<PAGE>

                   United States Securities and Exchange Commission
                                Washington, D.C. 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 AUGUST 31, 1998

or

---------  Transition Report Pursuant to Section 13 of 15(d) of the Securities
                                 Exchange Act of 1934
                     For the transition period from ____ to ____

                           COMMISSION FILE NUMBER: 0-014341



                            CONAM REALTY INVESTORS 5 L.P.
                            -----------------------------
                 EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER



         California                                     11-2712111
         ----------                                     ----------
STATE OR OTHER JURISDICTION OF             I.R.S. EMPLOYER IDENTIFICATION NO.
INCORPORATION OR ORGANIZATION

1764 San Diego Avenue
San Diego, CA  92110  Attn. Robert J. Svatos                   92110-1906
--------------------------------------------                   ----------
ADDRESS OF PRINCIPAL EXECUTIVE OFFICES                           ZIP CODE

                                    (619) 297-6771
                                    --------------
                  REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE





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
                                    -------     -------


<PAGE>

CONAM REALTY INVESTORS 5 L.P.
  AND CONSOLIDATED VENTURES

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
  CONSOLIDATED BALANCE SHEETS                    AT AUGUST 31,  AT NOVEMBER 30,
                                                          1998             1997
--------------------------------------------------------------------------------
<S>                                              <C>              <C>
  ASSETS
  Investments in real estate:
     Land                                        $   3,780,687    $   3,780,687
     Buildings and improvements                     22,414,640       22,271,530
                                                 ------------------------------
                                                    26,195,327       26,052,217
     Less accumulated depreciation                 (11,299,129)     (10,808,639)
                                                 ------------------------------
                                                    14,896,198       15,243,578
  Cash and cash equivalents                            496,046        1,424,876
  Restricted cash                                      363,408          224,210
  Other assets, net of accumulated amortization
     of $156,017 in 1998 and $131,808 in 1997          315,268          128,814
--------------------------------------------------------------------------------
        TOTAL ASSETS                             $  16,070,920    $  17,021,478
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
  LIABILITIES AND PARTNERS' CAPITAL
  Liabilities:
     Mortgage payable                                6,103,944        6,185,012
     Distribution payable                              351,980          359,019
     Accounts payable and accrued expenses             439,922          388,948
     Due to general partner and affiliates              17,151           15,811
     Security deposits                                  82,135           89,448
                                                 ------------------------------
        Total Liabilities                            6,995,132        7,038,238
                                                 ------------------------------
  Partners' Capital:
     General Partner                                   179,360          190,878
     Limited Partners (57,490 Units outstanding)     8,896,428        9,792,362
                                                 ------------------------------
        Total Partners' Capital                      9,075,788        9,983,240
--------------------------------------------------------------------------------
        TOTAL LIABILITIES AND PARTNERS' CAPITAL  $  16,070,920    $  17,021,478
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

</TABLE>


  SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.

<PAGE>

CONAM REALTY INVESTORS 5 L.P.
  AND CONSOLIDATED VENTURES

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
  CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                           THREE MONTHS ENDED               NINE MONTHS ENDED
                                                                 AUGUST 31,                    AUGUST 31,
                                                          1998              1997           1998           1997
--------------------------------------------------------------------------------------------------------------
<S>                                               <C>                <C>           <C>            <C>
  INCOME
  Rental                                          $  1,052,937       $   930,876   $  2,972,041   $  2,767,817
  Interest and other                                     7,136            28,981         30,601        112,664
                                                  ------------------------------------------------------------
        Total Income                                 1,060,073           959,857      3,002,642      2,880,481
--------------------------------------------------------------------------------------------------------------
  EXPENSES
  Property operating                                   523,974           685,518      1,546,029      1,700,215
  Depreciation and amortization                        222,052           218,900        663,077        656,702
  Interest                                             118,465           120,776        357,166        363,968
  General and administrative                            48,337            32,914        130,896        126,093
  Write-off of assets                                   10,148               -          156,987            -
                                                  ------------------------------------------------------------
        Total Expenses                                 922,976         1,058,108      2,854,155      2,846,978
--------------------------------------------------------------------------------------------------------------
  Income (Loss) from operations                        137,097           (98,251)       148,487         33,503
  Gain on sale of property                                 -                 -              -        2,582,641
--------------------------------------------------------------------------------------------------------------
        NET INCOME (LOSS)                         $    137,097       $   (98,251)  $    148,487   $  2,616,144
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
  NET INCOME (LOSS) ALLOCATED:
        To the General Partner                    $      4,963       $       143   $      9,601   $      6,995
        To the Limited Partners                        132,134           (98,394)       138,886      2,609,149
--------------------------------------------------------------------------------------------------------------
        NET INCOME (LOSS)                         $    137,097       $   (98,251)  $    148,487   $  2,616,144
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
  PER LIMITED PARTNERSHIP UNIT
      (57,490 UNITS OUTSTANDING)
        Income (Loss) from operations             $       2.30       $     (1.71)  $       2.42   $       0.46
        Gain on sale of property                           -                 -              -            44.92
--------------------------------------------------------------------------------------------------------------
     NET INCOME (LOSS)                            $       2.30       $     (1.71)  $       2.42   $      45.38
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
</TABLE>

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
     CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL
     FOR THE NINE MONTHS ENDED AUGUST 31,

<TABLE>
<CAPTION>

                                                       GENERAL           LIMITED
                                                       PARTNER          PARTNERS          TOTAL
-----------------------------------------------------------------------------------------------
<S>                                               <C>               <C>            <C>
  BALANCE AT NOVEMBER 30, 1997                    $    190,878      $  9,792,362   $  9,983,240
  Net income                                             9,601           138,886        148,487
  Distributions ($18.00 per Unit)                      (21,119)       (1,034,820)    (1,055,939)
-----------------------------------------------------------------------------------------------
  BALANCE AT AUGUST 31, 1998                          $179,360        $8,896,428     $9,075,788
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
</TABLE>


     SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.

<PAGE>


CONAM REALTY INVESTORS 5 L.P.
  AND CONSOLIDATED VENTURES

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
  CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
  FOR THE NINE MONTHS ENDED AUGUST 31,                                 1998           1997
------------------------------------------------------------------------------------------
<S>                                                            <C>            <C>
  CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                   $    148,487   $  2,616,144
  Adjustments to reconcile net income to net cash
  provided by operating activities:
     Depreciation and amortization                                  663,077        656,702
     Write-off of assets                                            156,987            -
     Gain on sale of property                                           -       (2,582,641)
     Increase (decrease) in cash arising from changes in
     operating assets and liabilities:
        Fundings to restricted cash                                (139,198)      (137,646)
        Other assets                                               (210,663)         6,410
        Accounts payable and accrued expenses                        50,974        195,124
        Due to general partner and affiliates                         1,340         (3,581)
        Security deposits                                            (7,313)       (35,536)
                                                               ---------------------------
  Net cash provided by operating activities                         663,691        714,976
------------------------------------------------------------------------------------------
  CASH FLOWS FROM INVESTING ACTIVITIES:
  Net proceeds from sale of property                                    -        6,270,225
  Additions to real estate                                         (703,420)           -
  Insurance recovery from fire damage                               254,945            -
                                                               ---------------------------
  Net cash provided by (used for) investing activities             (448,475)     6,270,225
------------------------------------------------------------------------------------------
  CASH FLOWS FROM FINANCING ACTIVITIES:
  Distributions                                                  (1,062,978)    (7,295,362)
  Mortgage principal payments                                       (81,068)       (84,699)
                                                               ---------------------------
  Net cash used for financing activities                         (1,144,046)    (7,380,061)
------------------------------------------------------------------------------------------
  Net decrease in cash and cash equivalents                        (928,830)      (394,860)
  Cash and cash equivalents, beginning of period                  1,424,876      2,121,544
------------------------------------------------------------------------------------------
  CASH AND CASH EQUIVALENTS, END OF PERIOD                     $    496,046   $  1,726,684
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------

  SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Cash paid during the period for interest                     $    317,745   $    363,968
------------------------------------------------------------------------------------------

  SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES:
  Write-off of buildings and improvements                      $   (305,365)  $        -
  Write-off of accumulated depreciation                        $    148,378   $        -
------------------------------------------------------------------------------------------

</TABLE>


SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.

<PAGE>

CONAM REALTY INVESTORS 5 L.P.
  AND CONSOLIDATED VENTURES

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The unaudited interim consolidated financial statements should be read in 
conjunction with the Partnership's 1997 annual report.

The unaudited interim consolidated financial statements include all normal and
recurring adjustments which are, in the opinion of management, necessary to
present a fair statement of financial position as of August 31, 1998 and the
results of operations for the three and nine months ended August 31, 1998 and
1997 and the consolidated statement of partners' capital and cash flows for the
nine months ended August 31, 1998.  Results of operations for the period are not
necessarily indicative of the results to be expected for the full year.

No significant events have occurred subsequent to fiscal year 1997, and no
material contingencies exist, which would require disclosure in this interim
report per Regulation S-X, Rule 10-01, Paragraph (a)(5).


<PAGE>

CONAM REALTY INVESTORS 5 L.P.
AND CONSOLIDATED VENTURES


PART I, ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

At August 31, 1998, the Partnership had cash and cash equivalents of $496,046
which were invested in money market funds, compared with $1,424,876 at November
30, 1997.  The decrease reflects mortgage principal payments, additions to real
estate, tax payments and cash distributions to Partners exceeding cash provided
by operating activities during the first nine months of fiscal 1998. The
increase in other assets is primarily attributable to amounts due from the state
of North Carolina regarding an overpayment of non-resident withholdings and to
an increase in a deposit required by the Internal Revenue Service. The
Partnership expects sufficient cash to be generated from operations to meet its
current operating expenses.

The Partnership's restricted cash balance totaled $363,408 at August 31, 1998
compared to $224,210 at November 30, 1997.  The increase is primarily
attributable to contributions made to an escrow account for the purpose of
funding real estate taxes as required under the terms of the Lakeview Village
mortgage.

The Partnership received insurance proceeds of $254,945 resulting from fire
damage to eight units at Lakeview Village. The insurance proceeds were
sufficient to cover the cost of the restoration work.

The General Partner declared a regular cash distribution of $6.00 per Unit for
the quarter ended August 31, 1998 which is to be paid in October, 1998. The
General Partner will determine the amount of future quarterly distributions
based on the Partnership's available cash flow and future cash needs.

RESULTS OF OPERATIONS

The Partnership generated net income of $137,097 and $148,487, for the three and
nine months ended August 31,1998 respectively. This compares with a net loss of
($98,251) and net income of $2,616,144 for the corresponding periods in fiscal
1997.  The decrease for the nine-month period is primarily attributable to the
gain on the sale of Canterbury Park on December 10, 1996.  Income from
operations for the three and nine months ended August 31, 1998 was $137,097 and
$148,487, respectively, compared with the (loss) income from operations of
($98,251) and $33,503, respectively, for the corresponding period in fiscal
1997.  The increase for the three and nine-month periods is primarily due to an
increase in rental income and a decrease in property operating expenses,
somewhat offset by an increase in write-off of assets as they are replaced.

Rental income totaled $1,052,937 and $2,972,041, respectively, for the three and
nine months ended August 31,1998 compared with $930,876 and $2,767,817,
respectively, for the corresponding periods in fiscal 1997. The increase is due
to stable occupancy with increased base rents at The Hamptons at Quail Hollow
and increased occupancy at Lakeview Village.

Interest and other income totaled $7,136 and $30,601, respectively, for the
three and nine months ended August 31,1998 compared with $28,981 and $112,664,
respectively, for the corresponding period in fiscal 1997.  The decrease for the
three and nine-month periods is primarily due to a decrease in the
Partnership's average cash balance due to distributions resulting from the sale
of Canterbury Park.

Property operating expenses for the three and nine months ended August 31,1998
totaled $523,974 and $1,546,029, respectively, compared with $685,518 and
$1,700,215, respectively, for the corresponding periods in fiscal 1997.  The
decrease for the three and nine-month periods is primarily attributable to
decreased repairs and maintenance at Lakeview Village and The Hamptons at Quail
Hollow and by the sale of Canterbury Park.

During the first nine months of fiscal 1998 and 1997, average occupancy levels
at the Partnership's properties were as follows:

<TABLE>
<CAPTION>
          PROPERTY                           1998      1997
          -------------------------------------------------
          <S>                                <C>       <C>
          The Hamptons at Quail Hollow       96%       96%
          Lakeview Village                   94%       89%
          -------------------------------------------------
</TABLE>

The occupancy at The Hamptons at Quail Hollow has remained constant in a highly
competitive environment.  The increase in occupancy at Lakeview Village is
primarily attributable to increased marketing efforts and continued upgrading of
units.


<PAGE>

CONAM REALTY INVESTORS 5 L.P.
AND CONSOLIDATED VENTURES


OTHER INFORMATION

PART II        Not applicable

ITEMS 1-5      Exhibits

ITEMS 6        (a) Exhibits

                 (27) Financial Data Schedule

               (b) Reports on Form 8-K  - No reports on Form 8-K were filed
                   during the quarter ended August 31, 1998.


<PAGE>

                                      SIGNATURES

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 hereunto duly authorized.

                            CONAM PROPERTY SERVICES IV, LTD.
                            General Partner of ConAm Realty Investors 5 L.P.

                            BY:       CONTINENTAL AMERICAN DEVELOPMENT, INC.
                                      GENERAL PARTNER


Date:  October 13, 1998               BY:/s/ DANIEL J. EPSTEIN
                                         ---------------------
                                      Daniel J. Epstein
                                      Director, President, and Principal
                                      Executive Officer


Date:  October 13, 1998               BY:/s/ ROBERT J. SVATOS
                                         --------------------
                                      Robert J. Svatos
                                      Vice President and Director