<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 September 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>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - September 30, 1996 and December 31, 1995...........3
Statements of Income for the Three Months and Nine
Months Ended September 30, 1996
and 1995........................................................... 4
Statement of Partners' Capital
for the Year Ended December 31, 1995,
and the Nine Months Ended September 30, 1996........................5
Statements of Cash Flows for the Nine Months
Ended September 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 September 30, 1996 December 31, 1995
------ ------------------ -----------------
<S> <C> <C>
Investment in joint ventures (Note 2) $13,707,402 $14,067,917
Cash and cash equivalents 251,529 256,180
Due from affiliates 273,200 260,128
Deferred project costs 5,843 5,843
Organization costs, less accumulated
amortization of $28,646 in 1996 and
$23,958 in 1995 2,604 7,292
Prepaid expenses and other assets 350 350
----------- -----------
Total assets $14,240,928 $14,597,710
=========== ===========
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Accounts payable $ 0 $ 5,000
Partnership distribution payable 265,196 251,551
------------ -----------
Total liabilities 265,196 256,551
----------- -----------
Partners' capital:
Limited partners 13,844,459 13,736,181
Class A - 1,546,417 units outstanding
Class B - 154,185 units outstanding 131,273 604,978
----------- -----------
Total partners' capital 13,975,732 14,341,159
----------- -----------
Total liabilities and partners' capital $14,240,928 $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 NINE MONTHS ENDED
-------------------------------- ----------------------------
Sept 30, 1996 Sept 30, 1995 Sept 30, 1996 Sept,30,1995
------------- ------------- ------------- -----------
<S> <C> <C> <C> <C>
Revenues:
Interest income $ 3,162 $ 4,438 $ 10,292 $ 15,797
Equity in income of joint ventures
(Note 2) 140,362 187,654 451,967 609,414
-------- ------- --------- ----------
143,524 192,092 462,259 625,211
Expenses:
Legal and accounting 378 706 18,475 8,618
Computer costs 1,403 430 3,458 5,059
Partnership administration 9,398 10,035 41,822 38,996
Amortization of organization costs 1,563 1,563 4,688 4,688
-------- ------ --------- ----------
12,742 12,734 68,443 57,361
-------- ------- --------- ----------
Net income $130,782 $179,358 $ 393,816 $ 567,850
======== ======== ========= ==========
Net loss allocated to General Partners $ 0 $ 0 $ 0 $ 0
Net income allocated to Class A $284,135 $281,219 $ 852,189 $ 864,140
Limited Partners
Net loss allocated to Class B Limited $(153,353) $(101,861) $(458,373) $ (296,290)
Partners
Net income per Class A Limited $ 0.18 $ 0.18 $ 0.55 $ 0.56
Partner Unit
Net loss per Class B Limited Partner $ (0.99) $ (0.64) $ (2.97) $ (1.86)
Unit
Cash distribution per Class A Limited
Partner Unit $ 0.17 $ 0.16 $ 0.49 $ 0.50
</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 NINE MONTHS ENDED
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
Limited Partners
---------------------------------------------- Total
Class A Class B 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) 0 852,189 0 (458,373) 0 393,816
Partnership distributions 0 (759,243) 0 0 0 (759,243)
Class B conversion elections 5,400 15,332 (5,400) (15,332) 0 0
--------- ----------- ------- -------- - -----------
BALANCE, September 30, 1996 1,546,417 $13,844,459 154,185 $131,273 0 $13,975,732
========= =========== ======= ======== = ===========
</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>
Nine Months Ended
----------------------------------
Sept. 30, 1996 Sept. 30, 1995
-------------- --------------
<S> <C> <C>
Cash flow from operating activites:
Net income $393,816 $567,850
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Equity in income of joint venture (451,967) (609,414)
Distributions received from joint ventures 799,635 768,213
Partnership distributions paid (745,598) (726,881)
Amortization of organization costs 4,688 4,688
Changes in assets and liabilities:
Decrease in prepaids & other assets 0 750
(Decrease) increase in accounts payable (5,000) 2,500
-------- --------
Net cash (used in) provided by operating activities (4,426) 7,706
-------- --------
Cash flow from investing activities-
Investment in joint ventures (225) (230,637)
----- --------
Net decrease in cash and cash equivalents (4,651) (222,931)
Cash and cash equivalents, beginning of year 256,180 484,021
-------- --------
Cash and cash equivalents, end of period $251,529 $261,090
======== ========
Supplemental Schedule of noncash investing activities -
deferred project costs applied to investing activities $ 0 $ 15,758
======== ========
</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 September 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 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 September 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
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. As of September 30, 1996, the Partnership had
contributed $7,719,249 and Wells Fund IV had contributed $4,736,173 to 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 September 30, 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. 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 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 17,725 rentable square feet each (the "Medical Center Property").
As of September 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 approximately $146,000 of additional fundings 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.
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
9
<PAGE>
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 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 for the quarters ended
September 30, 1996, was 69% in 1996 and 1995, 58% in 1994, the year the second
building opened and 69% in 1993, the first year of occupancy of the first
building. The average effective annual rental per square foot at the Medical
Center Project was $11.89 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 at $15.25 per square foot for the 1st five years and $18.67 for the 2nd
five year extension . Under the terms of its lease, Hartford is responsible for
property taxes,
10
<PAGE>
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 10,400
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 September 30, 1996, the Partnership contributed
$1,035,804 and Wells Fund VI had contributed $1,669,150 to the Fund V - Fund VI
Joint Venture for the acquisition and development of Stockbridge Village II. It
is currently anticipated that the remaining cost of approximately $300,000 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
46% 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 $12.35 for 1996 and $10.41 for 1995, the first year of occupancy.
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:
11
<PAGE>
The Marathon Building
- ---------------------
On September 16, 1994, Fund V-VI-VII Joint Venture purchased a three-story
office building containing approximately 76,000 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 $12.78 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
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.
12
<PAGE>
Results of Operations and Changes in Financial Conditions
- ---------------------------------------------------------
General
- -------
Gross revenues of the Partnership were $462,259 for the nine months ended
September 30, 1996, as compared to $625,211 for the nine months ended September
30, 1995. Gross revenues and net income have decreased for the three and nine
months ended September 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 all buildings and improvements
in which the Partnership owns an interest from 40 years to 25 years, which
became effective December 31, 1995.
Expenses of the Partnership increased from $57,361 for the nine months September
30, 1995 to $68,443 for the same period in 1996, due primarily to increased
accounting costs.
Net cash used in operating activities remained relatively stable for the nine
months ended September 30, 1996 and 1995. The change in cash and cash
equivalents from $222,931 for the nine months ended September 30, 1995 to
$4,651 for the same period in 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 Unit for the three months
ended September 30, 1996, as compared to $.16 per Class A Unit for the three
months ended September 30, 1995. No cash distributions were made to the Limited
Partners holding Class B Units.
[The remainder of this page intentionally left blank]
13
<PAGE>
PROPERTY OPERATIONS
- -------------------
As of September 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 Nine Months Ended
------------------------------ --------------------------------
Sept 30, 1996 Sept 30, 1995 Sept 30, 1996 Sept 30, 1995
-------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $365,992 $358,214 $1,097,977 $1,097,062
Expenses:
Depreciation 79,296 47,484 237,888 142,452
Management & leasing expenses 43,977 45,385 137,731 136,157
Other operating expenses 138,511 140,937 324,912 357,680
-------- -------- -------- --------
261,784 233,806 700,531 636,289
-------- -------- -------- --------
Net income $104,208 $124,408 $ 397,446 $ 460,773
======== ======== ========= =========
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund IV - Fund V Joint Venture 61.9% 61.9% 61.9% 61.9%
Cash Distribution to Partnership $115,169 $104,764 $ 359,626 $ 367,691
Net Income Allocated to the
Partnership $ 64,478 $ 76,900 $ 245,920 $ 284,256
</TABLE>
Rental income remained relatively stable in 1996 as compared to 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
reductions in operating expenses resulting primarily from timing
differences in billing tenant expense reimbursements.
14
<PAGE>
The Medical Center Property/Fund IV - Fund V Joint Venture
----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------ -------------------------------
Sept 30, 1996 Sept 30, 1995 Sept 30, 1996 Sept 30, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $105,470 $103,424 $316,050 $289,868
Interest income 3,727 3,440 9,468 9,850
-------- -------- -------- --------
109,197 106,864 325,518 299,718
-------- -------- -------- --------
Expenses:
Depreciation 39,882 25,238 119,646 74,829
Management & leasing expenses 13,227 13,846 38,108 37,091
Other operating expenses 44,985 45,810 175,017 129,182
-------- -------- -------- --------
98,094 84,894 332,771 241,102
-------- -------- -------- --------
Net income (loss) $ 11,103 $ 21,970 $( 7,253) $ 58,616
======== ======== ======== ========
Occupied % 69% 69% 69% 69%
Partnership's Ownership % in the
Fund IV - Fund V Joint Venture 61.9% 61.9% 61.9% 61.9%
Cash Distribution to Partnership $ 34,341 $ 21,766 $ 75,455 $ 69,294
Net Income (Loss) Allocated to the
Partnership $ 6,870 $ 13,585 $ (4,488) $ 36,192
</TABLE>
Rental income increased for the nine month period ended September 30, 1996,
as compared to the same period in 1995, due to increased lease up at the
Medical Center Property during 1995. Leases are being actively pursued on
the remaining 11,000 rentable square feet of vacant space. 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 timing differences in
operating expense billings to tenants.
15
<PAGE>
The Hartford Building/Fund V - Fund VI Joint Venture
----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------ --------------------------------
Sept 30, 1996 Sept 30, 1995 Sept 30, 1996 Sept 30, 1995
------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $179,374 $179,374 $538,124 $538,124
Expenses:
Depreciation 73,008 42,516 219,024 127,548
Management & leasing expenses 7,175 7,175 21,525 21,525
Other operating expenses 3,380 3,715 11,204 14,939
-------- -------- -------- --------
83,563 53,406 251,753 164,012
-------- -------- -------- --------
Net income $ 95,811 $125,968 $286,371 $374,112
======== ======== ======== ========
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund V - Fund VI Joint Venture 47.5% 47.6% 47.5% 47.6%
Cash Distribution to Partnership $ 80,950 $ 81,231 $242,550 $247,903
Net Income Allocated to the
Partnership $ 45,509 $ 60,159 $136,136 $183,105
</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 47.6% in 1995 to 47.5% 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 Nine Months Ended
------------------------------ -----------------------------
Sept 30, 1996 Sept 30, 1995 Sept 30, 1996 Sept 30, 1995
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $50,056 $50,056 $146,573 $115,977
Expenses:
Depreciation 19,811 14,269 59,333 25,507
Management & leasing expenses 4,549 5,515 14,528 13,494
Other operating expenses 24,862 14,249 63,660 37,458
------- ------- -------- --------
49,222 34,033 137,521 76,459
------- ------- -------- --------
Net income $ 834 $16,023 $ 9,052 $ 39,518
======= ======= ======== ========
Occupied % 61% 61% 61% 61%
Partnership's Ownership % in the
Fund V - Fund VI Joint Venture 47.5% 47.6% 47.5% 47.6%
Cash Distribution to Partnership $ 7,044 $ 9,372 $ 28,938 $ 18,483
Net Income Allocated to the
Partnership $ 401 $ 7,649 $ 4,309 $ 19,288
</TABLE>
The Stockbridge Village II Project consists of two retail buildings which
contain a total of approximately 15,800 square feet. The first building
containing 5,400 square feet was completed in November, 1994, and occupied
by Apple Restaurants, Inc. in December 1994. The second building containing
10,400 square feet opened in June, 1995. Glenn's Open Pit Bar-B-Que leased
4,303 square feet beginning in July, 1995. A lease has been signed for
4,969 square feet in the second building with occupancy anticipated to
commence in early 1997.
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 47.5% for 1996, as compared to 47.6% in 1995, due to
additional fundings by Wells Fund VI which reduced 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 Nine Months Ended
------------------------------ ------------------------------
Sept 30, 1996 Sept 30, 1995 Sept 30, 1996 Sept 30, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $242,755 $242,754 $728,263 $728,262
Expenses:
Depreciation 87,647 52,299 262,939 156,898
Management & leasing expenses 9,710 9,710 29,130 29,130
Other operating expenses 1,531 2,374 10,381 16,283
-------- -------- -------- --------
98,888 64,383 302,450 202,311
-------- -------- -------- --------
Net income $143,867 $178,371 $425,813 $525,951
======== ======== ======== ========
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 $ 35,697 $ 35,558 $106,137 $105,166
Net Income Allocated to the
Partnership $ 23,681 $ 29,360 $ 70,089 $ 86,571
</TABLE>
Net income decreased for the three and nine month periods ended September
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 previously discussed under the "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 third 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: November 11, 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 251,529
<SECURITIES> 13,707,402
<RECEIVABLES> 273,200
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 350
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 14,240,928
<CURRENT-LIABILITIES> 265,196
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 13,975,732
<TOTAL-LIABILITY-AND-EQUITY> 14,240,928
<SALES> 0
<TOTAL-REVENUES> 462,259
<CGS> 0
<TOTAL-COSTS> 68,443
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 393,816
<INCOME-TAX> 393,816
<INCOME-CONTINUING> 393,816
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 393,816
<EPS-PRIMARY> .55
<EPS-DILUTED> 0
</TABLE>
