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, 1995 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 0-7239
MULTIVEST REAL ESTATE FUND, LTD., SERIES V
(Exact name of registrant as specified in its charter)
Michigan 38-6258639
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
6100 Glades Road, Suite 205
Boca Raton, Florida 33434
(Address of principal executive offices) (Zip Code)
(407) 487-6700
(Registrant's telephone number, including area code)
(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 report), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
MULTIVEST REAL ESTATE FUND, LTD., SERIES V
COMMISSION FILE NUMBER 0-7239
FORM 10-Q
September 30, 1995
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Statements of Financial Condition, as of September 30, 1995
(Unaudited) and December 31, 1994...............................3
Statements of Operations, for the three months and the nine months
ended September 30, 1995 and 1994 (Unaudited)...................4
Statements of Cash Flows, for the nine months ended
September 30, 1995 and 1994 (Unaudited).........................5
Notes to Financial Statements (Unaudited)............................6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.............................7
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K.....................................8
ITEM 1. FINANCIAL STATEMENTS
MULTIVEST REAL ESTATE FUND, LTD., SERIES V
(a Michigan limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
September 30, December 31,
1995 1994
(Unaudited)
ASSETS
Investment in real estate
Land $ 2,426,149 $ 2,426,149
Land improvements 315,017 315,017
Buildings and improvements 11,583,709 11,408,970
14,324,875 14,150,136
Less accumulated depreciation 8,400,545 7,934,984
Net investment in real estate 5,924,330 6,215,152
Wrap-around mortgage notes receivable - 1,969,157
Less unamortized discount - (414,072)
Allowance for losses on wrap-around mortgage
notes receivable - (655,318)
- 899,767
Other assets
Cash 3,603 79,047
Investments, at costs which
approximates market 4,096,818 3,122,975
Accounts receivable 75,614 20,675
Replacement and repair reserves 44,491 45,086
Prepaid insurance and property taxes 22,644 129,957
Escrow deposits and other assets 311,609 89,829
Deferred charges net of accumulated
amortization of $17,199 and
$13,573, respectively 79,227 83,416
Total other assets 4,634,006 3,570,985
Total assets $ 10,558,336 $ 10,685,904
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ 3,940,787 $ 4,743,039
Accounts payable 80,151 72,734
Accrued liabilities 262,383 153,346
Accrued liabilities to affiliates 18,824 18,469
Tenants' security deposits and other
liabilities 143,345 132,684
Unfunded distributions payable - 655,610
Total liabilities 4,445,490 5,775,882
Partners' capital
Limited Partners, 30,000 units 6,103,565 4,902,113
General Partners, 1,594 units 722,981 721,609
Less subscriptions receivable (713,700) (713,700)
Total Partners' capital 6,112,846 4,910,022
Total liabilities and
Partners' capital $ 10,558,336 $ 10,685,904
3
MULTIVEST REAL ESTATE FUND, LTD. SERIES V
(a Michigan limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Revenues
Rents and other tenant
charges $ 1,063,906 $ 1,030,811 $ 3,115,872 $ 3,053,531
Other income 95,652 168,584 250,107 404,652
1,159,558 1,199,395 3,365,979 3,458,183
Expenses
Maintenance, custodial
salaries and related
expenses 93,453 98,014 281,479 287,553
Real estate management fee 55,432 54,836 167,573 166,393
Property taxes 69,741 69,741 209,222 209,222
Depreciation and
amortization 156,080 204,423 471,000 612,377
Insurance 34,644 35,910 103,932 106,650
Utilities 249,545 243,831 718,561 710,340
Repairs and maintenance 182,986 178,565 526,870 495,935
Legal and accounting 617 7,680 16,683 16,099
Interest 93,523 104,427 292,160 364,769
Administrative and other 87,615 78,575 264,636 247,871
1,023,636 1,076,002 3,052,116 3,217,209
Income from existing assets 135,922 123,393 313,863 240,974
Operations of disposed
properties 48,520 (370,235) 193,404 (100,518)
Income (loss) from
operations 184,442 (246,842) 507,267 140,456
Gain on sale of properties
and note payoffs 885,121 4,356,201 885,121 4,724,719
Net income $ 1,069,563 $ 4,109,359 $ 1,392,388 $ 4,865,175
Allocated to
Limited partners,
30,000 units $ 1,068,352 $ 4,104,707 $ 1,390,812 $ 4,859,667
General partners,
1,594 units 1,211 4,652 1,576 5,508
$ 1,069,563 $ 4,109,359 $ 1,392,388 $ 4,865,175
Net income per limited
partnership unit based
on 30,034 average
units outstanding $ 35.61 $ 136.82 $ 46.36 $ 161.99
4
MULTIVEST REAL ESTATE FUND, LTD. SERIES V
(a Michigan limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months
Ended September 30,
1995 1994
Operating Activities
Net income $ 1,392,388 $ 4,865,175
Adjustments to reconcile net income
to net cash provided by operating activities:
Decrease in deferred interest income - 1,096,200
Depreciation 465,561 435,450
Amortization of discount on mortgage note
receivable (213,952) (240,696)
Gain on sale (885,121) (4,724,719)
Decrease (increase) in deferred charges 4,189 (96,298)
(Increase) decrease in accounts receivable (54,939) 38,494
Decrease in prepaid expenses 107,313 86,386
Increase in escrow deposits (221,780) (179,984)
Decrease in replacement and repair reserves 595 -
Increase (decrease) in accounts payable 7,417 (53,797)
Increase in accrued liabilities 109,037 23,192
Increase (decrease) in security deposits 10,661 (49,512)
Decrease in accrued liabilities to affiliates 355 -
Decrease in unfunded distributions payable (655,610) -
Net cash provided by operating
activities 66,114 1,199,891
Investing Activities
Proceeds from sale of properties 1,784,883 11,905,000
Capital improvements to real estate (174,734) (222,671)
Payments received on wrap-around
mortgage notes receivable 213,952 240,696
Net cash provided by investing activities 1,824,101 11,923,025
Financing Activities
Distributions to Partners (189,564) (3,317,370)
Funds received on Rock Island refinancing - 2,100,000
Payoff of Rock Island mortgage note payable - (2,096,744)
Mortgage notes payoffs on sold properties - (3,378,263)
Principal payments on mortgage notes payable (802,252) (630,122)
Net cash used in financing activities (991,816) (7,322,499)
Increase in cash and cash equivalents 898,399 5,800,417
Cash and cash equivalents - January 1 3,202,022 1,599,895
Cash and cash equivalents - September 30 $ 4,100,421 $ 7,400,312
5
MULTIVEST REAL ESTATE FUND, LTD. SERIES V
(a Michigan limited partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
The financial statements reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results of the interim periods
presented. It is suggested that these financial statements be read in
conjunction with the financial statements and the notes included in the
Partnership's latest annual report on Form 10-K. The results of operations for
interim periods should not be considered as indicative of the results to be
expected for a full year.
Reclassifications
Certain reclassifications have been made in the 1994 and 1995 financial
statements to conform to the presentation of 1995 results of operations.
6
MULTIVEST REAL ESTATE FUND, LTD. SERIES V
(a Michigan limited partnership)
September 30, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The current operations of the Partnership are centered around the Partnership's
three residential apartment complexes.
The Partnership's total revenues decreased $39,837 or 3% for the three month
period ended September 30, 1995, and by $92,204 or 3% for the nine months ended
September 30, 1995, as compared to the same periods of the prior year. Other
income decreased for both periods in 1995 by $72,932 or 43%, and $154,545 or
38%, respectively, due primarily to the interest income recognition, during
1994, on General Partner notes.
Total expenses decreased $52,366 or 5%, and $165,093 or 5% for the three and
nine month periods ended September 30, 1995, respectively, as compared to the
same periods of the prior year. Depreciation and amortization costs decreased
$48,343 or 24% for the three months, and $141,377 or 23% for the nine months
ended September 30, 1995, due primarily to the tangible personal property at
Greenhaven Village Apartments having become fully depreciated. Interest expense
decreased $10,904 or 10% and $72,609 or 20% for the three and nine month
periods, respectively, as compared to the same periods of the prior year as a
result of continued principal amortization of the Partnership's mortgage notes
payable.
On May 5, 1995, the Fort Worth, Texas area suffered a severe hailstorm. As a
result of this storm, Manitoba Apartments sustained structural damage including
roof damage, interior damage, and broken windows. It is anticipated that
insurance proceeds will be substantially sufficient to cover the cost of
repairs.
On August 31, 1995, the Partnership received $1,571,039 in repayment of the
Royal Oak Apartments mortgage note receivable. The amount represents the
difference between (a) the remaining principal due on the wrap-around mortgage
note receivable ($1,784,883) and; (b) the remaining principal and accrued
interest on the underlying mortgage note payable with respect to this property
($213,844). The Partnership recognized gain of $885,121 on payoff of this
note.
The liquidity of the Partnership is dependent upon the timely receipt of cash.
The Partnership has no credit facilities currently in place. Limited partners
have no obligation to provide additional funds in excess of their initial cash
contributions. In order to protect the Partnership in the event of a reduction
of cash flow, management closely monitors the Partnership's cash position and,
when necessary, reserves adequate funds to continue to operate the Partnership
in the foreseeable future. Funds reserved are generally invested in short-term
investments. The Partnership endeavors to maintain adequate liquidity on a
short-term basis through its cash flow and reserve policies. However, there
can be no assurance as to the continued performance of the Partnership's rental
properties. An unanticipated decline in the performance of the Partnership's
rental properties, could have a negative effect upon the long-term liquidity of
the Partnership.
Funds generated from operations and mortgage notes receivable on sold properties
have primarily been utilized to meet debt service obligations and, when
possible, to distribute funds to the partners. Funds in excess of Partnership
reserves resulted in distributions totaling $189,564 or $6.00 per unit being
paid during the nine months ended September 30, 1995.
7
MULTIVEST REAL ESTATE FUND, LTD. SERIES V
(a Michigan limited partnership)
September 30, 1995
PART II - OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(a) Exhibits:
(i) Exhibit 27 - Financial Data Schedule
(b) No report on Form 8-K has been filed during the quarter ended
September 30, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MULTIVEST REAL ESTATE FUND, LTD.
SERIES V, a Michigan Limited
Partnership
(Registrant)
By: MULTIVEST REAL ESTATE, INC.,
a Delaware corporation
Its: Corporate General Partner
RICHARD L. DAVIS
Date: November 13, 1995
Richard L. Davis
President -
Chief Executive Officer
JOHN J. KAMMERER
Date: November 13, 1995
John J. Kammerer
Principal Accounting Officer
8