-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P/ygsH3lTl5u5JvzNPZ+XqO0ImXIrYMOIaEmyU8ShsESRvSp8wjDnjKYV5mjA2/N Fwz4g4QkGLEE1Q1e/quLqQ== 0000890566-00-000777.txt : 20000516 0000890566-00-000777.hdr.sgml : 20000516 ACCESSION NUMBER: 0000890566-00-000777 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SIERRA PACIFIC INSTITUTIONAL PROPERTIES V CENTRAL INDEX KEY: 0000780052 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 330122424 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-15702 FILM NUMBER: 632917 BUSINESS ADDRESS: STREET 1: 5850 SAN FELIPE STE 500 CITY: HOUSTON STATE: TX ZIP: 77057 BUSINESS PHONE: 7139776171 MAIL ADDRESS: STREET 1: 5850 SAN FELIPE STREET 2: STE 500 CITY: HOUSTON STATE: TX ZIP: 77057 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter ended March 31, 2000 ---------------------------------------------------- Commission file number 0-15702 ---------------------------------------------------- SIERRA PACIFIC INSTITUTIONAL PROPERTIES V (A LIMITED PARTNERSHIP) State of California 33-0122424 - -------------------------------------- ----------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification incorporation or organization) Number) 5850 San Felipe, Suite 450 Houston, Texas 77057 - -------------------------------------- ----------------------------------- (Address of principal executive (Zip Code) offices) Registrant's telephone number, including area code: (713) 706-6271 ----------------------------------------------- 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 [ ]. PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The following financial statements are submitted in the next pages: PAGE NUMBER ------ Consolidated Balance Sheets - March 31, 2000 and December 31, 1999 ....... 4 Consolidated Statements of Operations - For the Three Months Ended March 31, 2000 and 1999 ............................................ 5 Consolidated Statement of Changes in Partners' Equity - For the Year Ended December 31, 1999 and for the Three Months Ended March 31, 2000 ........................................................... 6 Consolidated Statements of Cash Flows - For the Three Months Ended March 31, 2000 and 1999 ............................................ 7 Notes to Consolidated Financial Statements ............................... 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (a) OVERVIEW The following discussion should be read in conjunction with Sierra Pacific Institutional Properties V's (the Partnership) Consolidated Financial Statements and Notes thereto appearing elsewhere in this Form 10-Q. The Partnership currently owns a 56.08% interest in the Sorrento II Partnership, which operates the Sorrento II property in San Diego, California. (b) RESULTS OF OPERATIONS Rental income for the three months ended March 31, 2000 increased by approximately $126,000, or 48%, when compared to the corresponding period in the prior year. This increase was primarily due to higher common area maintenance fees billed during the quarter. The Property was 100% occupied at March 31, 2000 and March 31, 1999. 2 Total operating expenses for the three months ended March 31, 2000 increased by approximately $1,000, or 1%, in comparison to the same period in 1999. The Partnership incurred higher auditing, data processing and administrative costs during the quarter. This increase was partially offset by a decrease in maintenance and repairs costs and other operating expenses. (c) LIQUIDITY AND CAPITAL RESOURCES The Partnership is in a liquid position at March 31, 2000 with cash and billed rents of approximately $136,000 and current liabilities of approximately $65,000. A source of cash is available through advances from the minority owner of the property, Sierra Mira Mesa Partner (SMMP). SMMP has adequate resources to make any necessary advances during the foreseeable future. Inflation: The Partnership does not expect inflation to be a material factor in its operations in 2000. 3 SIERRA PACIFIC INSTITUTIONAL PROPERTIES V (A LIMITED PARTNERSHIP) CONSOLIDATED BALANCE SHEETS MARCH 31, 2000 AND DECEMBER 31, 1999 - --------------------------------------------------------------------------------
MARCH 31, 2000 DECEMBER 31, 1999 --------------- --------------- (UNAUDITED) ASSETS Cash and cash equivalents .................................................................... $ 30,301 $ 134,781 Receivables: Unbilled rent .............................................................................. 437,419 451,414 Billed rent ................................................................................ 106,131 76,707 Prepaid ground lease ......................................................................... 0 1,344,540 Income-producing property - net of accumulated depreciation of $2,289,793 and $2,195,937, respectively ............................................................... 5,766,091 5,552,440 Other assets - net of accumulated amortization of $328,005 and $306,675, respectively ..................................................... 288,764 314,313 --------------- --------------- Total Assets ................................................................................. $ 6,628,706 $ 7,874,195 =============== =============== LIABILITIES AND PARTNERS' EQUITY Accrued and other liabilities ................................................................ $ 65,298 $ 90,908 Ground lease payable ......................................................................... 0 194,539 --------------- --------------- Total Liabilities ............................................................................ 65,298 285,447 --------------- --------------- Ground lessor's equity in income- producing property ......................................................................... 0 3,000,000 --------------- --------------- Minority interest in consolidated joint venture ............................................................................. 4,550,940 2,647,872 --------------- --------------- Partners' equity (deficit): General Partner ............................................................................ (53,638) 0 Limited Partners: 140,000 units authorized, 30,777 issued and outstanding .............................................................................. 2,066,106 1,940,876 --------------- --------------- Total Partners' equity ....................................................................... 2,012,468 1,940,876 --------------- --------------- Total Liabilities and Partners' equity ....................................................... $ 6,628,706 $ 7,874,195 =============== ===============
SEE ACCOMPANYING NOTES 4 SIERRA PACIFIC INSTITUTIONAL PROPERTIES V (A LIMITED PARTNERSHIP) CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 - --------------------------------------------------------------------------------
2000 1999 --------------- --------------- (UNAUDITED) (UNAUDITED) REVENUES: Rental income ............................................................................. $ 385,844 $ 260,066 Interest income ........................................................................... 11,205 0 --------------- --------------- Total revenues .......................................................... 397,049 260,066 --------------- --------------- EXPENSES: Operating expenses ...................................................................... 124,762 123,578 Ground lease ............................................................................ 29,441 93,451 Depreciation and amortization ........................................................... 115,186 106,428 --------------- --------------- Total costs and expenses ................................................ 269,389 323,457 --------------- --------------- INCOME (LOSS) BEFORE MINORITY INTEREST'S SHARE OF CONSOLIDATED JOINT VENTURE (INCOME) LOSS ............................................................................. 127,660 (63,391) --------------- --------------- MINORITY INTEREST'S SHARE OF CONSOLIDATED JOINT VENTURE (INCOME) LOSS ............................................................................. (56,068) 22,250 --------------- --------------- NET INCOME (LOSS) ........................................................................... $ 71,592 $ (41,141) =============== =============== Net income (loss) per limited partnership unit .............................................. $ 2.30 $ (1.34) =============== ===============
SEE ACCOMPANYING NOTES 5 SIERRA PACIFIC INSTITUTIONAL PROPERTIES V (A LIMITED PARTNERSHIP) CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 1999 AND FOR THE THREE MONTHS ENDED MARCH 31, 2000 - --------------------------------------------------------------------------------
LIMITED PARTNERS TOTAL ------------------------- GENERAL PARTNERS' PER UNIT TOTAL PARTNER EQUITY --------------- --------------- --------------- --------------- Proceeds from sale of partnership units ................................... $ 250.00 $ 7,694,250 $ 7,694,250 Underwriting commissions and other organization expenses ..................... (37.21) (1,145,333) (1,145,333) Cumulative net income (loss) (to December 31, 1999) .............................. (147.04) (4,525,280) $ 9,193 (4,516,087) Cumulative distributions (to December 31, 1999) .............................. (2.69) (82,761) (9,193) (91,954) --------------- --------------- --------------- --------------- Partners' equity - January 1, 2000 (audited) .......... 63.06 1,940,876 0 1,940,876 Cumulative adjustment of net loss allocation .......... 1.77 54,354 (54,354) 0 Net income (unaudited) ................................ 2.30 70,876 716 71,592 --------------- --------------- --------------- --------------- Partners' equity (deficit) - March 31, 2000 (unaudited) $ 67.13 $ 2,066,106 $ (53,638) $ 2,012,468 =============== =============== =============== ===============
SEE ACCOMPANYING NOTES 6 SIERRA PACIFIC INSTITUTIONAL PROPERTIES V (A LIMITED PARTNERSHIP) CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 - --------------------------------------------------------------------------------
2000 1999 --------------- --------------- (UNAUDITED) (UNAUDITED) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) .......................................................................... $ 71,592 $ (41,141) Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation and amortization ............................................................ 115,186 106,428 Minority interest's share of consolidated joint venture income (loss) ............................................................ 56,068 (22,250) Increase in rent receivable .............................................................. (15,429) (51,038) Decrease in prepaids and other assets .................................................... 23,014 50,417 Decrease in accrued and other liabilities ................................................ (26,169) (29,309) --------------- --------------- Net cash provided by operating activities ................................................ 224,262 13,107 --------------- --------------- CASH FLOWS FROM INVESTING ACTIVITIES: Payments for property additions .......................................................... (2,175,742) (23,731) --------------- --------------- Net cash used in investing activities .................................................... (2,175,742) (23,731) --------------- --------------- CASH FLOWS FROM FINANCING ACTIVITIES: Contributions from minority investor ..................................................... 1,902,000 0 Distributions to minority investor ....................................................... (55,000) 0 Loan from affiliate ...................................................................... 0 56,000 --------------- --------------- Net cash provided by financing activities ................................................ 1,847,000 56,000 --------------- --------------- NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ..................................................................... (104,480) 45,376 CASH AND CASH EQUIVALENTS - Beginning of period ...................................................................... 134,781 3,203 --------------- --------------- CASH AND CASH EQUIVALENTS - End of period ............................................................................ $ 30,301 $ 48,579 =============== ===============
See Accompanying Notes 7 SIERRA PACIFIC INSTITUTIONAL PROPERTIES V (A LIMITED PARTNERSHIP) --------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) - -------------------------------------------------------------------------------- 1. ORGANIZATION In October 1993, Sierra Pacific Institutional Properties V (the Partnership) created a general partnership (Sorrento II Partners) with Sierra Mira Mesa Partners (SMMP) to facilitate cash contributions by SMMP for the continued development and operation of the Sorrento II property. The Partnership Agreement of Sorrento II Partners (the Agreement) was amended effective January 1, 1995 to consider both contributions and distributions when calculating each partners' percentage interest at January 1 of each year. Accordingly, on January 1, 2000, the Partnership's interest in Sorrento II Partners was decreased from 64.90% to 56.08% to reflect 1999 contributions and distributions. 2. BASIS OF FINANCIAL STATEMENTS The accompanying unaudited consolidated condensed financial statements include the accounts of the Partnership and Sorrento II Partners, a majority owned joint venture at March 31, 2000. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Partnership's management, these unaudited financial statements reflect all adjustments which are necessary for a fair presentation of its financial position at March 31, 2000 and results of operations and cash flows for the periods presented. All adjustments included in these statements are of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Annual Report of the Partnership for the year ended December 31, 1999. 3. RELATED PARTY TRANSACTIONS Included in the financial statements for the three months ended March 31, 2000 and 1999 are affiliate transactions as follows: MARCH 31 ----------------------- 2000 1999 ---------- --------- Management fees $ 18,957 $ 15,800 Administrative fees 21,263 17,873 8 Sierra Pacific Institutional Properties V Notes to Financial Statements (Unaudited) Page Two 4. PARTNERS' EQUITY Equity and net income (loss) per limited partnership unit is determined by dividing the limited partners' share of the Partnership's equity and net income (loss) by the number of limited partnership units outstanding, 30,777. Partners' equity accounts have been adjusted to reflect an allocation of cumulative net loss to the partners in accordance with the agreement of limited partnership. This agreement provides that 99% of operating income, gains, losses, deductions and credits of the Partnership shall be allocated among the limited partners and 1% be allocated to the general partner. Prior year balances have not been adjusted because management does not believe that the effects of these adjustments are significant to the prior year partners' equity balances. 9 PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits The following Exhibits are filed herewith pursuant to Rule 601 of Regulation S-K. EXHIBIT NUMBER DESCRIPTION OF EXHIBIT ----------- ------------------------------ 27 Financial Data Schedule (b) Reports on Form 8-K A Form 8-K was filed in April 2000 reporting a change in the Partnership's Certifying Accountant. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report be signed on its behalf by the undersigned thereunto duly authorized. SIERRA PACIFIC INSTITUTIONAL PROPERTIES V a Limited Partnership S-P PROPERTIES, INC. General Partner Date: MAY 10, 2000 /S/ THOMAS N. THURBER ------------ ----------------------------------------------- Thomas N. Thurber President and Director Date: MAY 10, 2000 /S/ G. ANTHONY EPPOLITO ------------ ----------------------------------------------- G. Anthony Eppolito Chief Accounting Officer 10 EX-27 2
5 THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SIERRA PACIFIC INSTITUTIONAL PROPERTIES V MARCH 31, 2000 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-2000 MAR-31-2000 30,301 0 543,550 0 0 136,432 8,055,884 2,289,793 6,628,706 65,298 0 0 0 0 2,012,468 6,628,706 385,844 397,049 0 154,203 115,186 0 0 71,592 0 71,592 0 0 0 71,592 2.33 2.33
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