<PAGE>

                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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

                For the quarterly period ended September 30, 2001

                                       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 [ ]

         Total number of units outstanding as November 14, 2001: 94,012



<PAGE>

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

                           Consolidated Balance Sheets
                       (in thousands, except unit amounts)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                    September 30,     December 31,
                                                                        2001             2000
                                                                    -------------     ------------
<S>                                                                 <C>               <C>
Assets
Investments in real estate:
  Rental property, gross                                              $ 46,558         $ 48,177
  Accumulated depreciation                                             (19,416)         (19,744)
                                                                      --------         --------
  Rental property, net                                                  27,142           28,433
  Land held for development                                              2,584            2,512
                                                                      --------         --------
         Total real estate investments                                  29,726           30,945

Cash and cash equivalents                                               13,624           10,395
Accounts receivable                                                      1,374            1,265
Deferred financing costs and other fees, net of accumulated
    amortization of $2,556 and $2,648 at September 30, 2001
    and December 31, 2000, respectively                                    870              856
Prepaid expenses and other assets                                          847              644
                                                                      --------         --------
         Total assets                                                 $ 46,441         $ 44,105
                                                                      ========         ========

Liabilities and Partners' Equity
Liabilities:
  Notes payable                                                       $ 12,933         $ 13,110
  Distribution payable-General Partner                                      --              145
  Accounts payable and other liabilities                                   518              493
                                                                      --------         --------
         Total liabilities                                              13,451           13,748
                                                                      --------         --------
Commitments and contingent liabilities (Note 5)                             --               --

Partners' Equity:
  General partners                                                        (232)            (375)
  Limited partners 94,012 and 94,451 limited partnership units
    outstanding at September 30, 2001 and December 31, 2000,
    respectively                                                        33,222           30,732
                                                                      --------         --------
         Total partners' equity                                         32,990           30,357
                                                                      --------         --------
         Total liabilities and partners' equity                       $ 46,441         $ 44,105
                                                                      ========         ========
</TABLE>




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



                                  Page 2 of 16
<PAGE>

                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Operations
          (in thousands, except per unit amounts and units outstanding)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                     Three months ended            Nine months ended
                                                       September 30,                 September 30,
                                                   ----------------------        ----------------------
                                                      2001           2000           2001           2000
                                                   -------        -------        -------        -------
<S>                                                <C>            <C>            <C>            <C>
Revenues
   Rental income                                   $ 1,836        $ 1,844        $ 5,422        $ 5,421
   Gain on sale of real estate                       2,663            275          2,663          3,612
   Interest and other income                           110            177            399            969
                                                   -------        -------        -------        -------
       Total revenues                                4,609          2,296          8,484         10,002
                                                   -------        -------        -------        -------
Expenses
   Operating                                           900            771          2,352          2,241
   Interest expense                                    303            297            913            905
   Depreciation and amortization                       416            476          1,271          1,425
   Expenses associated with
     undeveloped land                                  103            180            272            283
   General and administrative                          223            359            917            981
   Proposed dissolution costs                           --              7             --             42
                                                   -------        -------        -------        -------
       Total expenses                                1,945          2,090          5,725          5,877
                                                   -------        -------        -------        -------
   Net income                                      $ 2,664        $   206        $ 2,759        $ 4,125
                                                   =======        =======        =======        =======
Net income per limited partnership unit            $ 26.87        $  2.04        $ 27.77        $ 40.64
                                                   =======        =======        =======        =======

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 used to compute
   net income per limited partnership unit          94,113         96,342         94,207         96,382
                                                   =======        =======        =======        =======
</TABLE>



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



                                  Page 3 of 16
<PAGE>

                             RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statement of Partners' Equity (Deficit)
                  For the nine months ended September 30, 2001
                                 (in thousands)
                                  (Unaudited)


<TABLE>
<CAPTION>
                                               General          Limited
                                               Partners         Partners          Total
                                               --------         --------         --------
<S>                                            <C>              <C>              <C>
Balance at December 31, 2000                   $   (375)        $ 30,732         $ 30,357

Retirement of limited partnership units              --             (126)            (126)

Net income                                          143            2,616            2,759
                                               --------         --------         --------
Balance at September 30, 2001                  $   (232)        $ 33,222         $ 32,990
                                               ========         ========         ========
</TABLE>



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



                                  Page 4 of 16
<PAGE>

                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

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

<TABLE>
<CAPTION>
                                                             Nine months ended
                                                               September 30,
                                                          -------------------------
                                                            2001             2000
                                                          --------         --------
<S>                                                       <C>              <C>
Cash flows from operating activities:
   Net income                                             $  2,759         $  4,125
   Adjustments to reconcile net income to net cash
     provided by operating activities:
      Gain on sales of real estate                          (2,663)          (3,612)
      Deferred interest income on note receivable               --             (422)
      Depreciation and amortization                          1,271            1,425
      Amortization of loan fees, included in
        interest expense                                        30               39
      Changes in certain assets and liabilities:
        Accounts receivable                                   (109)              27
        Deferred financing costs and other fees               (233)            (140)
        Prepaid expenses and other assets                     (203)            (131)
        Accounts payable and other liabilities                  25              309
                                                          --------         --------
        Net cash provided by operating activities              877            1,620
                                                          --------         --------

Cash flows from investing activities:
   Net proceeds from sales of real estate                    4,316               --
   Additions to real estate investments                     (1,516)          (1,127)
   Principal receipts on notes receivable                       --            6,090
                                                          --------         --------
        Net cash provided by investing activities            2,800            4,963
                                                          --------         --------
Cash flows from financing activities:
   Notes payable principal payments                           (177)            (184)
   Distributions to General Partner                           (145)              --
   Retirement of limited partnership units                    (126)             (38)
                                                          --------         --------
        Net cash used for financing activities                (448)            (222)
                                                          --------         --------
Net increase in cash and cash equivalents                    3,229            6,361

Cash and cash equivalents at beginning of period            10,395            5,413
                                                          --------         --------
Cash and cash equivalents at end of period                $ 13,624         $ 11,774
                                                          ========         ========

Supplemental disclosure of cash flow information:
    Cash paid for interest                                $    883         $    898
                                                          ========         ========
    Interest capitalized                                  $     --         $     32
                                                          ========         ========
</TABLE>



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



                                  Page 5 of 16
<PAGE>

                              RANCON REALTY FUND V
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 2001
                                   (Unaudited)

Note 1. THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES

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.

In November 2000, the Partnership offered to redeem the units of limited
partnership interest (the "Units") in the Partnership held by investors who own
no more than four Units in total under any single registered title (the "Small
Investments") at a purchase price of $284 per Unit. In September 2001, the
redemption price was increased to $300 per Unit. During the nine months ended
September 30, 2001, 386 Units at $284 per Unit, and 53 Units at $300 per Unit
were redeemed in connection with this offer. As of September 30, 2001, there
were 94,012 Units outstanding.

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the "Sponsors" or "General Partner") and Glenborough Realty Trust Incorporated,
the Partnership's asset and property manager ("Glenborough"), the accompanying
unaudited financial statements contain all adjustments (consisting of only
normal accruals) necessary to present fairly the financial position of the
Partnership as of September 30, 2001 and December 31, 2000, and the related
statements of operations for the three and nine months ended September 30, 2001
and 2000, and cash flows for the nine months ended September 30, 2001 and 2000.

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 partners; however,
if the limited partners and the general partners 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 partners in excess of
the positive balance until the balances of the limited partners' and general
partners' 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 partners 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
partners into the ratio of 4 to 1; and (iv) the balance, if any, 80% to the
limited partners and 20% to the general partners. In no event shall the general
partners 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 partners. 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.



                                  Page 6 of 16

<PAGE>

                              RANCON REALTY FUND V
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 2001
                                   (Unaudited)

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 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.

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 Financial Accounting Standards Board (FASB) approved for
issuance SFAS No. 141, "Business Combinations." SFAS No. 141 requires that all
business combinations initiated after June 30, 2001, use the purchase method of
accounting. The pooling-of-interests method of accounting is prohibited except
for transactions initiated before July 1, 2001. Management does not expect this
standard to have a material impact on the Partnership's consolidated financial
position or results of operations.

In June 2001, the FASB approved for issuance SFAS No. 142, "Goodwill and Other
Intangible Assets." The provisions of SFAS No. 142 will be effective July 1,
2002, for the Partnership Under SFAS No. 142, goodwill and intangible assets
with indefinite lives will not be amortized but will be tested for impairment
annually using a fair value approach, except in certain circumstances, and
whenever there is an impairment indicator. Other intangible assets will continue
to be valued and amortized over their estimated lives. Goodwill arising between
July 1, 2001 and 2002, will not be subject to amortization. Management does not
expect this standard to have a material impact on the Partnership's consolidated
financial position or results of operations.

In June 2001, the FASB approved for issuance SFAS No. 143, "Accounting for Asset
Retirement Obligations." SFAS No. 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
No. 143 will be effective January 1, 2002 for the Partnership. Management does
not expect this standard to have a material impact on the Partnership's
consolidated financial position or results of operations.

In August 2001, the FASB approved for issuance SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets." SFAS No. 144 broadens the
presentation of discontinued operations to include more transactions and
eliminates the need to accrue for future operating losses. Additionally, SFAS
No. 144 prohibits the retroactive classification of assets as held for sale and
requires revisions to the depreciable lives of long-lived assets to be
abandoned. SFAS No. 144 will be effective January 1, 2002 for the Partnership.
Management is currently



                                  Page 7 of 16
<PAGE>

                              RANCON REALTY FUND V
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 2001
                                   (Unaudited)

assessing the impact of this new standard on the Partnership's consolidated
financial position and results of operations.

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% 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.

Reclassifications

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

Rental Property

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.

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

Land Held for Development

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.

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 to be cash equivalents.



                                  Page 8 of 16

<PAGE>

                              RANCON REALTY FUND V
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 2001
                                   (Unaudited)

Fair Value of Financial Instruments

Statement of Financial Accounting Standards No. 107 requires disclosure about
fair value for all financial instruments. Based on the borrowing rates currently
available to the Partnership, the carrying amount of debt approximates fair
value. Cash and cash equivalents consist of demand deposits, certificates of
deposit and short-term investments with financial institutions. The carrying
amount of cash and cash equivalents approximates fair value.

Deferred Financing 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.

Rental Income

Rental income is recognized as earned over the life of the respective leases,
net of estimated allowances for uncollectible amounts.

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 statement, 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 nine months ended September 30, 2001.

Reference to 2000 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, 2000 audited consolidated financial statements on Form 10-K.



                                  Page 9 of 16

<PAGE>

                              RANCON REALTY FUND V
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 2001
                                   (Unaudited)

Note 3. INVESTMENTS IN REAL ESTATE

Rental property consists of the following at September 30, 2001 and December 31,
2000 (in thousands):

<TABLE>
<CAPTION>
                                          2001             2000
                                        --------         --------
<S>                                     <C>              <C>
Land                                    $  5,198         $  5,698
Buildings                                 27,045           28,627
Leasehold and other improvements          14,315           13,852
                                        --------         --------
                                          46,558           48,177
Less: accumulated depreciation           (19,416)         (19,744)
                                        --------         --------
Total rental property                   $ 27,142         $ 28,433
                                        ========         ========
</TABLE>

In August 2001, the Santa Fe property was purchased by BNSF, the sole tenant at
the property, for a price of $4,820,000. The sale generated a gain of
approximately $2,663,000 and net proceeds of approximately $4,316,000 which were
added to the Partnership's cash reserves.

At September 30, 2001, the Partnership's rental property includes five office
and three retail projects, aggregating approximately 448,000 rentable square
feet, at the Tri-City Corporate Centre in San Bernardino, California.

Land held for development consists of the following at September 30, 2001 and
December 31, 2000 (in thousands):

<TABLE>
<CAPTION>
                                                                  2001          2000
                                                                 ------        ------
<S>                                                              <C>           <C>
14 acres at Tri-City Corporate Centre, San Bernardino, CA        $2,584        $2,512
                                                                 ======        ======
</TABLE>

Note 4. NOTES PAYABLE

The following notes payable were outstanding as of September 30, 2001 and
December 31, 2000 (in thousands):

<TABLE>
<CAPTION>
                                                      2001           2000
                                                    -------        -------
<S>                                                 <C>            <C>
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                            $ 8,950        $ 9,063

Note payable, secured by first deed of
trust on One Carnegie Plaza with a fixed
rate of 8.25%, monthly principal and
interest payments of $34, and a
maturity date of December 1, 2001                     3,983          4,047
                                                    -------        -------
      Total notes payable                           $12,933        $13,110
                                                    =======        =======
</TABLE>

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 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.



                                 Page 10 of 16

<PAGE>

                              RANCON REALTY FUND V
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 2001
                                   (Unaudited)

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
September 30, 2001 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.



                                 Page 11 of 16
<PAGE>

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

The following discussion should be read in conjunction with the Partnership's
December 31, 2000 audited consolidated financial statements and the notes
thereto.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2001, the Partnership had cash of $13,624,000. The remainder
of the Partnership's assets consist primarily of its net investments in real
estate, totaling approximately $29,726,000 which includes $27,142,000 in rental
properties and $2,584,000 of land held for development within the Tri-City area.

The Partnership's primary liabilities include notes payable, totaling
approximately $12,933,000 at September 30, 2001, which consist of two secured
fixed rate loans encumbering properties with an aggregate net book value of
approximately $20,768,000 and maturity dates of December 1, 2001 and August 1,
2006. These notes require monthly principal and interest payments, and bear
fixed interest rates of 8.25% and 9.39%, respectively.

On March 7, 2000, the Burlington Northern and Santa Fe Railway Company ("BNSF"),
the sole tenant at the Partnership's Santa Fe property, filed a lawsuit alleging
the Partnership had breached a right of first refusal contained in BNSF's lease.
The lawsuit alleged that a breach arose in connection with a letter dated
November 29, 1999, whereby the tenant was notified of the Partnership's
intention to sell the property. The Partnership had aggressively defended the
lawsuit and raised various legal defenses, including the defense that the tenant
had only a right of first refusal under its lease, not an option to purchase the
property, and also the defense that the terms of the possible sale referenced in
the November 29, 1999 letter were never finalized into a contract. Concurrently
with its defense, the Partnership had discussed with BNSF the possibility of a
settlement, which had led to the agreement in principle described below. Under
the proposed settlement, the Partnership would sell the property to BNSF and
BNSF would dismiss the lawsuit. On August 30, 2001, the Partnership sold the
property to BNSF for $4,820,000. The lawsuit was dismissed as a result of the
sale of the property. The sale generated net proceeds of $4,316,000, which were
added to the Partnership's cash reserves, and a gain on sale of $2,663,000.

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, 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 September 30, 2001,
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

For the nine months ended September 30, 2001, the Partnership's cash provided by
operating activities totaled $756,000.

The $109,000 increase in accounts receivable at September 30, 2001, compared to
December 31, 2000, was primarily due to an increase in tenant rents receivable.

The $233,000 increase in deferred financing costs and other fees at September
30, 2001, compared to December 31, 2000, was primarily due to lease commissions
paid for new and renewal leases.

The $202,000 increase in prepaid expenses and other assets at September 30,
2001, compared to December 31, 2000, was primarily due to an increase in
mortgage impound reserve accounts, and prepayment of the fourth quarter investor
services fee.



                                 Page 12 of 16

<PAGE>

The $25,000 increase in accounts payable and other liabilities at September 30,
2001, compared to December 31, 2000, was primarily due to operating expense
accruals.

Investing Activities

During the nine months ended September 30, 2001, the Partnership's cash provided
by investing activities totaled $2,800,000, which consisted of $4,316,000 of net
proceeds from the sale of the Santa Fe property, offset by $1,516,000 of capital
expenditures for roof replacements at Carnegie Business Center II, and tenant
improvements at Lakeside Tower , One Carnegie and Two Carnegie.

Financing Activities

During the nine months ended September 30, 2001, the Partnership's cash used for
financing activities totaled $448,000, which consisted of $177,000 in principal
payments on its two notes payable, $145,000 of distributions to the General
Partner, and $126,000 paid to redeem 439 limited partnership units ("Units").

RESULTS OF OPERATIONS

Revenues

Rental income varied slightly for the three and nine months ended September 30,
2001, compared to the three and nine months ended September 30, 2000,
respectively, primarily due to the increases in occupancy at Two Carnegie Plaza,
Carnegie Business Center II, and Palm Court Retail #3. The increase was offset
by the sale of Santa Fe, as well as the decrease in occupancy at One Carnegie
Plaza.

Occupancy rates at the Partnership's Tri-City properties as of September 30,
2001 and 2000 were as follows:

<TABLE>
<CAPTION>
                                                       September 30,
                                                     -----------------
                                                     2001        2000
                                                     ----        ----
      <S>                                            <C>         <C>
      One Carnegie Plaza                               74%         85%
      Two Carnegie Plaza                               87%         79%
      Carnegie Business Center II                      89%         67%
      Lakeside Tower                                   98%         95%
      Santa Fe                                        N/A         100%
      One Parkside                                    100%        100%
      Bally's Health Club                             100%        100%
      Outback Steakhouse                              100%        100%
      Palm Court Retail #3                            100%        N/A
</TABLE>

As of September 30, 2001, tenants at Tri-City Corporate Centre occupying
substantial portions of leased rental space included: (i) Chicago Title with a
lease through February 2004; (ii) Computer Associates (Sterling Software) with a
lease through November 2005; (iii) Holiday Spa Health Club with a lease through
December 2010, (iv) New York Life Insurance with a lease through May 2004, (v)
Paychex Inc. with a lease through July 2004, and (vi) Lewis, D'Amato, Brisbois
et al. with a lease through December 2005. These six tenants, in the aggregate,
occupy approximately 135,000 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 during the third quarter of 2001.

The 11% decrease in occupancy from September 30, 2000 to September 30, 2001 at
One Carnegie Plaza was due to two existing tenants downsizing 26,800 square feet
upon their lease expirations in the first quarter of 2001, offset by two
existing tenants expanding 6,500 square feet and a new tenant leasing 10,000
square feet in the second and third quarters of 2001. Management is aggressively
marketing the space.

The 8% increase in occupancy from September 30, 2000 to September 30, 2001 at
Two Carnegie Business Plaza was due to leasing 6,175 square feet of vacant space
to a new tenant.



                                 Page 13 of 16

<PAGE>

The 22% increase in occupancy from September 30, 2000 to September 30, 2001 at
Carnegie Business Center II was due to leasing 15,000 square feet of vacant
space. The increase was offset by a decrease of 6,896 square feet due to a
tenant moving out upon their lease expiration in the second quarter of 2001.

Palm Court Retail #3 was placed in service in April 2001 and 6,004 square feet
was leased to three tenants in the second and third quarters of 2001.

Interest and other income decreased $67,000 for the three months ended September
30, 2001, compared to the three months ended September 30, 2000, primarily due
to a lower average invested cash balance resulting from the investment in
improvements of the rental properties. Interest and other income decreased
$570,000 for the nine months ended September 30, 2001, compared to the nine
months ended September 30, 2000, primarily due to recognition of deferred
interest income on the payoff of the RCO note in 2000.

Expenses

Operating expenses increased $129,000, or 17%, and $111,000, or 5%, for the
three and nine months ended September 30, 2001, compared to the three and nine
months ended September 30, 2000, respectively, primarily due to an increase in
utility costs and the commencement of operations at Palm Court Retail #3, offset
by the payment of tax appeal fees in 2000.

Interest expense increased slightly during the three and nine months ended
September 30, 2001, compared to the three and nine months ended September 30,
2000, respectively, primarily due to the capitalization of interest during the
development of Palm Court Retail #3 in 2000.

Depreciation and amortization decreased $60,000, or 13%, and $154,000, or 11%,
for the three and nine months ended September 30, 2001, compared to the three
and nine months ended September 30, 2000, respectively, primarily due to the
sale of Santa Fe, as well as certain improvements that are now fully
depreciated.

Expenses associated with undeveloped land decreased $77,000, or 43%, and
$11,000, or 4%, for the three and nine months ended September 30, 2001, compared
to the three and nine months ended September 30, 2000, respectively, primarily
due to payment of association dues in the third quarter of 2000, and reduction
of association dues at Palm Court Pad #3 upon completion of construction in
2001.

General and administrative expenses decreased $136,000, or 38%, and $64,000, or
7%, for the three and nine months ended September 30, 2001, compared to the
three and nine months ended September 30, 2000, respectively, primarily due to a
decrease in asset management fees in accordance with the Management Agreement.
The decrease was slightly offset by an increase in investor service expenses
related to the redemption program.

The proposed dissolution costs of $7,000 and $42,000 during the three and nine
months ended September 30, 2000, respectively, consisted of expenses incurred
related to the Partnership's plan to sell the properties and dissolve the
Partnership. The plan was discontinued in September 2000.



                                 Page 14 of 16

<PAGE>

PART II.  OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

          None.

ITEM 2.   CHANGES IN SECURITIES AND USE OF PROCEEDS

          Not applicable.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

          Not applicable.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

          None.

ITEM 5.   OTHER INFORMATION

          None.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

          (a)  Exhibits:

          None.

          (b)  Reports on Form 8-K (incorporated herein by reference):

          On September 28, 2001, the Partnership filed a report on Form 8-K
          regarding the sale of the Santa Fe property.



                                 Page 15 of 16

<PAGE>

                                   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: November 14, 2001                 By: /s/ DANIEL L. STEPHENSON
                                           -------------------------------------
                                           Daniel L. Stephenson, President

Date: November 14, 2001                 By: /s/ DANIEL L. STEPHENSON
                                           -------------------------------------
                                           Daniel L. Stephenson, General Partner




                                 Page 16 of 16