10-Q 1 d82598e10-q.txt FORM 10-Q FOR QUARTER ENDED MARCH 31, 2000 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2000 ------------------------------------------------- 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 0-8914 ---------- UNIVERSITY REAL ESTATE PARTNERSHIP V -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) California 95-3240567 -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3811 Turtle Creek Blvd, Suite 1850, Dallas, Texas 75219 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) (214) 651-4000 -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) -------------------------------------------------------------------------------- (Former address, 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 --- --- All of the registrant's 34,253 Limited Partnership Units are held by non-affiliates of the registrant. The aggregate market value of units held by non-affiliates is not determinable since there is no public trading market for Limited Partnership Units. 2 UNIVERSITY REAL ESTATE PARTNERSHIP V INDEX TO FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2000

3 PART I - FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS UNIVERSITY REAL ESTATE PARTNERSHIP V CONDENSED CONSOLIDATED BALANCE SHEETS

The accompanying notes are an integral part of these condensed consolidated financial statements 3 4 UNIVERSITY REAL ESTATE PARTNERSHIP V CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

The accompanying notes are an integral part of these condensed consolidated financial statements 4 5 UNIVERSITY REAL ESTATE PARTNERSHIP V CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

The accompanying notes are an integral part of these condensed consolidated financial statements 5 6 UNIVERSITY REAL ESTATE PARTNERSHIP V NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2000 are not necessarily indicative of the results that may be expected for the year ending December 31, 2000. For further information, refer to the consolidated financial statements and footnotes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 1999. The December 31, 1999 consolidated balance sheet was derived from audited numbers. Certain reclassifications have been made to the 1999 balances to conform to the 2000 presentation. NOTE 2 - SALE OF WASHINGTON TOWNE APARTMENTS On March 31, 1999 the Partnership sold Washington Towne Apartments to a third party for $4,100,000. Net cash received totaled $1,914,994 and was placed into escrow until a like-kind apartment complex could be acquired on a tax-free basis. The Partnership recognized a gain on the sale of Washington Towne Apartments of $2,212,935. A portion of the transaction was accounted for as a non-cash transaction in the accompanying condensed consolidated statements of cash flow. The transaction was recorded as follows: Net cash received $ 1,914,994 Real estate investment (1,667,797) Accrued interest 275,369 Deferred borrowing costs (94,100) Other assets, liabilities and expenses 113,312 Mortgage notes 1,671,157 ----------- Gain $ 2,212,935 ===========

NOTE 3 - REVENUE RECOGNITION In 1999, the staff of the Securities and Exchange Commission issued Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements". SAB No. 101 summarizes some of the staff's interpretations of the application of generally accepted accounting principles to revenue recognition. The Company will adopt SAB No. 101 when required in the fourth quarter of 2000. Management believes the adoption of SAB No. 101 will not have a significant affect on its financial statements. 6 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Partnership's net operating loss for the three months ended March 31, 2000 was $317,830. The net operating loss for the same period in 1999 was $434,813. Total revenues for the three months ended March 31, 2000 were $789,573, versus $253,198 for the same period in 1999 and total expenses for three months ended March 31, 2000 were $1,107,403, versus $688,011 for the same period in 1999. The increase in total revenues and total expenses in 2000 is primarily attributable to the acquisition of Superstition Park Apartments, which has 376 units versus Washington Towne Apartments, which had 148 units. During the three months ended March 31, 2000, the Partnership recorded an increase in cash of $311,487 versus an increase of $1,875,262 for the same period in 1999. Cash and cash equivalents increased from the year ended December 31, 1999 due to a reduction of approximately $152,000 in prepaid expenses and other assets and an increase in mortgage notes payable of $175,000. The collection of the $152,000 was attributed to a refund related to the mortgage refinancing which occurred at the end of 1999 on Superstition Park Apartments. The outstanding $175,000 of the non-recourse general obligation promissory notes in the amount of $4,050,000 was also collected during the first quarter 2000. The increase of cash in 1999 was related to the sale of Washington Towne Apartments. The condensed consolidated statements of cash flows included an increase in cash provided by operating activities of $193,672 primarily due to an increase in rental revenues at Superstition Park Apartments. Should operations deteriorate and present resources not be adequate for current needs, the Partnership has no outside lines of credit on which to draw for its working capital needs. Neither the General Partner and its affiliates nor Meridian Realty Advisors, Inc. have any obligation to provide financial support to the Partnership. Accordingly, continued operation of the Partnership is dependent on the Partnership being able to generate cash from operations or sale of its remaining operating property or negotiated reductions in requirements related to outstanding debt obligations. PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits. Exhibit Number Description 3. and 4. Limited Partnership Agreement (Incorporated by reference to Registration Statement No. 2-74914 on Form S-11 filed by Registrant). 11. Statement regarding computation of Net Loss per Limited Partnership Unit: Net Loss per Limited Partnership Unit is computed by dividing net loss allocated to the Limited Partners by the number of Limited Partnership Units outstanding. Per unit information has been computed based on 34,253 Limited Partnership Units outstanding in 2000 and 1999. 27. Financial Data Schedule (filed only electronically with the SEC) (b) Reports on Form 8-K: September 11, 2000, change in client-auditor relationship. 7 8 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. UNIVERSITY REAL ESTATE PARTNERSHIP V By: UNIVERSITY ADVISORY COMPANY General Partner By: OS GENERAL PARTNER COMPANY 12/11/00 By: /s/ Curtis R. Boisfontaine, Jr. ----------------------------- ---------------------------------- Date Curtis R. Boisfontaine, Jr. President, Principal Executive Officer and Director OS General Partner Company 12/11/00 By: /s/ David K. Ronck ----------------------------- ---------------------------------- Date David K. Ronck Vice President and Chief Accounting Officer 8 9 INDEX TO EXHIBITS

UNIVERSITY REAL ESTATE PARTNERSHIP V 10-Q