<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X]Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
For the quarterly period ended September 30, 1998
[ ]Transition Report Under Section 13 or 15(d) of the Securities
Exchange Act of 1934.
For the transition period from N/A to N/A
Commission File Number 0-28332
Brauvin Net Lease V, INC.
(Exact name of small business issuer in its charter)
Maryland 36-3913066
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
30 North LaSalle Street, Chicago, Illinois 60602
(Address of principal executive offices) (Zip Code)
(312) 759-7660
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 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 .
As of November 14, 1998, the registrant had 1,292,074 shares of
Common Stock outstanding.
Transitional Small Business Disclosure Format(check one)
Yes No X .
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
INDEX
PART I - FINANCIAL INFORMATION
Page
Item 1. Consolidated Financial Statements. . . . . . . . . . . . . . 3
Consolidated Balance Sheet at September 30, 1998 . . . . . . 4
Consolidated Statements of Operations, for the
nine months ended September 30, 1998 and 1997. . . . . . . . 5
Consolidated Statements of Operations, for the
three months ended September 30, 1998 and 1997 . . . . . . . 6
Consolidated Statements of Cash Flows for the
nine months ended September 30, 1998 and 1997. . . . . . . . 7
Notes to Consolidated Financial Statements . . . . . . . . . 8
Item 2. Management's Discussion and Analysis or Plan
of Operation . . . . . . . . . . . . . . . . . . . . . . . 15
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . .19
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . .19
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . .19
Item 4. Submission of Matters to a Vote of Security
Holders. . . . . . . . . . . . . . . . . . . . . . . . . . .19
Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . .19
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . .19
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
The following Consolidated Balance Sheet as of September 30,
1998, Consolidated Statements of Operations for the nine months
ended September 30, 1998 and 1997, Consolidated Statements of
Operations for the three months ended September 30, 1998 and 1997,
and Consolidated Statements of Cash Flows for the nine months ended
September 30, 1998 and 1997 for Brauvin Net Lease V, Inc. (the
"Fund") are unaudited but reflect, in the opinion of the
management, all adjustments necessary to make the consolidated
financial statements not misleading. All such adjustments are of
a normal recurring nature.
These consolidated financial statements should be read in
conjunction with the financial statements and notes thereto
included in the Fund's 1997 Annual Report on Form 10-KSB.
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30,
1998
ASSETS
Investment in real estate, at cost:
Land $3,979,586
Buildings 7,634,379
11,613,965
Less accumulated depreciation (571,822)
Net investment in real estate 11,042,143
Cash and cash equivalents 282,926
Organization costs (net of
accumulated amortization of
$32,083) 2,917
Deferred rent receivable 247,254
Total Assets $11,575,240
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued
expenses $ 32,078
Rents received in advance 57,944
Due to affiliates 56,232
Total Liabilities 146,254
Stockholders' Equity:
Preferred stock, $.01 par value,
1,000,000 shares authorized; none issued --
Common stock, $.01 par value,
9,000,000 shares authorized;
1,292,074 shares issued
and outstanding 13,083
Additional paid-in capital 11,624,081
Retained earnings (deficit) (208,178)
Total Stockholders' Equity 11,428,986
Total Liabilities and Stockholders'
Equity $11,575,240
See notes to consolidated financial statements.
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the nine months ended September 30,
(Unaudited)
1998 1997
INCOME
Rental $ 987,808 $ 994,916
Interest and other 12,553 24,842
Total income 1,000,361 1,019,758
EXPENSES
Directors fees 10,000 15,225
Advisory fees 131,250 131,251
Management fees 9,849 9,321
General and administrative 71,532 72,232
Bad debt expense 17,158 --
Acquisition costs -- 33,211
Depreciation and amortization 150,614 141,977
Total expenses 390,403 403,217
Net Income $609,958 $616,541
Net Income Per Share
(based on average shares
outstanding of 1,283,068
and 1,281,966, respectively
for the nine months ended
September 30, 1998 and 1997) $ 0.48 $ 0.48
See notes to consolidated financial statements.
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended September 30,
(Unaudited)
1998 1997
INCOME
Rental $344,374 $336,652
Interest and other 7,000 3,057
Total income 351,374 339,709
EXPENSES
Directors fees 3,000 4,081
Advisory fees 43,750 43,750
Management fees 3,548 2,833
General and administrative 14,711 22,281
Acquisition costs -- (5,134)
Depreciation and amortization 50,190 48,728
Total expenses 115,199 116,539
Net Income $236,175 $223,170
Net Income Per Share
(based on average shares
outstanding of 1,295,868
and 1,292,093, respectively
for the three months ended
September 30, 1998 and 1997) $ 0.18 $ 0.17
See notes to consolidated financial statements.
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30,
(Unaudited)
1998 1997
Cash Flows From Operating Activities:
Net income $609,958 $616,541
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of organization costs 5,250 5,251
Depreciation 145,364 136,726
Acquisition costs charged off -- 33,211
Provision for doubtful accounts 17,158 --
Change in tenant receivables (16,763) 378
Change in deferred rent receivables (58,430) (78,211)
Change in prepaid expenses and
deferred acquisition costs -- (1,107)
Change in accounts payable and
accrued expenses 11,440 (7,955)
Change in rent received
in advance 16,541 27,203
Change in due to affiliates 1,349 812
Net cash provided by operating activities 731,867 732,849
Cash Flows From Investing Activities:
Purchase of properties -- (1,525,289)
Capital expenditures (85,523) --
Cash used in investing activities (85,523) (1,525,289)
Cash Flows From Financing Activities:
Issuance of stock 94,544 106,522
Selling commissions and other
offering costs (33,191) (164,154)
Dividends (651,671) (678,458)
Liquidations (76,512) (200,590)
Net cash used in financing activities (666,830) (936,680)
Net decrease in cash and cash equivalents (20,486) (1,729,120)
Cash and cash equivalents at
beginning of period 303,412 2,025,100
Cash and cash equivalents at
end of period $ 282,926 $ 295,980
Supplemental Cash Flow Information:
In 1997, Purchase of properties is net of $54,460 of acquisition
costs paid in 1996 and reclassified to land and building in 1997 in
conjunction with the acquisition of the related properties.
See notes to consolidated financial statements
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Brauvin Net Lease V, Inc. (the "Fund") is a Maryland corporation
formed on October 14, 1993, which operates as a real estate
investment trust ("REIT") under federal tax laws. The Fund has
acquired properties that are leased to creditworthy corporate
operators of nationally or regionally established businesses
primarily in the retail and family restaurant sectors. All of the
leases are on a long-term "triple net" basis generally requiring
the corporate tenant to pay both base annual rent with mandatory
escalation clauses and all operating expenses. The Fund acquired
properties subject to leases with a Country Harvest Buffet
Restaurant during the year ended December 31, 1994; an On the
Border Restaurant, a Blockbuster Video, a Chili's Restaurant, a
Just for Feet and a Video Watch during the year ended December 31,
1995; a Pier 1 Imports and a Taylor Rental during the year ended
December 31, 1996; and a Jiffy Lube and Firestone facility during
the year ended December 31, 1997.
The advisory agreement provides for Brauvin Realty Advisors V,
L.L.C. (the "Advisor"), an affiliate of the Fund, to be the advisor
to the Fund. The Fund registered the sale of up to 5,000,000
shares of common stock at $10.00 per share in an initial public
offering filed with the Securities and Exchange Commission
("Registration Statement") and the issuance of 500,000 shares
pursuant to the Fund's dividend reinvestment plan. On August 8,
1994, the Fund sold the minimum 120,000 shares required under its
Registration Statement and commenced its real estate activities.
The offering period for the sale of common stock terminated on
February 25, 1996. At September 30, 1998, the Fund had sold
1,292,074 shares and the gross proceeds raised were $13,282,053,
net of liquidations of $437,852, including $200,000 invested by the
Advisor ("Initial Investment"), before reduction for selling
commissions and other offering costs.
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
SIGNIFICANT ACCOUNTING POLICIES
Management's Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from these estimates.
Accounting Method
The accompanying consolidated financial statements have been
prepared using the accrual method of accounting.
Rental Income
Rental income is recognized on a straight line basis over the
life of the related leases. Differences between rental income
earned and amounts due per the respective lease agreements are
credited or charged, as applicable, to deferred rent receivable.
Federal Income Taxes
For the year ended December 31, 1998, the Fund intends to be
treated as a REIT under the Internal Revenue Code Sections 856-860.
A REIT will generally not be subject to federal income taxation to
the extent that it distributes at least 95% of its taxable income
to its shareholders and meets certain asset and income tests as
well as other requirements. The Fund continues to qualify as a real
estate investment trust and, accordingly, no provision has been
made for Federal income taxes in the financial statements.
Consolidation of Subsidiary
The Fund owns a 100% interest in one qualified REIT subsidiary,
Germantown Associates, Inc., which owns one Firestone/JiffyLube
property. The accompanying financial statements have consolidated
100% of the assets, liabilities, operations and stockholder's
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
equity of Germantown Associates, Inc. All significant inter-
company accounts have been eliminated.
Investment in Real Estate
The Fund's rental properties are stated at cost including
acquisition costs. Depreciation is recorded on a straight-line
basis over the estimated economic lives of the properties which
approximate 40 years.
In 1995, the Fund adopted Statement of Financial Accounting
Standards No. 121, "Accounting for the Impairment of Long-Lived
Assets" (SFAS 121). The Fund has performed an analysis of its
long-lived assets, and the Fund's management determined that there
were no events or changes in circumstances that indicated that the
carrying amount of the assets may not be recoverable at September
30, 1998 or December 31, 1997. Accordingly, no impairment loss has
been recorded in the accompanying financial statements for the nine
months ended September 30, 1998 or the year ended December 31,
1997.
Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid instruments
with an original maturity within three months from date of purchase
and approximate their fair value.
Estimated Fair Value of Financial Instruments
Disclosure of the estimated fair value of financial instruments
is made in accordance with the requirements of Statement of
Financial Accounting Standards No. 107, "Disclosure About Fair
Value of Financial Instruments." The estimated fair value amounts
have been determined by using available market information and
appropriate valuation methodologies. However, considerable
judgement is necessarily required in interpreting market data to
develop estimates of fair value.
The fair value estimates presented herein are based on
information available to management as of September 30, 1998, but
may not necessarily be indicative of the amounts that the Fund
could realize in a current market exchange. The use of different
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
assumptions and/or estimation methodologies may have a material
effect on the estimated fair value amounts.
The carrying amounts of the following items are reasonable
estimates of fair value: cash and cash equivalents; accounts
payable and accrued expense; rents received in advance; and due to
affiliates.
Organization Costs
Organization costs represent costs incurred in connection with
the organization and formation of the Fund. Organization costs are
amortized over a period of five years using the straight line
method.
(2) RELATED PARTY TRANSACTIONS
The Fund is required to pay certain fees to the Advisor or its
affiliates pursuant to various agreements set forth in the
Prospectus and described below.
Pursuant to the terms of the Selling Agreement, Brauvin
Securities, Inc. ("BSI"), an affiliate of the Advisor, is entitled
to placement charges of 5.50% of the gross proceeds of the Fund's
offering, all of which will be re-allowed to placement agents. In
addition, BSI is entitled to a marketing and due diligence expense
allowance fee equal to 0.50% of the gross proceeds to reimburse
marketing and due diligence expenses, some portion of which may be
re-allowed to placement agents.
In 1997, pursuant to the terms of the Prospectus, the Advisor was
reimbursed for certain expenses related to the costs of sales and
informational meetings.
Pursuant to the terms of the Advisory Agreement, the Advisor is
entitled to a non-accountable expense allowance in an amount equal
to 2.5% of the gross proceeds of the offering.
Pursuant to the terms of the Advisory Agreement, the Advisor is
entitled to receive acquisition fees for services rendered in
connection with the selection or acquisition of any property
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
however designated as real estate commissions, selection fees,
development fees, or any fees of a similar nature. Such
acquisition fees may not exceed the lesser of (a) such compensation
as is customarily charged in arm's-length transactions by others
rendering similar services as an ongoing business in the same
geographic locale and for comparable properties or (b) 3.5% of the
gross proceeds of the Fund's offering. The Fund will also
reimburse the Advisor an amount estimated to be 0.75% of the gross
proceeds of the offering in connection with any expenses attendant
to the acquisition of properties whether or not acquired.
Pursuant to the terms of the Advisory Agreement, the Advisor is
entitled to an annual advisory fee, payable monthly, in an amount
equal to 0.60% of the gross proceeds during the offering. Following
the termination of the offering, the annual advisory fee is an
amount equal to the greater of: (i) .60% of gross proceeds, or
(ii) $175,000.
Pursuant to the terms of the Management Agreement, Brauvin
Management Company ("BMC"), an affiliate of the Advisor, provides
leasing and re-leasing services to the Fund in connection with the
management of the Fund's properties. The property management fee
payable to an affiliate of the Advisor shall not exceed the lesser
of: (a) fees which are competitive for similar services in the
geographical area where the properties are located; or (b) 1% of
the gross revenues of each property.
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
Fees, commissions and other expenses incurred and payable to the
Advisor or its affiliates for the nine months ended September 30,
1998 and 1997 were as follows:
1998 1997
Selling commissions $ -- $128,130
Due diligence fees -- (615)
Advisory fees 131,250 131,251
Dividend
reinvestment fees 987 1,096
Management fees 9,849 9,321
Nonaccountable fees 2,364 2,663
Acquisition fees
and expenses -- 22,591
$144,450 $294,437
As of September 30, 1998 the Fund made all payments to affiliates
except for $53,914 for advisory fees, $1,265 for management fees
and $326 for dividend reinvestment fees and $727 for nonaccountable
fees.
(3) DIVIDENDS
Below is a table summarizing the dividends declared:
Annualized
Declaration Record Payment Dividend
Date(a) Dates Date Rate Amount
5/2/96 1/1/96-3/31/96 5/15/96 7% $216,247
8/1/96 4/1/96-6/30/96 8/15/96 7% 227,068
10/31/96 7/1/96-9/30/96 11/15/96 7% 229,532
1/31/97 10/1/96-12/31/96 2/15/97 7% 229,517
5/8/97 1/1/97-3/31/97 5/15/97 7% 224,034
8/7/97 4/1/97-6/30/97 8/15/97 7% 224,907
11/6/97 7/1/97-9/30/97 11/15/97 7% 227,999
1/29/98 10/1/97-12/31/97 2/15/98 7% 227,354
5/7/98 1/1/98-3/31/98 5/15/98 6.5% 206,711
8/6/98 4/1/98-6/30/98 8/15/98 6.75% 217,606
11/2/98 7/1/98-9/30/98 11/15/98 6.2% 202,531
(a) Dividends were declared on a daily basis.
<PAGE>
BRAUVIN NET LEASE V, INC.
(a Maryland corporation)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
The dividend reinvestment plan ("Reinvestment Plan") is
available to the stockholders so that stockholders, if they so
elect, may have their distributions from the Fund invested in
shares. The price per share purchased through the Reinvestment
Plan shall equal $10 per share with the purchase of partial shares
allowed. The Fund has registered 200,000 shares for distribution
solely in connection with the Reinvestment Plan. Funds raised
through the Reinvestment Plan will be utilized to: (i) purchase
shares from existing stockholders who have notified the Fund of
their desire to sell their shares or held for subsequent
redemptions; or (ii) purchase additional properties. The
stockholders electing to participate in the Reinvestment Plan will
be charged a service charge, in an amount equal to 1% of their
distributions, which will be paid to an affiliate of the Advisor to
defray the administrative costs of the Reinvestment Plan. At
September 30, 1998, there were approximately 49,288 shares
purchased through the Reinvestment Plan and approximately 43,785
shares liquidated.
In order to qualify as a REIT, the Fund is required to distribute
dividends to its Stockholders in an amount at least equal to 95% of
REIT taxable income of the Fund. The Fund intends to make
quarterly distributions to satisfy all annual distribution
requirements.
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of
Operations.
General
Certain statements in this Quarterly Report that are not
historical fact constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Discussions containing forward-looking statements may be found in
this section. Without limiting the foregoing, words such as
"anticipates," "expects," "intends," "plans" and similar
expressions are intended to identify forward-looking statements.
These statements are subject to a number of risks and
uncertainties, including, without limitation, tenant defaults,
which could materially decrease the Fund's rental income. Actual
results could differ materially from those projected in the
forward-looking statements. The Fund undertakes no obligation to
update these forward-looking statements to reflect future events or
circumstances.
Year 2000
In 1997, the Fund initiated the conversion from its existing
accounting software to a program that is year 2000 compliant. This
conversion is anticipated being completed by December 31, 1998.
Management has determined that the year 2000 issue will not pose
significant operational problems for its computer system. All
costs associated with this conversion are being expensed as
incurred, and are not material.
Also in 1997, management of the Fund initiated formal
communications with all of its significant third party vendors,
service providers and financial institutions to determine the
extent to which the Fund is vulnerable to those third parties
failure to remedy their own year 2000 issue. There can be no
guarantee that the systems of these third parties will be timely
converted and would not have an adverse effect on the Fund.
Liquidity and Capital Resources
As of September 30, 1998, the Fund had received $11,637,164 in
connection with the sale of shares, net of selling commissions and
other offering costs, including $200,000 paid by the Advisor for a
share of stock as disclosed in the Prospectus, and liquidations of
$437,852.
The Fund acquired one property during the year ended December 31,
1994 for $900,000 plus closing costs, acquired five properties
during the year ended December 31, 1995 for $6,511,400 plus closing
costs, acquired two properties during the year ended December 31,
1996 for $2,025,000 plus closing costs and acquired one property
during the year ended December 31, 1997 for $1,450,000 plus closing
costs.
Upon the acquisition of the property purchased during the year
ended December 31, 1997, the Fund has invested all the proceeds of
the offering allocable to investments in real estate. The Fund
has no material capital commitments. In the opinion of management
of the Fund, each property is adequately covered by insurance.
Compliance with 95% REIT taxable income test
The Fund is required, under the Code, to make distributions of
an amount not less than 95% of its REIT taxable income during the
year.
In accordance with the Fund's intent to maintain its
qualification as a REIT under the Code, the Fund intends to manage
its dividend distributions to approximate earnings during the year
to which they relate.
Results of Operations for the nine months ended September 30, 1998
and 1997. (Amounts rounded to nearest $000's)
The Fund generated net income of $610,000 for the nine months
ended September 30, 1998, as compared to net income of $617,000 for
the same nine month period in 1997. The reasons for the decrease
in net income are set forth below.
Total income for the nine months ended September 30, 1998 was
$1,000,000, as compared to $1,020,000 for the period ended
September 30, 1997, a decrease of $20,000. The decrease in total
income primarily relates to a one time reversal of deferred rent
receivable due to the novation of the main lease at the Country
Harvest Buffet.
For the nine months ended September 30, 1998, total expenses were
$390,000 as compared to $403,000 for the same period in 1997, a
decrease of $13,000. The decrease was due primarily to a decline
of $33,000 in acquisition fees expense as a result of the January,
1997 purchase of the Fund's last property. This decrease in
acquisition expense was partially offset by an increase in bad debt
expense as a result of the bankruptcy of the original tenant at the
Country Harvest Buffet property (as detailed more fully below).
The Country Harvest Buffet tenant discontinued its operations in
mid-June 1997 as a result of new competition from a new and larger
buffet restaurant opening in the immediate area. The tenant
continued to pay its rent on a timely basis through the end of
1997. In January, 1998, Country Harvest Buffet Restaurants, Inc.
filed for protection from its creditors under Chapter 11 of the
United States Bankruptcy Code. However, prior to this filing, the
Fund agreed to a sublease with another buffet restaurant, Moon
Buffet. To avoid complications of a rejection of the main lease
under bankruptcy law, the Fund agreed a novation of the main lease.
Moon Buffet opened for business mid-April 1998.
The tenant of the On The Border property discontinued its
operations on May 29, 1996. Brinker Texas, L.P., the property's
lease guarantor (and a wholly-owned subsidiary of Brinker
International), has stated its intention to honor the lease and
cooperate with the Fund to cause the property to be re-occupied.
In addition the adjacent highway is in the process of being widened
which has resulted in the condemnation of a portion of the frontage
of the parcel owned by the Fund. Per the purchase contract the
condemnation damages were paid to HMG/Courtland Properties (the
"Developer"). The Fund was compensated with an adjacent piece of
land owned by the Developer. The Fund is working with Brinker
International, in order to locate a subtenant for this location.
The Fund does not currently anticipate that this situation will
adversely affect the Fund's cash flow, as rent is currently being
paid on the lease.
Results of Operations for the three months ended September 30, 1998
and 1997. (Amounts rounded to nearest $000's)
Results of operations for the three months ended September 30,
1998 reflected net income of $236,000 compared to net income of
$223,000 for the three months ended September 30, 1997, an increase
of approximately $13,000.
Total income for the three months ended September 30, 1998 was
$351,000 as compared to $340,000 for the period ended September 30,
1997, an increase of $11,000. The increase in total income was a
result of an increase in rental income as a result of the increased
base rent associated with the Moon Buffet novation, (base rent at
this property was increased in lieu of percentage rent potential
which was not being realized).
Total expenses for the three months ended September 30, 1998 were
$115,000 as compared to $117,000 for the period ended September 30,
1997 a decrease of approximately $2,000. The $2,000 decrease was
due primarily to a decrease in general and administrative expense
of $8,000. The decrease in general and administrative expense is
primarily the result of lower costs associated with certain
property related legal issues in 1998 when compared to 1997.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings.
None.
ITEM 2. Changes in Securities.
None.
ITEM 3. Defaults Upon Senior Securities.
None.
ITEM 4. Submission of Matters to a Vote of Security
Holders.
None.
ITEM 5. Other Information
ITEM 6. Exhibits and Reports on Form 8-K.
(a) Exhibit 27. Financial Data Schedule
(b) None
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BRAUVIN NET LEASE V, INC.
BY: /s/ James L. Brault
James L. Brault
Executive Vice President and Secretary
DATE: November 16, 1998
BY: /s/ Thomas E. Murphy
Thomas E. Murphy
Chief Financial Officer
DATE: November 16, 1998
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 282,926
<SECURITIES> 0
<RECEIVABLES> 247,254
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 11,613,965 <F1>
<DEPRECIATION> 571,822
<TOTAL-ASSETS> 11,575,240
<CURRENT-LIABILITIES> 146,254
<BONDS> 0
0
0
<COMMON> 11,428,986 <F2>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,575,240
<SALES> 0
<TOTAL-REVENUES> 1,000,361 <F3>
<CGS> 0
<TOTAL-COSTS> 390,403 <F4>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 609,958
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE [LAND AND
BUILDING]
<F2> "COMMON" REPRESENTS TOTAL STOCKHOLDERS EQUITY
<F3> "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER
INCOME
<F4> "TOTAL COSTS" REPRESENTS TOTAL EXPENSES
</FN>
</TABLE>
