<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 March 31, 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
-----
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - March 31, 1996
and December 31, 1995..........................3
Statements of Income for the Three
Months Ended March 31, 1996 and 1995...........4
Statement of Partners' Capital
for the Year Ended December 31, 1995,
and the Three Months Ended March 31, 1996......5
Statements of Cash Flows for the Three Months
Ended March 31, 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
2
<PAGE>
WELLS REAL ESTATE FUND V, L.P.
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
BALANCE SHEETS
<TABLE>
<CAPTION>
Assets March 31, 1996 December 31, 1995
------ --------------- -----------------
<S> <C> <C>
Investment in joint ventures (Note 2) $ 13,943,382 $14,067,917
Cash and cash equivalents 245,230 256,180
Due from affiliates 270,004 260,128
Deferred project costs 5,843 5,843
Organization costs, less accumulated
amortization of $25,521 in 1996 and
$23,958 in 1995 5,729 7,292
Prepaid expenses and other assets 350 350
----------- -----------
Total assets $14,470,538 $14,597,710
=========== ===========
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Accounts payable $ 0 $ 5,000
Partnership distribution payable 255,702 251,551
----------- -----------
Total liabilities 255,702 256,551
----------- -----------
Partners' capital:
Limited partners
Class A - 1,541,017 units outstanding 13,761,727 13,736,181
Class B - 159,585 units outstanding 453,109 604,978
----------- -----------
14,214,836 14,341,159
Total partners' capital ----------- ----------
Total liabilities and partners' capital $14,470,538 $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
--------------------------------
March 31, 1996 March 31, 1995
--------------- ---------------
<S> <C> <C>
Revenues:
Interest income $ 3,632 $ 7,287
Equity in earnings of joint ventures
(Note 2) 145,244 185,675
---------- ---------
148,876 192,962
--------- --------
Expenses:
Legal and accounting 1,131 4,230
Computer costs 1,061 2,761
Partnership administration 15,745 14,404
Amortization of organization costs 1,563 1,562
--------- --------
19,500 22,957
--------- --------
Net income $ 129,376 $170,005
========= ========
Net loss allocated to General Partners $ 0 $ 0
Net income allocated to Class A Limited
Partners $ 281,245 $267,144
Net loss allocated to Class B Limited
Partners $(151,869) $(97,139)
Net income per Class A Limited Partner
Unit $ .18 $ .17
Net loss per Class B Limited Partner Unit $ (.95) $ (.60)
Cash distribution per Class A Limited
Partner Unit $ .17 $ .15
</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 THREE MONTHS ENDED
MARCH 31, 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) 0 281,245 0 (151,869) 0 129,376
Partnership distributions 0 (255,699) 0 0 0 (255,699)
--------- ----------- ------- ---------- -- -----------
BALANCE, MARCH 31, 1996 1,541,017 $13,761,727 159,585 $ 453,109 $0 $14,214,836
========= =========== ======= ========== == ===========
</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>
Three Months Ended
------------------------------
March 31, 1996 March 31, 1995
-------------- --------------
<S> <C> <C>
Cash flow from operating activities:
Net income $ 129,376 $ 170,005
Adjustments to reconcile net earnings to net
cash used in operating activities:
Equity in earnings of joint venture (145,244) (185,675)
Distributions received from joint
ventures 260,128 212,495
Partnership distributions paid (251,548) (201,180)
Amortization of organization costs 1,563 1,562
Changes in assets and liabilities:
Increase in accounts receivable 0 (127)
Decrease in accounts payable (5,000) (3,000)
--------- ---------
Net cash used in operating
activities (10,725) (5,920)
--------- ---------
Cash flow from investing activities -
Investment in joint ventures (225) (165,150)
--------- ---------
Net decrease in cash and cash
equivalents (10,950) (171,070)
Cash and cash equivalents, beginning of year 256,180 484,022
--------- ---------
Cash and cash equivalents, end of period $ 245,230 $ 312,952
========= =========
Supplemental Schedule of noncash investing
activities - deferred project costs
applied to investing activities $ 0 $ 11,284
========= =========
</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
or industrial 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 March 31, 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 interest 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 March 31, 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
approximately 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 square feet (the
"Jacksonville Property"). As of March 31, 1996, the Partnership
contributed $4,961,709 and Wells Fund IV 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 containing 68,100 square feet is 9 years
and 11 months and commenced upon completion of the building in June 1993,
with an option to extend the initial lease for two consecutive five-year
periods. 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 containing 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 war
$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 March 31, 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. 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 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 68% 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
$11.87 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
an approximately 48% equity interest, and Wells Fund VI holds an
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 foot 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. 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.
10
<PAGE>
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 March 31, 1996, the Partnership
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 March 31, 1996, the Partnership's equity interest in the Fund V -
Fund VI Joint Venture was approximately 48%. Although the ultimate
percentage of ownership has not yet been finalized, it is currently
anticipated that the remaining cost of approximately $316,000 to complete
the project will be contributed by 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.
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 $11.65 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 square feet, located on
approximately 6.2 acres of land in Appleton, Wisconsin (the "Marathon
Building") for a purchase price of $8,250,000, excluding 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 including acquisition costs. 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. 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.
Readers of this Report should be aware that there are various factors that
could cause actual results to differ materially form 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.
12
<PAGE>
Results of Operations and Changes in Financial Conditions
---------------------------------------------------------
General
-------
Gross revenues of the Partnerships were $148,876 for the three months ended
March 31, 1996, as compared to $192,962 for the three months ended March
31, 1995. Gross revenues and net income have decreased for the three
months ended March 31, 1996 over 1995 levels due chiefly to decreased
earnings from joint ventures. Depreciation expense of the joint ventures
increased from 1995 to 1996 due to a change in the estimated useful lives
of buildings and improvements from 40 years to 25 years which became
effective in the fourth quarter of 1995.
Expenses of the Partnership decreased from $22,957 for the three months
March 31, 1995 to $19,500 for the same period in 1996, due primarily to
decreased legal costs.
Net cash used in operating activities remained relatively stable for three
months ended March 31, 1996 and 1995. The change in cash and cash
equivalants from $(171,070) for the three months ended March 31, 1995 to
$(10,950) for the three months ended March 31, 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 $.17 per Class A for the three months
ended March 31, 1996, as compared to $.15 per Class A Unit for the three
months ended March 31, 1995. No cash distributions of investment income
were made to the Limited Partners holding Class B Units.
13
<PAGE>
PROPERTY OPERATIONS
-------------------
As of March 31, 1996, the Partnership owned interests in the following
operational properties:
The Jacksonville Property/Fund IV - Fund V Joint Venture
--------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended March 31
-----------------------------
1996 1995
-------------- -------------
<S> <C> <C>
Revenues:
Rental Income $ 365,992 $ 378,807
Expenses:
Depreciation 79,296 47,484
Management & leasing expenses 43,976 45,386
Other operating expenses 120,280 134,837
------- -------
243,552 227,707
------- -------
Net income $ 122,440 $ 151,100
======= =======
Occupied % 100% 100%
Partnership's Ownership % in the
Fund IV - Fund V Joint Venture 61.9% 61.7%
Cash Distribution to Partnership $ 119,024 $ 120,827
Net Income Allocated to the
Partnership $ 75,760 $ 93,064
</TABLE>
Rental Income has decreased 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 for the three months ended March 31,
1996 as compared to 1995 due primarily to increased depreciation due to 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
distributions remained relatively stable for 1996 and 1995. Cash fundings
to the Joint Venture for construction were contributed by the Partnership
which increased the Partnership's ownership interest and decreased Wells
Fund IV's ownership interest in the Fund IV - Fund V Joint Venture.
14
<PAGE>
The Medical Center Property/Fund IV - Fund V Joint Venture
----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended March 31
-----------------------------
1996 1995
--------------- ------------
<S> <C> <C>
Revenues:
Rental Income $105,186 $85,848
Interest Income 3,076 3,393
-------- -------
108,262 89,241
-------- -------
Expenses:
Depreciation 39,882 24,477
Management & leasing expenses 11,042 10,884
Other operating expenses 58,787 58,529
-------- -------
$109,711 $93,890
-------- -------
Net income (loss) $ (1,449) $(4,649)
======== =======
Occupied % 68% 62%
Partnership's Ownership % in the
Fund IV - Fund V Joint Venture 61.9% 61.7%
Cash Distribution to Partnership $ 24,105 $ 9,223
Net Income (Loss) Allocated to the
Partnership $ (897) $(2,861)
</TABLE>
Rental income increased in 1996 over 1995 due to increased lease up at the
Medical Center Property. Expenses have increased in 1996 over 1995 levels
due primarily to lease up of the buildings and the increase in depreciation
expenses due to 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".
Cash distributions and net income allocated to the Partnership have
increased over prior year levels due primarily to the lease up of the
project and the slight increase in ownership in the Joint Venture. Cash
fundings to the Joint Venture for construction were contributed by the
Partnership which increased its ownership interest and decreased Wells
Fund IV's ownership in the Fund IV - Fund V Joint Venture.
15
<PAGE>
The Hartford Building/Fund V - Fund VI Joint Venture
----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended March 31
-----------------------------
1996 1995
-------------- -------------
<S> <C> <C>
Revenues:
Rental Income $ 179,375 $ 179,375
Expenses:
Depreciation 73,008 42,516
Management & leasing expenses 7,175 7,175
Other operating expenses 3,175 5,947
------- -------
83,358 55,638
------- -------
Net income $ 96,017 $ 123,737
======= =======
Occupied % 100% 100%
Partnership's Ownership % in the
Fund IV - Fund V Joint Venture 47.6% 49.7%
Cash Distribution to Partnership $ 81,151 $ 84,437
Net Income Allocated to the
Partnership $ 45,664 $ 62,242
</TABLE>
Net income decreased and expenses increased in 1996 as compared to 1995 due
primarily to an increase in depreciation expense, resulting from 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 in the Fund V - Fund VI Joint Venture decreased
from 49.7% in 1995, to 47.6% in 1996 due to additional fundings by Wells
Fund VI in 1995, which decreased the Partnership's ownership interest in
the Joint Venture.
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 increased depreciation expense.
16
<PAGE>
Stockbridge Village II/Fund V - Fund VI Joint Venture
-----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended March 31
-----------------------------
1996 1995
------------- --------------
<S> <C> <C>
Revenues:
Rental Income $ 46,461 $32,960
Expenses:
Depreciation 19,761 5,619
Management & leasing expenses 4,597 3,927
Other operating expenses 19,175 12,956
------ -------
43,533 22,502
------ -------
Net income $ 2,928 $10,458
====== =======
Occupied % 61% 100%
Partnership's Ownership % in the Fund
IV - Fund V Joint Venture 47.6% 49.7%
Cash Distribution to Partnership $ 10,385 $ 213
Net Income Allocated to the
Partnership $ 1,392 $ 5,292
</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
March 31, 1996.
Depreciation expense 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 49.7% in 1995, due to
additional fundings by Wells Fund VI which increased Wells Fund VI's and
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 March 31
-----------------------------
1996 1995
------------- --------------
<S> <C> <C>
Revenues:
Rental Income $ 242,754 $242,754
Expenses:
Depreciation 87,646 52,299
Management & leasing expenses 9,710 9,710
Other operating expenses 3,698 11,007
-------- --------
101,054 73,016
-------- --------
Net income $ 141,700 $169,738
======== ========
Occupied % 100% 100%
Partnership's Ownership % in the
Fund V - VI - VII 16.5% 16.5%
Cash Distribution to Partnership $ 35,340 $ 34,137
Net Income Allocated to the
Partnership $ 23,324 $ 27,939
</TABLE>
Net income decreased and expenses increased in 1996 as compared to 1995 due
primarily to lower expenditures for legal and accounting and an increase in
depreciation expense due to the change in estimated useful lives of
buildings and improvements as previously discussed under "General" section
of "Results of Operations and Changes in Financial Conditions".
18
<PAGE>
PART II - OTHER INFORMATION
---------------------------
ITEM 6 (b). No reports on Form 8-K were filed during the first 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.
Dated: May 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 245,230
<SECURITIES> 13,943,382
<RECEIVABLES> 270,004
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 350
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 14,470,538
<CURRENT-LIABILITIES> 255,702
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 14,214,836
<TOTAL-LIABILITY-AND-EQUITY> 14,470,538
<SALES> 0
<TOTAL-REVENUES> 148,876
<CGS> 0
<TOTAL-COSTS> 19,500
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 129,376
<INCOME-TAX> 129,376
<INCOME-CONTINUING> 129,376
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 129,376
<EPS-PRIMARY> .18
<EPS-DILUTED> 0
</TABLE>
