<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, 1999 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
-------- -------
1
<PAGE>
Form 10-Q
---------
Wells Real Estate Fund V, L.P.
------------------------------
INDEX
-----
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - September 30, 1999
and December 31, 1998..................................3
Statements of Income for the Three
Months and the Nine Months Ended September 30, 1999
and 1998...............................................4
Statement of Partners' Capital
for the Year Ended December 31, 1998,
and the Nine Months Ended September 30, 1999...........5
Statements of Cash Flows for the Nine Months
Ended September 30, 1999 and 1998......................6
Condensed Notes to Financial Statements................7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations.............................................8
PART II. OTHER INFORMATION...............................................16
2
<PAGE>
WELLS REAL ESTATE FUND V, L.P.
(a Georgia Public Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
Assets September 30, 1999 December 31, 1998
------ ------------------ -----------------
<S> <C> <C>
Investment in joint ventures (Note 2) $12,314,473 $12,673,831
Cash and cash equivalents 67,819 63,998
Due from affiliates 256,330 300,674
------------ -----------
Total assets $12,638,622 $13,038,503
=========== ===========
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Accounts payable $ 0 $ 4,274
Partnership distributions payable 300,597 273,916
----------- -----------
300,597 278,190
----------- -----------
Partners' capital:
Limited partners
Class A - 1,560,416 units outstanding at
September 30, 1999 and 1,559,021 at
December 31, 1999 12,338,025 12,760,313
Class B - 140,186 units outstanding at
September 30, 1999 and 141,581 at
December 31, 1999 0 0
----------- -----------
Total partners' capital 12,338,025 12,760,313
----------- -----------
Total liabilities and partners'
capital $12,638,622 $13,038,503
=========== ===========
</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, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30,1998
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Revenues:
Interest income $ 287 $ 1,276 $ 1,232 $ 3,718
Equity in income of joint ventures
(Note 2) 122,488 141,002 526,644 548,434
------- ------- ------- -------
122,775 142,278 527,876 552,152
------- ------- ------- -------
Expenses:
Legal and accounting 200 473 13,932 13,893
Computer costs 2,559 2,341 7,240 6,195
Partnership administration 10,761 15,343 42,237 38,279
------- ------- ------- -------
13,520 18,157 63,409 58,367
------- ------- ------- -------
Net income $ 109,255 $ 124,121 $ 464,467 $ 493,785
======= ======= ======= =======
Net income allocated to Class A Limited
Partners $ 109,255 $ 124,121 $ 464,467 $ 493,785
Net loss allocated to Class B Limited
Partners $ 0 $ 0 $ 0 $ 0
Net income per Class A Limited
Partner Unit $ 0.07 $ 0.08 $ 0.30 $ 0.32
Net loss per Class B Limited Partner
Unit $ 0 $ 0 $ 0 $ 0
Cash distribution per Class A Limited
Partner Unit $ 0.19 $ 0.19 $ 0.57 $ 0.57
</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, 1998 AND THE NINE MONTHS ENDED
SEPTEMBER 30, 1999
<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, 1997 1,551,416 $13,297,946 149,186 $ 0 $ 0 $13,297,946
Net income 0 622,106 0 0 0 622,106
Partnership distributions 0 (1,159,739) 0 0 0 (1,159,739)
Class B conversion elections 7,605 0 (7,605) 0 0 0
--------- ----------- ------- ------ -------- -----------
BALANCE, December 31, 1998 1,559,021 12,760,313 141,581 0 0 12,760,313
Net income 0 464,467 0 0 0 464,467
Partnership distributions 0 (886,755) 0 0 0 (886,755)
Class B conversion elections 1,395 0 (1,395) 0 0 0
--------- ----------- ------- ------ -------- -----------
BALANCE, Sept 30, 1999 1,560,416 $12,338,025 140,186 $ 0 $ 0 $12,338,025
========= =========== ======= ====== ======== ===========
</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, 1999 Sep 30, 1998
------------- ------------
<S> <C> <C>
Cash flow from operating activities:
Net income $ 464,467 $ 493,785
Adjustments to reconcile net incomes to net
cash used in operating activities: (526,644) (548,434)
Equity in income of joint venture
Changes in assets and liabilities:
Accounts payable (4,274) 0
---------- ---------
Net cash used in operating
activities (66,451) (54,649)
---------- ---------
Cash flow from investing activities:
Distributions received from
joint ventures 1,000,276 946,007
Investment in joint ventures (69,930) (19,270)
---------- ---------
Net cash provided by
investing activities 930,346 926,737
---------- ---------
Cash flow from financing activities:
Partnership distributions paid (860,074) (877,546)
---------- ---------
Net increase (decrease) in
cash and cash equivalents 3,821 ( 5,458)
Cash and cash equivalents, beginning of year 63,998 91,678
---------- ---------
Cash and cash equivalents, end of period $ 67,819 $ 86,220
========== =========
</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 Statements
(1) Summary of Significant Accounting Policies
------------------------------------------
(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.
The Partnership owns interests in properties through its equity ownership
in the following joint ventures: (i) Fund IV and Fund V Associates, a joint
venture between the Partnership and Wells Real Estate Fund IV, L.P. (the
"Fund IV - Fund V Joint Venture"); (ii) Fund V and Fund VI Associates, a
joint venture between the Partnership and Wells Real Estate Fund VI, L.P.
(the "Fund V - Fund VI Joint Venture"); and (iii) Fund V, Fund VI, and Fund
VII Associates, a joint venture between the Partnership, Wells Real Estate
Fund VI, L.P. and Wells Real Estate Fund VII, L.P. (the "Fund V-VI-VII
Joint Venture").
As of September 30, 1999, the Partnership owned interests in the following
properties through its ownership in the foregoing joint ventures: (i) a
four-story office building located in Jacksonville, Florida ("IBM
Jacksonville"), which is owned by the Fund IV - Fund V Joint Venture; (ii)
two substantially identical two-story office buildings located in Clayton
County, Georgia (the "Village Overlook"), which are owned by the Fund IV -
Fund V Joint Venture; (iii) a four-story office building located in
metropolitan Hartford, Connecticut (the "Hartford Building"), which is
owned by the Fund V - Fund VI Joint Venture; (iv) two retail buildings
located in Clayton County, Georgia ("Stockbridge Village II"), which are
owned by the Fund V - Fund VI Joint Venture; and (v) a three-story office
building located in Appleton, Wisconsin (the "Marathon Building"), which is
owned by the Fund V-VI-VII Joint Venture. All of the foregoing properties
were acquired on an all cash basis. For further information regarding
these joint ventures and properties, refer to the Partnership's Form 10-K
for the year ended December 31, 1998.
7
<PAGE>
(B) Basis of Presentation
--------------------------
The financial statements of 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, 1998.
(2) Investment in Joint Ventures
----------------------------
The Partnership owns interests in five properties through its investment in
joint ventures of which four are office building properties and one is a
retail property. 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.
For further information, refer to the financial statements and footnotes
included in the Partnership's Form 10-K for the year ended December 31,
1998.
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.
Results of Operations and Changes in Financial Conditions
---------------------------------------------------------
General
-------
As of September 30, 1999, the properties owned by the Partnership were 91%
occupied as compared to 93% occupied as of September 30, 1998. Gross
revenues of the Partnership were $527,876 for the nine months ended
September 30, 1999, as compared to $552,152 for the same period in 1998.
Gross revenues and net income has decreased for the nine months ended
September 30, 1999, over 1998 levels due primarily to a slight increase in
partnership
8
<PAGE>
administrative expenses and decreased earning in joint ventures caused
primarily by the decreased occupancy at Village Overlook.
Net cash used in operating activities increased from $54,649 for the nine
months ended September 30, 1998 to $66,451 for the same period in 1999.
The increase in cash and cash equivalents from $(5,458) for the nine months
ended September 30, 1998, to $3,821 for the nine months ended September 30,
1999, was due primarily to an increase in distributions received from joint
ventures.
The Partnership made cash distributions to the Limited Partners holding
Class A Units of $.19 per Class A Unit for the three months ended September
30, 1999, and for the same period in 1998. No cash distributions were
made to the Limited Partners holding Class B Units or to the General
Partners.
The Partnership expects to continue to meet its short-term liquidity
requirements and budget demands generally through net cash provided by
operations which the Partnership believes will continue to be adequate to
meet both operating requirements and distributions to Limited Partners. At
this time, given the nature of the joint ventures in which the Partnership
has invested, there are no known improvements and renovations to the
properties expected to be funded from cash flow from operations.
Year 2000
---------
The Partnership is presently reviewing the potential impact of Year 2000
compliance issues on its information systems and business operations. A
full assessment of Year 2000 compliance issues was begun in late 1997 and
was completed by March 31, 1999. Renovations and replacements of equipment
have been and are being made as warranted. The costs incurred by the
Partnership and its affiliates thus far for renovations and replacements
have been immaterial. As of September 30, 1999, all testing of systems has
been completed.
As to the status of the Partnerships' information technology systems, it is
presently believed that all major systems and software packages are Year
2000 compliant. At the present time, it is believed that all major non-
information technology systems are Year 2000 compliant. The cost to
upgrade any noncompliance systems is believed to be immaterial.
The Partnership has confirmed with the Partnership's vendors, including
third-party service providers such as banks, that their systems are Year
2000 compliant.
The Partnership relies on computers and operating systems provided by
equipment manufacturers, and also on application software designed for use
with its accounting, property management and investment portfolio tracking.
The Partnership has preliminary determined that any costs, problems or
uncertainties associated with the potential consequences of Year 2000
issues are not expected to have a material impact on the future operations
or financial condition of the Partnership. The Partnership will perform
due
9
<PAGE>
diligence as to the Year 2000 readiness of each property owned by the
Partnership and each property contemplated for purchase by the Partnership.
The Partnership's reliance on embedded computer systems (i.e.
microcontrollers) is limited to facilities related matters, such as office
security systems and environmental control systems.
The Partnership is currently formulating contingency plans to cover any
areas of concern. Alternate means of operating the business are being
developed in the unlikely circumstance that the computer and phone systems
are rendered inoperable. An off-site facility from which the Partnership
could operate is being sought as well as alternate means of communication
with key third-party vendors. A written plan is being developed for
testing and dispensation to each staff member of the General Partner of the
Partnership.
Management believes that the Partnership's risk of Year 2000 problems is
minimal. In the unlikely event there is a problem, the worst case
scenarios would include the risks that the elevator or security systems
within the Partnership's properties would fail or the key third-party
vendors upon which the Partnership relies would be unable to provide
accurate investor information. In the event that the elevator shuts down,
the Partnership has devised a plan for each building whereby the tenants
will use the stairs until the elevators are fixed. In the event that the
security system shuts down, the Partnership has devised a plan for each
building to hire temporary on-site security guards. In the event that a
third-party vendor has Year 2000 problems relating to investor information,
the Partnership intends to perform a full system back-up of all investor
information as of December 31, 1999, so that the Partnership will have
accurate hard-copy investor information.
10
<PAGE>
Property Operations
- -------------------
As of September 30, 1999, the Partnership owned interests in the following
operational properties:
The Marathon Building/Fund V-VI-VII Joint Venture
- -------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $243,182 $242,755 $728,690 $728,693
-------- -------- -------- --------
Expenses:
Depreciation 87,646 87,647 262,939 262,939
Management & leasing expenses 14,627 9,890 37,314 29,670
Other operating expenses 4,181 3,044 14,592 9,785
-------- -------- -------- --------
106,454 100,581 314,845 302,394
-------- -------- -------- --------
Net income $136,728 $142,174 $413,845 $426,299
======== ======== ======== ========
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 $ 37,219 $ 38,213 $112,396 $114,602
Net Income Allocated to the
Partnership $ 22,505 $ 23,402 $ 68,119 $ 70,169
</TABLE>
Rental income remained relatively stable for the nine months ended September
30, 1999 as compared to the nine months ended September 30, 1998.
The increase in management and leasing fees for the nine months ended September
30, 1999 was due to an under accrual of fees in 1998. The increase in operating
expenses was due primarily to increases in accounting and administrative fees.
11
<PAGE>
IBM Jacksonville/Fund IV - Fund V Joint Venture
- ------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $370,168 $366,140 $1,110,650 $1,098,028
-------- -------- ---------- ----------
Expenses:
Depreciation 80,089 79,524 239,137 238,572
Management & leasing expenses 51,529 45,762 156,428 144,239
Other operating expenses 113,362 154,576 282,384 252,853
-------- -------- ---------- ----------
244,980 279,862 677,949 635,664
-------- -------- ---------- ----------
Net income $125,188 $ 86,278 $ 432,701 $ 462,364
======== ======== ========== ==========
Occupied % 94% 94% 94% 94%
Partnership's Ownership % 62.4% 62.4% 62.4% 62.4%
Cash Distribution to Partnership $140,136 $116,499 $ 447,918 $ 398,396
Net Income Allocated to the
Partnership $ 78,150 $ 53,824 $ 270,116 $ 288,368
</TABLE>
Rental income for the IBM Jacksonville Property increased slightly in 1999, as
compared to 1998 figures. Operating expenses increased in 1999, due to
substantial increases in the areas of repairs and maintenance, partially offset
by common area maintenance reimbursements that were drastically reduced for the
period. The foregoing was a result of both IBM and Siemens reducing their leased
space in the building. Tenants are billed an estimated amount for the current
year common area maintenance which is then reconciled the following year and the
difference billed to the tenant. As a result, net income allocated to the
Partnership decreased for the nine months ended September 30, 1999, as compared
to the same period in 1998. Cash distributions allocated to the Partnership
increased due to the distribution of cash previously held in reserve. These
reserves were held to cover necessary tenant improvements which did not
materialize. Customized Transportation Inc. extended their lease for an
additional two years through February 28, 2001. Cash distributions increased for
1999 as compared to 1998. The Partnership contributed cash fundings to the Joint
Venture for tenant improvement in proportion to their ownership interests, and
therefore, the Partnership's ownership interest in the Fund IV - Fund V Joint
Venture remained the same.
12
<PAGE>
The Village Overlook Property/Fund IV - Fund V Joint Venture
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 75,057 $128,171 $340,741 $364,210
Interest income 4,224 5,769 7,203 10,288
-------- -------- -------- --------
79,281 133,940 347,944 374,498
-------- -------- -------- --------
Expenses:
Depreciation 44,871 44,525 133,919 133,573
Management & leasing expenses 8,609 15,819 40,496 46,489
Other operating expenses 79,241 53,244 156,341 133,715
-------- -------- -------- --------
132,721 113,588 330,756 313,777
-------- -------- -------- --------
Net income (loss) $(53,440) $ 20,352 $ 17,188 $ 60,721
======== ======== ======== ========
Occupied % 62.4% 82% 62.4% 82%
Partnership's Ownership % 62.4% 62.4% 62.4% 62.4%
Cash Distribution to Partnership $ 0 $ 45,487 $ 85,868 $135,646
Net Income (Loss) Allocated to the
Partnership $(33,361) $ 12,697 $ 10,729 $ 37,873
</TABLE>
Rental income for the Village Overlook Properties (formerly the Medical Center
Property) decreased for the nine months ended September 30, 1999, as compared to
the same period in 1998. This was due primarily to the fact that one major
tenant, Georgia Baptist Healthcare System did not renew their lease which
expired May 31, 1999. Two new tenants have signed leases for a total of 7,332
rentable square feet of space. On Care Management has contracted to lease 4,348
square feet for a term of 5 years commencing September 1, 1999 and Georgia
Pediatric Cardiology has signed a lease for 2,984 square feet commencing October
1, 1999, for a four year term. All efforts are being made by the Partnership to
find a tenant or tenants to occupy the remaining 10,515 square feet of vacant
space. Operating expenses increased in 1999, over 1998, due primarily to the
resurfacing of the parking lot as well as the repairs of the HVAC system in the
buildings. Cash distributions decreased for the nine months ended September 30,
1999 as compared to the same period for 1998 due to the reduction in rental
income and increase in operating expenses.
13
<PAGE>
The Hartford Building/Fund V - Fund VI Joint Venture
- ----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $179,374 $179,374 $538,124 $538,124
-------- -------- -------- --------
Expenses:
Depreciation 73,008 73,005 219,024 219,015
Management & leasing expenses 7,242 7,242 21,726 20,140
Other operating expenses 2,643 4,099 7,506 13,887
-------- -------- -------- --------
82,893 84,346 248,256 253,042
-------- -------- -------- --------
Net income $ 96,481 $ 95,028 $289,868 $285,082
======== ======== ======== ========
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund V - Fund VI Joint Venture 46.4% 46.5% 46.4% 46.5%
Cash Distribution to Partnership $ 79,464 $ 78,965 $238,699 $236,157
Net Income Allocated to the
Partnership $ 44,791 $ 44,217 $134,634 $132,649
</TABLE>
Net income increased and expenses decreased for the nine months ended September
30, 1999, as compared to 1998, due primarily to an insurance reimbursement from
the tenant in 1999, which was recorded in the second quarter of 1999, in other
operating expenses.
The Partnership's ownership interest in the Fund V - Fund VI Joint Venture
decreased due to additional funding by Wells Fund VI in 1999, which caused a
decrease in the Partnership's ownership interest in the Fund V - Fund VI Joint
Venture.
14
<PAGE>
Stockbridge Village II/Fund V - Fund VI Joint Venture
- -----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $75,654 $59,070 $230,964 $176,958
------- ------- -------- --------
Expenses:
Depreciation 26,304 25,425 78,039 76,553
Management & leasing expenses 9,921 7,057 26,930 22,731
Other operating expenses 17,021 11,840 33,304 36,033
------- ------- -------- --------
53,246 44,322 138,273 135,317
------- ------- -------- --------
Net income $22,408 $14,748 $ 92,691 $ 41,641
======= ======= ======== ========
Occupied % 100% 72% 100% 72%
Partnership's Ownership % in the
Fund V - Fund VI Joint Venture 46.4% 46.5% 46.4% 46.5%
Cash Distribution to Partnership $20,611 $17,880 $ 71,051 $ 52,557
Net Income Allocated to the
Partnership $10,403 $ 6,863 $ 43,046 $ 19,376
</TABLE>
Rental income, net income and cash distribution to the Partnership increased in
1999, as compared to 1998, due primarily to increased occupancy. The
Partnership's ownership percentage in the Fund V - Fund VI Joint Venture
decreased due to additional fundings by Wells Fund VI which caused a decrease in
the Partnership's ownership interest in the Fund V - Fund VI Joint Venture.
15
<PAGE>
PART II - OTHER INFORMATION
---------------------------
ITEM 6 (b). No reports on Form 8-K were filed during the third quarter of 1999.
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: November 10, 1999 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.
16
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 67,819
<SECURITIES> 12,314,473
<RECEIVABLES> 256,330
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 12,638,622
<CURRENT-LIABILITIES> 300,597
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 12,338,025
<TOTAL-LIABILITY-AND-EQUITY> 12,638,622
<SALES> 0
<TOTAL-REVENUES> 527,876
<CGS> 0
<TOTAL-COSTS> 63,409
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 464,467
<INCOME-TAX> 464,467
<INCOME-CONTINUING> 464,467
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 464,467
<EPS-BASIC> 0.30
<EPS-DILUTED> 0
</TABLE>
