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, 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
SEPTEMBER 30, 1998 AND DECEMBER 31, 1997
<CAPTION>
UNAUDITED AUDITED
SEPTEMBER 30, DECEMBER 31,
ASSETS 1998 1997
------ ---------- ------------
<S> <C> <C>
Cash 372,769 1,694,720
Note receivable 142,500 142,500
Rents receivable 13,106 10,113
Investment in joint venture 412,163 402,830
Other assets 14,791 564
Investment properties, net of
accumulated depreciation of
$783,456 in 1998 and $1,400,882
in 1997 2,753,009 4,995,981
Deferred charges 58,441 25,272
---------- ----------
TOTAL ASSETS 3,766,779 7,271,980
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Accounts payable and accrued expenses 88,450 132,980
Security deposits 49,040 83,684
Deferred rent 6,470 9,742
Mortgage payable 93,713 101,215
---------- ----------
TOTAL LIABILITIES 237,673 327,621
General partners' capital 36,737 0
Limited partners' capital 3,492,369 6,944,359
---------- -----------
Partners' capital 3,529,106 6,944,359
TOTAL LIABILITIES AND
PARTNER CAPITAL 3,766,779 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 nine months ended September 30, 1998 and 1997
<CAPTION>
UNAUDITED
3 Months 9 Months 3 Months 9 Months
ended ended ended ended
SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30,
1998 1998 1997 1997
--------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUE:
Rental income 149,000 554,146 304,956 911,061
Interest income 15,463 85,094 5,098 15,168
Gain on sale of assets (3,625) 854,336 0 300
Other income 1,799 11,177 9,076 26,679
------- --------- ------- -------
162,637 1,504,753 319,130 953,208
OPERATING EXPENSES:
Property operation,
maintenance, and
admin. expenses 80,980 293,475 165,897 500,066
Management fees 7,089 26,910 15,508 45,860
Depreciation and
amortization 22,581 108,970 53,894 161,696
------- ------- ------- -------
Total expenses 110,650 429,355 235,299 707,622
------- ------- ------- -------
Net income before
participation in
joint venture 51,987 1,075,398 83,831 245,586
------- --------- ------- -------
Participation in
joint venture 8,673 27,770 9,765 26,375
------- --------- ------- -------
NET INCOME 60,660 1,103,168 93,596 271,961
======= ========= ======= =======
<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, 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 1,048,010 55,158 1,103,168
Cash Distributions paid (4,500,000) (18,421) (4,518,421)
----------- ---------- -----------
BALANCE, September 30, 1998 3,492,369 36,737 3,529,106
========== ========== ==========
<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, 1998 and 1997
<CAPTION>
UNAUDITED
9 Months 9 Months
ended ended
September 30, September 30,
1998 1997
----------- -----------
<S> <C> <C>
Cash Flows from
operating activities:
Net income 1,103,168 271,961
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization expense 108,970 161,696
Participation in income
from joint venture (27,770) (26,375)
Gain on sale of assets (854,336) (300)
(Increase) decrease in assets:
Rents receivable (2,993) (1,829)
Other assets (47,583) (376)
Increase (decrease) in liabilities:
Accounts payable and
accrued liabilities (47,802) (48,653)
Tenant security deposits (34,644) 7,384
-------- --------
Net Cash Provided by
Operating Activities: 197,010 363,508
Cash flows from investing
activities:
Distributions from joint venture 18,437 29,498
Purchases of property and
equipment (11,125) (4,474)
Proceeds from sale of assets 2,999,650 300
Net Cash Used for ---------- ---------
Investing Activities: 3,006,962 25,324
I-4
Cash flows from financing
activities:
Cash distributions (4,518,421) (364,511)
Payments on notes payable (7,502) (7,084)
---------- ---------
Net Cash used for
Financing Activities (4,525,923) (371,595)
Net Increase (Decrease)
in Cash (1,321,951) 17,237
---------- ---------
Cash Balance at
Beginning of Period 1,694,720 430,686
---------- ---------
Cash Balance at End of Period 372,769 447,923
========== =========
<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 nine months
ended September 30 was $197,010 in 1998 and $363,508 in 1997.
The decline in cash flow was principally due to the sale of
the apartment complexes in December 1997 and April 1998.
As of September 30, 1998, the Partnership had cash of approximately
$373,000 representing funds held for investment in property
improvements, undistributed cash flow, working capital reserves,
and tenant security deposits. Total current liabilities were
approximately $238,000.
I-7
A distribution of cash flow of $1,250,000 consisting of $125,000
from operations and $1,125,000 from sales proceeds was made to the
Limited Partners in August, 1998. The total amount distributed to
the Limited Partners in 1997 was approximately $472,000.
Results of Operations:
Gross revenues for the nine months ended September 30 were
$1,504,753 in 1998 and $953,208 in 1997. The increase is due to
the gain reported on the sale of Muir Heights in April 1998 of
$854,000. Otherwise gross income would have decreased by
approximately $374,000 as a result of the sale of the two
apartment complexes.
Cash operating expenses for the nine months ended September 30,
1998 were $320,385 compared to $545,926 in 1997. The decrease
in operating expenditures is due to a number of factors. First,
as mentioned above, the two apartment complexes were sold.
Second, maintenance and repair costs at Camelot Mobile Home
Park decreased by $17,000.
Net income for the nine months ended September 30, 1998 was
$1,103,168 compared to $271,961 in 1997.
<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, 1998 and calendar year 1997:
<CAPTION>
9 Months ended
September 30, 1998 1997
------------------ ----
<S> <C> <C>
1. Evergreen Estates
Mobile Home Park 93% 91%
2. Cedar Crossing Apartments 99% 97%
3. Camelot Mobile Home Park 99% 98%
</TABLE>
I-8
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.
Subsequent Event:
On October 26, 1998, the Partnership sold all of its properties for
$3,428,000. The Partnership intends to distribute the net proceeds
from the sale and dissolve the Partnership by December 31, 1998.
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 10, 1998 Robert A. Long
-----------------
Robert A. Long
General Partner
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 372,769
<SECURITIES> 0
<RECEIVABLES> 13,106
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 543,166
<PP&E> 3,536,465
<DEPRECIATION> 783,456
<TOTAL-ASSETS> 3,766,779
<CURRENT-LIABILITIES> 237,673
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,529,106
<TOTAL-LIABILITY-AND-EQUITY> 3,766,779
<SALES> 0
<TOTAL-REVENUES> 1,504,753
<CGS> 0
<TOTAL-COSTS> 429,355
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,988
<INCOME-PRETAX> 1,103,168
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,103,168
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,103,168
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
