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 0-7239
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)
(561) 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, 1996
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Statements of Financial Condition, as of September 30, 1996
(Unaudited) and December 31, 1995 . . . . . . . . . . . . . 3
Statements of Operations, for the three month and nine month
periods ended September 30, 1996 and 1995 (Unaudited) . . . 4
Statements of Cash Flows, for the three months ended
September 30, 1996 and 1995 (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,
1996 1995
(Unaudited)
ASSETS
Investment in real estate
Land $ - $ 2,426,149
Land improvements - 315,017
Buildings and improvements - 10,732,387
Construction-in-progress - 640,459
- 14,114,012
Less accumulated depreciation - 7,812,077
Net investment in real estate - 6,301,935
Other assets
Cash 3,338 16,345
Investments, at costs which
approximates market 10,244,691 2,219,310
Accounts receivable 368,204 10,948
Replacement and repair reserves - 34,197
Prepaid insurance and property taxes 367 131,104
Escrow deposits and other assets 18,950 92,796
Deferred charges net of accumulated
amortization of $ - and $20,824,
respectively - 77,415
Total other assets 10,635,550 2,582,115
Total assets $ 10,635,550 $ 8,884,050
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ - $ 3,774,776
Accounts payable 149,239 80,252
Accrued liabilities 1,403 165,244
Accrued liabilities to affiliates 1,466,191 18,831
Tenants' security deposits and other
liabilities - 145,457
Total liabilities 1,616,833 4,184,560
Partners' capital
Limited Partners, 30,000 units 9,005,983 4,691,695
General Partner, 1,594 units 726,434 721,495
Less subscriptions receivable (713,700) (713,700)
Total Partner's capital 9,018,717 4,699,490
Total liabilities and
Partners' capital $ 10,635,550 $ 8,884,050
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,
1996 1995 1996 1995
Revenues
Rents and other tenant
charges $ 1,037,179 $ 1,063,906 $ 3,157,158 $ 3,115,872
Other interest 85,842 95,652 227,603 250,107
1,123,021 1,159,558 3,384,761 3,365,979
Expenses
Provision for investment
management fee due affiliate 800,000 - 800,000 -
Maintenance, custodial salaries
and related expenses 133,134 93,453 327,176 281,479
Real estate management fee 55,980 55,432 171,277 167,573
Property taxes 72,194 69,741 210,740 209,222
Depreciation and amortization 240,604 156,080 560,321 471,000
Insurance 58,863 34,644 129,531 103,932
Utilities 197,191 249,545 658,677 718,561
Repairs and maintenance 167,549 182,986 454,224 526,870
Legal and accounting 4,585 617 18,112 16,683
Interest 70,400 93,523 237,091 292,160
Administrative and other 84,990 87,615 265,648 264,636
1,885,490 1,023,636 3,832,797 3,052,116
Income (loss) from
existing assets (762,469) 135,922 (448,036) 313,863
Operations of disposed
properties - 48,520 - 193,404
Income from operations (762,469) 184,442 (448,036) 507,267
Gain from insurance proceeds 280,660 - 280,660 -
Gain on sale of properties
and note payoffs 5,371,235 885,121 5,371,235 885,121
Net income $ 4,889,426 $ 1,069,563 $ 5,203,859 $ 1.392,388
Allocated to
Limited partners, 30,000
units $ 4,883,891 $ 1,068,352 $ 5,197,968 $ 1,390,812
General partners, 1,594
units 5,535 1,211 5,891 1,567
$ 4,889,426 $ 1,069,563 $ 5,203,859 $ 1,392,388
Net income per limited
partnership unit based
on 30,034 average
units outstanding $ 162.80 $ 35.61 $ 173.27 $ 46.36
MULTIVEST REAL ESTATE FUND, LTD., SERIES V
(a Michigan limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months
Ended September 30
1996 1995
Operating Activities
Net income $ 5,203,859 $ 1,392,388
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 473,354 465,561
Amortization of discount on mortgage
note receivable - (213,952)
Gain from insurance proceeds (280,660) -
Gain on sale (5,371,235) (885,121)
Decrease in deferred charges 77,415 4,189
Increase in accounts receivable (357,256) (54,939)
Decrease in prepaid expenses 130,737 107,313
Decrease (increase) in escrow deposits 73,846 (221,780)
Decrease in replacement and repair reserves 34,197 595
Increase in accounts payable 68,987 7,417
(Decrease) increase in accrued liabilities (163,841) 109,037
(Decrease) increase in security deposits (145,457) 10,661
Increase in accrued liabilities to affiliates 1,447,360 355
Decrease in unfunded distributions payable - (655,610)
Net cash provided by operating
activities 1,191,306 66,114
Investing Activities
Net proceeds form sale of properties 11,570,000 1,784,883
Insurance proceeds 280,660 -
Capital improvements to real estate (370,184) (174,734)
Payments received on wrap-around mortgage
notes receivable - 213,952
Net cash provided by
investing activities 11,480,476 1,824,101
Financing Activities
Distributions to Partners (884,632) (189,564)
Mortgage notes payoffs on sold properties (3,311,806) -
Principal payments on mortgage notes payable (462,970) (802,252)
Net cash used in financing activities (4,659,408) (991,816)
Increase in cash and cash equivalents 8,012,374 898,399
Cash and cash equivalents - January 1 2,235,655 3,202,022
Cash and cash equivalents - September 30 $10,248,029 $ 4,100,421
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 1995 financial statements to
conform to the presentation of 1996 results of operations.
MULTIVEST REAL ESTATE FUND, LTD., SERIES V
(a Michigan limited partnership)
September 30, 1996
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
On September 24, 1996, the Partnership completed the sale of its remaining
properties, Greenhaven Village Apartments, Manitoba Apartments, and Rock Island
Apartments. The Partnership is now in the process of completing its liquidation
and dissolution program.
Greenhaven Village Apartments was sold for $7,000,000 less closing costs,
proration of income and expenses, a real estate commission paid to an affiliate
of the Corporate General Partner of $365,000, and payoff of the underlying
mortgage note. The Partnership recognized a gain on sale in the amount of
$3,102,519.
Manitoba Apartments was sold for $3,000,000 less closing costs, proration of
income and expenses, a real estate commission paid to an affiliate of the
Corporate General Partner of $155,000, and payoff of the underlying mortgage
note. The Partnership recognized a gain on sale in the amount of $1,413,104.
Rock Island Apartments was sold for $2,200,000 less closing costs, proration of
income and expenses, a real estate commission paid to an affiliate of the
Corporate General Partner of $110,000, and payoff of the underlying mortgage
note. The Partnership recognized a gain on sale in the amount of $1,136,272.
These properties were sold along with three additional properties owned by other
MultiVest partnerships on separate sales contracts to a purchaser not affiliated
with the Partnership or its General Partner. Your General Partner believes that
the terms and conditions of the sales were favorable to the Partnership.
On August 13, 1996, the partnership received insurance proceeds in the amount of
$280,660 related to storm damage which occurred in 1995. Such funds were used to
reconstruct the property.
The Partnership's total revenues decreased $36,537 or 3% for the three month
period ended September 30, 1996, and remained relatively constant for the nine
months ended September 30, 1996, as compared to the same periods of the prior
year. Rents and other tenant charges decreased $26,727 or 3% for the quarter
due primarily to the rent prorations upon the sale of the Partnership
properties.
Total expenses increased $861,854 or 84% and $780,681 or 26% for the three month
and nine month periods ended September 30, 1996, respectively. In accordance
with the partnership agreement, a provision for investment management fee in the
amount of $800,000 due the corporate General Partner has been recorded for the
period ending September 30, 1996. Depreciation and amortization costs increased
$84,524 or 54% for the three months, and $89,321 or 19% for the nine months
ended September 30, 1996 due primarily to the full amortization of refinancing
costs of Greenhaven Village and Rock Island Apartments. Interest expense
decreased $23,123 or 25% and $55,069 or 19% 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.
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 $884,632 or $28.00 per unit being
paid during the nine months ended September 30, 1996.
MULTIVEST REAL ESTATE FUND, LTD., SERIES V
(a Michigan limited partnership)
September 30, 1996
PART II - OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(b) No report on Form 8-K has been filed during the quarter ended
September 30, 1996.
SIGNATURES
MULTIVEST REAL ESTATE FUND, LTD.,
Series V, a Michigan Limited
Partnership,
(Registrant)
By: MULTIVEST REAL ESTATE, INC.
a Delaware corporation
Its: Corporate General Partner
Date: NOVEMBER 14, 1996 RICHARD L. DAVIS
Richard L. Davis
President -
Chief Executive Officer
Date: NOVEMBER 14, 1996 JOHN J. KAMMERER
John J. Kammerer
Principal Accounting Officer