<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended June 30, 1996 or
------------------------------------
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from __________________to________________
Commission file number 0-21580
---------------------------------
Wells Real Estate Fund V, L.P.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Georgia 58-1936904
- ------------------------------- -------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification no.)
3885 Holcomb Bridge Road, Norcross, Georgia 30092
- ------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (770) 449-7800
--------------
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
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 requirements for the past 90 days.
Yes X No
----- -----
<PAGE>
Form 10-Q
---------
Wells Real Estate Fund V,L.P.
-----------------------------
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - June 30, 1996
and December 31, 1995........................... 3
Statements of Income for the Three Months and
Six Months Ended June 30, 1996
and 1995........................................ 4
Statement of Partners' Capital
for the Year Ended December 31, 1995,
and the Six Months Ended June 30, 1996.......... 5
Statements of Cash Flows for the Six Months
Ended June 30, 1996 and 1995.................... 6
Condensed Notes to Financial Statements.......... 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations...................................... 12
PART II. OTHER INFORMATION........................................ 19
</TABLE>
2
<PAGE>
WELLS REAL ESTATE FUND V, L.P.
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
BALANCE SHEETS
<TABLE>
<CAPTION>
Assets June 30, 1996 December 31, 1995
------ --------------- -----------------
<S> <C> <C>
Investment in joint ventures (Note 2) $13,840,240 $14,067,917
Cash and cash equivalents 238,408 256,180
Due from affiliates 259,501 260,128
Deferred project costs 5,843 5,843
Organization costs, less accumulated
amortization of $27,083 in 1996 and
$23,958 in 1995 4,167 7,292
Prepaid expenses and other assets 350 350
----------- -----------
Total assets
$14,348,509 $14,597,710
=========== ===========
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Accounts payable $ 0 $ 5,000
Partnership distribution payable 238,377 251,551
----------- -----------
Total liabilities 238,377 256,551
----------- -----------
Partners' capital:
Limited partners
Class A - 1,546,417 units 13,825,506 13,736,181
outstanding
Class B - 154,185 units outstanding 284,626 604,978
----------- -----------
14,110,132 14,341,159
Total partners' capital ----------- -----------
Total liabilities and partner's
capital $14,348,509 $14,597,710
=========== ===========
</TABLE>
See accompanying condensed notes to financial statements.
3
<PAGE>
WELLS REAL ESTATE FUND V, L.P.
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------ -----------------
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
-------------- -------------- -------------- -----------------
<S> <C> <C> <C> <C>
Revenues:
Interest income $ 3,498 $ 4,072 $ 7,130 $ 11,359
Equity in income of joint ventures
(Note 2) 166,361 236,085 311,605 421,760
--------- -------- --------- ---------
169,859 240,157 318,735 433,119
Expenses:
Legal and accounting 16,966 3,682 18,097 7,912
Computer costs 994 1,868 2,055 4,629
Partnership administration 16,679 14,557 32,424 28,961
Amortization of organization costs 1,562 1,563 3,125 3,125
--------- -------- --------- ---------
36,201 21,670 55,701 44,627
--------- -------- --------- ---------
Net income $ 133,658 $218,487 $ 263,034 $ 388,492
============= ============= ============= ================
Net loss allocated to General Partners $ 0 $ 0 $ 0 $ 0
Net income allocated to Class A Limited $ 286,809 $315,777 $ 568,054 $ 582,921
Partners
Net loss allocated to Class B Limited $(153,151) $(97,290) $(305,020) $(194,429)
Partners
Net income per Class A Limited Partner $ 0.19 $ 0.21 $ 0.37 $ 0.38
Unit
Net loss per Class B Limited Partner $ (0.99) $ (0.59) $ (1.98) $ (1.19)
Unit
Cash distribution per Class A Limited $ 0.15 $ 0.19 $ 0.32 $ 0.34
Partner Unit
</TABLE>
See accompanying condensed notes to financial statements.
4
<PAGE>
WELLS REAL ESTATE FUND V,L.P.
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
STATEMENTS OF PARTNERS' CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 1995 AND THE SIX MONTHS ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
LIMITED PARTNERS
-----------------------------------------------
CLASS A CLASS B TOTAL
------- ------- GENERAL PARTNERS'
UNITS AMOUNT UNITS AMOUNT PARTNERS CAPITAL
--------- ------------- -------- ----------- -------- -------------
<S> <C> <C> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1994 1,524,814 $ 13,555,990 175,788 $ 1,114,912 0 $ 14,670,902
Net income (loss) 0 1,124,203 0 (434,564) 0 689,639
Partnership distributions 0 (1,019,382) 0 0 0 (1,019,382)
Class B conversion elections 16,203 75,370 (16,203) (75,370) 0 0
--------- ------------- -------- ----------- -------- -------------
BALANCE, DECEMBER 31, 1995 1,541,017 13,736,181 159,585 604,978 0 14,341,159
Net income (loss) 0 568,054 0 (305,020) 0 263,034
Partnership distributions 0 (494,061) 0 0 0 (494,061)
Class B conversion elections 5,400 15,332 (5,400) (15,332) 0 0
--------- ------------- -------- ----------- -------- -------------
BALANCE, JUNE 30, 1996 1,546,417 $ 13,825,506 154,185 $ 284,626 0 $ 14,110,132
========= ============= ======== =========== ======== =============
</TABLE>
See accompanying condensed notes to financial statements.
5
<PAGE>
WELLS REAL ESTATE FUND V,L.P.
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
------------------------------
June 30, 1996 June 30, 1995
-------------- --------------
<S> <C> <C>
Cash flow from operating activities:
Net income $ 263,034 $ 388,492
Adjustments to reconcile net income to net
cash used in operating activities: (311,605) (421,760)
Equity in income of joint venture
Distributions received from joint
ventures 540,134 461,333
Partnership distributions paid (507,235) (435,910)
Amortization of organization costs 3,125 3,125
Changes in assets and liabilities:
Increase in accounts receivable 0 (127)
Decrease in prepaids & other assets 0 749
Decrease in accounts payable (5,000) (3,000)
-------------- --------------
Net cash used in operating
activities (17,547) (7,098)
-------------- --------------
Cash flow from investing activities -
Investment in joint ventures (225) (178,124)
-------------- --------------
Net decrease in cash and cash
equivalents (17,772) (185,222)
Cash and cash equivalents, beginning of year 256,180 484,022
-------------- --------------
Cash and cash equivalents, end of period $ 238,408 $ 298,800
============== ==============
Supplemental Schedule of noncash investing
activities - deferred project costs
applied to investing activities $ 0 $ 12,170
============== ==============
</TABLE>
See accompanying condensed notes to financial statements.
6
<PAGE>
WELLS REAL ESTATE FUND V,L.P.
(A Georgia Public Limited Partnership)
Condensed Notes to Financial Statement
(1) Basis of Presentation
---------------------
The financial statements of Wells Real Estate Fund V, L.P. ( the
"Partnership") have been prepared in accordance with instructions to Form
10-Q and do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements.
These quarterly statements have not been examined by independent
accountants, but in the opinion of the General Partners, the statements for
the unaudited interim periods presented include all adjustments, which are
of a normal and recurring nature, necessary to present a fair presentation
of the results for such periods. For further information, refer to the
financial statements and footnotes included in the Partnership's Form 10-K
for year ended December 31, 1995.
(a) General
-----------
Wells Real Estate Fund V, L.P. (the "Partnership") is a Georgia public
limited partnership having Leo F. Wells, III and Wells Partners, L.P., as
General Partners. The Partnership was formed on October 25, 1990, for the
purpose of acquiring, developing, owning, operating, improving, leasing,
and otherwise managing for investment purposes income producing commercial
properties.
On March 6, 1992, the Partnership commenced an offering of up to
$25,000,000 of Class A or Class B limited partnership units ($10.00 per
unit) pursuant to a Registration Statement on Form S-11 filed under the
Securities Act of 1933. The Partnership did not commence active operations
until it received and accepted subscriptions for a minimum of 125,000 units
on April 27, 1992. The offering was terminated on March 3, 1993, at which
time the Partnership had sold 1,520,967 Class A Units and 179,635 Class B
Units representing $17,006,020 of capital contributions by investors who
were admitted to the Partnership as Limited Partners.
As of June 30, 1996, the Partnership owned interests in the following
properties: (i) a four-story office building located in Jacksonville,
Florida; (ii) two substantially identical two-story buildings located in
Clayton County, Georgia; (iii) two retail buildings located in Clayton
County, Georgia; (iv) a four-story office building located in Hartford,
Connecticut and (v) a three-story office building located in Appleton,
Wisconsin. All of the foregoing properties were acquired on an all-cash
basis and are described in more detail in Footnote 2 below.
7
<PAGE>
(b) Employees
-------------
The Partnership has no direct employees. The employees of Wells Capital,
Inc., the sole general partner of Wells Partners, L.P., a General Partner
of the Partnership, perform a full range of real estate services including
leasing and property management, accounting, asset management and investor
relations for the Partnership.
(c) Insurance
-------------
Wells Management Company, Inc., an affiliate of the General Partners,
carries comprehensive liability and extended coverage with respect to all
the properties owned directly or indirectly by the Partnership. In the
opinion of management of the registrant, the properties are adequately
insured.
(d) Competition
---------------
The Partnership will experience competition for tenants from owners and
managers of competing projects which may include the General Partners and
their affiliates. As a result, the Partnership may be required to provide
free rent, reduced charges for tenant improvements and other inducements,
all of which may have an adverse impact on results of operations. At the
time the Partnership elects to dispose of its properties, the Partnership
will also be in competition with sellers of similar properties to locate
suitable purchasers for its properties.
(2) Investment in Joint Ventures
----------------------------
The Partnership owns interests in five properties through its investment in
joint ventures, of which four are office buildings and one is a retail
building. The Partnership does not have control over the operations of the
joint ventures; however, it does exercise significant influence.
Accordingly, investment in joint ventures is recorded on the equity method.
The following describes the properties in which the Partnership owns an
interest as of June 30, 1996:
FUND IV - FUND V JOINT VENTURE
------------------------------
On April 14, 1992, the Partnership and Wells Real Estate Fund IV, L.P.
("Wells Fund IV"), a Georgia public limited partnership affiliated with the
Partnership though common general partners, entered into a joint venture
agreement known as Fund IV and Fund V Associates (the "Fund IV - Fund V
Joint Venture"). The investment objectives of Wells Fund IV are
substantially identical to those of the Partnership. Wells Fund IV holds an
approximate 38% equity interest in the Fund IV - Fund V Joint Venture, and
the Partnership holds approximately 62% equity interest in the Fund IV -
Fund V Joint Venture. The Partnership owns interests in the following two
properties through the Fund IV - Fund V Joint Venture:
8
<PAGE>
The Jacksonville Property
-------------------------
On June 8, 1992, the Fund IV-Fund V Joint Venture acquired 5.676 acres of
real property located in Jacksonville, Florida for a purchase price of
$1,360,000 for the purpose of developing, constructing, and operating a
four-story office building containing approximately 88,600 rentable square
feet (the "Jacksonville Property"). As of June 30, 1996, the Partnership
had contributed $4,961,709 and Wells Fund IV had contributed $3,439,947 to
the Fund IV-Fund V Joint Venture to fund the acquisition and development of
the Jacksonville Project.
The Jacksonville Property is leased primarily by International Business
Machines Corporation ("IBM"), a computer sales and service corporation, and
Customized Transportation, Inc., ("CTI"), a division of CSX Railroad, a
transportation corporation.
The initial term of the IBM lease for 68,100 square feet is 9 years and 11
months and commenced upon completion of the building in June 1993. IBM has
the option to extend the initial lease for two consecutive five-year
periods at 90% of market values. The annual base rent payable under the
IBM lease during the initial term is $1,122,478 payable in equal monthly
installments of $93,540. IBM is also required to pay additional rent equal
to its share of operating expenses during the lease term.
The term of the CTI lease for 11,780 square feet is 5 years and commenced
in March, 1994. The annual base rent payable under the CTI lease is
$325,965.
The occupancy rates at the Jacksonville Property were 100% in 1996, 1995,
and 1994, and 85% in 1993, the first year of occupancy. The average
effective annual rental per square foot at the Jacksonville Property was
$16.71 for 1996, $16.53 for 1995, $16.22 for 1994 and $16.38 for 1993.
The Medical Center Property
---------------------------
On September 14, 1992, the Fund IV - Fund V Joint Venture acquired 2.655
acres of real property in Stockbridge, Georgia for $440,000 for the purpose
of constructing two substantially identical two-story office buildings
containing approximately 17,847 rentable square feet each (the "Medical
Center Property"). It is anticipated that a total of approximately
$4,200,000 will be required to be contributed to the Fund IV - Fund V Joint
Venture for the acquisition and development of the Medical Center Property.
As of June 30, 1996, the Partnership had contributed $2,757,540 and Wells
Fund IV had contributed $1,296,226 to the Fund IV - Fund V Joint Venture
for the acquisition and development of the Medical Center Property. It is
currently anticipated that an additional approximately $146,000 will be
required for the completion of the Medical Center Project. The Partnership
has reserved sufficient funds for this purpose, with any excess costs which
may be required to be funded out of operating cash flow.
9
<PAGE>
Construction on the first building at the Medical Center Project was
completed in March, 1993 and the building shell of the second building was
completed in April, 1994. Georgia Baptist, a medical health care and
urgent care facility, leased approximately 14,669 square feet in the first
building for a term of six years and has the option to extend the initial
term of the lease for one five-year period beginning at $18.50 per square
foot with $.50 per square foot annual increases. The base rent payable per
square foot ranges from $16.00 per month during the first year to $18.50
during the sixth year. In addition, Georgia Baptist has leased
approximately 3,376 square feet in the second building for a term of five
years commencing in December, 1994, at an annual rental rate of $55,704,
increasing to $57,392 in the forth year and $59,080 in the fifth year.
The occupancy rate at the Medical Center Property was 69% in 1996 and 1995,
58% in 1994 and 69% in 1993, the first year of occupancy. The average
effective annual rental per square foot at the Medical Center Project was
$11.88 for 1996, $10.43 for 1995, $7.59 for 1994 and $11.25 for 1993.
FUND V - FUND VI JOINT VENTURE
------------------------------
On December 27, 1993, the Partnership and Wells Real Estate Fund VI, L.P.
("Wells Fund VI"), a Georgia limited partnership affiliated with the
Partnership through common general partners, entered into a Joint Venture
Agreement known as Fund V and Fund VI Associates (the "Fund V - Fund VI
Joint Venture"). The investment objectives of Wells Fund VI are
substantially identical to those of the Partnership. The Partnership holds
approximately 48% equity interest, and Wells Fund VI holds approximately
52% equity interest in the Fund V - Fund VI Joint Venture. The Partnership
owns interests in the following two properties through the Fund V - Fund
VI Joint Venture:
The Hartford Building
---------------------
On December 29, 1993, the Fund V - Fund VI Joint Venture purchased the
Hartford Building, a four-story office building containing approximately
71,000 rentable square feet from Hartford Accident and Indemnity Company
for a purchase price of $6,900,000. The Hartford Building is located on
5.56 acres of land in Southington, Connecticut. The funds used by the Fund
V - Fund VI Joint Venture to acquire the Hartford Building were derived
from capital contributions made by the Partnership and Wells Fund VI
totaling $3,508,797 and $3,432,707, respectively, for total capital
contributions to the Fund V - Fund VI Joint Venture of $6,941,504.
The entire building is leased to Hartford Fire Insurance Company
("Hartford") for a period of nine years and eleven months commencing
December 29, 1993. The annual base rent during the initial term is
$458,400 payable in equal monthly installments of $38,200 for the first
three months, and $724,200 payable in equal monthly installments of $60,350
commencing April 1, 1994 and continuing through the expiration of the
initial term of the lease. Hartford also has the option to extend the
initial term of the lease for two consecutive five year periods at %15.25
per square foot for the 1st five year extension and $18.67 for the 2nd five
10
<PAGE>
year extension. Under the terms of its lease, Hartford is responsible for
property taxes, operating expenses, general repair and maintenance work and
a pro rata share of capital expenditures based upon the number of years
remaining in the lease.
The occupancy rate at the Hartford Building was 100% for 1996, 1995 and
1994. The average effective annual rental per square foot at the Hartford
Building was $10.11 for 1996, 1995 and 1994, the first year of ownership.
Stockbridge Village II - Stockbridge South Property
---------------------------------------------------
On November 12, 1993, the Partnership purchased 2.46 acres of real property
located in Clayton County, Georgia for $1,022,634. On July 1, 1994, the
Partnership contributed the property as a capital contribution to the Fund
V - Fund VI Joint Venture.
Construction of a 5,400 square foot retail building was completed in
November, 1994. Construction of a second retail building containing
approximately 10,550 square feet was completed in June, 1995. The entire
first building was leased by Apple Restaurants, Inc. for nine years and
eleven months beginning in December, 1994. The annual base rent under the
lease is $125,982 until December 15, 1999, at which time the annual base
rent increases to $137,700.
Glenn's Open Pit Bar-B-Que leased 4,303 square feet of the second retail
building for a six year term beginning July 1, 1995. The annual base rent
under the lease is $64,548 to June 30, 1997, $68,844 from July 1, 1997 to
June 30, 1999, and $77,460 from July 1, 1999 until June 30, 2001.
The total cost to complete Stockbridge Village II is currently anticipated
to be approximately $3,030,000. As of June 30, 1996, the Partnership had
contributed $1,035,804 and Wells Fund VI had contributed $1,678,380 to the
Fund V - Fund VI Joint Venture for the acquisition and development of
Stockbridge Village II.
As of June 30, 1996, the Partnership's equity interest in the Fund V - Fund
VI Joint Venture was approximately 48%. It is currently anticipated that
the remaining cost of approximately $316,000 to complete the project will
be contributed by Wells Fund VI, in which event, upon completion of the
building funding, the Partnership will own an approximately 34% equity
interest in the Fund V - Fund VI Joint Venture. Wells Fund VI has reserved
sufficient funds for this purpose.
The occupancy rate at the Stockbridge Village II Project was 61% for 1996
and 1995. The average effective annual rental per square foot at the
Stockbridge Village II is $12.20 for 1996 and $10.41 for 1995, the first
year of occupancy.
11
<PAGE>
FUND V - VI - VII JOINT VENTURE
-------------------------------
On September 8, 1994, the Partnership, Wells Fund VI and Wells Real Estate
Fund VII, L.P. ("Wells Fund VII"), Georgia public limited partnerships
affiliated with the Partnership thorough common general partners, entered
into a joint venture agreement known as Fund V, Fund VI and Fund VII
Associates (the "Fund V-VI-VII Joint Venture"). The Partnership owns an
interest in the following property through the Fund V-VI-VII Joint Venture:
The Marathon Building
---------------------
On September 16, 1994, Fund V-VI-VII Joint Venture purchased a three-story
office building containing approximately 75,000 rentable square feet,
located on approximately 6.2 acres of land in Appleton, Wisconsin (the
"Marathon Building") for a purchase price of $8,250,000, plus $29,421 of
acquisition costs.
The funds used by the Fund V-VI-VII Joint Venture to acquire the Marathon
Building were derived from capital contributions made by the Partnership,
Wells Fund VI and Wells Fund VII totaling $1,337,505, $3,470,958, and
$3,470,958, respectively, for total contributions to the Fund V-VI-VII
Joint Venture of $8,279,421. The Partnership owns an approximately 16%
equity interest in the Fund V-VI-VII Joint Venture.
The entire Marathon Building is leased to Jaakko Poyry Fluor Daniel for a
period of approximately twelve years, with options to extend the lease for
two additional five-year periods at market rate. The annual base rent
under the lease is $910,000. The current lease expires December 31, 2006.
The lease agreement is a net lease in that the tenant is primarily
responsible for the operating expenses, including real estate taxes.
The occupancy rate at the Marathon Building was 100% for 1996, 1995, and
the last three and a half months of 1994. The average annual rental per
square foot in the Marathon Building was $12.13 for 1996, 1995, and 1994,
the first year of ownership.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
------------------------------------------------------------------------
RESULTS OF OPERATIONS.
----------------------
The following discussion and analysis should be read in conjunction with
the accompanying financial statements of the Partnership and notes thereto.
This Report contains forward-looking statements, within the meaning of
Section 27A of the Securities Act of 1933 and 21E of the Securities
Exchange Act of 1934, including discussion and analysis of the financial
condition of the Partnership, anticipated capital expenditures required to
complete certain projects, amounts of cash distributions anticipated to be
distributed to Limited Partners in the future and certain other matters.
12
<PAGE>
Readers of this Report should be aware that there are various factors that
could cause actual results to differ materially from any forward-looking
statement made in this Report, which include construction costs which may
exceed estimates, construction delays, lease-up risks, inability to obtain
new tenants upon expiration of existing leases, and the potential need to
fund tenant improvements or other capital expenditures out of operating
cash flow.
Results of Operations and Changes in Financial Conditions
---------------------------------------------------------
General
-------
Gross revenues of the Partnership were $318,735 for the six months ended
June 30, 1996, as compared to $433,119 for the six months ended June 30,
1995. Gross revenues and net income have decreased for the three and six
months ended June 30, 1996 compared to 1995 levels due chiefly to
decreased earnings from joint ventures and increased accounting
expenditures. Depreciation expense of the joint ventures increased in 1996
as compared to 1995 due to a change in the estimated useful lives of
buildings and improvements from 40 years to 25 years which became effective
December 31, 1995.
Expenses of the Partnership increased from $44,627 for the six months June
30, 1995 to $55,701 for the same period in 1996, due primarily to increased
accounting costs.
Net cash used in operating activities remained relatively stable for the
six months ended June 30, 1996 and 1995. The change in cash and cash
equivalents from $(185,222) for the six months ended June 30, 1995 to
$(17,772) for the six months ended June 30, 1996 was due primarily to the
decrease in investments in joint ventures.
The Partnership made cash distributions of investment income to the Limited
Partners holding Class A units of $.15 per Class A for the three months
ended June 30, 1996, as compared to $.19 per Class A Unit for the three
months ended June 30, 1995. No cash distributions of investment income
were made to the Limited Partners holding Class B Units.
13
<PAGE>
PROPERTY OPERATIONS
-------------------
As of June 30, 1996, the Partnership owned interests in the following
operational properties:
The Jacksonville Property/Fund IV - Fund V Joint Venture
--------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------ ------------------------------
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $365,993 $360,041 $731,985 $738,848
Expenses:
Depreciation 79,296 47,484 158,592 94,968
Management & leasing expenses 49,778 45,386 93,754 90,772
Other operating expenses 66,121 81,906 186,401 216,743
-------- -------- -------- --------
195,195 174,776 438,747 402,483
-------- -------- -------- --------
Net income $170,798 $185,265 $293,238 $336,365
======== ======== ======== ========
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund IV - Fund V Joint Venture 61.9% 61.7% 61.9% 61.7%
Cash Distribution to Partnership $125,434 $142,100 $244,458 $262,927
Net Income Allocated to the
Partnership $105,682 $114,292 $181,442 $207,356
</TABLE>
Rental Income has decreased slightly in 1996 as compared to 1995 due to an
overstatement of rental income in 1995 which was corrected in the third
quarter of 1995. Expenses increased in 1996 as compared to 1995 due
primarily to increased depreciation caused by the change in the estimated
useful lives of buildings and improvements as previously discussed under
the "General" section of "Results of Operations and Changes in Financial
Condition". The increase in depreciation was partially offset by savings
in various operating expenses. Cash fundings to the Joint Venture for
construction were contributed by the Partnership which increased the
Partnership's ownership interest.
14
<PAGE>
The Medical Center Property/Fund IV - Fund V Joint Venture
----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------ ------------------------------
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 105,394 $100,596 $210,580 $186,444
Interest income 2,665 3,017 5,741 6,410
--------- -------- -------- --------
108,059 103,613 216,321 192,854
--------- -------- -------- --------
Expenses:
Depreciation 39,882 25,114 79,764 49,591
Management & leasing expenses 13,839 12,361 24,881 23,245
Other operating expenses 71,245 24,843 130,032 83,372
--------- -------- -------- --------
124,966 62,318 234,677 156,208
--------- -------- -------- --------
Net income loss $(16,907) $ 41,295 $(18,356) $ 36,646
========= ======== ======== ========
Occupied % 69% 69% 69% 69%
Partnership's Ownership % in the
Fund IV - Fund V Joint Venture 61.9% 61.7% 61.9% 61.7%
Cash Distribution to Partnership $ 17,009 $ 38,305 $ 41,114 $ 47,528
Net Income (Loss) Allocated to the
Partnership $ (10,461) $ 25,468 $(11,358) $ 22,607
</TABLE>
Rental income increased in 1996 over 1995 due to increased lease up at the
Medical Center Property. Leases are being actively pursued on the
remaining 11,000 rentable square feet of vacant space with strong interest
in an approximate 2,000 square feet. Expenses have increased in 1996 over
1995 levels due primarily to increased operating expenses of the buildings,
the increase in depreciation expenses caused by the change in the estimated
useful lives of the buildings and improvements as previously discussed
under the "General" section of "Results of Operations and Changes in
Financial Conditions" and a timing difference in operating expense billings
to tenants.
Cash distributions allocated to the Partnership have decreased over prior
year levels due primarily to increased operating expenditures of the
project which were partly offset by the increase in rental income. Cash
fundings to the Joint Venture for construction were contributed by the
Partnership which increased its ownership interest.
15
<PAGE>
The Hartford Building/Fund V - Fund VI Joint Venture
----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------ ------------------------------
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $179,375 $179,375 $358,750 $358,750
Expenses:
Depreciation 73,008 42,516 146,016 85,032
Management & leasing expenses 7,175 7,175 14,350 14,350
Other operating expenses 4,649 5,277 7,824 11,224
-------- -------- -------- --------
84,832 54,968 168,190 110,606
-------- -------- -------- --------
Net income $ 94,543 $124,407 $190,560 $248,144
======== ======== ======== ========
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund V - Fund VI Joint Venture 47.6% 48.5% 47.6% 48.5%
Cash Distribution to Partnership $ 80,449 $ 82,235 $161,600 $166,672
Net Income Allocated to the
Partnership $ 44,963 $ 60,704 $ 90,627 $122,946
</TABLE>
Net income decreased and expenses increased in 1996 as compared to 1995 due
primarily to an increase in depreciation expenses caused by the change in
estimated useful lives of buildings and improvements previously discussed
under the "General" section of "Results of Operations and Changes in
Financial Conditions".
The Partnership's ownership interest in the Fund V - Fund VI Joint Venture
decreased from 48.5% in 1995 to 47.6% in 1996 due to additional fundings by
Wells Fund VI in 1995.
Cash distributions decreased in 1996 over 1995 due primarily to the
Partnership's decreased percentage ownership interest in the Joint Venture.
Net income allocated to the Partnership decreased in 1996 as compared to
1995 due primarily to the increased depreciation expenses discussed above.
16
<PAGE>
Stockbridge Village II/Fund V - Fund VI Joint Venture
-----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------ ------------------------------
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $50,056 $32,961 $96,517 $65,921
Expenses:
Depreciation 19,761 5,619 39,522 11,238
Management & leasing expenses 5,382 4,052 9,979 7,979
Other operating expenses 19,623 10,253 38,798 23,209
------- ------- ------- -------
44,766 19,924 88,299 42,426
------- ------- ------- -------
Net income $ 5,290 $13,037 $ 8,218 $23,495
======= ======= ======= =======
Occupied % 61% 100% 61% 100%
Partnership's Ownership % in the
Fund V - Fund VI Joint Venture 47.6% 48.5% 47.6% 48.5%
Cash Distribution to Partnership $11,509 $ 8,898 $21,894 $ 9,111
Net Income Allocated to the
Partnership $ 2,517 $ 6,347 $ 3,908 $11,639
</TABLE>
The Stockbridge Village II Project consists of two retail buildings which
contain a total of approximately 15,950 square feet. The first building
containing 5,400 square feet was completed in November, 1994, and occupied
by Apple Restaurants, Inc. in December 1994, resulting in 100% occupancy
since December 1994. The second building containing 10,550 square feet
opened in June, 1995. Glenn's Open Pit Bar-B-Que leased 4,303 square feet
beginning in July, 1995. 6,247 square feet are available to lease in the
second building which equates to a 61% occupancy for both buildings as of
June 30, 1996.
Depreciation expenses increased in 1996 over 1995 due to the change in
estimated useful lives of buildings and improvements as previously
discussed under the "General" section of "Results of Operations and Changes
in Financial Conditions".
The Partnership's ownership percentage in the Fund V - Fund VI Joint
Venture decreased to 47.6% for 1996, as compared to 48.5% in 1995, due to
additional fundings by Wells Fund VI which decreased the Partnership's
ownership interest in the Fund V - Fund VI Joint Venture.
17
<PAGE>
The Marathon Building/Fund V-VI-VII Joint Venture
-------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------ ------------------------------
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $242,754 $242,754 $485,508 $485,508
Expenses:
Depreciation 87,647 52,300 175,292 104,599
Management & leasing expenses 9,710 9,710 19,420 19,420
Other operating expenses 5,152 2,902 8,850 13,909
-------- -------- -------- --------
102,509 64,912 203,562 137,928
-------- -------- -------- --------
Net income $140,245 $177,842 $281,946 $347,580
======== ======== ======== ========
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund V-VI-VII Joint Venture 16.5% 16.5% 16.5% 16.5%
Cash Distribution to Partnership $ 35,101 $ 35,471 $ 70,441 $ 69,608
Net Income Allocated to the
Partnership $ 23,085 $ 29,273 $ 46,408 $ 57,212
</TABLE>
Net income decreased for the three and six month periods ended June 30,
1996 compared to 1995 due primarily to the increase in depreciation
expenses which resulted from the change in estimated useful lives of
buildings and improvements, as of December 31, 1995.
18
<PAGE>
PART II - OTHER INFORMATION
---------------------------
ITEM 6 (b). No reports on Form 8-K were filed during the second quarter of
1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WELLS REAL ESTATE FUND V, L.P.
(Registrant)
Dated: August 13, 1996 By: /s/ Leo F. Wells, III
----------------------------------
Leo F. Wells, III, as Individual
General Partner and as President,
Sole Director and Chief Financial
Officer of Wells Capital, Inc., the
General Partner of Wells Partners, L.P.
19
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 238,408
<SECURITIES> 13,840,240
<RECEIVABLES> 259,501
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 350
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 14,348,509
<CURRENT-LIABILITIES> 238,377
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 14,110,132
<TOTAL-LIABILITY-AND-EQUITY> 14,348,509
<SALES> 0
<TOTAL-REVENUES> 318,735
<CGS> 0
<TOTAL-COSTS> 55,701
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 263,034
<INCOME-TAX> 263,034
<INCOME-CONTINUING> 263,034
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 263,034
<EPS-PRIMARY> .37
<EPS-DILUTED> 0
</TABLE>
