##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q

|      |  |                                                 
|----- |  | ------------------------------------------------
|[ X ] |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
|      |  | OF THE SECURITIES EXCHANGE ACT OF 1934          

For the quarterly period ended March 31, 2003

OR

|      |  |                                                     
|----- |  | ----------------------------------------------------
|[   ] |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
|      |  | THE SECURITIES EXCHANGE ACT OF 1934                 

Commission file number: 0-16467

RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP




(Exact name of registrant as specified in its charter)


|                                     |  |                    
|------------------------------------ |  | -------------------
|California                           |  | 33-0098488         
|                                     |  |                    
|(State or other jurisdiction of      |  | (I.R.S. Employer   
|incorporation or organization)       |  | Identification No.)
|                                     |  |                    
|400 South El Camino Real, Suite 1100 |  |                    
|San Mateo, California                |  | 94402-1708         
|                                     |  |                    
|(Address of principal                |  | (Zip Code)         
|executive offices)                   |  |                    

(650) 343-9300




(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   [  ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act). Yes   [  ]   No   [X]

Total number of units outstanding as of May 14, 2003: 90,473

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TABLE OF CONTENTS



|                              |                                                                                               |                                            |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------ |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | Item 1. Financial Statements                                                                 
|                              |                                                                                               | Consolidated Balance Sheets               
|                              |                                                                                               | Consolidated Statements of Income         
|                              |                                                                                               | Consolidated Statement of Partners Equity
|                              |                                                                                               | Consolidated Statements of Cash Flows     
|                              |                                                                                               | Notes to Consolidated Financial Statements
|                              | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                              | Item 3. Qualitative and Quantitative Information About Market Risk                           
|                              | Item 4. Controls and procedures                                                              
|Part II. OTHER INFORMATION   
|                              | Item 1. Legal Proceedings                                                                    
|                              | Item 4. Submission of Matters to a Vote of Security Holders                                  
|                              | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES                   
|EXHIBIT INDEX                
|EXHIBIT 99                   



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INDEX
RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP

|           |  |                                                                                       |  |  |                                                                                          |  |          |      | 
|---------- |  | ------------------------------------------------------------------------------------- |  |  | ---------------------------------------------------------------------------------------- |  | -------- | ---- | 
|           |  |                                                                                       |  |  |                                                                                          |  | Page No.
|PART I     |  | FINANCIAL INFORMATION                                                                 |  |  |                                                                                          | 
|Item 1.    |  | Consolidated Financial Statements of Rancon Realty Fund V (Unaudited):                |  |  |                                                                                          | 
|           |  |                                                                                       |  |  | Consolidated Balance Sheets at March 31, 2003 and December 31, 2002                      |  |          | 3    | 
|           |  |                                                                                       |  |  | Consolidated Statements of Income for the three months ended March 31,
2003 and 2002     |  |          | 4    | 
|           |  |                                                                                       |  |  | Consolidated Statement of Partners Equity for the three months ended
March 31, 2003     |  |          | 5    | 
|           |  |                                                                                       |  |  | Consolidated Statements of Cash Flows for the three months ended March
31, 2003 and 2002 |  |          | 6    | 
|           |  |                                                                                       |  |  | Notes to Consolidated Financial Statements                                               |  |          | 7-12 | 
|Item 2.    |  | Managements Discussion and Analysis of Financial Condition and Results
of Operations |  |  | 13-15                                                                                    | 
|Item 3.    |  | Qualitative and Quantitative Information About Market Risk                            |  |  | 15-16                                                                                    | 
|Item 4.    |  | Controls and Procedures                                                               |  |  | 16                                                                                       | 
|PART II    |  | OTHER INFORMATION                                                                     |  |  |                                                                                          | 
|Item 1.    |  | Legal Proceedings                                                                     |  |  | 17                                                                                       | 
|Item 4.    |  | Submission of Matters to a Vote of Security Holders                                   |  |  | 17                                                                                       | 
|Item 6.    |  | Exhibits and Reports on Form 8-K                                                      |  |  | 17                                                                                       | 
|SIGNATURES |  |                                                                                       |  |  | 18                                                                                       | 

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|        |  |                      
|------- |  | ---------------------
|PART I. |  | FINANCIAL INFORMATION




|        |  |                     
|------- |  | --------------------
|Item 1. |  | Financial Statements




RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Balance Sheets
(in thousands, except units outstanding)
(Unaudited)

|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |         |        | 
|----------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------- | ----- | --------- | ------ | ------------ | ----- | ------- | ------ | 
|                                                                                                                                          |                                                                                                                                 |                                        |       | March 31, |        | December 31,
|                                                                                                                                          |                                                                                                                                 |                                        |       | 2003      |        | 2002        
|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |             
|ASSETS                                                                                                                                    |                                                                                                                                 |                                        |       |           |        |              |       |        
|Investments in real estate:                                                                                                               |                                                                                                                                 |                                        |       |           |        |              |       |        
|                                                                                                                                          | Rental properties, gross                                                                                                        |                                        | $     | 48,956    |        |              | $     | 48,611  |       
|                                                                                                                                          | Accumulated depreciation                                                                                                        |                                        |       | (21,749   | )      |              |       | (21,306 | )     
|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |         |       
|                                                                                                                                          | Rental properties, net                                                                                                          |                                        |       | 27,207    |        |              |       | 27,305  |       
|                                                                                                                                          | Construction in progress                                                                                                        |                                        |       | 6,292     |        |              |       | 3,678   |       
|                                                                                                                                          | Land held for development                                                                                                       |                                        |       | 2,077     |        |              |       | 2,073   |       
|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |         |       
|                                                                                                                                          |                                                                                                                                 | Total investments in real estate       |       |           | 35,576 |              |       |         | 33,056 | 
|Cash and cash equivalents                                                                                                                 |                                                                                                                                 |                                        | 1,075 |           |        |              | 3,588 |        
|Accounts receivable                                                                                                                       |                                                                                                                                 |                                        | 1,092 |           |        |              | 1,288 |        
|Deferred costs and other fees, net of accumulated amortization of $3,036
and $2,948 at March 31, 2003 and December 31, 2002, respectively |                                                                                                                                 |                                        | 1,334 |           |        |              | 927   |        
|Prepaid expenses and other assets                                                                                                         |                                                                                                                                 |                                        | 759   |           |        |              | 766   |        
|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |         |       
|                                                                                                                                          |                                                                                                                                 | Total assets                           |       | $         | 39,836 |              |       | $       | 39,625 | 
|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |         |       
|LIABILITIES AND PARTNERS EQUITY                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |        
|Liabilities:                                                                                                                              |                                                                                                                                 |                                        |       |           |        |              |       |        
|                                                                                                                                          | Notes payable and Line of Credit                                                                                                |                                        | $     | 8,768     |        |              | $     | 8,742   |       
|                                                                                                                                          | Accounts payable and other liabilities                                                                                          |                                        |       | 547       |        |              |       | 370     |       
|                                                                                                                                          | Construction costs payable                                                                                                      |                                        |       | 839       |        |              |       | 1,028   |       
|                                                                                                                                          | Prepaid rent                                                                                                                    |                                        |       | 122       |        |              |       |        |       
|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |         |       
|                                                                                                                                          |                                                                                                                                 | Total liabilities                      |       |           | 10,276 |              |       |         | 10,140 | 
|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |         |       
|Commitments and contingent liabilities (Note 5)                                                                                           |                                                                                                                                 |                                        |       |           |        |              |       |        
|Partners equity:                                                                                                                         |                                                                                                                                 |                                        |       |           |        |              |       |        
|                                                                                                                                          | General Partners                                                                                                                |                                        |       | (359      | )      |              |       | (375    | )     
|                                                                                                                                          | Limited Partners, 90,679 and 90,917 limited partnership units
outstanding at March 31, 2003 and December 31, 2002,
respectively |                                        |       | 29,919    |        |              |       | 29,860  |       
|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |         |       
|                                                                                                                                          |                                                                                                                                 | Total partners equity                 |       |           | 29,560 |              |       |         | 29,485 | 
|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |         |       
|                                                                                                                                          |                                                                                                                                 | Total liabilities and partners equity |       | $         | 39,836 |              |       | $       | 39,625 | 
|                                                                                                                                          |                                                                                                                                 |                                        |       |           |        |              |       |         |       

The accompanying notes are an integral part of these consolidated financial statements.

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Income
(in thousands, except per unit amounts and units outstanding)
(Unaudited)

|                                                          |                                                                                     |                                                  |      |                    |       |      |      |        |       | 
|--------------------------------------------------------- | ----------------------------------------------------------------------------------- | ------------------------------------------------ | ---- | ------------------ | ----- | ---- | ---- | ------ | ----- | 
|                                                          |                                                                                     |                                                  |      | Three months ended
|                                                          |                                                                                     |                                                  |      | March 31,         
|                                                          |                                                                                     |                                                  |      |                   
|                                                          |                                                                                     |                                                  |      | 2003               |       | 2002
|                                                          |                                                                                     |                                                  |      |                    |       |     
|REVENUE                                                   |                                                                                     |                                                  |      |                    |       |      |      |       
|                                                          | Rental income                                                                       |                                                  | $    | 1,929              |       |      | $    | 1,783  |      
|                                                          | Interest and other income                                                           |                                                  |      | 38                 |       |      |      | 69     |      
|                                                          |                                                                                     |                                                  |      |                    |       |      |      |        |      
|                                                          |                                                                                     | Total revenue                                    |      |                    | 1,967 |      |      |        | 1,852 | 
|                                                          |                                                                                     |                                                  |      |                    |       |      |      |        |      
|EXPENSES                                                  |                                                                                     |                                                  |      |                    |       |      |      |       
|                                                          | Operating                                                                           |                                                  |      | 833                |       |      |      | 747    |      
|                                                          | Interest expense                                                                    |                                                  |      | 90                 |       |      |      | 216    |      
|                                                          | Depreciation and amortization                                                       |                                                  |      | 524                |       |      |      | 427    |      
|                                                          | Expenses associated with undeveloped land                                           |                                                  |      | 78                 |       |      |      | 99     |      
|                                                          | General and administrative                                                          |                                                  |      | 278                |       |      |      | 266    |      
|                                                          |                                                                                     |                                                  |      |                    |       |      |      |        |      
|                                                          |                                                                                     | Total expenses                                   |      |                    | 1,803 |      |      |        | 1,755 | 
|                                                          |                                                                                     |                                                  |      |                    |       |      |      |        |      
|Net income                                                |                                                                                     | $                                                | 164  |                    |       | $    | 97   |       
|                                                          |                                                                                     |                                                  |      |                    |       |      |      |        |      
|Basic and diluted net income per limited partnership unit |                                                                                     | $                                                | 1.63 |                    |       | $    | 0.93 |       
|                                                          |                                                                                     |                                                  |      |                    |       |      |      |        |      
|Distributions per limited partnership unit:               |                                                                                     |                                                  |      |                    |       |      |      |       
|                                                          | From net income                                                                     |                                                  | $    |                   |       |      | $    |       |      
|                                                          | Representing return of capital                                                      |                                                  |      |                   |       |      |      |       |      
|                                                          |                                                                                     |                                                  |      |                    |       |      |      |        |      
|                                                          |                                                                                     | Total distributions per limited partnership unit |      | $                  |      |      |      | $      |      | 
|                                                          |                                                                                     |                                                  |      |                    |       |      |      |        |      
|                                                          | Weighted average number of limited partnership units outstanding
during each period |                                                  |      | 90,743             |       |      |      | 93,750 |      
|                                                          |                                                                                     |                                                  |      |                    |       |      |      |        |      

The accompanying notes are an integral part of these consolidated financial statements.

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statement of Partners Equity
For the three months ended March 31, 2003
(in thousands)
(Unaudited)

|                                        |  |                  |      |                 |  |       |        |   |  |   |        |  
|--------------------------------------- |  | ---------------- | ---- | --------------- |  | ----- | ------ | - |  | - | ------ | -
|                                        |  | General Partners |      | LimitedPartners |  | Total
|                                        |  |                  |      |                 |  |      
|Balance at December 31, 2002            |  | $                | (375 | )               |  | $     | 29,860 |   |  | $ | 29,485 |  
|Redemption of limited partnership units |  |                  |     |                 |  |       | (89    | ) |  |   | (89    | )
|Net income                              |  |                  | 16   |                 |  |       | 148    |   |  |   | 164    |  
|                                        |  |                  |      |                 |  |       |        |   |  |   |        |  
|Balance at March 31, 2003               |  | $                | (359 | )               |  | $     | 29,919 |   |  | $ | 29,560 |  
|                                        |  |                  |      |                 |  |       |        |   |  |   |        |  

The accompanying notes are an integral part of these consolidated financial statements.

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP




Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

|                                                  |                                                                                   |                                                         |                                           |        |                    |      |       |      |     |     |  
|------------------------------------------------- | --------------------------------------------------------------------------------- | ------------------------------------------------------- | ----------------------------------------- | ------ | ------------------ | ---- | ----- | ---- | --- | --- | -
|                                                  |                                                                                   |                                                         |                                           |        | Three months ended
|                                                  |                                                                                   |                                                         |                                           |        | March 31,         
|                                                  |                                                                                   |                                                         |                                           |        |                   
|                                                  |                                                                                   |                                                         |                                           |        | 2003               |      | 2002 
|                                                  |                                                                                   |                                                         |                                           |        |                    |      |      
|CASH FLOWS FROM OPERATING ACTIVITIES:             |                                                                                   |                                                         |                                           |        |                    |      |       |     
|                                                  | Net income                                                                        |                                                         | $                                         | 164    |                    |      | $     | 97   |    
|                                                  | Adjustments to reconcile net income to net
cash provided by operating activities: |                                                         |                                           |        |                    |      |       |      |    
|                                                  |                                                                                   | Depreciation and amortization                           |                                           |        | 524                |      |       |      | 427 |    
|                                                  |                                                                                   | Amortization of loan fees, included in interest expense |                                           |        | 7                  |      |       |      | 7   |    
|                                                  |                                                                                   | Changes in certain assets and liabilities:              |                                           |        |                    |      |       |      |     |    
|                                                  |                                                                                   |                                                         | Accounts receivable                       |        |                    | 196  |       |      |     | 42  |  
|                                                  |                                                                                   |                                                         | Deferred financing costs and other fees   |        |                    | (495 | )     |      |     | (38 | )
|                                                  |                                                                                   |                                                         | Prepaid expenses and other assets         |        |                    | 7    |       |      |     | (94 | )
|                                                  |                                                                                   |                                                         | Accounts payable and other liabilities    |        |                    | 177  |       |      |     | 176 |  
|                                                  |                                                                                   |                                                         | Prepaid rent                              |        |                    | 122  |       |      |     |    |  
|                                                  |                                                                                   |                                                         |                                           |        |                    |      |       |      |    
|                                                  |                                                                                   |                                                         | Net cash provided by operating activities |        |                    | 702  |       |      |     | 617 |  
|                                                  |                                                                                   |                                                         |                                           |        |                    |      |       |      |    
|CASH FLOWS FROM INVESTING ACTIVITIES:             |                                                                                   |                                                         |                                           |        |                    |      |       |     
|                                                  | Additions to investments in real estate                                           |                                                         |                                           | (3,152 | )                  |      |       | (721 | )  
|                                                  |                                                                                   |                                                         |                                           |        |                    |      |       |      |    
|CASH FLOWS FROM FINANCING ACTIVITIES:             |                                                                                   |                                                         |                                           |        |                    |      |       |     
|                                                  | Line of credit draws                                                              |                                                         |                                           | 70     |                    |      |       |     |    
|                                                  | Notes payable principal payments                                                  |                                                         |                                           | (44    | )                  |      |       | (40  | )  
|                                                  | Redemption of limited partnership units                                           |                                                         |                                           | (89    | )                  |      |       | (39  | )  
|                                                  |                                                                                   |                                                         |                                           |        |                    |      |       |      |    
|                                                  |                                                                                   |                                                         | Net cash used for financing activities    |        |                    | (63  | )     |      |     | (79 | )
|                                                  |                                                                                   |                                                         |                                           |        |                    |      |       |      |    
|Net decrease in cash and cash equivalents         |                                                                                   |                                                         | (2,513                                    | )      |                    |      | (183  | )   
|Cash and cash equivalents at beginning of period  |                                                                                   |                                                         | 3,588                                     |        |                    |      | 8,424 |     
|                                                  |                                                                                   |                                                         |                                           |        |                    |      |       |      |    
|Cash and cash equivalents at end of period        |                                                                                   | $                                                       | 1,075                                     |        |                    | $    | 8,241 |     
|                                                  |                                                                                   |                                                         |                                           |        |                    |      |       |      |    
|Supplemental disclosure of cash flow information: |                                                                                   |                                                         |                                           |        |                    |      |       |     
|                                                  | Cash paid for interest (including capitalized interest of
$122 in 2003)           |                                                         | $                                         | 204    |                    |      | $     | 209  |    
|                                                  |                                                                                   |                                                         |                                           |        |                    |      |       |      |    

The accompanying notes are an integral part of these consolidated financial statements.

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP




Notes to Consolidated Financial Statements

March 31, 2003
(Unaudited)

|        |  |             
|------- |  | ------------
|Note 1. |  | ORGANIZATION

Rancon Realty Fund V, a California Limited Partnership, (the Partnership),
was organized in accordance with the provisions of the California Revised
Limited Partnership Act for the purpose of acquiring, developing, operating and
disposing of real property. The general partners of the Partnership are Daniel
L. Stephenson and Rancon Financial Corporation (RFC), hereinafter
collectively referred to as the Sponsor or the General Partner. RFC is wholly
owned by Daniel L. Stephenson. The Partnership reached final funding in
February 1989.

During the three months ended March 31, 2003, a total of 238 units of limited
partnership interest (Units) were redeemed at an average price of $375. As
of March 31, 2003, there were 90,679 Units outstanding.

In the opinion of RFC, the General Partner and Glenborough Realty Trust
Incorporated (Glenborough), the Partnerships asset and property manager, the
accompanying unaudited consolidated financial statements contain all
adjustments (consisting of only normal accruals) necessary to present fairly
the consolidated financial position of the Partnership as of March 31, 2003,
and the related consolidated statements of operations and cash flows for the
three months ended March 31, 2003 and 2002.

Allocation of Net Income and Net Loss

Allocations of net income and net losses are made pursuant to the terms of the
Partnership Agreement. Generally, net income and net losses from operations
are allocated 90% to the limited partners and 10% to the General Partner;
however, if the limited partners and the General Partner have, as a result of
an allocation of net loss, a deficit balance in their capital accounts, net
loss shall not be allocated to the limited partners and General Partner in
excess of the positive balance until the balances of the limited partners and
General Partners capital accounts are reduced to zero. Capital accounts shall
be determined after taking into account the other allocations and distributions
for the fiscal year.

Net income other than net income from operations shall be allocated as follows:
(i) first, to the partners who have a deficit balance in their capital account,
provided that, in no event shall the General Partner be allocated more than 5%
of the net income other than net income from operations until the earlier of
sale or disposition of substantially all of the assets or the distribution of
cash (other than cash from operations) equal to the Unitholders original
invested capital; (ii) second, to the limited partners in proportion to and to
the extent of the amounts required to increase their capital accounts to an
amount equal to the sum of the adjusted invested capital of their units plus an
additional cumulative non-compounded 12% return per annum (plus additional
amounts depending on the date Units were purchased); (iii) third, to the
partners in the minimum amount required to first equalize their capital
accounts in proportion to the number of units owned, and then, to bring the sum
of the balances of the capital accounts of the limited partners and the General
Partner into the ratio of 4 to 1; and (iv) the balance, if any, 80% to the
limited partners and 20% to the General Partner. In no event shall the General
Partner be allocated less than 1% of the net income other than net income from
operations for any period.

Net losses other than net losses from operations are allocated 99% to the
limited partners and 1% to the General Partner. Such net losses will be
allocated among limited partners as necessary to equalize their capital
accounts in proportion to their Units, and thereafter will be allocated in
proportion to their Units.

The terms of the Partnership agreement call for the general partner to restore
any deficit that may exist in its capital account after allocation of gains and
losses from the sale of the final property owned by the Partnership, but prior
to any liquidating distributions being made to the partners.

Distribution of Cash

The Partnership shall make annual or more frequent distributions of
substantially all cash available to be distributed to partners as determined by
the General Partner, subject to the following: (i) distributions may be
restricted or suspended for limited periods when the General Partner determines
in its absolute discretion that it is in the best interest of the Partnership;
and (ii) all distributions are subject to the payment of partnership expenses
and maintenance of reasonable reserves for debt service, alterations
improvements, maintenance, replacement of furniture and fixtures, working
capital and contingent liabilities.

All excess cash from operations shall be distributed 90 percent to the limited
partners and 10 percent to the General Partner.

All cash from sales or refinancing and any other cash determined by the General
Partner to be available for distribution other than cash from operations shall
be distributed in the following order of priority: (i) first, 1 percent to the
General Partner and 99 percent to the limited partners in proportion to the
outstanding positive amounts of Adjusted Invested Capital (as defined in the
Partnership Agreement) for each of their Units until Adjusted Invested Capital
(as defined in the Partnership Agreement) for each

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

March 31, 2003
(Unaudited)

Unit is reduced to zero;
(ii) second, 1 percent to the General Partner and 99 percent to the limited
partners until each of the limited partners has received an amount which,
including cash from operations previously distributed to the limited partners,
equals a 12 percent annual cumulative non-compounded return on the Adjusted
Invested Capital (as defined in the Partnership Agreement) of their Units plus
such limited partners Limited Incremental Preferential Return (as defined in
the Partnership Agreement), if any, with respect to each such Unit, on the
Adjusted Investment Capital (as defined in the Partnership Agreement) of such
Units for the twelve month period following the date upon which such Unit was
purchased from the Partnership and following the admission of such limited
partner; (iii) third, 99 percent to the General Partner and 1 percent to the
limited partners, until the General Partner has received an amount equal to 20
percent of all distributions of cash from sales or refinancing; and (iv) the
balance, 80 percent to the limited partners, pro rata in proportion to the
number of Units held by each, and 20 percent to the General Partner.

All cash from a sale or disposition of substantially all of the assets (as
defined in the Partnership Agreement ) and any cash, other than cash from
operations, available for distribution to partners during the dissolution and
termination of the Partnership, shall be distributed to the partners: (i)
first, in proportion to and to the extent of the positive balances of their
capital accounts; and (ii) the remaining balance, if any, in accordance with
distributions of cash from sales or refinancing above.

The terms of the Partnership Agreement call for the General Partner to restore
any deficits that may exist in its capital account after allocation of gains
and losses from the sale of the final property owned by the Partnership, but
prior to any liquidating distributions being made to the partners.

Management Agreement

Effective January 1, 1995, Glenborough Corporation (GC) entered into an
agreement with the Partnership and other related Partnerships (collectively,
the Rancon Partnerships) to perform or contract on the Partnerships behalf for
financial, accounting, data processing, marketing, legal, investor relations,
asset and development management and consulting services for a period of ten
years or until the liquidation of the Partnership, whichever comes first.
Effective January 1, 1998, the agreement was amended to eliminate GCs
responsibilities for providing investor relation services. Preferred
Partnership Services, Inc., a California corporation unaffiliated with the
Partnership, contracted to assume the investor relation services. In October
2000, GC merged into Glenborough.

The Partnership will pay Glenborough for its services as follows: (i) a
specified asset administration fee ($156,000 and $161,000 in the first quarter
of 2003 and 2002, respectively); (ii) sales fees of 2% for improved properties
and 4% for land; (iii) a refinancing fee of 1% ($59,000 in the first quarter of
2003); and (iv) a management fee of 5% of gross rental receipts. As part of
this agreement, Glenborough will perform certain duties for the General Partner
of the Rancon Partnerships. RFC agreed to cooperate with Glenborough, should
Glenborough attempt to obtain a majority vote of the limited partners to
substitute itself as the Sponsor for the Rancon Partnerships. Glenborough is
not an affiliate of RFC or the Partnership.

Risks and Uncertainties

The Partnerships ability to (i) achieve positive cash flow from operations,
(ii) meet its debt obligations, (iii) provide distributions either from
operations or the ultimate disposition of the Partnerships properties or (iv)
continue as a going concern may be impacted by changes in interest rates,
property values, local and regional economic conditions, or the entry of other
competitors into the market. The accompanying consolidated financial
statements do not provide for adjustments with regard to these uncertainties.

|        |  |                                
|------- |  | -------------------------------
|Note 2. |  | SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The accompanying consolidated financial statements have been prepared on the
accrual basis of accounting in accordance with accounting principles generally
accepted in the United States. They include the accounts of certain wholly
owned subsidiaries. All significant intercompany transactions and balances have
been eliminated in consolidation.

Consolidation

In May 1996, the Partnership formed Rancon Realty Fund V Tri-City Limited
Partnership, a Delaware limited partnership (RRF V Tri-City). The limited
partner of RRF V Tri-City is the Partnership and the general partner is Rancon
Realty Fund V, Inc. (RRF V,
Inc.), a corporation wholly owned by the Partnership. Since the Partnership
owns 100% of RRF V, Inc. and indirectly owns 100%

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

March 31, 2003
(Unaudited)

of RRF V Tri-City, the
financial statements of RRF V, Inc. and RRF V Tri-City have been consolidated
with those of the Partnership. All intercompany balances and transactions have
been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported results of operations during the
reporting period. Actual results could differ from those estimates.

New Accounting Pronouncements

In June 2001, the FASB approved for issuance SFAS 143, Accounting for Asset
Retirement Obligations. SFAS 143 requires that the fair value of a liability
for an asset retirement obligation be recognized in the period in which it is
incurred and that the associated asset retirement costs be capitalized as part
of the carrying value of the related long-lived asset. SFAS 143 was adopted by
the Partnership on January 1, 2003. This standard did not have a material
impact on the Partnerships consolidated financial position or results of
operations.

In May 2002, the FASB approved for issuance SFAS 145, Rescission of FASB
Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections. SFAS 145 requires gains and losses from extinguishment of debt
to be classified as an extraordinary item only if the criteria in APB No. 30
has been met. Further, lease modifications with economic effects similar to
sale-leaseback transactions must be accounted for in the same manner as
sale-leaseback transactions. While the technical corrections to existing
pronouncements are not substantive in nature, in some instances they may change
accounting practice. SFAS 145 was adopted by the Partnership on January 1,
2003 for the Partnership. This standard did not have a material impact on the
Partnerships consolidated financial position and results of operations.

In June 2002, the FASB approved for issuance SFAS 146, Accounting for Costs
Associated with Exit or Disposal Activities. SFAS 146 addresses accounting
and reporting for costs associated with exit and disposal activities and
supercedes Emerging Issues Task Force Issue No. 94-3 (EITF 94-3), Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit
an Activity (including Certain Costs Incurred in a Restructuring). SFAS 146
requires that a liability for a cost associated with an exit or disposal
activity be recognized when the liability is incurred, as defined by the
Statement. Under EITF 94-3, an exit cost was recognized at the date an entity
committed to an exit plan. Additionally, SFAS 146 provides that exit and
disposal costs should be measured at fair value and that the associated
liability will be adjusted for changes in estimated cash flows. The provisions
of SFAS 146 are effective for exit and disposal activities that are initiated
after December 31, 2002. This standard did not have a material impact on the
Partnerships consolidated financial position and results of operations since
there have been no exit or disposal activities since January 1, 2003.

In November 2002, the FASB approved for issuance FASB Interpretation 45 (FIN
45), Guarantors Accounting and Disclosure Requirements for Guarantees,
Including Indirect Guarantees of Indebtedness of Others. FIN 45 elaborates on
the disclosures to be made by a guarantor in its interim and annual financial
statements about its obligations under certain guarantees that it has issued.
It also clarifies that a guarantor is required to recognize, at the inception
of a guarantee, a liability for the fair value of the obligation undertaken in
issuing the guarantee. The initial recognition and initial measurement
provisions of FIN 45 are applicable on a prospective basis to guarantees issued
or modified after December 31, 2002. The disclosure requirements are effective
for financial statements of interim and annual periods ending after December
15, 2002. The Partnership does not provide for any guarantees, therefore, the
pronouncement did not have any impact on the Partnerships financial position
or results of operations.

Rental Properties

Rental properties, including the related land, are stated at cost unless events
or circumstances indicate that cost cannot be recovered, in which case, the
carrying value of the property is reduced to its estimated fair value.
Estimated fair value: (i) is based upon the Partnerships plans for the
continued operations of each property; and (ii) is computed using estimated
sales price, as determined by prevailing market values for comparable
properties and/or the use of capitalization rates multiplied by annualized
rental income based upon the age, construction and use of the building. The
fulfillment of the Partnerships plans related to each of its properties is
dependent upon, among other things, the presence of economic conditions which
will enable the Partnership to continue to hold and operate the properties
prior to their eventual sale. Due to uncertainties inherent in the valuation
process and in the economy, it is reasonably possible that the actual results
of operating and disposing of the Partnerships properties could be materially
different than current expectations.

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

March 31, 2003
(Unaudited)

Depreciation is provided using the straight line method over useful lives
ranging from five to forty years for the respective assets.

Land Held for Development and Construction In Progress

Land held for development and construction in progress are stated at cost,
unless events or circumstances indicate that cost cannot be recovered, in which
case the carrying value is reduced to estimated fair value. Estimated fair
value: (i) is based on the Partnerships
plans for the development of each property; and (ii) considers the cost to
complete and the estimated fair value of the completed project. The
fulfillment of the Partnerships plans related to each of its properties is
dependent upon, among other things, the presence of economic conditions which
will enable the Partnership to either hold the properties for eventual sale or
obtain financing for further development.

Interest and property taxes related to property constructed by the Partnership
are capitalized during the period of construction.

Cash and Cash Equivalents

The Partnership considers certificates of deposit and money market funds with
original maturities of less than ninety days when purchased to be cash
equivalents.

Deferred Costs and Other Fees

Deferred loan fees are amortized on a straight-line basis over the life of the
related loan and deferred lease commissions are amortized over the initial
fixed term of the related lease agreement.

Revenue

The Partnership recognizes rental revenue on a straight-line basis at amounts
that it believes it will collect on a tenant by tenant basis. The estimation
process may result in higher or lower levels from period to period as the
Partnerships collection experience and the credit quality of the Partnerships
tenants changes. Actual amounts collected could be lower than the amounts
recognized on a straight-line basis if specific tenants are unable to pay rent
that the Partnership has previously recognized as revenue.

The Partnerships portfolio of leases turns over continuously, with the number
and value of expiring leases varying from year to year. The Partnerships
ability to re-lease the space to existing or new tenants at rates equal to or
greater than those realized historically is impacted by, among other things,
the economic conditions of the market in which a property is located, the
availability of competing space, and the level of improvements which may be
required at the property. No assurance can be given that the rental rates that
the Partnership will obtain in the future will be equal to or greater than
those obtained under existing contractual commitments.

Reimbursements from tenants for real estate taxes and other recoverable
operating expenses are recognized as revenue in the period the applicable
expenses are incurred. Differences between estimated and actual amounts are
recognized in the subsequent year.

Net Income (Loss) Per Limited Partnership Unit

Net income (loss) per limited partnership unit is calculated using the weighted
average number of limited partnership units outstanding during the period and
the Limited Partners allocable share of the net income (loss).

Income Taxes

No provision for income taxes is included in the accompanying consolidated
financial statements, as the Partnerships results of operations are allocated
to the partners for inclusion in their respective income tax returns. Net
income (loss) and partners equity for financial reporting purposes will differ
from the Partnership income tax return because of different accounting methods
used for certain items, including depreciation expense, capitalization of
development period interest, income recognition and provisions for impairment
of investments in real estate.

Concentration Risk

No single tenant or affiliated group of tenants occupied more than 10 percent
of total rentable square feet or represented more than 10 percent of rental
income for the three months ended March 31, 2003 and 2002, respectively.

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

March 31, 2003
(Unaudited)

Reference to 2002 audited consolidated financial statements

These unaudited consolidated financial statements should be read in conjunction
with the notes to audited consolidated financial statements included in the
December 31, 2002 audited consolidated financial statements on Form 10-K.

|        |  |                           
|------- |  | --------------------------
|Note 3. |  | INVESTMENTS IN REAL ESTATE

Rental properties consisted of the following at March 31, 2003 and December 31,
2002 (in thousands):

|                                 |  |      |         |      |  |   |         |  
|-------------------------------- |  | ---- | ------- | ---- |  | - | ------- | -
|                                 |  | 2003 |         | 2002
|                                 |  |      |         |     
|Land                             |  | $    | 5,197   |      |  | $ | 5,197   |  
|Buildings                        |  |      | 27,046  |      |  |   | 27,046  |  
|Leasehold and other improvements |  |      | 16,713  |      |  |   | 16,368  |  
|                                 |  |      |         |      |  |   |         |  
|                                 |  |      | 48,956  |      |  |   | 48,611  |  
|Less: accumulated depreciation   |  |      | (21,749 | )    |  |   | (21,306 | )
|                                 |  |      |         |      |  |   |         |  
|Total rental properties, net     |  | $    | 27,207  |      |  | $ | 27,305  |  
|                                 |  |      |         |      |  |   |         |  

The Partnerships rental properties include five office and three retail
projects, aggregating approximately 448,000 rentable square feet, at the
Tri-City Corporate Centre in San Bernardino, California.

Construction in progress consisted of the following at December 31, 2002 and
2001 (in thousands):

|                                                                             |  |      |       |      |  |   |       | 
|---------------------------------------------------------------------------- |  | ---- | ----- | ---- |  | - | ----- | 
|                                                                             |  | 2003 |       | 2002
|                                                                             |  |      |       |     
|Tri-City Corporate Centre, San Bernardino, CA
(approximately 6.5 acres land) |  | $    | 6,292 |      |  | $ | 3,678 | 
|                                                                             |  |      |       |      |  |   |       | 

Construction in progress increased primarily due to construction costs at Two
Parkside and Harriman Plaza.

In March 2003, the Partnership obtained a $6,000,000 line of credit secured by
One Carnegie Plaza and Carnegie Business Center II from a bank. This line of
credit will be used primarily to fund the construction costs at Two Parkside
and Harriman Plaza. See below for further discussion.

Land held for development consisted of the following at March 31, 2003 and
December 31, 2002 (in thousands):

|                                                                                                                |  |      |       |      |  |   |       | 
|--------------------------------------------------------------------------------------------------------------- |  | ---- | ----- | ---- |  | - | ----- | 
|                                                                                                                |  | 2003 |       | 2002
|                                                                                                                |  |      |       |     
|Tri-City Corporate Centre, San Bernardino, CA
(7.5 acres at March 31, 2003 and December
31, 2002, respectively) |  | $    | 2,077 |      |  | $ | 2,073 | 
|                                                                                                                |  |      |       |      |  |   |       | 

|        |  |                                
|------- |  | -------------------------------
|Note 4. |  | NOTE PAYABLE AND LINE OF CREDIT

Note payable as of March 31, 2003 and December 31, 2002, were as follows (in
thousands):

|                                                                                                                                                                                                                                                                                                                                                                  |                     |   |       |       |      |   |       |       | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------- | - | ----- | ----- | ---- | - | ----- | ----- | 
|                                                                                                                                                                                                                                                                                                                                                                  |                     |   | 2003  |       | 2002
|                                                                                                                                                                                                                                                                                                                                                                  |                     |   |       |       |     
|Note payable, secured by first deed of trust on Lakeside Tower,
One Parkside and Two Carnegie Plaza. The loan, which matures
August 1, 2006, is a 10-year, 9.39% fixed rate loan with a
25-year amortization requiring monthly principal and interest
payments of $83                                                                                             |                     | $ | 8,698 |       |      | $ | 8,742 |      
|Line of credit with a total availability of $6 million secured by
first deeds of trust on One Carnegie Plaza and Carnegie Business
Center II with a variable interest rate of lenders Prime Rate
plus 0.75% points over the index with the floor set at 5.5% (5.5%
as of March 31, 2003), monthly interest-only payments, and a
maturity date of March 5, 2005 |                     |   | 70    |       |      |   |      |      
|                                                                                                                                                                                                                                                                                                                                                                  |                     |   |       |       |      |   |       |      
|                                                                                                                                                                                                                                                                                                                                                                  | Total notes payable |   | $     | 8,768 |      |   | $     | 8,742 | 
|                                                                                                                                                                                                                                                                                                                                                                  |                     |   |       |       |      |   |       |      

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

March 31, 2003
(Unaudited)

The annual maturities on the Partnerships note payable and line of credit for
the next five years and thereafter, as of March 31, 2003, are as follows (in
thousands):

| |  |              |      |   |       |   |       | 
| |  | ------------ | ---- | - | ----- | - | ----- | 
| |  | Year ended   |      |   |       |  
| |  | December 31, |      |   |       |  
| |  |              |      |   |       |  
| |  |              | 2003 |   |       | $ | 140   | 
| |  |              | 2004 |   |       |   | 203   | 
| |  |              | 2005 |   |       |   | 292   | 
| |  |              | 2006 |   |       |   | 8,133 | 
| |  |              |      |   |       |   |       | 
| |  | Total        |      | $ | 8,768 |  
| |  |              |      |   |       |   |       | 

|        |  |                                       
|------- |  | --------------------------------------
|Note 5. |  | COMMITMENTS AND CONTINGENT LIABILITIES

Environmental Matters

The Partnership follows a policy of monitoring its properties for the presence
of hazardous or toxic substances. The Partnership is not aware of any
environmental liability with respect to the properties that would have a
material adverse effect on the Partnerships business, assets or results of
operations. There can be no assurance that such a material environmental
liability does not exist. The existence of any such material environmental
liability could have an adverse effect on the Partnerships results of
operations and cash flows.

General Uninsured Losses

The Partnership carries comprehensive liability, fire, flood, extended coverage
and rental loss insurance with policy specifications, limits and deductibles
customarily carried for similar properties. There are, however, certain types
of extraordinary losses, which may be either uninsurable, or not economically
insurable. Further, certain of the properties are located in areas that are
subject to earthquake activity. Should a property sustain damage as a result
of an earthquake, the Partnership may incur losses due to insurance
deductibles, co-payments on insured losses or uninsured losses. Should an
uninsured loss occur, the Partnership could lose its investment in, and
anticipated profits and cash flows from, a property.

Other Matters

The Partnership is contingently liable for subordinated real estate commissions
payable to the General Partner in the amount of $102,000 at March 31, 2003 for
sales that occurred in previous years. The subordinated real estate
commissions are payable only after the Limited Partners have received
distributions equal to their original invested capital plus a cumulative
non-compounded return of six percent per annum on their adjusted invested
capital. Since the circumstances under which these commissions would be
payable are limited, the liability has not been recognized in the accompanying
consolidated financial statements; however, the amount will be recorded when
and if it becomes payable.

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|        |  |                                                                                      
|------- |  | -------------------------------------------------------------------------------------
|Item 2. |  | Managements Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Comparison of the three months ended March 31, 2003 to the three months ended March 31, 2002

Revenue

Rental income for the three months ended March 31, 2003 increased $146,000,
compared to the three months ended March 31, 2002, primarily due to an increase
in occupancy at One Carnegie Plaza and Two Carnegie Plaza.

Occupancy rates at the Partnerships Tri-City properties were as follows:

|                            |  |           |     |      |  |  |     |  
|--------------------------- |  | --------- | --- | ---- |  |  | --- | -
|                            |  | March 31,
|                            |  |          
|                            |  | 2003      |     | 2002
|                            |  |           |     |     
|One Carnegie Plaza          |  |           | 97  | %    |  |  | 88  | %
|Two Carnegie Plaza          |  |           | 96  | %    |  |  | 89  | %
|Carnegie Business Center II |  |           | 91  | %    |  |  | 88  | %
|Lakeside Tower              |  |           | 93  | %    |  |  | 95  | %
|One Parkside                |  |           | 100 | %    |  |  | 100 | %
|Ballys Health Club         |  |           | 100 | %    |  |  | 100 | %
|Outback Steakhouse          |  |           | 100 | %    |  |  | 100 | %
|Palm Court Retail #3        |  |           | 100 | %    |  |  | 100 | %
|Weighted average occupancy  |  |           | 96  | %    |  |  | 93  | %

As of March 31, 2003, tenants at Tri-City Corporate Centre occupying
substantial portions of leased rental space included: (i) Chicago Title with a
lease through February 2004; (ii) New York Life Insurance with a lease through
May 2004; (iii) Paychex with a lease through July 2004; (iv) Computer
Associates with a lease through November 2005; (v) Holiday Spa Health Club with
a lease through December 2010; and (vi) Lewis, Damato & Brisbois et al with a
lease through November 2012. These six tenants, in the aggregate, occupy
approximately 140,000 square feet of the 448,000 total rentable square feet at
Tri-City and account for approximately 34% of the rental income generated at
Tri-City for the Partnership.

The 9% increase in occupancy from March 31, 2002 to March 31, 2003 at One
Carnegie Plaza was due to leasing 6,216 square feet to a new tenant, and
expansion of two existing tenants into approximately 3,432 square feet of
previously vacant space.

The 7% increase in occupancy from March 31, 2002 to March 31, 2003 at Two
Carnegie Plaza was due to leasing 2,119 square feet to two new tenants, and
expansion of two existing tenants into approximately 2,119 square feet of
previously vacant space.

Interest and other income decreased $31,000 for the three months ended March
31, 2003, compared to the three months ended March 31, 2002, primarily due to a
lower invested cash balance resulting from payment of the construction costs at
Two Parkside and Harriman Plaza..

Expenses

Operating expenses increased $86,000, or 12%, for the three months ended March
31, 2003, compared to the three months ended March 31, 2002 primarily due to an
increase in occupancy at One Carnegie Plaza and Two Carnegie Plaza and an
increase in utility and janitorial costs.

Interest expense decreased $126,000, or 58%, during the three months ended
March 31, 2003, compared to the three months ended March 31, 2002, primarily
due to the $122,000 of interest capitalized during construction at Two Parkside
and Harriman Plaza.

Depreciation and amortization increased $97,000, or 23%, for the three months
ended March 31, 2003, compared to the three months ended March 31, 2002,
primarily due to an increase in investments in real estate.

Expenses associated with undeveloped land decreased $21,000, or 21%, for the
three months ended March 31, 2003, compared to the three months ended March 31,
2002, primarily due to capitalization of property taxes and insurance to the
construction costs at Two Parkside and Harriman Plaza.

General and administrative expenses increased $12,000, or 5%, for the three
months ended March 31, 2003, compared to the three months ended March 31, 2002,
primarily due to an increase in investor service expenses related to the
redemption of Partnership Units and higher audit and tax preparation fees.

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Liquidity and Capital Resources

The following discussion should be read in conjunction with the Partnerships
December 31, 2002 audited consolidated financial statements and the notes
thereto.

As of March 31, 2003, the Partnership had cash of $1,075,000. The remainder of
the Partnerships assets consisted primarily of its net investments in real
estate, totaling approximately $35,576,000 which included $27,207,000 of rental
properties, $6,292,000 of construction in progress and $2,077,000 of land held
for development within the Tri-City area.

The Partnerships liabilities at March 31, 2003, included note payable and a
line of credit totaling approximately $8,768,000 which consisted of two secured
loans encumbering properties with an aggregate net book value of approximately
$23,139,000. One note requires monthly principal and interest payments of
$83,000, bears a fixed interest rate of 9.39%, and has a maturity date of
August 1, 2006. A line of credit with a total availability of $6,000,000
requires monthly interest-only payments, bears an interest rate of prime plus
0.75% points over the index with a floor set at 5.5% (5.5% as of March 31,
2003), and has a maturity date of March 5, 2005.

The Partnership is contingently liable for subordinated real estate commissions
payable to the General Partner in the amount of $102,000 at March 31, 2003 for
sales that occurred in previous years. The subordinated real estate
commissions are payable only after the Limited Partners have received
distributions equal to their original invested capital plus a cumulative
non-compounded return of six percent per annum on their adjusted invested
capital. Since the circumstances under which these commissions would be
payable are limited, the liability has not been recognized in the accompanying
consolidated financial statements; however, the amount will be recorded when
and if it becomes payable.

Operationally, the Partnerships primary source of funds consists of cash
provided by its rental activities. Other sources of funds may include permanent
financing, property sales, and interest income on certificates of deposit and
other deposits of funds invested temporarily. Cash generated from property
sales is generally added to the Partnerships cash reserves, pending use in
development of other properties or distribution to the partners.

Management believes that the Partnerships cash balance at March 31, 2003,
together with cash from operations, sales and financings will be sufficient to
finance the Partnerships and the properties continued operations and
development plans on a short-term basis and for the reasonably foreseeable
future. There can be no assurance that the Partnerships results of operations
will not fluctuate in the future and at times affect its ability to meet its
operating requirements.

The Partnership knows of no demands, commitments, events or uncertainties,
which might affect its capital resources in any material respect. In addition,
the Partnership is not subject to any covenants pursuant to its secured debt
that would constrain its ability to obtain additional capital.

Operating Activities

During the three months ended March 31, 2003, the Partnerships cash provided
by operating activities totaled $702,000.

The $196,000 decrease in accounts receivable at March 31, 2003, compared to
December 31, 2002, was primarily due to the collection of a portion of tenant
improvement receivables and the reimbursement of tenant improvements from the
reserve impound account.

The $407,000 increase in deferred costs and other fees at March 31, 2003,
compared to December 31, 2002, was primarily due to $495,000 of lease
commissions paid for two new leases totaling approximately 59,000 square feet
at One Carnegie Plaza and Two Parkside, offset by $88,000 of amortization
expense.

The $299,000 increase in accounts payable and other liabilities at March 31,
2003, compared to December 31, 2002, was primarily due to accruals for building
operating expenses and property taxes, and prepaid rent of $122,000 collected
at the end of March 2003.

Investing Activities

During the three months ended March 31, 2003, the Partnerships cash used for
investing activities totaled $3,152,000 which consisted of $76,000 for building
improvements, $269,000 for tenant improvements at Lakeside Tower, and
$2,807,000 for construction costs at Two Parkside and Harriman Plaza.

Financing Activities

During the three months ended March 31, 2003, the Partnerships cash used for
financing activities totaled $63,000, which consisted of a $70,000 draw on the
line of credit (as discussed above), offset by $44,000 in principal payments on
the note payable, and $89,000 paid to redeem 238 limited partnership Units.

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Critical Accounting Policies

Revenue recognized on a straight-line basis

The Partnership recognizes rental revenue on a straight-line basis at amounts
that it believes it will collect on a tenant by tenant basis. The estimation
process may result in higher or lower levels from period to period as the
Partnerships collection experience and the credit quality of the Partnerships
tenants changes. Actual amounts collected could be lower than the amounts
recognized on a straight-line basis if specific tenants are unable to pay rent
that the Partnership has previously recognized as revenue.

Carrying value of rental properties and land held for development

The Partnerships rental properties, including the related land, are stated at
cost unless events or circumstances indicate that cost cannot be recovered, in
which case, the carrying value of the property is reduced to its estimated fair
value. Estimated fair value is based upon (i) the Partnerships plans for the
continued operations of each property, and (ii) is computed using estimated
sales price, as determined by prevailing market values for comparable
properties and/or the use of capitalization rates multiplied by annualized
rental income based upon the age, construction and use of the building. The
fulfillment of the Partnerships plans related to each of its properties is
dependent upon, among other things, the presence of economic conditions which
will enable the Partnership to continue to hold and operate the properties
prior to their eventual sale. Due to uncertainties inherent in the valuation
process and in the economy, it is reasonably possible that the actual results
of operating and disposing of the Partnerships properties could be materially
different than current expectations.

Land held for development is stated at cost unless events or circumstances
indicate that cost cannot be recovered, in which case, the carrying value is
reduced to estimated fair value. Estimated fair value: (i) is based on the
Partnerships plans for the development of each property; (ii) is computed
using estimated sales price, based upon market values for comparable
properties; and (iii) considers the cost to complete and the estimated fair
value of the completed project. The fulfillment of the Partnerships plans
related to each of its properties is dependent upon, among other things, the
presence of economic conditions which will enable the Partnership to either
hold the properties for eventual sale or obtain financing to further develop
the properties.

The actual value of the Partnerships portfolio of properties and land held for
development could be significantly higher or lower than their carrying amounts.

New Accounting Pronouncements

In January 2003, the FASB approved for issuance FASB Interpretation No. 46 (FIN
46), Consolidation of Variable Interest Entities. FIN 46 clarifies the
application of Accounting Research Bulletin No. 51, Consolidated Financial
Statements to certain entities in which equity investors do not have the
characteristics of a controlling financial interest or do not have sufficient
equity at risk for the entity to finance its activities without additional
subordinated financial support from other parties. FIN 46 applies immediately
to variable interest entities created after January 31, 2003, and to variable
interest entities in which an enterprise obtains an interest after that date.
It applies in the first fiscal year or interim period beginning after June 15,
2003, to variable interest entities in which an enterprise holds a variable
interest that it acquired before February 1, 2003. FIN 46 may be applied
prospectively with a cumulative-effect adjustment as of the date on which it is
first applied or by restating previously issued financial statements for one or
more years with a cumulative-effect adjustment as of the beginning of the first
year restated. The disclosure requirements of FIN 46 are effective for all
financial statements initially issued after January 31, 2003. The disclosures
provided reflect managements understanding and analysis of FIN 46 based upon
information currently available. The evaluation of the Partnerships various
arrangements is ongoing and is subject to change in the event additional
interpretive guidance is provided by the Financial Accounting Standards Board
or others.




|        |  |                                                           
|------- |  | ----------------------------------------------------------
|Item 3. |  | Qualitative and Quantitative Information About Market Risk

Interest Rates

The Partnerships primary market risk exposure is to changes in interest rates
obtainable on its secured borrowings. The Partnership does not believe that
changes in market interest rates will have a material impact on the performance
or fair value of its portfolio. The Partnership does not own any derivative
instruments.

15



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For debt obligations, the table below presents principal cash flows and
interest rates by expected maturity dates.

|                      |  |                        |      |      |  |      |      |      |  |            |      |       |  |                |       |   |  |  |     |  |  |   |       |   |  |   |       | 
|--------------------- |  | ---------------------- | ---- | ---- |  | ---- | ---- | ---- |  | ---------- | ---- | ----- |  | -------------- | ----- | - |  |  | --- |  |  | - | ----- | - |  | - | ----- | 
|                      |  | Expected Maturity Date
|                      |  |                       
|                      |  | 2003                   |      | 2004 |  | 2005 |      | 2006 |  | Thereafter |      | Total |  | Fair Value    
|                      |  |                        |      |      |  |      |      |      |  |            |      |       |  |               
|                      |  |                        |      |      |  |      |      |      |  |            |      |       |  | (in thousands) |       |   |  |  |     |  |  |  
|Secured fixed         |  | $                      | 140  |      |  | $    | 203  |      |  | $          | 222  |       |  | $              | 8,133 |   |  |  | N/A |  |  | $ | 8,698 |   |  | $ | 8,698 | 
|Average interest rate |  |                        | 9.39 | %    |  |      | 9.39 | %    |  |            | 9.39 | %     |  |                | 9.39  | % |  |  | N/A |  |  |   | 9.39  | % |  |   |       | 
|Secured variable      |  | $                      |     |      |  | $    |     |      |  | $          | 70   |       |  |                | N/A   |   |  |  | N/A |  |  | $ | 70    |   |  | $ | 70    | 
|Average interest rate |  |                        |     | %    |  |      |     | %    |  |            | 5.5  | %     |  |                | N/A   |   |  |  | N/A |  |  |   | 5.5   | % |  |   |       | 

The Partnership believes that the interest rates given in the table for fixed
rate borrowings approximate the rates the Partnership could currently obtain
for instruments of similar terms and maturities and that the fair values of
such instruments approximate carrying value at March 31, 2003.

A change of 1/8% in the index rate to which the Partnerships variable rate
debt is tied would not have an impact on the annual interest incurred by the
Partnership, based upon the balances outstanding on variable rate instruments
at March 31, 2003.

As of March 31, 2003, the Partnership had cash equivalents of $482,000 invested
in interest-bearing certificates of deposit. These investments are subject to
interest rate risk due to changes in interest rates upon maturity. The
Partnership does not own any derivative instruments. Declines in interest
rates over time would reduce Partnership interest income.




|        |  |                        
|------- |  | -----------------------
|Item 4. |  | Controls and procedures

(a)  Evaluation of disclosure controls and procedures. The General Partners
chief executive officer and chief financial officer, after evaluating the
effectiveness of the Partnerships disclosure controls and procedures (as
defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and 15-d-14(c))
as of a date (the Evaluation Date) within 90 days before the filing date of
this quarterly report, has concluded that as of the Evaluation Date, the
Partnerships disclosure controls and procedures were effective and designed to
ensure that material information relating to the Partnership and its
consolidated subsidiaries would be made known to him by others within those
entities.

(b)  Changes in internal controls. There were no significant changes in the
Partnerships internal controls or in other factors that could significantly
affect those controls subsequent to the Evaluation Date.

16



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##### Table of Contents















|         |  |                                                                                                                                  
|-------- |  | ---------------------------------------------------------------------------------------------------------------------------------
|Part II. |  | OTHER INFORMATION                                                                                                                
|         |  |                                                                                                                                  
|Item 1.  |  | Legal Proceedings                                                                                                                
|         |  |                                                                                                                                  
|         |  | None.                                                                                                                            
|         |  |                                                                                                                                  
|Item 4.  |  | Submission of Matters to a Vote of Security Holders                                                                              
|         |  |                                                                                                                                  
|         |  | None.                                                                                                                            
|         |  |                                                                                                                                  
|Item 6.  |  | Exhibits and Reports on Form 8-K                                                                                                 
|         |  |                                                                                                                                  
|         |  | (a) Exhibits:                                                                                                                    
|         |  |                                                                                                                                  
|         |  | 99 Section 906 Certification of Daniel L. Stephenson, Chief Executive
Officer and Chief Financial Officer of
General Partnership.
|         |  |                                                                                                                                  
|         |  | (b) Reports on Form 8-K:                                                                                                         
|         |  |                                                                                                                                  
|         |  | None                                                                                                                             

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##### Table of Contents






SIGNATURES

Pursuant to the requirements of Section 13 or Section 15(d) of the Securities
Exchange Act of 1934, the Partnership has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

| |                                  |                                                                            |  | 
| | -------------------------------- | -------------------------------------------------------------------------- |  | 
| | RANCON REALTY FUND V,            |                                                                           
| | a California limited partnership |                                                                            |  | 
| |                                  |                                                                            |  | 
| | By                               | Rancon Financial Corporation
a California corporation,
its General Partner |  | 

|                     |    |                                       |                                
|-------------------- | -- | ------------------------------------- | -------------------------------
|Date:   May 14, 2003 |    | By:                                   | /s/ DANIEL L. STEPHENSON       
|                     |    |                                       |                                
|                     |    |                                       | Daniel L. Stephenson, President
|                     |    |                                      
|Date:   May 14, 2003 | By | /s/ DANIEL L. STEPHENSON              |                                
|                     |    |                                       |                                
|                     |    | Daniel L. Stephenson, General Partner |                                

18



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##### Table of Contents



I, DANIEL L. STEPHENSON, certify that:



|1. |  | I have reviewed this quarterly report on Form 10-Q of RANCON REALTY FUND
V;                                                                                                                                                                                                                                                   
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
|  
|3. |  | Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;                   
|  
|4. |  | I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and I have:                                                                                                                                                      
|  

| | a) |  | designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to me by others within those
entities, particularly during the period in which this quarterly report
is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the Evaluation Date); and                                                                                                  
|
| | c) |  | presented in this quarterly report my conclusions about the
effectiveness of the disclosure controls and procedures based on my
evaluation as of the Evaluation Date;                                                                                                                          

|  
|--
|5.

|
|
|
|
|

|  
|--
|6.

Date: May 14, 2003

/s/ DANIEL L. STEPHENSON
Daniel L. Stephenson
President, Chief Executive Officer
Chief Financial Officer and
General Partner of Rancon Financial Corporation

19



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EXHIBIT INDEX



|Exhibit Number |  |  | Description                                                                                                                   
|-------------- |  |  | ------------------------------------------------------------------------------------------------------------------------------
|               |  |  |                                                                                                                               
|              
|99             |  |  | Section 906
Certification of Daniel L. Stephenson, Chief Executive Officer and
Chief Financial Officer of General Partnership.