SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC. 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 March 31, 2001
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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 33-15597
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DIVERSIFIED HISTORIC INVESTORS V
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(Exact name of registrant as specified in its charter)
Pennsylvania 23-2479468
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1521 Locust Street, Philadelphia, PA 19102
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (215) 557-9800
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N/A
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(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 reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Consolidated Balance Sheets - March 31, 2001
(unaudited) and December 31, 2000
Consolidated Statements of Operations - Three Months
Ended March 31, 2001 and 2000 (unaudited)
Consolidated Statements of Cash Flows - Three Months
Ended March 31, 2001 and 2000 (unaudited)
Notes to Consolidated Financial Statements (unaudited)
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
(1) Liquidity
As of March 31, 2001, Registrant had cash of $7,165.
Such funds are expected to be used to pay liabilities and general
and administrative expenses of Registrant, and to fund cash
deficits of the property. Cash generated from operations is used
primarily to fund operating expenses and debt service. If cash
flow proves to be insufficient, the Registrant will attempt to
negotiate loan modifications with the lender in order to remain
current on all obligations. The Registrant is not aware of any
additional sources of liquidity.
As of March 31, 2001, Registrant had restricted cash
of $114,295 consisting primarily of funds held as security
deposits and escrows for taxes. As a consequence of the
restrictions as to use, Registrant does not deem these funds to
be a source of liquidity.
(2) Capital Resources
Any capital expenditures needed are generally
replacement items and are funded out of cash from operations or
replacement reserves, if any. The Registrant is not aware of any
factors which would cause historical capital expenditure levels
not to be indicative of capital requirements in the future and,
accordingly, does not believe that it will have to commit
material resources to capital investment for the foreseeable
future.
(3) Results of Operations
During the first quarter of 2001, Registrant
incurred a net loss of $30,663 ($2.72 per limited partnership
unit) compared to net loss of $50,855 ($4.52 per limited
partnership unit) for the same period in 2000.
Rental income increased $5,016 from $28,510 in the
first quarter of 2000 to $33,526 in the same period in 2001. The
increase in rental income is due to an increase in average
occupancy for the period (83% to 84%).
Rental operations expense increased $3,167 from
$18,015 in the first quarter of 2000 to $21,182 in the same
period of 2001 due to increases in real estate tax expense and
legal and accounting expense, partially offset by a decrease in
maintenance expense. The increase in real estate tax expense is
due to prior year real estate taxes which were paid in 2001. The
increase in legal and accounting expense is due to additional
services rendered during the first quarter 2001. The decrease in
maintenance expense is due to a decrease in maintenance services
and cleaning services at the Lofts at Red Hill.
Interest expense increased $597 from $14,804 in the
first quarter of 2000 to $15,401 in the same period in 2001. The
increase in interest expense at the Lofts at Red Hill is due to
principal additions on the mortgage in January 2001.
In the first quarter of 2001, the Registrant
incurred a loss of approximately $17,000 at the Lofts at Red
Hill, including $15,000 of depreciation and amortization expense,
compared to a loss of $19,000 including $15,000 of depreciation
expense in the first quarter of 2000. The decrease in loss from
the first quarter of 2000 to the same period in 2001 is due to
the increase in rental income, partially offset by an increase
rental operating expense. The increase in rental income is due to
an increase in occupancy (83% to 84%). The increase in rental
operating expense is due to an increase in real estate tax
expense and legal and accounting expense.
DIVERSIFIED HISTORIC INVESTORS V
(a Pennsylvania limited partnership)
CONSOLIDATED BALANCE SHEETS
Assets
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March 31, 2001 December 31, 2000
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(Unaudited)
Rental properties, at cost:
Land $ 61,046 $ 61,046
Buildings and improvements 1,445,431 1,445,431
Furniture and fixtures 89,316 89,316
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1,595,793 1,595,793
Less - accumulated depreciation (784,448) (769,734)
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811,345 826,059
Cash and cash equivalents 7,165 7,545
Restricted cash 114,295 112,630
Accounts and notes receivable 7,577 6,955
Other assets (net of
amortization of $241,030
and $224,919 at March 31, 2001
and December 31, 2000,
respectively) 96,667 112,777
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Total $1,037,049 $1,065,966
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Liabilities and Partners' Equity
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Liabilities:
Debt obligations $ 447,246 $ 429,645
Accounts payable:
Trade 117,159 115,800
Related parties 33,656 33,656
Taxes 0 17,332
Accrued liabilities 13,015 12,811
Tenant security deposits 9,630 9,715
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Total liabilities 620,706 618,959
Partners' equity 416,343 447,007
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Total $1,037,049 $1,065,966
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The accompanying notes are an integral part of these financial statements.
DIVERSIFIED HISTORIC INVESTORS V
(a Pennsylvania limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
Three months ended
March 31, March 31,
2001 2000
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(Restated)
Revenues:
Rental income $33,526 $28,510
Interest income 3,814 120
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Total revenues 37,340 28,630
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Costs and expenses:
Rental operations 21,182 18,015
General and administrative 596 15,999
Interest 15,401 14,804
Depreciation and
amortization 30,824 30,667
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Total costs and expenses 68,003 79,485
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Net (loss) income ($30,663) ($50,855)
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Net loss perlimited
partnership unit: ($ 2.72) ($ 4.52)
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The accompanying notes are an integral part of these financial statements.
DIVERSIFIED HISTORIC INVESTORS V
(a Pennsylvania limited partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
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(Unaudited)
Three months ended
March 31,
2001 2000
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(Restated)
Cash flows from operating activities:
Net (loss) income ($30,663) ($50,855)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization 30,825 30,667
Changes in assets and liabilities:
(Increase) decrease in restricted
cash (1,666) 388
(Increase) in accounts receivable (622) (1,431)
Increase in accounts payable-trade 1,359 20,450
(Decrease) in accounts payable-taxes (17,332) 0
Increase (decrease) in accrued
liabilities 203 (43)
(Decrease) in tenant security deposits (85) (479)
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Net cash used in operating activities (17,981) (1,303)
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Cash flows from financing activities:
Borrowings under debt obligations 0 2,803
Repayments of debt financings 17,601 0
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Net cash provided by (used in)
financing activities 17,601 2,803
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Increase (decrease) in cash and cash
equivalents (380) 1,500
Cash and cash equivalents at
beginning of period 7,545 3,951
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Cash and cash equivalents at end of
period $ 7,165 $ 5,451
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The accompanying notes are an integral part of these financial statements.
DIVERSIFIED HISTORIC INVESTORS V
(a Pennsylvania limited partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The unaudited consolidated financial statements of Diversified
Historic Investors V (the "Registrant") and related notes have
been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission. Accordingly, certain
information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been omitted pursuant to such
rules and regulations. The accompanying consolidated financial
statements and related notes should be read in conjunction with
the audited financial statements and notes thereto on Form 10-K
of the Registrant for the year ended December 31, 2000.
The information furnished reflects, in the opinion of management,
all adjustments, consisting of normal recurring accruals,
necessary for a fair presentation of the results of the interim
periods presented.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
To the best of its knowledge, Registrant is not
party to, nor is its property the subject of, any pending
material legal proceedings.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted during the quarter covered
by this report to a vote of security holders.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit Number Document
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3 Registrant's Amended and
Restated Certificate of Limited
Partnership and Agreement of
Limited Partnership, previously
filed as part of Amendment No.
2 of Registrant's Registration
Statement on Form S-11, are
incorporated herein by
reference.
(b) Reports on Form 8-K:
No reports were filed on Form 8-K during the quarter
ended March 31, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Date: September 23, 2002 DIVERSIFIED HISTORIC INVESTORS V
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By: Dover Historic Advisors V,
General Partner
By: EPK, Inc., Partner
By: /s/ Spencer Wertheimer
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SPENCER WERTHEIMER
President and Treasurer