8-K 1 d8k.htm FORM 8-K Form 8-K

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported) August 12, 2003

 

 

Wells Real Estate Fund V, L.P.

(Exact Name of Registrant as Specified in Charter)

 

Georgia   0-21580   58-1936904

(State or Other Jurisdiction

of Incorporation)

   (Commission File Number)  

(IRS Employer

Identification No.)

 

6200 The Corners Parkway, Suite 250, Norcross, Georgia 30092

(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s telephone number, including area code (770) 449-7800

 

(Former Name or Former Address, if Changed Since Last Report)

 

Item 2.   Sale of Assets

 

The Hartford Building

 

On August 12, 2003, Fund V and Fund VI Associates (the “Joint Venture”), a joint venture partnership between Wells Real Estate Fund V, L.P. (the “Registrant”) and Wells Real Estate Fund VI, L.P. sold a four-story office building containing approximately 71,000 rentable square feet located in Southington, Hartford County, Connecticut (the “Hartford Building”) for a sales price of approximately $8.9 million.

 

The Registrant holds an approximately 46.4% equity percentage interest in the Joint Venture. The net sales proceeds allocable to the Registrant as a result of the sale of the Hartford Building were approximately $3.8 million, and the Registrant recognized a gain of approximately $1.2 million from the transaction.

 

Item 7.   Financial Statements and Exhibits

 

(b) Pro Forma Financial Information. The following pro forma financial statements of the Registrant are submitted at the end of this Current Report on Form 8-K and are filed herewith and incorporated herein by reference:

 

Wells Real Estate Fund V, L.P.

 

Unaudited Pro Forma Financial Statements

     

Summary of Unaudited Pro Forma Financial Statements

    F-1

Pro Forma Balance Sheet as of June 30, 2003

    F-2

Pro Forma Statement of Income for the year ended December 31, 2002

    F-3

Pro Forma Statement of Income for the six months ended June 30, 2003

    F-4

 

2

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

 

WELLS REAL ESTATE FUND V, L.P.

(Registrant)

By:

   WELLS PARTNERS, L.P.        
    General Partner

 

    By:   Wells Capital, Inc.        
        General Partner
       

By:

  

/s/     LEO F. WELLS, III        

           

Leo F. Wells, III

President

By:

  

/s/    LEO F. WELLS, III        

   

LEO F. WELLS, III

General Partner

 

Date: August 25, 2003

 

3

WELLS REAL ESTATE FUND V, L.P.

(A Georgia Public Limited Partnership)

 

SUMMARY OF UNAUDITED

PRO FORMA FINANCIAL STATEMENTS

 

This pro forma information should be read in conjunction with the financial statements and notes of Wells Real Estate Fund V, L.P. included in its annual report filed on Form 10-K for the year ended December 31, 2002 and quarterly report filed on Form 10-Q for the period ended June 30, 2003.

 

The following unaudited pro forma balance sheet as of June 30, 2003 has been prepared to give effect to the disposition of the Hartford Building by Fund V and Fund VI Associates, a joint venture partnership between Wells Real Estate Fund V, L.P. and Wells Real Estate Fund VI, L.P., as if the disposition occurred on June 30, 2003. Wells Real Estate Fund V, L.P. holds an interest of approximately 46.4% in the Hartford Building through its interest in Fund V and Fund VI Associates.

 

The following unaudited pro forma statements of income for the year ended December 31, 2002 and the six months ended June 30, 2003 have been prepared to give effect to the disposition of the Hartford Building as if the disposition occurred on January 1, 2002.

 

These unaudited pro forma financial statements are prepared for informational purposes only and are not necessarily indicative of future results or of actual results that would have been achieved had the disposition of the Hartford Building been consummated as of January 1, 2002.

 

F-1

WELLS REAL ESTATE FUND V, L.P.

(A Georgia Public Limited Partnership)

 

PRO FORMA BALANCE SHEET

JUNE 30, 2003

(Unaudited)

 

     Wells Real
Estate Fund
V, L.P. (a)
    Pro Forma
Adjustments
   Pro Forma
Total

ASSETS:

                          

Investment in Joint Ventures

    $ 10,528,005    $ (2,551,891 )   (b)   $ 7,976,114

Cash and cash equivalents

      92,971      3,780,161     (c)     3,873,132

Due from Joint Ventures

      79,885      0           79,885
    
  
     

Total assets

    $ 10,700,861    $ 1,228,270         $ 11,929,131
    
  
     

LIABILITIES AND PARTNERS’ CAPITAL:

                          

Liabilities:

                          

Partnership distributions payable

    $ 97,973    $ 0         $ 97,973

Accounts payable and accrued expenses

      7,370      0           7,370
    
  
     

Total liabilities

      105,343      0           105,343
    
  
     

Partners’ capital:

                          

Limited partners:

                          

Class A—1,567,566 units outstanding

      10,595,518      929,283     (d)     11,524,801

Class B—133,036 units outstanding

      0      298,987     (d)     298,987
    
  
     

Total partners’ capital

      10,595,518      1,228,270           11,823,788
    
  
     

Total liabilities and partners’ capital

    $ 10,700,861    $ 1,228,270         $ 11,929,131
    
  
     

 

(a)   Historical financial information has been obtained from Wells Real Estate Fund V, L.P.’s quarterly report filed on Form 10-Q for the period ended June 30, 2003.

 

(b)   Reflects the portion of Wells Real Estate Fund V, L.P.’s investment in Fund V and Fund VI Associates, which is attributable to the Hartford Building.

 

(c)   Reflects Wells Real Estate Fund V, L.P.’s proportionate share of the Hartford Building net sales proceeds.

 

(d)   Reflects Wells Real Estate Fund V, L.P.’s proportionate share of the gain recognized on the sale of the Hartford Building.

 

 

The accompanying notes are an integral part of this statement.

 

F-2

WELLS REAL ESTATE FUND V, L.P.

(A Georgia Public Limited Partnership)

 

PRO FORMA STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2002

 

     Wells Real
Estate Fund
V, L.P. (a)
    Pro Forma
Adjustments
     Pro Forma
Total

REVENUES:

                      

Equity in income of Joint Ventures

    $ 519,893    $ (170,068 )(b)   $ 349,825

Interest income

      982      0       982
    
  
 
       520,875      (170,068 )     350,807
    
  
 

EXPENSES:

                      

Partnership administration

      71,771      0       71,771

Legal and accounting

      38,162      0       38,162

Other general and administrative

      7,181      0       7,181
    
  
 
       117,114      0       117,114
    
  
 

NET INCOME

    $ 403,761    $ (170,068 )   $ 233,693
    
  
 

NET INCOME ALLOCATED TO CLASS A LIMITED PARTNERS

    $ 403,761    $ (170,068 )   $ 233,693
    
  
 

NET LOSS ALLOCATED TO CLASS B LIMITED PARTNERS

    $ 0    $ 0     $ 0
    
  
 

NET INCOME PER WEIGHTED AVERAGE CLASS A LIMITED PARTNER UNIT

    $ 0.26            $ 0.15
    
          

NET LOSS PER WEIGHTED AVERAGE CLASS B LIMITED PARTNER UNIT

    $ 0.00            $ 0.00
    
          

DISTRIBUTION PER WEIGHTED AVERAGE CLASS A LIMITED PARTNER UNIT

    $ 0.57            $ 0.57
    
          

WEIGHTED AVERAGE LIMITED PARTNER UNITS OUTSTANDING:

                      

CLASS A

      1,566,416              1,566,416
    
          

CLASS B

      134,186              134,186
    
          

 

(a)   Historical financial information has been obtained from Wells Real Estate Fund V, L.P.’s annual report filed on Form 10-K for 2002.

 

(b)   Reflects Wells Real Estate Fund V, L.P.’s equity in income of Fund V and Fund VI Associates related to the Hartford Building. The pro forma adjustment results from gross revenues less operating expenses, management fees, administrative costs, depreciation and amortization.

 

The accompanying notes are an integral part of this statement.

 

F-3

WELLS REAL ESTATE FUND V, L.P.

(A Georgia Public Limited Partnership)

 

PRO FORMA STATEMENT OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2003

(Unaudited)

 

     Wells Real
Estate Fund
V, L.P. (a)
    Pro Forma
Adjustments
     Pro Forma
Total

REVENUES:

                      

Equity in income of Joint Ventures

    $ 165,121    $ (104,642 )((b)   $ 60,479

Interest income

      329      0       329
    
  
 
       165,450      (104,642 )     60,808
    
  
 

EXPENSES:

                      

Partnership administration

      43,994      0       43,994

Legal and accounting

      8,127      0       8,127

Other general and administrative

      3,570      0       3,570
    
  
 
       55,691      0       55,691
    
  
 

NET INCOME

    $ 109,759    $ (104,642 )   $ 5,117
    
  
 

NET INCOME ALLOCATED TO CLASS A LIMITED PARTNERS

    $ 109,759    $ (104,642 )   $ 5,117
    
  
 

NET LOSS ALLOCATED TO CLASS B LIMITED PARTNERS

    $ 0    $ 0     $ 0
    
  
 

NET INCOME PER WEIGHTED AVERAGE CLASS A LIMITED PARTNER UNIT

    $ 0.07            $ 0.00
    
          

NET LOSS PER WEIGHTED AVERAGE CLASS B LIMITED PARTNER UNIT

    $ 0.00            $ 0.00
    
          

CASH DISTRIBUTION PER WEIGHTED AVERAGE CLASS A LIMITED PARTNER UNIT

    $ 0.12            $ 0.12
    
          

WEIGHTED AVERAGE LIMITED PARTNER UNITS OUTSTANDING:

                      

CLASS A

      1,566,991              1,566,991
    
          

CLASS B

      133,611              133,611
    
          

 

(a)   Historical financial information has been obtained from Wells Real Estate Fund V, L.P.’s quarterly report filed on Form 10-Q for the period ended June 30, 2003.

 

(b)   Reflects Wells Real Estate Fund V, L.P.’s equity in income of Fund V and Fund VI Associates related to the Hartford Building. The pro forma adjustment results from gross revenues less operating expenses, management fees, administrative costs, depreciation and amortization.

 

The accompanying notes are an integral part of this statement.

 

F-4