FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2002
Commission File Number: 0-16561
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - V
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(Exact name of registrant as specified in its charter)
Delaware 16-1275925
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(State of organization) (IRS Employer Identification No.)
2350 North Forest Road, Suite 12A,Getzville, New York 14068
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(Address of principal executive offices)
(716) 636-0280
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(Registrant's telephone number)
Indicate by a 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 [ ]
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
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June 30, December 31,
2002 2001
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Assets
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Cost of property and equipment, all held for sale $ 30,050,293 30,005,949
Less accumulated depreciation 12,371,448 12,371,448
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17,678,845 17,634,501
Cash and equivalents 532,449 662,069
Other assets 2,663,611 2,521,519
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Total assets $ 20,874,905 20,818,089
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Liabilities and Partners' Equity
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Mortgage loans payable 19,837,560 19,972,850
Accounts payable and accrued expenses 415,889 295,606
Other liabilities 219,999 220,975
Partners' equity 401,457 328,658
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Total liabilities and partners' equity $ 20,874,905 20,818,089
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Condensed Consolidated Statements of Operations
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Three months ended June 30, Six months ended June 30,
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2002 2001 2002 2001
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Rental income $ 1,006,626 1,120,101 1,989,830 2,217,687
Other income 220,422 234,563 419,785 439,326
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Total income 1,227,048 1,354,664 2,409,615 2,657,013
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Property operating costs 530,722 536,267 1,058,678 1,080,287
Administrative expense - affiliates 157,594 196,487 300,211 325,014
Other administrative expense 94,342 55,451 174,038 90,720
Interest 402,461 413,709 803,889 819,963
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Total expenses 1,185,119 1,201,914 2,336,816 2,315,984
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Net income $ 41,929 152,750 72,799 341,029
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Net income per limited partnership unit $ 1.94 7.05 3.36 15.75
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Weighted average limited partnership units 21,003 21,003 21,003 21,003
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Condensed Consolidated Statements of Cash Flows
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Six months ended June 30,
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2002 2001
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Cash provided (used) by:
Operating activities:
Net income $ 72,799 341,029
Adjustments - other, principally changes in other assets and liabilities (22,785) (71,173)
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Net cash provided by operating activities
50,014 269,856
Investing activities - additions to property and equipment (44,344) (180,191)
Financing activities - principal payments on mortgage loans (135,290) (125,388)
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Net decrease in cash and equivalents (129,620) (35,723)
Cash and equivalents at beginning of period 662,069 962,300
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Cash and equivalents at end of period $ 532,449 926,577
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Notes to Consolidated Financial Statements
Six months ended June 30, 2002 and 2001
Organization
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Realmark Property Investors Limited Partnership - V (the Partnership), a
Delaware limited partnership, was formed on February 28, 1986, to invest in a
diversified portfolio of income-producing real estate investments. The general
partners are Realmark Properties, Inc. (the corporate general partner) and
Joseph M. Jayson (the individual general partner). Joseph M. Jayson is the sole
shareholder of J.M. Jayson & Company, Inc. Realmark Properties, Inc. is a
wholly-owned subsidiary of J.M. Jayson & Company, Inc. Under the partnership
agreement, the general partners and their affiliates can receive compensation
for services rendered and reimbursement for expenses incurred on behalf of the
Partnership.
Basis of Presentation
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The accompanying interim financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America
and, in the opinion of management, contain all necessary adjustments for a fair
presentation. The Partnership's significant accounting policies are set forth in
its December 31, 2001 Form 10-K. The interim financial statements should be read
in conjunction with the financial statements included therein. The interim
results should not be considered indicative of the annual results.
Property and Equipment
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At June 30, 2002, the Partnership owned and operated five commercial properties
and an apartment complex (Camelot East). All of the properties are being
actively marketed for sale and, therefore, are not being depreciated.
Depreciation not recorded for the three and six months ended June 30, 2002 was
approximately $265,000 and $530,000, respectively. Depreciation not recorded for
the three and six months ended June 30, 2001 was approximately $260,000 and
$520,000, respectively.
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Subsequent Event
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In its December 31, 2001 Form 10-K and its March 31, 2002 Form 10-Q, the
Partnership reported the existence of a contingent $6,800,000 sales agreement
covering its only residential property, Camelot East Apartments. On July 31,
2002, the sale was consummated with an unaffiliated entity, Westport Gardens
LLC, for cash of $6,500,000, resulting in a gain of approximately $3,000,000.
After satisfaction of the $4,680,000 mortgage loan on the property and payment
of closing costs, net cash proceeds available amounted to approximately
$1,200,000 (along with a $300,000 note receivable), before satisfaction of any
remaining obligations related to the property. All relevant comparisons and
disclosures are made in the July 31, 2002 Form 8-K filed on August 14, 2002.
PART I - Item 2. Management's Discussion and Analysis of Financial Condition
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and Results of Operations
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Liquidity and Capital Resources
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The Partnership continues to maintain sufficient cash to enable it to fund debt
service and capital improvements, although during the six month period ended
June 30, 2002, cash flow from operations was insufficient to cover debt
principal payments. No distributions to partners have been made since 1998.
Results of Operations
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Net income from operations decreased approximately $268,000 during the first six
months of 2002 as compared to 2001. The principal reason for the decrease in net
income was lower occupancy and collectible rents at two of the commercial
properties, leading to the decrease in rental income of approximately $228,000.
The income at the other properties was comparable from 2001 to 2002. This
combined with a decrease in other income, due mainly to a decrease in common
area maintenance fees, was offset by a $21,000 decrease in property operating
costs, a $25,000 decrease in administrative expenses to affiliates, and an
$83,000 increase in other administrative expenses. The decrease in property
operating costs was due mainly to a $21,000 decrease in utilities and a $32,000
decrease in payroll expense at Camelot East offset by a $10,000 increase in
utilities and a $16,000 increase in payroll at Commercial Park West. The
decrease in administrative expenses to affiliates was due mainly to a decrease
in management fees as a result of the decrease in net income. The increase in
other administrative expenses was due to an increase in professional fees.
PART I - Item 3. Quantitative and Qualitative Disclosures About Market Risk
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The Partnership's cash equivalents are short-term, interest bearing bank
accounts and its mortgage loans are fixed-rate. It has not entered into any
derivative contracts. Therefore, it has no market risk exposure.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
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As previously reported, the Partnership, as a nominal defendant, the General
Partners of the Partnership and of affiliated public partnerships (the "Realmark
Partnerships") and the officers and directors of the Corporate General Partner,
as defendants, had been involved in a class action litigation in New York State
court. The Partnership's settlement of this litigation is described in its
Annual Report on Form 10-K for the year ended December 31, 2001.
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Item 5. Other Information
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The Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 is attached as an exhibit in this
report.
Item 6. Exhibits and Reports on Form 8-K
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The Partnership reported the sale of the Camelot East Apartment property under
item 2 of Form 8-K, filed on August 14, 2002.
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.
REALMARK PROPERTY INVESTORS LIMITED PARTNERHIP - V
August 14, 2002 /s/ Joseph M. Jayson
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Date Joseph M. Jayson,
Individual General Partner and
Principal Financial Officer
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Exhibit
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - V CERTIFICATION PURSUANT TO 18
U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002.
In connection with the Quarterly Report of Realmark Property Investors
Limited Partnership - V (the "Partnership") on Form 10-Q for the period ending
June 30, 2002 as filed with the Securities and Exchange Commission on the date
hereof (the "Report"), I, Joseph M. Jayson, Individual General Partner and
Principal Financial Officer, certify, pursuant to 18 U.S.C. ss. 1350, as adopted
pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that to the best of my
knowledge:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of the operations of the
Partnership.
August 14, 2002 /s/ Joseph M. Jayson
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Date Joseph M. Jayson,
Individual General Partner and
Principal Financial Officer