-----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, CWZKT5zpUzUazJQiqh23PLn0k3wK/r1ctFOPE7TvVsEk0+/eVCUY/A9VczpX0LcI HE7AKzxjXexMSkoEer8OTg== 0000890566-00-001292.txt : 20000922 0000890566-00-001292.hdr.sgml : 20000922 ACCESSION NUMBER: 0000890566-00-001292 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000814 DATE AS OF CHANGE: 20000906 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SIERRA PACIFIC INSTITUTIONAL PROPERTIES V CENTRAL INDEX KEY: 0000780052 STANDARD INDUSTRIAL CLASSIFICATION: 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: 701704 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 0001.txt 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 June 30, 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 - June 30, 2000 and December 31, 1999 4 Consolidated Statements of Operations - For the Six Months Ended June 30, 2000 and for the Three Months Ended June 30, 1999 5 Consolidated Statement of Changes in Partners' Equity - For the Year Ended December 31, 1999 and for the Six Months Ended June 30, 2000 6 Consolidated Statements of Cash Flows - For the Six Months Ended June 30, 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 (the Property) in San Diego, California. (b) RESULTS OF OPERATIONS Rental income for the six months and three months ended June 30, 2000 increased by approximately $144,000, or 26%, and by approximately $19,000, or 6%, respectively, in comparison to the corresponding periods in 1999. These increases were principally the result of higher common area maintenance fees billed between the periods. Supplemental billings were made in 2000 to recover higher than anticipated prior year common area maintenance fees. The Property was 100% occupied at June 30, 2000 and June 30, 1999. 2 Total operating expenses for the six months and three months ended June 30, 2000 decreased by approximately $7,000, or 3%, and by approximately $9,000 or 7%, respectively, when compared to the same periods in the prior year. These decreases were primarily due to lower administrative costs and other operating expenses incurred between the periods. (c) LIQUIDITY AND CAPITAL RESOURCES The Partnership is in a liquid position at June 30, 2000 with cash and billed receivables of approximately $113,000 and accrued and other liabilities of approximately $23,000. 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 JUNE 30, 2000 AND DECEMBER 31, 1999 - - -------------------------------------------------------------------------------- JUNE 30, 2000 DECEMBER 31, (UNAUDITED) 1999 ------------ ------------ ASSETS Cash and cash equivalents ....................... $ 33,703 $ 134,781 Receivables: Unbilled rent ................................. 417,070 451,414 Billed rent ................................... 79,264 76,707 Prepaid ground lease ............................ 0 1,344,540 Income-producing property - net of accumulated depreciation of $2,383,649 and $2,195,937, respectively .................. 5,672,235 5,552,440 Other assets - net of accumulated amortization of $349,335 and $306,675, respectively ........ 280,430 314,313 ------------ ------------ Total Assets .................................... $ 6,482,702 $ 7,874,195 ============ ============ LIABILITIES AND PARTNERS' EQUITY Accrued and other liabilities ................... $ 22,573 $ 90,908 Ground lease payable ............................ 0 194,539 ------------ ------------ Total Liabilities ............................... 22,573 285,447 ------------ ------------ Ground lessor's equity in income- producing property ............................ 0 3,000,000 ------------ ------------ Minority interest in consolidated joint venture ................................ 4,399,084 2,647,872 ------------ ------------ Partners' equity (deficit): General Partner ............................... (53,152) 0 Limited Partners: 140,000 units authorized, 30,777 issued and outstanding ................................. 2,114,197 1,940,876 ------------ ------------ Total Partners' equity .......................... 2,061,045 1,940,876 ------------ ------------ Total Liabilities and Partners' equity .......... $ 6,482,702 $ 7,874,195 ============ ============ SEE ACCOMPANYING NOTES 4 SIERRA PACIFIC INSTITUTIONAL PROPERTIES V (A LIMITED PARTNERSHIP) CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999 AND FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999 - - --------------------------------------------------------------------------------
SIX MONTHS ENDED THREE MONTHS ENDED JUNE 30, JUNE 30, ---------------------------- ---------------------------- 2000 1999 2000 1999 (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) ------------ ------------ ------------ ------------ REVENUES: Rental income .................................................... $ 699,130 $ 554,777 $ 313,286 $ 294,711 Interest income .................................................. 11,205 0 0 0 ------------ ------------ ------------ ------------ Total revenues ................................. 710,335 554,777 313,286 294,711 ------------ ------------ ------------ ------------ EXPENSES: Operating expenses ............................................... 236,241 243,567 111,479 119,989 Ground lease ..................................................... 29,441 186,902 0 93,451 Depreciation and amortization .................................... 230,372 216,608 115,186 110,180 ------------ ------------ ------------ ------------ Total costs and expenses ....................... 496,054 647,077 226,665 323,620 ------------ ------------ ------------ ------------ INCOME (LOSS) BEFORE MINORITY INTEREST'S SHARE OF CONSOLIDATED JOINT VENTURE (INCOME) LOSS .................................................... 214,281 (92,300) 86,621 (28,909) ------------ ------------ ------------ ------------ MINORITY INTEREST'S SHARE OF CONSOLIDATED JOINT VENTURE (INCOME) LOSS .................................................... (94,112) 32,397 (38,044) 10,147 ------------ ------------ ------------ ------------ NET INCOME (LOSS) .................................................. $ 120,169 $ (59,903) $ 48,577 $ (18,762) ============ ============ ============ ============ Net income (loss) per limited partnership unit ..................... $ 3.87 $ (1.95) $ 1.57 $ (0.61) ============ ============ ============ ============
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 SIX MONTHS ENDED JUNE 30, 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, 1998) ........................................... (145.20) (4,468,631) $ 9,193 (4,459,438) Cumulative distributions (to December 31, 1998) ........................................... (2.69) (82,761) (9,193) (91,954) ------------ ------------ ------------ ------------ Partners' equity - January 1, 1999 ................................. 64.90 1,997,525 0 1,997,525 Net loss ........................................................... (1.84) (56,649) (56,649) ------------ ------------ ------------ ------------ Partners' equity - January 1, 2000 (audited) ....................... 63.06 1,940,876 0 1,940,876 Transfer among general partner and limited partners ................ 1.77 54,354 (54,354) 0 Net income ......................................................... 3.87 118,967 1,202 120,169 ------------ ------------ ------------ ------------ Partners' equity (deficit) - June 30, 2000 (unaudited) ............. $ 68.70 $ 2,114,197 $ (53,152) $ 2,061,045 ============ ============ ============ ============
SEE ACCOMPANYING NOTES 6 SIERRA PACIFIC INSTITUTIONAL PROPERTIES V (A LIMITED PARTNERSHIP) CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999 - - -------------------------------------------------------------------------------- 2000 1999 (UNAUDITED) (UNAUDITED) ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) ................................ $ 120,169 $ (59,903) Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation and amortization .................. 230,372 216,608 Minority interest's share of consolidated joint venture income (loss) .................. 94,112 (32,397) Decrease in rent receivable .................... 31,787 13,592 Decrease in prepaids and other assets .......... 10,018 69,562 Decrease in accrued and other liabilities ...... (68,894) (154,783) ----------- ----------- Net cash provided by operating activities ...... 417,564 52,679 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Payments for property additions ................ (2,175,742) (284,053) ----------- ----------- Net cash used in investing activities .......... (2,175,742) (284,053) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Contributions from minority investor ........... 1,907,000 0 Distributions to minority investor ............. (249,900) 0 Loan from affiliate ............................ 0 267,420 ----------- ----------- Net cash provided by financing activities ...... 1,657,100 267,420 ----------- ----------- NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ........................... (101,078) 36,046 CASH AND CASH EQUIVALENTS - Beginning of period ............................ 134,781 3,203 ----------- ----------- CASH AND CASH EQUIVALENTS - End of period .................................. $ 33,703 $ 39,249 =========== =========== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for real estate taxes $ 44,488 $ 40,384 =========== =========== 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 June 30, 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 June 30, 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 six months ended June 30, 2000 and 1999 are affiliate transactions as follows: June 30 ----------------------- 2000 1999 ----------------------- Management fees $ 40,565 $34,102 Administrative fees 40,795 49,897 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. During the quarter ended March 31, 2000, an amount was transferred between the partners' equity accounts such that 99% of cumulative operating income, gains, losses, deductions and credits of the Partnership is allocated among the limited partners and 1% is allocated to the general partner. Management does not believe that the effect of this transfer is significant. 5. PENDING TRANSACTION CGS Real Estate Company, Inc. (CGS), an affiliate of the general partner, is in the process of developing a plan pursuant to which the property owned by the Partnership would be combined with the properties of other real estate partnerships managed by CGS and its affiliates. These limited partnerships own office properties, industrial properties, shopping centers, and residential apartment properties. It is expected that the acquirer would in the future qualify as a real estate investment trust. Limited partners would receive shares of common stock in the acquirer, which would be listed on a national securities exchange or the NASDAQ national market system. 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: AUGUST 14, 2000 /s/ THOMAS N. THURBER ----------------------------------------------- Thomas N. Thurber President and Director Date: AUGUST 14, 2000 /s/ G. ANTHONY EPPOLITO ----------------------------------------------- G. Anthony Eppolito Chief Accountant 10 EX-27 2 0002.txt
5 THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SIERRA PACIFIC INSTITUTIONAL PROPERTIES V JUNE 30, 2000 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 6-MOS DEC-31-2000 JUN-30-2000 33,703 0 496,334 0 0 112,967 8,055,884 2,383,649 6,482,702 22,573 0 0 0 0 2,061,045 6,482,702 699,130 710,335 0 265,682 230,372 0 0 120,169 0 120,169 0 0 0 120,169 3.87 3.87
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