues 1,367,195 1,174,732 1,136,844
---------- --------- ---------
Expenses
- --------
Property management fees 60,738 58,765 56,943
Administrative expenses 172,167 135,486 171,495
Property operating expenses 447,337 414,450 427,409
Amortization and depreciation 194,015 230,859 264,065
---------- --------- ---------
Total Expenses 874,257 839,560 919,912
---------- --------- ---------
Income Before Other Income and Income
from Joint Venture 492,938 335,172 216,932
---------- --------- ---------
Other Income (Expense)
- ----------------------
Interest income 21,846 15,495 8,176
Interest expense (12,140) (13,626) (12,781)
Miscellaneous 35,173 34,163 34,530
Gain on sale of fixed assets 300 - -
---------- --------- ---------
Total Other Income 45,179 36,032 29,925
---------- --------- ---------
Total Other Income Before
Income From Joint Venture 538,117 371,204 246,857
Net Income from Joint Venture 35,955 34,360 33,912
---------- --------- ---------
Net Income 574,072 405,564 280,769
========== ========= =========
Net income per limited
partner interest - Note #9 44.45 39.05 27.04
========== ========= =========
Allocation of Income:
Limited partners 438,586 385,286 266,731
General partners 135,486 20,278 14,038
---------- --------- ---------
574,072 405,564 280,769
========== ========= =========
<FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.
F-4
</FN>
</TABLE>
<TABLE>
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP
Statements of Partners' Equity
------------------------------
For the years ended December 31,
<CAPTION>
Limited General 1997 1996 1995
Partners Partners Total Total Total
-------- -------- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Capital contributions:
Contributed
cash 9,866,000 100 9,866,100 9,866,100 9,866,100
Less: Syndication
costs 1,085,260 - 1,085,260 1,085,260 1,085,260
--------- ------- --------- --------- ---------
Net contributions
8,780,740 100 8,780,840 8,780,840 8,780,840
--------- ------- --------- --------- ---------
Accumulated income:
Balance,
beginning 2,540,692 117,867 2,658,559 2,252,995 1,972,226
Current
net income 438,586 135,486 574,072 405,564 280,769
--------- ------- --------- --------- ---------
Balance,
ending 2,979,278 253,353 3,232,631 2,658,559 2,252,995
--------- ------- --------- --------- ---------
Accumulated distributions:
Balance,
beginning
(4,343,673) (228,612)(4,572,285)(4,111,434)(3,673,948)
Current distributions
(471,986) (24,841) (496,827) (460,851) (437,486)
--------- ------- --------- --------- ---------
Balance,
ending (4,815,659)(253,453)(5,069,112)(4,572,285)(4,111,434)
--------- ------- --------- --------- ---------
Total Partners'
Equity
6,944,359 - 6,944,359 6,867,114 6,922,401
========= ======= ========= ========= =========
<FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.
F-5
</FN>
</TABLE>
<TABLE>
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP
Statements of Cash Flows
------------------------
For the years ended December 31,
<CAPTION>
Cash Increase or (Decrease)
---------------------------
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Cash Flows From Operating Activities
- ------------------------------------
Net income 574,072 405,564 280,769
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization and depreciation 194,015 230,859 264,065
Income from joint venture (35,955) (34,360) (33,912)
(Gain) on sale of investment
properties and fixed assets (153,812) - -
Decrease (increase) in
- ----------------------
Rent and other receivables, net (1,313) (1,371) 2,969
Deferred charges (24,751) - (1,250)
Prepaid expenses (376) 2,538 (2,726)
Increase (decrease) in
- ----------------------
Accounts payable and
accrued expenses (35,075) (5,879) (17,717)
Tenants' security deposits (11,578) 877 8,405
------- ------- -------
Net Cash Provided by
Operating Activities 505,227 598,228 500,603
------- ------- -------
Cash Flows From Investing Activities
- ------------------------------------
Additions to income-producing properties
(net of escrow deposits) (44,854) (3,851) (147,618)
Distributions received from
joint venture 36,873 50,393 49,164
Proceeds from sale of income-
producing properties 1,272,848 - -
--------- ------- -------
Net Cash Provided (Used) by
Investing Activities 1,264,867 46,542 (98,454)
--------- ------- -------
Cash Flows From Financing Activities
- ------------------------------------
Proceeds from note payable - - 125,000
Principal payments on note payable (9,233) (8,270) (6,282)
Distributions to partners 496,827 (460,851) (437,486)
--------- ------- -------
Net Cash (Used) by
Financing Activities (506,060) (469,121) (318,768)
--------- ------- -------
Net Increase in Cash 1,264,034 175,649 83,381
Cash and cash equivalents-
Beginning of Year 430,686 255,037 171,656
--------- ------- -------
Cash and cash equivalents -
End of Year 1,694,720 430,686 255,037
========= ======= =======
Supplementary Information
Interest Paid 12,143 13,654 12,306
========= ======== =======
<FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.
F-6
</FN>
</TABLE>
RAL INCOME + EQUITY GROWTH V LIMITED PARTNERSHIP
Notes to Financial Statements
------------------------------
For the years ended December 31, 1997, 1996 and 1995
Note #1 Nature of Business and Summary of Significant
- ------- ---------------------------------------------
Accounting Policies
-------------------
A. Nature of Business
------------------
RAL Income + Equity Growth V Limited Partnership (the
Partnership) is a Wisconsin limited partnership formed on April
1, 1988 under the provisions of the Wisconsin Revised Uniform
Limited Partnership Act, to acquire for cash, operate, lease,
develop and eventually sell real estate properties. The
Partnership owns four properties. It operates two mobile home
parks and one apartment complex located in the upper midwest. One
apartment complex was sold on December 31, 1997. It holds
a minority interest in another apartment complex located in
Maryland. The Partnership also leases a commercial property to
a retail/service business in the upper midwest. The Partnership
will terminate December 31, 2018, except in the event of prior
sale of the Partnership's properties, action by a majority
interest of the limited partners or certain other events.
Effective June 9, 1990, the Partnership completed its offering
of limited partnership interests. A total of 9,866 interests
were sold for an aggregate contribution of $9,866,000. In
connection with the sale of the limited partnership interests, the
Partnership incurred $1,085,260 of costs to raise capital, which
were charged against partners' equity.
B. Method of Accounting
--------------------
Assets, liabilities, revenue and expenses are recognized on the
accrual basis method of accounting.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from these estimates.
F-7
C. Income-Producing Properties
---------------------------
Income-producing properties are carried at the lower of cost less
accumulated depreciation or fair value. Cost includes acquisition
fees paid to RAL Asset Management Group. Management periodically
evaluates a property's fair value based upon occupancy rate and
comparison to similar properties in the same geographic area.
Adjustments to these values are made by management when deemed
appropriate.
For financial statement purposes, depreciation is determined
using the straight-line method. For income tax reporting
purposes, building and land improvements are depreciated using
the straight-line method while equipment is depreciated using
accelerated methods. Depreciable lives for financial statement
and income tax purposes are set forth below:
<TABLE>
<CAPTION>
Depreciable Lives
------------------------
Financial Income Tax
Reporting Reporting
---------- ----------
<S> <C> <C>
Land improvements 30 years 15-20 years
Buildings 30 years 27.5-40 years
Equipment 5 years 5-12 years
</TABLE>
D. Allowance for Doubtful Accounts
-------------------------------
Receivables are reviewed periodically by management to determine
the adequacy of the allowance for doubtful accounts. Based upon
management's evaluation, no allowance for doubtful accounts was
necessary for the years ended December 31, 1997 and 1996.
F-8
E. Deferred Charges
----------------
Costs incurred in obtaining financing have been capitalized and are
being amortized over the five year term of the agreement.
<TABLE>
Deferred charges consist of the following at December 31,
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
Professional fees 24,751 -
Loan acquisition costs 1,250 1,250
------ -----
26,001 1,250
Less: Accumulated
amortization 729 479
------ ------
25,272 771
====== ======
</TABLE>
F. Leases
------
The Partnership has determined that all leases relating to the
income-producing properties are properly classified as operating
leases; therefore, rental income is reported when earned and the
cost of each of the properties, excluding cost of land, is
depreciated over its estimated useful life.
G. Income Taxes
------------
No income taxes will be payable or provided by the Partnership
since net income or loss is includable in the respective tax
returns of the partners. The Partnership files its income tax
return on the accrual basis of accounting. The following
reconciles the income reported in the accompanying Statements of
Income to that reported in the tax returns.
[CAPTION]
1997 1996 1995
---- ---- ----
[S] [C] [C] [C]
Net income per Statements of Income 574,072 405,564 280,769
Difference in depreciation/
sale of equipment (103,860) (77,587) (52,480)
Difference in gain/loss on sale
of investment properties (40,935) - -
Difference in participation
in income from joint venture 14,482 15,308 16,215
Prepaid rent (1,181) 4,128 (2,548)
------- ------- -------
Net income for tax purposes 442,578 347,413 241,956
======= ======= =======
[/TABLE]
F-9
H. Cash and Cash Equivalents
-------------------------
For purposes of the Statements of Cash Flows, the Partnership
considers all short-term investments in interest-bearing bank
accounts and certificates of deposit with a maturity of three
months or less, to be equivalent to cash. Several demand deposit
accounts are at one financial institution. Such funds on deposit
exceeded the federally insured limit by $1,598,523 and
$343,410 for the years ended December 31, 1997 and 1996,
respectively.
I. Fair Value of Financial Instruments
-----------------------------------
Unless otherwise indicated, the fair values of all reported assets
and liabilities which represent financial instruments (none of
which are held for trading purposes) approximate the carrying
values of such amounts.
J. Note Receivable
---------------
On December 31, 1997, an apartment complex was sold in exchange for
a $142,500 promissory note, secured by the property and cash
proceeds. The terms of the note require annual interest payments
at 9% with the unpaid principal and interest due December 31, 2000.
For purposes of the Statements of Cash Flows, this was treated as
a non-cash transaction.
Note #2 Investment in Joint Venture
- ------- ---------------------------
On December 23, 1988, the Partnership entered into a joint venture
agreement with an affiliated partnership to acquire and operate the
Cedar Crossing Apartments. All assets, liabilities, revenue and
expenses of the joint venture are included in the financial
statements of the affiliate with the appropriate adjustment of
income for the Partnership's participation in the joint venture.
Profits, losses and distributions are allocated 12.291% to the
Partnership and 87.709% to the affiliate.
F-10
<TABLE>
Summarized balance sheet information pertaining to the joint
venture as of December 31 is as follows:
<CAPTION>
1997 1996
---- -----
<S> <C> <C>
Income-producing property
Land 471,017 471,017
Land improvements 164,055 164,055
Buildings 3,365,231 3,337,811
Equipment 286,078 286,078
--------- ---------
4,286,381 4,258,961
Less: Accumulated
depreciation 1,393,710 1,276,146
--------- ---------
Net property and equipment 2,892,671 2,982,815
Other assets 168,989 75,898
--------- ---------
Total Assets 3,061,660 3,058,713
========= =========
Liabilities 64,268 53,852
Equity 2,997,392 3,004,861
--------- ---------
Total Liabilities and
Equity 3,061,660 3,058,713
========= =========
</TABLE>
<TABLE>
Operating results of the joint venture consist of the following for
the years ended December 31:
<CAPTION>
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Revenue 677,724 658,186 651,382
Operating expenses (267,628) (261,012) (238,287)
Depreciation (117,564) (117,619) (137,190)
------- ------- -------
Net Income 292,532 279,555 275,905
======= ======= =======
Partnership's share
of net income 35,955 34,360 33,912
======= ======= =======
</TABLE>
F-11
Note #3 Income-Producing Properties
- ------- ---------------------------
<TABLE>
A summary of income-producing properties as of December 31 follows:
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
Apartment complexes
(one in 1997 and two in 1996) 2,871,523 4,560,286
Mobile home parks
(two in 1997 and 1996) 3,082,440 3,040,462
Retail properties
(one in 1997 and 1996) 442,900 442,900
--------- ---------
6,396,863 8,043,648
Less: Accumulated depreciation 1,400,882 1,637,220
--------- ---------
4,995,981 6,406,428
========= =========
</TABLE>
During 1997, the Partnership recorded a gain on the sale of one
apartment complex in the amount of $153,512.
At December 31, 1997, Muir Heights, an apartment complex, continues
to have repair expenses and capital expenditures that significantly
impact cash flow. The general partners believe that these
expenditures are the result of construction defects caused by the
construction methods of the seller (developer of the property) and
commenced a lawsuit in 1993 to ascertain the amount of and recover
damages from the seller of the property. The general partners
believe that the continued structural problems could diminish the
value to a future purchaser of the property. In accordance with
generally accepted accounting principles, since the future cash
flows support the carrying value of the property, an impairment
loss is not required to be recognized at December 31, 1997.
F-12
Note #4 Leases of Income-Producing Properties
- ------- -------------------------------------
<TABLE>
The Partnership leases space to a tenant under a noncancellable
operating lease with a term of twenty years. Future minimum annual
rental commitments receivable under the long-term lease agreement
at December 31, 1997, is as follows:
<CAPTION>
<S> <C>
1998 53,000
1999 53,000
2000 53,000
2001 53,000
2002 53,600
After 2002 260,800
-------
526,400
=======
</TABLE>
The Partnership also operates two mobile home parks which have a
total of 251 rental spaces. As of December 31, 1997 and 1996, a
total of 235 and 231 spaces, respectively, were leased. The mobile
home parks receive income on a monthly basis from tenant leases
which normally have lease terms of one year or less. Rental
revenue for the parks was approximately $535,000, $507,000 and
$460,000 in 1997, 1996 and 1995, respectively.
The Partnership also operates one apartment complex which has a
total of 66 rental units. On December 31, 1997, the Partnership
sold an apartment complex which had 35 rental units. As of
December 31, 1997 and 1996, a total of 56 and 86 units,
respectively, were leased. The apartment complexes receive income
on a monthly basis from tenant leases which normally have lease
terms of one year or less. Rental revenue for the apartment
complexes was approximately $627,000, $618,000 and $622,000 in
1997, 1996 and 1995, respectively.
Note #5 Note Payable
- ------- ------------
1997 1996
------ ------
The Company is indebted to Mitchell Bank on
a five year note dated February 16, 1995.
The note requires monthly payments of $1,658
including interest at 9.95% plus a balloon
payment due February 16, 2000. The note is
secured by a real estate mortgage on the
improved lots at a mobile home park located
in Pulaski, Wisconsin and a general business
security agreement.
101,215 110,448
======= =======
F-13
<TABLE>
The following is a maturity schedule of notes payable as of
December 31, 1997:
<CAPTION>
<S> <C>
1998 10,338
1999 11,415
2000 79,462
-------
Total 101,215
=======
</TABLE>
Note #6 Related Party Transactions
- ------- --------------------------
The Partnership sold one of its apartment complexes to a related
party, Great Lakes Investors, LLC, for $1,425,000. In connection
with the sale, the Partnership has a note receivable from the
related party as described in Note #1F and owes the related party
$3,005 for settlement of rents.
An owner of Great Lakes Investors, LLC is also an owner of First
Financial Realty Management, Inc. which is the company contracted
by the Partnership and an affiliate of the General partners to
perform certain property and partnership management services.
Note #7 General Provisions of the Limited Partnership Agreement
- ------- -------------------------------------------------------
Pursuant to the terms of the partnership agreement, net profits or
losses of the Partnership from operations and losses on sale of
income-producing properties are allocated 95% to the limited
partners and 5% to the general partners. Notwithstanding the
foregoing, all depreciation from tax-exempt use properties is
allocated to tax-exempt limited partners.
In general, subject to certain limitations, all income from the
sale of property will be allocated first to the limited partners
with deficit capital accounts, then to the limited partners to the
extent of any depreciation deductions not included in their deficit
capital accounts, and then to the general partners in an amount
equal to the general partners' share of the amount distributable to
the general partners as sale or refinancing proceeds and the
remainder to the limited partners in proportion to the number of
interests held by each of them on the date of such sale or other
disposition provided that the general partners shall be allocated
at least 1% of such income. Notwithstanding the aforementioned
ordering of allocations, any income from the sale of property is
allocated to the general partners to the extent necessary to
eliminate any deficit in their capital accounts that will not be
restored by income from future sales of property based upon the
general partners' determination. Losses on the sale of property
will be allocated 95% to the limited partners and 5% to the general
partners.
F-14
At least semi-annually, Cash Available for Distribution (as defined
in the partnership agreement) from operations is distributed 95% to
the limited partners and 5% to the general partners.
Sale or refinancing proceeds shall be distributed first to the
limited partners until they have received an amount equal to their
capital contribution and then to the limited partners until such
amount, when added to distributions of Cash Available for
Distribution, equals their investment preference of 10% simple
interest per annum and then 85% to the limited partners and 15% to
the general partners. The partnership agreement provides that,
among other things, the general partners are responsible for
managing all aspects of the operations of the Partnership and may
ultimately be held responsible for any unpaid general obligations
of the Partnership, except for those, if any, which are on a
nonrecourse basis.
Note #8 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.
The professional fees included as an asset in deferred charges on
the balance sheet (Note #1E) were included as a result of this
potential sale.
Note #9 Earnings per Share Disclosures
- ------- ------------------------------
The following illustrates the calculation of the basic earnings per
share calculation for the years ended December 31,
1997 1996 1995
---- ---- ----
[S] [C] [C] [C]
Income available to limited partners
(numerator) 438,586 385,286 266,731
======= ======= =======
Limited partners interest
(denominator) 9,866 9,866 9,866
======= ======= =======
Per-share amount 44.45 39.05 27.04
======= ======= =======
F-15
<TABLE>
RAL-INCOME & EQUITY GROWTH V LIMITED PARTNERSHIP
(A Wisconsin Limited Partnership)
Schedule of Real Estate and Accumulated Depreciation
December 31, 1997
<CAPTION>
Col. A Col. B Col. C
- ------------------------ ------- ----------------------------
Initial Cost to Partnership
----------------------------
Buildings
Encum- and
Description brances Land Improvements
- ------------------------- ------- -------------- ------------
<S> <C> <C> <C>
Evergreen Estates MHP (a) $ 526,313 $1,260,230
Faribault, MN
Champion Auto Service Center(a) 131,040 311,860
Ashwaubenon, WI
Camelot MHP (a) 175,506 315,212
Pulaski, WI
Muir Heights Apartments (a) 324,331 2,463,332
Madison, WI
Forest Downs Apartments (a) 210,215 1,470,651
Hales Corners, WI ---------- ----------
Total $1,367,405 $5,821,285
========= =========
</TABLE>
F-16
<TABLE>
RAL-INCOME & EQUITY GROWTH V LIMITED PARTNERSHIP
(A Wisconsin Limited Partnership)
Schedule of Real Estate and Accumulated Depreciation (Cont'd)
<CAPTION>
December 31, 1997
Col. A Col. D Col. E
- ---------------- ----------------- ------------------------
Gross Amount at which carried
Costs Capitalized at Close of Period
Subsequent to ------------------------
Acquisition
-----------------
Buildings and
Description Improvements(b) Land Improvements(b) Total(c)
- --------------- --------------- ------- --------------- --------
<S> <C> <C> <C> <C>
Evergreen Estates $ 67,443 $ 526,313 $1,327,673 $1,853,986
Faribault, MN
Champion Auto 0 131,040 311,860 442,900
Ashwaubenon, WI
Camelot MHP 737,736 175,506 1,052,948 1,228,454
Pulaski, WI
Muir Heights 83,861 324,331 2,547,193 2,871,524
Madison, WI
Forest Downs (1,680,866) 0 0 0
Hales Corners, WI--------- --------- --------- ----------
Total $ (791,826) $1,157,190 $5,239,674 $6,396,864
========= ========= ========= =========
</TABLE>
F-17
<TABLE>
RAL-INCOME & EQUITY GROWTH V LIMITED PARTNERSHIP
(A Wisconsin Limited Partnership)
Schedule of Real Estate and Accumulated Depreciation (Cont'd)
<CAPTION>
December 31, 1997
Col. A Col. F Col. G Col. H Col. I
- ---------------- ------------ ------------ --------- -----------
Depreciable
Accumulated Date Life per
Depreciation Date of Acquired by Income
Description (Book Basis) Construction Partnership Statement
- ---------------- ------------ ------------ --------- -----------
<S> <C> <C> <C> <C>
Evergreen Estates $ 415,675 1969 07/29/88 (d)
Faribault, MN
Champion Auto 88,358 1987 02/28/89 (d)
Ashwaubenon, WI
Camelot MHP 211,868 VAR 10/17/89 (d)
Pulaski, WI
Muir Heights 684,981 1988 01/12/90 (d)
Madison, WI
Forest Downs 0 1990 01/03/91 (d)
Hales Corners ----------
Total $1,400,882
==========
</TABLE>
F-18
RAL-YIELD EQUITIES V LIMITED PARTNERSHIP
(A Wisconsin Limited Partnership)
NOTES TO SCHEDULE III
(a) All properties are unencumbered at December 31, 1997, except
for Camelot Mobile Home Park's most recent expansion as discussed
previously.
(b) Includes personal property.
(c) The aggregate cost of land, buildings and improvements for
federal income tax purposes includes the Partnership's share of the
Cedar Crossing Apartments fixed assets. For book purpose the
amount invested is treated as an investment on the balance sheet
and is not included in fixed assets.
<TABLE>
(d) Depreciation expense is computed based upon the following
estimated useful lives:
<CAPTION>
Years
-------------------------------
Financial Income
Statement Tax
Purposes Purposes
--------- --------
<S> <C> <C>
Buildings and Improvements 30 15-40
Personal Property 5 7-12
</TABLE>
<TABLE>
(e) Reconciliation of Real Estate
-----------------------------------------------
<S> <C>
Balance at January 1, 1995 $7,892,179
Acquisitions 0
Improvements 147,618
---------
Balance at December 31, 1995 8,039,797
Acquisitions 0
Improvements 3,851
---------
Balance at December 31, 1996 8,043,648
Acquisitions 0
Improvements 44,854
Cost of investment property sold (1,691,640)
---------
Balance at December 31, 1997 $6,396,862
=========
</TABLE>
F-19
<TABLE>
RAL-YIELD EQUITIES V LIMITED PARTNERSHIP
(A Wisconsin Limited Partnership)
Reconciliation of Accumulated Depreciation
<CAPTION>
<S> <C>
Balance at January 1, 1995 $1,153,696
Depreciation expense for the period 252,915
---------
Balance at December 31, 1995 1,406,611
Depreciation expense for the period 230,609
---------
Balance at December 31, 1996 1,637,220
Depreciation expense for the period 193,765
Cost of investment property sold (430,103)
---------
Balance at December 31, 1997 $1,440,882
=========
</TABLE>
F-20
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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
BY: Robert A. Long
--------------------------------------
Robert A. Long, General Partner
DATE: March 27, 1998
-----------------------------------
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on
behalf of the Registrant and in the capacities and on the dates
indicated.
Signature Title Date
- -----------------------------------------------------------------
Robert A. Long Managing Partner 3/27/98
- -------------------- RAL Asset Management ----------
Robert A. Long Group and General
Partner of RAL Income +
Equity Growth V
Limited Partnership
John A. Hanson Partner - RAL Asset 3/27/98
- -------------------- Management Group and ----------
John A. Hanson General Partner of
RAL Income + Equity
Growth V Limited
Partnership
Douglas C. Heston President, First Financial 3/27/98
- -------------------- Realty Management ----------
Douglas C. Heston
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 1,694,720
<SECURITIES> 0
<RECEIVABLES> 152,613
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,730,669
<PP&E> 6,396,863
<DEPRECIATION> 1,400,882
<TOTAL-ASSETS> 7,271,980
<CURRENT-LIABILITIES> 226,406
<BONDS> 101,215
0
0
<COMMON> 0
<OTHER-SE> 6,944,359
<TOTAL-LIABILITY-AND-EQUITY> 7,271,980
<SALES> 0
<TOTAL-REVENUES> 1,460,469
<CGS> 0
<TOTAL-COSTS> 874,257
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 12,140
<INCOME-PRETAX> 574,072
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</TABLE>
