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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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FORM 10-Q



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

For the quarterly period ended March 31, 2007

OR



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

Commission file number: 0-16467



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RANCON REALTY FUND V,

A CALIFORNIA
LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)



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

(650) 343-9300

(Registrants telephone number, including area code)



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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 a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in
Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer ̈Accelerated Filer ̈Non-accelerated filer  x

Indicate by check mark whether the registrant is a
shell company (as defined in Rule 12b-2 of the Act).    Yes ̈No  x



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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 as of March 31, 2007 and December 31, 2006                   |  | 3       
|           |  |                                                                                         
|           |  | Consolidated Statements of Operations for the three months ended March 31, 2007 and 2006 |  | 4       
|           |  |                                                                                         
|           |  | Consolidated Statement of Partners Equity for the three months ended March 31, 2007     |  | 5       
|           |  |                                                                                         
|           |  | Consolidated Statements of Cash Flows for the three months ended March 31, 2007 and 2006 |  | 6       
|           |  |                                                                                         
|           |  | Notes to Consolidated Financial Statements                                               |  | 7-12    
|           |  |                                                                                         
|Item 2.    |  | Managements Discussion and Analysis of Financial Condition and Results of Operations    |  | 13-16   
|           |  |                                                                                         
|Item 3.    |  | Qualitative and Quantitative Disclosures About Market Risk                               |  | 16      
|           |  |                                                                                         
|Item 4.    |  | Controls and Procedures                                                                  |  | 16      
|           |  |                                                                                         
|PART II    |  | OTHER INFORMATION                                                                        |  |         
|           |  |                                                                                         
|Item 1.    |  | Legal Proceedings                                                                        |  | 17      
|           |  |                                                                                         
|Item 1A.   |  | Risk Factors                                                                             |  | 17      
|           |  |                                                                                         
|Item 2.    |  | Unregistered Sales of Equity Securities and Use of Proceeds                              |  | 17      
|           |  |                                                                                         
|Item 3.    |  | Defaults Upon Senior Securities                                                          |  | 17      
|           |  |                                                                                         
|Item 4.    |  | Submission of Matters to a Vote of Security Holders                                      |  | 17      
|           |  |                                                                                         
|Item 5.    |  | Other Information                                                                        |  | 17      
|           |  |                                                                                         
|Item 6.    |  | Exhibits                                                                                 |  | 17      
|           | 
|SIGNATURES |  | 18                                                                                      



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##### Table of Contents

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, 2007 |         |   | December 31, 2006 |  
|Assets                                                                                                                             |  |                |         |   |                   |   |         |  
|                                                                                                                                   |  |               
|Investments in real estate:                                                                                                        |  |                |         |   |                   |   |         |  
|Rental properties                                                                                                                  |  | $              | 76,551  |   |                   | $ | 76,119  |  
|Accumulated depreciation                                                                                                           |  |                | (18,885 | ) |                   |   | (18,142 | )
|                                                                                                                                   |  |                |         |   |                   |   |         |  
|Rental properties, net                                                                                                             |  |                | 57,666  |   |                   |   | 57,977  |  
|                                                                                                                                   |  |               
|Construction in progress                                                                                                           |  |                | 451     |   |                   |   | 451     |  
|Land held for development                                                                                                          |  |                | 1,412   |   |                   |   | 1,370   |  
|                                                                                                                                   |  |                |         |   |                   |   |         |  
|Total real estate investments                                                                                                      |  |                | 59,529  |   |                   |   | 59,798  |  
|                                                                                                                                   |  |               
|Cash and cash equivalents                                                                                                          |  |                | 2,682   |   |                   |   | 2,674   |  
|Short-term investments                                                                                                             |  |                | 10,424  |   |                   |   | 10,290  |  
|Note and accounts receivable, net                                                                                                  |  |                | 532     |   |                   |   | 732     |  
|Deferred costs, net of accumulated amortization of $1,285 and $1,169 as of March 31, 2007 and December 31, 2006,
respectively      |  |                | 3,289   |   |                   |   | 3,191   |  
|Prepaid expenses and other assets                                                                                                  |  |                | 2,748   |   |                   |   | 2,669   |  
|                                                                                                                                   |  |                |         |   |                   |   |         |  
|Total assets                                                                                                                       |  | $              | 79,204  |   |                   | $ | 79,354  |  
|                                                                                                                                   |  |                |         |   |                   |   |         |  
|                                                                                                                                   |  |               
|Liabilities and Partners Equity                                                                                                   |  |                |         |   |                   |   |         |  
|Liabilities:                                                                                                                       |  |                |         |   |                   |   |         |  
|Notes payable and lines of credit                                                                                                  |  | $              | 55,980  |   |                   | $ | 56,175  |  
|Accounts payable and other liabilities                                                                                             |  |                | 486     |   |                   |   | 517     |  
|Construction costs payable                                                                                                         |  |                |        |   |                   |   | 9       |  
|Prepaid rent                                                                                                                       |  |                | 340     |   |                   |   | 270     |  
|                                                                                                                                   |  |                |         |   |                   |   |         |  
|Total liabilities                                                                                                                  |  |                | 56,806  |   |                   |   | 56,971  |  
|                                                                                                                                   |  |                |         |   |                   |   |         |  
|Commitments and contingent liabilities (Note 7)                                                                                    |  |                |         |   |                   |   |         |  
|                                                                                                                                   |  |               
|Partners equity (deficit):                                                                                                        |  |                |         |   |                   |   |         |  
|General Partner                                                                                                                    |  |                | (799    | ) |                   |   | (801    | )
|Limited partners, 83,900 and 83,902 limited partnership units outstanding as of March 31, 2007 and December 31, 2006,
respectively |  |                | 23,197  |   |                   |   | 23,184  |  
|                                                                                                                                   |  |                |         |   |                   |   |         |  
|Total partners equity                                                                                                             |  |                | 22,398  |   |                   |   | 22,383  |  
|                                                                                                                                   |  |                |         |   |                   |   |         |  
|Total liabilities and partners equity                                                                                             |  | $              | 79,204  |   |                   | $ | 79,354  |  
|                                                                                                                                   |  |                |         |   |                   |   |         |  

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 Operations

(in
thousands, except per unit amounts and units outstanding)

(Unaudited)



|                                                                                    |  |                             |        |   |      |   |        |  
|----------------------------------------------------------------------------------- |  | --------------------------- | ------ | - | ---- | - | ------ | -
|                                                                                    |  | Three months endedMarch 31, |       
|                                                                                    |  | 2007                        |        |   | 2006 |  
|Operating Revenue                                                                   |  | $                           | 3,564  |   |      | $ | 3,130  |  
|                                                                                    |  |                            
|Operating Expenses                                                                  |  |                             |        |   |      |   |        |  
|Property operating                                                                  |  |                             | 1,493  |   |      |   | 1,194  |  
|Depreciation and amortization                                                       |  |                             | 1,112  |   |      |   | 942    |  
|Expenses associated with undeveloped land                                           |  |                             | 17     |   |      |   | 24     |  
|General and administrative                                                          |  |                             | 272    |   |      |   | 253    |  
|                                                                                    |  |                             |        |   |      |   |        |  
|Total operating expenses                                                            |  |                             | 2,894  |   |      |   | 2,413  |  
|                                                                                    |  |                             |        |   |      |   |        |  
|Operating income Total operating expenses                                           |  |                             | 670    |   |      |   | 717    |  
|                                                                                    |  |                            
|Interest and other income                                                           |  |                             | 143    |   |      |   | 20     |  
|Interest expense                                                                    |  |                             | (797   | ) |      |   | (366   | )
|                                                                                    |  |                             |        |   |      |   |        |  
|Net income                                                                          |  |                             | 16     |   |      |   | 371    |  
|                                                                                    |  |                             |        |   |      |   |        |  
|Basic and diluted net income per limited partnership unit                           |  |                             |        |   |      |   |        |  
|Net income                                                                          |  | $                           | 0.17   |   |      | $ | 3.94   |  
|                                                                                    |  |                             |        |   |      |   |        |  
|Weighted average number of limited partnership units outstanding during each period |  |                             | 83,900 |   |      |   | 84,730 |  
|                                                                                    |  |                             |        |   |      |   |        |  

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, 2007

(in thousands)

(Unaudited)



|                                        |  |                 |      |   |                  |   |        |       |  |   |        |  
|--------------------------------------- |  | --------------- | ---- | - | ---------------- | - | ------ | ----- |  | - | ------ | -
|                                        |  | General Partner |      |   | Limited Partners |   |        | Total | 
|Balance (deficit) at December 31, 2006  |  | $               | (801 | ) |                  | $ | 23,184 |       |  | $ | 22,383 |  
|Redemption of limited partnership units |  |                 |     |   |                  |   | (1     | )     |  |   | (1     | )
|Net income                              |  |                 | 2    |   |                  |   | 14     |       |  |   | 16     |  
|                                        |  |                 |      |   |                  |   |        |       |  |   |        |  
|Balance (deficit) at March 31, 2007     |  | $               | (799 | ) |                  | $ | 23,197 |       |  | $ | 22,398 |  
|                                        |  |                 |      |   |                  |   |        |       |  |   |        |  

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 endedMarch 31, |      
|                                                                                                                       |  | 2007                        |       |   | 2006 |  
|Cash flows from operating activities:                                                                                  |  |                             |       |   |      |   |        |  
|Net income                                                                                                             |  | $                           | 16    |   |      | $ | 371    |  
|Adjustments to reconcile net income to net cash provided by operating activities:                                      |  |                             |       |   |      |   |        |  
|Depreciation and amortization                                                                                          |  |                             | 1,112 |   |      |   | 942    |  
|Amortization of loan fees, included in interest expense                                                                |  |                             | 20    |   |      |   | 35     |  
|Changes in certain assets and liabilities:                                                                             |  |                             |       |   |      |   |        |  
|Accounts receivable                                                                                                    |  |                             | 200   |   |      |   | (67    | )
|Deferred costs                                                                                                         |  |                             | (267  | ) |      |   | (375   | )
|Prepaid expenses and other assets                                                                                      |  |                             | (79   | ) |      |   | (469   | )
|Accounts payable and other liabilities                                                                                 |  |                             | (31   | ) |      |   | 329    |  
|Prepaid rent                                                                                                           |  |                             | 70    |   |      |   | 89     |  
|                                                                                                                       |  |                             |       |   |      |   |        |  
|Net cash provided by operating activities                                                                              |  |                             | 1,041 |   |      |   | 855    |  
|                                                                                                                       |  |                             |       |   |      |   |        |  
|Cash flows from investing activities:                                                                                  |  |                             |       |   |      |   |        |  
|Net additions to real estate investments                                                                               |  |                             | (703  | ) |      |   | (4,187 | )
|Purchase of short-term investment                                                                                      |  |                             | (134  | ) |      |   |       |  
|Payments received from tenant improvement note receivable                                                              |  |                             |      |   |      |   | 26     |  
|                                                                                                                       |  |                             |       |   |      |   |        |  
|Net cash used for investing activities                                                                                 |  |                             | (837  | ) |      |   | (4,161 | )
|                                                                                                                       |  |                             |       |   |      |   |        |  
|Cash flows from financing activities:                                                                                  |  |                             |       |   |      |   |        |  
|Draws from construction loan                                                                                           |  |                             |      |   |      |   | 2,337  |  
|Principal payments on note payable                                                                                     |  |                             | (195  | ) |      |   | (89    | )
|Loan fee and application deposit                                                                                       |  |                             |      |   |      |   | (606   | )
|Distribution to General Partner                                                                                        |  |                             |      |   |      |   | (200   | )
|Redemption of limited partnership units                                                                                |  |                             | (1    | ) |      |   | (424   | )
|                                                                                                                       |  |                             |       |   |      |   |        |  
|Net cash (used in) provided by financing activities                                                                    |  |                             | (196  | ) |      |   | 1,018  |  
|                                                                                                                       |  |                             |       |   |      |   |        |  
|Net increase (decrease) in cash and cash equivalents                                                                   |  |                             | 8     |   |      |   | (2,288 | )
|Cash and cash equivalents at beginning of period                                                                       |  |                             | 2,674 |   |      |   | 3,437  |  
|                                                                                                                       |  |                             |       |   |      |   |        |  
|Cash and cash equivalents at end of period                                                                             |  | $                           | 2,682 |   |      | $ | 1,149  |  
|                                                                                                                       |  |                             |       |   |      |   |        |  
|Supplemental disclosure of cash flow information:                                                                      |  |                             |       |   |      |   |        |  
|Cash paid for interest (net of capitalized interest of $0 and $254 at March 31, 2007 and March 31, 2006,
respectively) |  | $                           | 777   |   |      | $ | 331    |  
|                                                                                                                       |  |                             |       |   |      |   |        |  
|Supplemental disclosure of non-cash financing activities:                                                              |  |                             |       |   |      |   |        |  
|Redemption of limited partnership units                                                                                |  | $                           |      |   |      | $ | 181    |  
|Redemption payable                                                                                                     |  |                             |      |   |      |   | (181   | )
|                                                                                                                       |  |                             |       |   |      |   |        |  
|                                                                                                                       |  | $                           |      |   |      | $ |       |  
|                                                                                                                       |  |                             |       |   |      |   |        |  

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

(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 Partnership was organized in 1985 and reached final funding in February 1989. The general partners of the Partnership are Daniel L. Stephenson and Rancon Financial Corporation (RFC), hereinafter
collectively referred to as the General Partner. RFC is wholly owned by Daniel L. Stephenson. The Partnership has no employees.

During the three months
ended March 31, 2007, a total of 2 units of limited partnership interest (Units) were redeemed at an average price of $680. As of March 31, 2007, there were 83,900 Units outstanding.

The partnership commenced on May 8, 1985 and shall continue until December 31, 2015, unless previously terminated in accordance with the provisions of the
Partnership Agreement.

Allocation of Net Income and Net Loss

Allocation of net income and net loss is 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 loss other than net loss from operations is 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 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.

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 interests of the Partnership; and (ii) all distributions
are subject to the payment of partnership expenses and maintenance of reasonable reserves for debt service, alterations and improvements, maintenance, replacement of furniture and fixtures, working capital and contingent liabilities.

All excess cash from operations shall be distributed 90% to the limited partners and 10% 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% to the General Partner and 99% 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 Unit is reduced to zero; (ii) second, 1% to the General Partner and 99% 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% 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



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RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



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% to the General Partner and 1% to the limited partners, until the General Partner has received an amount equal to 20% of all distributions of cash from sales or refinancing; and (iv) the balance, 80% to the limited
partners, pro rata in proportion to the number of Units held by each, and 20% to the General Partner.

Note 2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying
financial statements present the consolidated financial position of the Partnership and its subsidiaries as of March 31, 2007 and December 31, 2006, and the consolidated results of operations and cash flows of the Partnership and its
subsidiaries for the three months ended March 31, 2007 and 2006. All significant intercompany transactions, receivables and payables have been eliminated in consolidation.

In the opinion of the General Partner, 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, 2007 and December 31, 2006, the related consolidated statements of operations for the three months ended March 31, 2007 and 2006, partners equity for the three months ended
March 31, 2007, and cash flows for the three months ended March 31, 2007 and 2006.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP 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.

Rental Properties

Rental properties, including the related
land, are stated at depreciated cost unless events or circumstances indicate that such amounts 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
applied to annualized net operating 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. Rental properties are reviewed for impairment whenever there is a triggering event and at least annually.

Depreciation is provided using the straight-line method over the useful lives of the respective assets. The useful lives are as follows:



| |  |                           |  |                                                                                           |  | 
| |  | ------------------------- |  | ----------------------------------------------------------------------------------------- |  | 
| |  | Building and improvements |  | 5 to 40 years                                                                             |  | 
| |  | Tenant improvements       |  | Lesser of the initial term of the related lease or the estimated useful life of the asset |  | 
| |  | Furniture and equipment   |  | 5 to 7 years                                                                              |  | 

Construction In Progress and Land Held for Development

Construction in progress and land held for development 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 to further develop the properties. Construction in progress and land held for development are reviewed for impairment whenever there is a triggering event and at least annually.

The pre-development costs for a new project include survey fees and consulting fees. Interest, property taxes and insurance related to the new project are capitalized
during periods that activities which are necessary to get the project ready for its intended use are in progress. The capitalization ends when the construction is substantially completed and the project is ready for its intended use.



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RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



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.

Short-term Investments

The Partnership considers certificates
of deposit with original maturities greater than three months and within twelve months at the time of investment to be short-term investments. The short-term investments are held to maturity and recorded at cost on the consolidated balance sheets.
Interest income is recognized when earned.

Deferred Costs

Deferred loan fees are capitalized and amortized on a straight-line basis, which approximates the effective interest method, over the life of the related loan. Deferred lease commissions are capitalized and amortized
on a straight-line basis over the initial fixed term of the related lease agreements.

Revenues

The Partnership recognizes rental revenue on a straight-line basis over the term of the leases. Actual amounts collected could be lower or higher 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. For tenants with percentage rent, the Partnership recognizes revenue when the tenants specified sales
targets have been met. The reimbursements from tenants for real estate taxes are recognized as revenue in the period the expenses are incurred. Other recoverable operating expenses are recognized as revenue on an estimated basis and the differences
between estimated and actual amounts are recognized as revenue in the subsequent year when the amounts are collected. However, where actual expenses are significantly different from estimates, the Partnership will accrue the differences in the same
period.

Net Income Per Limited Partnership Unit

Net income 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.

Income per limited partnership unit is as follows (in thousands, except for weighted average shares and per share amounts):



|                                                                                    |  |                                           |   |                                           |   |                 |  |                  |    |  |   |       
|----------------------------------------------------------------------------------- |  | ----------------------------------------- | - | ----------------------------------------- | - | --------------- |  | ---------------- | -- |  | - | ------
|                                                                                    |  | For the three months ended
March 31, 2007 |   | For the three months ended
March 31, 2006
|                                                                                    |  | GeneralPartner                            |   | Limited Partners                          |   | General Partner |  | Limited Partners
|Income allocation:                                                                  |  |                                           |   |                                           |   |                 |  |                  |    |  |   |       
|Net income                                                                          |  | $                                         | 2 |                                           | $ | 14              |  | $                | 37 |  | $ | 334   
|Weighted average number of limited partnership units outstanding during each period |  |                                           |   |                                           |   | 83,900          |  |                  |    |  |   | 84,730
|Basic and diluted income per limited partnership unit:                              |  |                                           |   |                                           |   |                 |  |                  |    |  |   |       
|Net income                                                                          |  |                                           |   |                                           | $ | 0.17            |  |                  |    |  | $ | 3.94  

Sales of Real Estate

The Partnership recognizes sales of real estate when a contract is in place, a closing has taken place, the buyers investment is adequate to demonstrate a commitment to pay for the property and the Partnership
does not have a substantial continuing involvement in the property. Each property is considered a separately identifiable component of the Partnership and is reported in discontinued operations when the operations and cash flows of the property have
been (or will be) eliminated from the ongoing operations of the Partnership as a result of the disposal transaction and the property will not have any significant continuing involvement in the operations of the Partnership after the disposal
transaction.



9



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##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



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
and partners equity (deficit) for financial reporting purposes will differ from the Partnerships income tax return because of different accounting methods used for certain items, including depreciation expense, capitalization of
development period interest and property taxes, income recognition and provisions for impairment of investments in real estate.

Concentration risk

Two tenants (Northrop Grumman Corporation and Arrowhead Central Credit Union) represented a combined 26% and one tenant represented 15% of
operating revenue for the three months ended March 31, 2007.

New Accounting Pronouncements

In July 2006, the Financial Accounting Standards Board (FASB) issued Financial Interpretation No. 48, Accounting for Uncertainty in Income Taxes-an
interpretation of FASB Statement No. 109 (FIN 48), which is a change in accounting for income taxes. FIN 48 specifies how tax benefits for uncertain tax positions are to be recognized, measured, and derecognized in financial
statements; requires certain disclosures of uncertain tax matters; specifies how reserves for uncertain tax positions should be classified on the balance sheet; and provides transition and interim-period guidance, among other provisions. FIN 48 is
effective for fiscal years beginning after December 15, 2006. The adoption of this standard on January 1, 2007 did not have a material effect on the consolidated financial statements.

In September 2006, the FASB issued Statement No. 157, Fair Value Measurements(SFAS No. 157). SFAS No. 157 provides guidance for using
fair value to measure assets and liabilities. This statement clarifies the principle that fair value should be based on the assumptions that market participants would use when pricing the asset or liability. SFAS No. 157 establishes a fair
value hierarchy, giving the highest priority to quoted prices in active markets and the lowest priority to unobservable data. SFAS No. 157 applies whenever other standards require assets or liabilities to be measured at fair value. This
statement is effective in fiscal years beginning after November 15, 2007. The Partnership believes that the adoption of this standard on January 1, 2008 will not have a material effect on the consolidated financial statements.

In February 2007, the FASB issued Statement No. 159,The Fair Value Option for Financial Assets and Financial Liabilities (SFAS No. 159).
SFAS No. 159 expands opportunities to use fair value measurement in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. This Statement is effective for fiscal
years beginning after November 15, 2007. The Partnership is currently evaluating the impact of SFAS No. 159 on the financial position and results of operations.

Reclassification

Certain prior year balances have been reclassified to conform to the current year
presentation.

Reference to 2006 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 Partnerships December 31, 2006 audited
consolidated financial statements on Form 10-K.

Note 3. INVESTMENTS IN REAL ESTATE

Rental properties consist of the following (in thousands):



|                               |  |                |         |   |                   |   |         |  
|------------------------------ |  | -------------- | ------- | - | ----------------- | - | ------- | -
|                               |  | March 31, 2007 |         |   | December 31, 2006 |  
|Land                           |  | $              | 6,944   |   |                   | $ | 6,944   |  
|Land improvements              |  |                | 1,536   |   |                   |   | 1,536   |  
|Buildings                      |  |                | 53,160  |   |                   |   | 53,160  |  
|Tenant improvements            |  |                | 14,911  |   |                   |   | 14,479  |  
|                               |  |                |         |   |                   |   |         |  
|                               |  |                | 76,551  |   |                   |   | 76,119  |  
|Less: accumulated depreciation |  |                | (18,885 | ) |                   |   | (18,142 | )
|                               |  |                |         |   |                   |   |         |  
|Total rental properties, net   |  | $              | 57,666  |   |                   | $ | 57,977  |  
|                               |  |                |         |   |                   |   |         |  

As of March 31, 2007, the Partnerships rental properties included eight office properties and four
retail properties.



10



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##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



Note 4. CONSTRUCTION IN PROGRESS AND LAND HELD FOR DEVELOPMENT

Construction in progress consists of the following (in thousands):



|                                                                                                                               |  |                |     |                   |   |    
|------------------------------------------------------------------------------------------------------------------------------ |  | -------------- | --- | ----------------- | - | ---
|                                                                                                                               |  | March 31, 2007 |     | December 31, 2006
|Construction in progress (approximately 0.5 acre of land with a cost basis of $166 as of March 31, 2007 and December 31,
2006) |  | $              | 451 |                   | $ | 451
|                                                                                                                               |  |                |     |                   |   |    

Land held for development consists of the following (in thousands):



|                                                                                                                   |  |                |       |                   |   |      
|------------------------------------------------------------------------------------------------------------------ |  | -------------- | ----- | ----------------- | - | -----
|                                                                                                                   |  | March 31, 2007 |       | December 31, 2006
|Land held for development (approximately 4 acres of land as of March 31, 2007 and December 31, 2006, respectively) |  | $              | 1,412 |                   | $ | 1,370
|                                                                                                                   |  |                |       |                   |   |      

The increase was primarily due to construction costs.

Note 5. NOTES PAYABLE AND LINE OF CREDIT

Notes payable
consists of the following (in thousands):



|                                                                                                                                                                                                                                                                          |  |                |        |                   |   |       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ------ | ----------------- | - | ------
|                                                                                                                                                                                                                                                                          |  | March 31, 2007 |        | December 31, 2006
|Note payable #1 collateralized by first deeds of trust on seven properties. The note has a fixed interest rate of 5.46%, a maturity date of
January 1, 2016 and a 10-year term with a 30-year amortization requiring monthly principal and interest payments of $151,000. |  | $              | 26,342 |                   | $ | 26,436
|Note payable #2 collateralized by first deeds of trust on four properties. The note has a fixed interest rate of 5.61%, a maturity date of
May 1, 2016 and a 10-year term with a 30-year amortization requiring monthly principal and interest payments of $173,000.      |  |                | 29,638 |                   |   | 29,739
|                                                                                                                                                                                                                                                                          |  |                |        |                   |   |       
|Total                                                                                                                                                                                                                                                                     |  | $              | 55,980 |                   | $ | 56,175
|                                                                                                                                                                                                                                                                          |  |                |        |                   |   |       

The annual maturity on the Partnerships notes payable as of March 31, 2007, is as follows (in
thousands):



|           |  |   |       
|---------- |  | - | ------
|2007       |  | $ | 600   
|2008       |  |   | 840   
|2009       |  |   | 888   
|2010       |  |   | 939   
|2011       |  |   | 992   
|Thereafter |  |   | 51,721
|           |  |   |       
|Total      |  | $ | 55,980
|           |  |   |       

Note 6. RELATED PARTY TRANSACTIONS

In May 2006, the Partnership extended the current Property Management and Services Agreement with Glenborough Properties L.P. (Glenborough) through December 31, 2008. On November 29, 2006, due to
the merger of Glenborough and a third party, a new entity, Glenborough LLC was formed and the Partnership Property Management and Service Agreement was transferred from Glenborough to Glenborough LLC. All other terms and conditions remained
unchanged. The Partnership engaged Glenborough LLC to perform services for the following fees: (i) a property management fee of 3% of gross rental revenue which was included in property operating expenses in the consolidated statements of
operations ($104,000 and $70,000 in the first quarter of 2007 and 2006, respectively); (ii) a construction services fee which was included in rental properties on the consolidated balance sheet ($32,000 and $10,000 in the first quarter of 2007
and 2006, respectively); (iii) an asset and Partnership management fee which was included in general and administrative expenses in the consolidated statements of operations ($75,000 and $75,000 in the first quarter of 2007 and 2006,
respectively); (iv) a leasing services fee which was included in the deferred costs on the



11



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##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



consolidated balance sheets ($103,000 in the first quarter of 2007 and 2006); (v) a sales fee of 2% for improved properties and a sales fee of 4% for
unimproved properties; (vi) a financing services fee of 1% of the gross loan amount which was included in the deferred costs on the consolidated balance sheet; and (vii) a development fee equal to 5% of the hard costs of the development
project which was included in the construction in progress and / or rental properties on the consolidated balance sheet, excluding the cost of the land, and the development fee and the general contractors fee shall not exceed 11.5%, in the
aggregate, of the hard costs of the development project ($0 and $172,000 in the first quarter of 2007 and 2006, respectively).

As of March 31, 2007,
Glenborough Fund XV LLC, an affiliate of Glenborough LLC, held 8,261 or 9.85% of the units of limited partnership interest purchased from unaffiliated third parties.

Note 7. 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 consolidated results of operations and cash flows.

General Uninsured Losses

The Partnership carries property and liability insurance with respect to the properties. This coverage has
policy specification and insured limits customarily carried for similar properties. However, certain types of losses (such as from earthquakes and floods) may be either uninsurable or not economically insurable. Should the properties sustain damage
as a result of an earthquake or flood, the Partnership may incur losses due to insurance deductibles, co-payments on insured losses or uninsured losses. Additionally, the Partnership has elected to obtain insurance coverage for certified acts
of terrorism as defined in the Terrorism Risk Insurance Act of 2004; however, our policies of insurance may not provide coverage for other acts of terrorism. Any losses from such other acts of terrorism might be uninsured. Should an uninsured
loss occur, the Partnership could lose some or all of its capital investment, cash flow and anticipated profits related to the properties.

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, 2007, 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 12% per annum on their adjusted invested capital. Since the circumstances under which these commissions would be payable are not currently met, the liability has not been recognized in the accompanying consolidated
financial statements; however, the amount will be recorded when and if it becomes payable.



12



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##### Table of Contents

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

The following discussion should be read in conjunction with our December 31, 2006 audited consolidated financial statements and the notes thereto included in our latest Annual Report on Form 10-K.

Background

In June 1985, our initial acquisition of property
consisted of approximately 76.21 acres of partially developed and unimproved land located in San Bernardino, California. The property is part of a master-planned development of 153 acres known as Tri-City Corporate Centre (Tri-City) and
is zoned for mixed commercial, office, hotel, transportation-related, and light industrial uses and all of the parcels thereof are separately owned by us and Rancon Realty Fund IV (Fund IV), a partnership sponsored by the General
Partner.

Overview

Tri-City Properties

As of March 31, 2007, our rental properties consist of eight office and four retail properties, aggregating approximately 722,000 rentable
square feet, of which 680,000 square feet are office space, and 42,000 square feet are retail space.



|                                                               |  |                                |  |               
|-------------------------------------------------------------- |  | ------------------------------ |  | --------------
|Property                                                       |  | Type                           |  | Square Footage
|One Carnegie Plaza                                             |  | Two two-story office buildings |  | 107,313       
|Two Carnegie Plaza                                             |  | Two-story office building      |  | 68,956        
|Carnegie Business Center II                                    |  | Two industrial buildings       |  | 50,867        
|Lakeside Tower                                                 |  | Six-story office building      |  | 112,716       
|One Parkside                                                   |  | Four-story office building     |  | 70,068        
|Ballys Health Club (Ballys)                                  |  | Health club facility           |  | 25,000        
|Outback Steakhouse (Outback)                                   |  | Restaurant                     |  | 6,500         
|Palm Court Retail #3                                           |  | Retail                         |  | 6,004         
|Two Parkside                                                   |  | Three-story office building    |  | 82,004        
|Pat & Oscars                                                   |  | Restaurant                     |  | 5,100         
|Three Carnegie                                                 |  | Two-story office building      |  | 83,661        
|Brier Corporate Center (commenced operations in February 2006) |  | Three-story office building    |  | 104,048       

As of March 31, 2007, the weighted average occupancy of the twelve properties was 87%.

Land

As of March 31, 2007, we owned approximately 4.5
acres of land, of which 0.5 acre is currently a construction pad ready for development, and the remaining 4 acres of land are part undeveloped and part used as parking lots. We are intending to develop all the available acres of land to generate
more operating income.



13



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##### Table of Contents

Results of Operations

Comparison of the three months ended March 31, 2007 to the three months ended March 31, 2006

Revenue

Rental income for the three months ended March 31, 2007 increased $434,000, or 14%, compared to the three months ended March 31, 2006, primarily due to an
increase in one major tenants rent of $170,000 due to three months of occupancy in the first quarter of 2007 as compared with two months of occupancy in the first quarter of 2006. In addition, occupancy increased 27% at Three Carnegie Plaza.

Expenses

Operating expenses increased $299,000, or
25%, for the three months ended March 31, 2007, compared to the three months ended March 31, 2006, primarily due to an increase of $144,000 in earthquake insurance and commencement of operations at Brier Corporate Center which contributed
to an additional $118,000 in operating expenses.

Depreciation and amortization increased $170,000, or 18%, for the three months ended March 31, 2007,
compared to the three months ended March 31, 2006, primarily due to the depreciation of tenant improvements placed into service and inclusion of $202,000 for three months of depreciation in 2007 as compared with two months of depreciation of
$137,000 in 2006 for Brier Corporate Center.

Expenses associated with undeveloped land decreased $7,000, or 29%, for the three months ended March 31,
2007, compared to the three months ended March 31, 2006, primarily due to a decrease in expenses associated with Brier Corporate Center which commenced operations in February 2006.

General and administrative expenses increased $19,000, or 8%, for the three months ended March 31, 2007, compared to the three months ended March 31, 2006, primarily due to costs associated with market
trends and development opportunities consultation.

Non-operating income / expenses

Interest and other income increased $123,000 for the three months ended March 31, 2007, compared to the three months ended March 31, 2006, primarily due to interest income earned from the investment of the
proceeds of the loan obtained in April 2006.

Interest expense increased $431,000, or 118%, during the three months ended March 31, 2007, compared to
the three months ended March 31, 2006, primarily due to increases in borrowings as well as the cessation of interest capitalization for Three Carnegie and Brier Corporate Center in the second quarter of 2006.

Liquidity and Capital Resources

As of March 31, 2007, we
had cash and cash equivalents of $2,682,000 and a short-term investment of $10,424,000. The investment is a certificate of deposit with an interest rate of 5.26% and a maturity date of May 14, 2007.

As of March 31, 2007, our liabilities include two notes payable with total borrowing capacity of $55,980,000. These notes are collateralized by properties with an
aggregate net carrying value of approximately $47,679,000. Note payable #1 matures in January 2016, requires monthly principal and interest payments of $151,000 and bears interest at a fixed rate of 5.46% and is collateralized by Ballys Health
Club, Carnegie Business Center II, Lakeside Tower, Outback Steakhouse, Pat & Oscars, Palm Court Retail #3 and One Carnegie Plaza. Note payable #2 matures in May 2016, requires monthly principal and interest payments of $173,000 and bears
interest at a fixed rate of 5.61% and is collateralized by Brier Corporate Center, One Parkside, Two Parkside and Two Carnergie Plaza.

We are contingently
liable for subordinated real estate commissions payable to the General Partner in the aggregate amount of $102,000 at March 31, 2007 for sales that transpired 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 12% per annum on their adjusted invested capital. Since the conditions under which these commissions would be
payable are not currently met, the liability has not been recognized in the accompanying consolidated financial statements; however, the amount will be recorded when and if it becomes payable.

Cash flows

For the period ended March 31, 2007, cash provided
by operating activities was $1,041,000, as compared to $855,000 for the same period in 2006. The change was primarily due to a decrease in prepaid expenses and deferred costs, partially offset by a decrease in accounts payable. For the period ended
March 31, 2007, cash used for investing activities was $837,000, as compared to $4,161,000 for the same period in 2006. The change was primarily due to a decrease in construction costs. For the period ended March 31, 2007, cash used in
financing activities was $196,000, as compared to cash provided by financing activities of $1,018,000 for the same period in 2006. The change was primarily due to draws from the construction loan, partially offset by a deposit for a loan
application, as well as an increase in redemption of limited partnership units in 2006.



14



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##### Table of Contents

Our expectation is that cash and cash equivalents as of March 31, 2007, together with cash from operations, sales
and financing, will be adequate to meet our operating requirements and development plans on a short-term basis and for the reasonably foreseeable future. There can be no assurance that our results of operations will not fluctuate in the future and
at times affect our ability to meet operating requirements.

Operationally, our primary source of funds consists of cash provided by rental activities.
Other sources of funds may include permanent financing, draws on the line of credit, property sales and interest income on money market funds. Cash generated from property sales is generally added to our cash reserves, pending use in the development
of properties or distribution to the partners.

Contractual Obligations

As of March 31, 2007, our contractual obligations are as follows (in thousands):



|                         |  |                  |       |              |   |              |  |                   |       |       |   |        |  |   |       
|------------------------ |  | ---------------- | ----- | ------------ | - | ------------ |  | ----------------- | ----- | ----- | - | ------ |  | - | ------
|                         |  | Less than 1 year |       | 1 to 3 years |   | 3 to 5 years |  | More than 5 years |       | Total
|Secured mortgage loans   |  | $                | 600   |              | $ | 1,728        |  | $                 | 1,931 |       | $ | 51,721 |  | $ | 55,980
|Interest on indebtedness |  |                  | 2,315 |              |   | 6,045        |  |                   | 5,844 |       |   | 11,451 |  |   | 25,655
|                         |  |                  |       |              |   |              |  |                   |       |       |   |        |  |   |       
|Total                    |  | $                | 2,915 |              | $ | 7,773        |  | $                 | 7,775 |       | $ | 63,172 |  | $ | 81,635
|                         |  |                  |       |              |   |              |  |                   |       |       |   |        |  |   |       

---

|(1) | For variable rate loans, this represents estimated interest expense based on outstanding balances and interest rates at March 31, 2006.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------

We are unaware of any demands, commitments, events or uncertainties, which might affect capital resources in any material respect. In addition, we are not subject to any
covenants pursuant to our secured debt that would constrain our ability to obtain additional capital.

Critical Accounting Policies

In the preparation of financial statements, we utilize certain critical accounting policies. There has been no change to our significant accounting
policies included in the notes to our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2006.

Inflation

Leases at the office properties typically provide for rent adjustment and pass-through of certain operating expenses
during the term of the lease. We anticipate that these provisions may permit us to increase rental rates or other charges to tenants in response to rising prices and therefore, serve to reduce our exposure to the adverse effects of inflation.

Forward Looking Statements; Factors That May Affect Operating Results

This Report on Form 10-Q contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements
regarding our expectations, hopes, intentions, beliefs and strategies regarding the future. These forward looking statements include statements relating to:



| |  | Our expectation to make annual or more frequent cash distributions to partners;
|- |  | -------------------------------------------------------------------------------



| |  | Our intent to develop the remaining land to generate more operating income;
|- |  | ---------------------------------------------------------------------------



| |  | Our belief that cash and cash generated by operations, sales and financing will be sufficient to meet our operating requirements in both the short and the
long-term;
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Our expectation that changes in market interest rates will not have a material impact on the performance or the fair value of our portfolio;
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------



| |  | Our belief that certain claims and lawsuits which have arisen against us in the normal course of business will not have a material adverse effect on our financial
position, cash flow or results of operations;
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Our belief that properties are competitive within our market;
|- |  | -------------------------------------------------------------



| |  | Our expectation to achieve certain occupancy levels;
|- |  | ----------------------------------------------------



| |  | Our estimation of market strength;
|- |  | ----------------------------------



| |  | Our knowledge of any material environmental matters; and
|- |  | --------------------------------------------------------



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##### Table of Contents

| |  | Our expectation that lease provisions may permit us to increase rental rates or other charges to tenants in response to rising prices, and therefore serve to reduce
exposure to the adverse effects of inflation.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

All forward-looking statements included in this document are based on information
available to us on the date hereof. Because these forward looking statements involve risk and uncertainty, there are important factors that could cause our actual results to differ materially from those stated or implied in the forward-looking
statements. Those important factors include:



| |  | market fluctuations in rental rates and occupancy;
|- |  | --------------------------------------------------



| |  | reduced demand for rental space;
|- |  | --------------------------------



| |  | availability and creditworthiness of prospective tenants;
|- |  | ---------------------------------------------------------



| |  | defaults or non-renewal of leases by customers;
|- |  | -----------------------------------------------



| |  | differing interpretations of lease provisions regarding recovery of expenses;
|- |  | -----------------------------------------------------------------------------



| |  | increased operating costs;
|- |  | --------------------------



| |  | changes in interest rates and availability of financing that may render the sale or financing of a property difficult or unattractive;
|- |  | --------------------------------------------------------------------------------------------------------------------------------------



| |  | failure to obtain necessary outside financing;
|- |  | ----------------------------------------------



| |  | risks and uncertainties affecting property development and construction (including construction delays, cost overruns, our inability to obtain necessary permits and
public opposition to these activities);
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | the unpredictability of both the frequency and final outcome of litigation; and
|- |  | -------------------------------------------------------------------------------

The forward-looking statements in this Quarterly Report on Form 10-Q are subject to additional risks and uncertainties further discussed under Item 1A. Risk Factors of our Annual Report on Form 10-K for
the year ended December 31, 2006. We assume no obligation to update or supplement any forward looking-statement.

Risks of Litigation

Certain claims and lawsuits have arisen against us in our normal course of business. We believe that such claims and lawsuits will not have a material
adverse effect on our financial position, cash flow or results of operations.



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

Interest Rates

We are exposed to changes in interest rates obtainable on our borrowings. Our expectation is that changes in market
interest rates will not have a material impact on the performance or fair value of our portfolio.

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



|                               |  |                        |      |   |       |   |      |      |  |   |      |   |  |      |      |   |            |   |      |   |  |   |        |   |  |   |        |  
|------------------------------ |  | ---------------------- | ---- | - | ----- | - | ---- | ---- |  | - | ---- | - |  | ---- | ---- | - | ---------- | - | ---- | - |  | - | ------ | - |  | - | ------ | -
|                               |  | Expected Maturity Date |      |   | Total |  
|                               |  | 2007                   |      |   | 2008  |   |      | 2009 |  |   | 2010 |   |  | 2011 |      |   | Thereafter |   |     
|                               |  | (in thousands)         |     
|Collateralized fixed rate debt |  | $                      | 600  |   |       | $ | 840  |      |  | $ | 888  |   |  | $    | 939  |   |            | $ | 992  |   |  | $ | 51,721 |   |  | $ | 55,980 |  
|Average interest rate          |  |                        | 5.54 | % |       |   | 5.54 | %    |  |   | 5.54 | % |  |      | 5.54 | % |            |   | 5.54 | % |  |   | 5.54   | % |  |   | 5.54   | %

As of March 31, 2007, we have cash equivalents of $2,682,000 invested in an interest-bearing money market
account and $10,424,000 in short-term investments. Declines in interest rates over time would reduce our interest income.



|Item 4. | Controls and Procedures
|------- | -----------------------

As of the end of the period covered by
this report, we carried out an evaluation, under the supervision of the General Partners Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on
this evaluation, the General Partners Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective in alerting the General Partner on a timely basis to material information required to
be included in this report. There has been no change in our internal control over financial reporting that occurred during our most recent fiscal quarter that has materially affected or is reasonably likely to materially affect our internal control
over financial reporting.



16



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##### Table of Contents

PART II. OTHER INFORMATION



|Item 1. | Legal Proceedings
|------- | -----------------

Certain claims and lawsuits have
arisen against the Partnership in its normal course of business. The Partnership believes that such claims and lawsuits will not have a material adverse effect on the Partnerships financial position, cash flow or results of operations.



|Item 1A. | Risk Factors
|-------- | ------------

There are no material changes to any
of the risk factors as previously disclosed in Item 1A. to Part I of Rancon Realty Fund V Form 10-K for the fiscal year ended December 31, 2006.



|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds
|------- | -----------------------------------------------------------

None.



|Item 3. | Defaults Upon Senior Securities
|------- | -------------------------------

None.



|Item 4. | Submission of Matters to a Vote of Security Holders
|------- | ---------------------------------------------------

None.



|Item 5. | Other information
|------- | -----------------

None.



|Item 6. | Exhibits
|------- | --------



| | 31 | Certification of Daniel L. Stephenson, Chief Executive Officer and Chief Financial Officer of General Partnership Pursuant to Rule 13a-14(a) of the Exchange Act.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 32 | Certification of Daniel L. Stephenson, Chief Executive Officer and Chief Financial Officer of General Partnership Pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C.
Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



17



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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, 2007 |  |                                  |  | By:                                   |  | /s/ Daniel L. Stephenson       
|      |  |              |  |                                  |  |                                       |  | Daniel L. Stephenson, President
|      |  |              | 
|Date: |  | May 14, 2007 |  | By:                              |  | /s/ Daniel L. Stephenson             
|      |  |              |  |                                  |  | Daniel L. Stephenson, General Partner



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