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, 2005
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: 0-16561
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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, 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 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 [ ]
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
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Condensed Consolidated Balance Sheets
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(Unaudited)
March 31, December 31,
2005 2004
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Assets
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Property and equipment, all held for sale $ 8,660,954 8,620,133
Less accumulated depreciation 2,769,662 2,769,662
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5,891,292 5,850,471
Receivable from affiliates -- 125,782
Other assets 361,324 414,907
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Total assets $ 6,252,616 6,391,160
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Liabilities and Partners' Equity
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Mortgage loans payable 5,718,233 5,735,563
Accounts payable and accrued expenses 268,575 299,121
Payable to affiliates 65,287 --
Other liabilities 63,429 62,997
Partners' equity 137,092 293,479
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Total liabilities and partners' equity $ 6,252,616 6,391,160
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Condensed Consolidated Statements of Operations
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(Unaudited)
Three months ended March 31,
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2005 2004
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Rental income $ 139,610 96,963
Other income 87,069 105,671
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Total income 226,679 202,634
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Property operating costs 166,172 192,147
Administrative expense - affiliates 36,146 62,744
Other administrative expense 63,552 94,538
Interest 117,196 216,872
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Total expenses 383,066 566,301
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Loss before gain on sale of properties (156,387) (363,667)
Gain on sale of properties -- 252,570
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Net loss $ (156,387) (111,097)
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Net loss per limited partnership unit $ (7.22) (4.77)
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Weighted average limited partnership units outstanding 21,003 21,003
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Condensed Consolidated Statements of Cash Flows
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(Unaudited)
Three months ended March 31,
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2005 2004
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Cash provided (used) by:
Operating activities:
Net loss $ (156,387) (111,097)
Gain on sale of properties -- (252,570)
Adjustments - other, principally changes
in other assets and liabilities 214,538 (750,489)
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Net cash provided (used) by operating activities 58,151 (1,114,156)
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Investing activities:
Additions to property and equipment (40,821) (10,010)
Net proceeds from sale of properties -- 1,286,086
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Net cash provided (used) by investing activities (40,821) 1,276,076
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Financing activities - principal payments on mortgage loans (17,330) (14,842)
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Net increase in cash and equivalents -- 147,078
Cash and equivalents at beginning of period -- 384,781
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Cash and equivalents at end of period $ -- 531,859
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Notes to Consolidated Financial Statements
Three months ended March 31, 2005 and 2004
(Unaudited)
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 unaudited interim consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States of America and the instructions to Form 10-Q. Accordingly, they do
not include all of the information and notes required by accounting principles
generally accepted in the United States of America for complete financial
statements. The balance sheet at December 31, 2004 has been derived from the
audited financial statements at that date. In the opinion of management, all
adjustments (consisting of normal recurring adjustments) considered necessary
for a fair presentation, have been included. The Partnership's significant
accounting policies are set forth in its December 31, 2004 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.
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Property and Equipment
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At March 31, 2005, the Partnership owned and operated one commercial property.
The property is being actively marketed for sale and, therefore, is not being
depreciated. Depreciation not recorded for the three months ended March 31, 2005
and 2004 was approximately $70,000 and $66,000, respectively.
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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Effective January 1, 2001, management began formally marketing all properties in
the Partnership for sale. As a result of the operating loss and capital
improvements at Commercial Park West, the Partnership relied on cash advances
from affiliates of the general partner to fund operations during the first three
months of 2005. In accordance with the settlement of the lawsuit (Part II, Item
1), it is anticipated that with the sale of the remaining property, the
Partnership may be in a position to make distributions to the limited partners.
Results of Operations
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As compared to the first quarter of 2004, the Partnership's loss excluding sold
properties (The Paddock, Inducon Phase I, Inducon Phase II and Inducon Phase
III) decreased approximately $106,000 from a loss of $262,536 in 2004 to a loss
of $156,387 in 2005.
Excluding the sold properties, rental income at Commercial Park West increased
approximately $47,000 due to decreased vacancies (54% occupancy at March 31,
2005).
Excluding the sold properties, total expenses decreased approximately $55,000.
Property operations decreased $4,000 due to an decrease in utilities of $4,000,
a decrease of approximately $16,000 primarily related to carpeting replacement
offset by an increase in payroll expense of $7,000, an increase in insurance
expense of $4,000 and $5,000 related to heating repairs. The decrease in
administrative expense and reimbursement to affiliates of approximately $35,000
was a result of a decrease in management fees and portfolio reimbursed expense.
Other administrative expenses decreased approximately $9,000 due to decrease in
legal expense. Interest expense decreased due to a larger portion of each
mortgage payment being applied to the outstanding principal balance.
PART I - Item 3. Quantitative and Qualitative Disclosures About Market Risk
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The Partnership's cash equivalents are short-term, non-interest bearing bank
accounts. The mortgage loan on the Partnership's property is fixed rate and,
therefore, is not subject to market risk.
PART I - Item 4. Controls and Procedures
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Disclosure Controls and Procedures: The Partnership's management, with the
participation of the Partnership's Individual General Partner and Principal
Financial Officer, has evaluated the effectiveness of the Partnership's
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disclosure controls and procedures (as such term is defined in Rule 13a-15(e)
under the Securities Exchange Act of 1934, as amended) as of the end of the
period covered by this report. Based on such evaluation, the Partnership's
Individual General Partner and Principal Financial Officer have concluded that,
as of the end of such period, the Partnership's disclosure controls and
procedures are effective.
Internal Control Over Financial Reporting: There have been no changes in the
Partnership's internal control over financial reporting (as defined in Rule
13a-15(f) under the Securities Exchange Act of 1934, as amended) during the
fiscal quarter to which this report relates that have materially affected, or
are reasonably likely to materially affect, the Partnership's internal control
over financial reporting.
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, 2004.
Item 5. Other Information
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(a) Reports on Form 8-K
None.
Item 6. Exhibits
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31. Certification Pursuant to Rule 13a-14(a), as Adopted Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.
32. Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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SIGNATURES
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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
May 16, 2005 /s/ Joseph M. Jayson
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Date Joseph M. Jayson,
Individual General Partner and
Principal Financial Officer
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