SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

                  For the quarterly period ended June 30, 2000

                                       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 of August 11, 2000: 96,336


                                  Page 1 of 19
<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)

<TABLE>
<CAPTION>
<S>                                                                              <C>                <C>

                                                                                    June 30,         December 31,
                                                                                     2000                1999
                                                                                  (Unaudited)         (Audited)
                                                                                 --------------     -------------
Assets
------
Investments in real estate:
   Rental property,  net of accumulated  depreciation
    of $19,019 and $18,199 at June 30, 2000 and December 31, 1999
     respectively                                                                $      28,038      $     28,465
   Land held for development                                                             2,978             2,757
                                                                                 -------------      ------------

               Total real estate investments                                            31,016            31,222

   Cash and cash equivalents                                                            11,295             5,413
   Accounts receivable                                                                   1,323             1,327
   Notes receivable                                                                        300             6,090
   Deferred financing costs and other fees, net of accumulated
     amortization of $2,498 and $2,342 at June 30, 2000 and
     December 31, 1999, respectively                                                       909               928
   Prepaid expenses and other assets                                                       713               651
                                                                                 -------------      ------------

              Total assets                                                       $      45,556      $     45,631
                                                                                 =============      ============

Liabilities and Partners' Equity (Deficit)
------------------------------------------
Liabilities:
   Notes payable                                                                 $      13,212      $     13,315
   Accounts payable and other liabilities                                                  294               411
   Deferred gain on sale of property                                                       275             4,034
                                                                                 -------------      ------------

              Total liabilities                                                         13,781            17,760
                                                                                 -------------      ------------

Commitments and contingent liabilities (see Note 4)                                         --                --

Partners' Equity (Deficit):
   General partners                                                                       (267)             (465)
   Limited partners 96,364 and 96,412 limited partnership units
     outstanding at June 30, 2000 and December 31, 1999,
     respectively                                                                       32,042            28,336
                                                                                 -------------      ------------

              Total partners' equity                                                    31,775            27,871
                                                                                 -------------      ------------

              Total liabilities and partners' equity                             $      45,556      $     45,631
                                                                                 =============      ============

           See accompanying notes to consolidated financialstatements.

</TABLE>

                                  Page 2 of 19
<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>
<S>                                                 <C>             <C>              <C>              <C>
                                                       Three months ended                  Six months ended
                                                             June 30,                          June 30,
                                                    ---------------------------      ----------------------------
                                                       2000             1999             2000             1999
                                                    ------------    -----------      -----------      -----------
 Revenues:
 --------
    Rental income                                   $    1,819      $    1,486       $     3,577      $     3,064
    Deferred gain on sale of real estate                 3,891              --             3,891               --
    Interest and other income                              143             282               238              487
                                                    ----------      ----------       -----------      -----------

                Total revenues                           5,853           1,768             7,706            3,551
                                                    ----------      ----------       -----------      -----------

 Expenses:
 --------
    Operating                                              753             757             1,470            1,553
    Interest expense                                       302             317               608              635
    Depreciation and amortization                          482             444               949              868
    Loss on sale of real estate                             --              --                --                6
    Expenses  associated  with
       undeveloped land                                      7              31               103              148
    General and administrative                             338             304               622              603
    Proposed dissolution costs                              17             115                35              154
                                                    ----------      ----------       -----------      -----------

                Total expenses                           1,899           1,968             3,787            3,967
                                                    ----------      ----------       -----------      -----------

 Net income (loss)                                  $    3,954      $     (200)      $     3,919      $      (416)
                                                    ==========      ===========      ===========      ============

 Net income (loss) per limited partnership
        unit                                        $    38.96      $    (2.05)      $     38.60      $     (4.27)
                                                    ==========      ===========      ===========      ============

 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 loss per
    limited partnership unit                            96,391         96,442            96,402           96,442
                                                    ==========      ==========       ===========      ===========


</TABLE>

          See accompanying notes to consolidated financial statements.




                                  Page 3 of 19
<PAGE>


                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statement of Partners' Equity (Deficit)
                     For the six months ended June 30, 2000
                                 (in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                               <C>                  <C>                 <C>
                                                      General             Limited
                                                     Partners             Partners             Total
                                                  ----------------     ---------------     -------------

     Balance at December 31, 1999                 $        (465)       $       28,336      $      27,871

     Retirement of limited partnership units                 --                   (15)               (15)

     Net income                                             198                 3,721              3,919
                                                  -------------        --------------      -------------

     Balance at June 30, 2000                     $        (267)       $       32,042      $      31,775
                                                  ==============       ==============      =============
</TABLE>



































           See accompanying notes to consolidated financialstatements.


                                  Page 4 of 19
<PAGE>



                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Cash Flows
                                 (in thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                                        <C>                     <C>
                                                                                   Six months ended
                                                                                          June 30,
                                                                           -------------------------------------
                                                                                2000                    1999
                                                                           ----------------        -------------
Cash flows from operating activities:
    Net income (loss)                                                      $       3,919           $        (416)
    Adjustments to reconcile net income (loss)
      to net cash provided by operating activities:
       Gain on sale of real estate                                                (3,891)                     --
       Net loss on sale of real estate                                                --                       6
       Depreciation and amortization                                                 949                     868
       Amortization of loan fees, included in
          interest expense                                                            27                      27
       Changes in certain assets and liabilities:
         Accounts receivable                                                           4                      --
         Deferred financing costs and other fees                                    (137)                   (112)
         Prepaid expenses and other assets                                           (62)                  5,506
         Accounts payable and other liabilities                                     (117)                     52
                                                                           --------------          -------------
         Net cash provided by operating activities                                   692                   5,931
                                                                           -------------           -------------
Cash flows from investing activities:
    Net proceeds from sales of land                                                   --                   2,088
    Additions to real estate investments                                            (614)                   (849)
    Principal receipts on notes receivable                                        5,922                      --
    Funds released from pledged cash                                                  --                     353
                                                                           -------------           -------------
         Net cash provided by investing activities                                 5,308                   1,592
                                                                           -------------           -------------
Cash flows from financing activities:
    Notes payable principal payments                                                (103)                    (95)
    Retirement of limited partnership units                                          (15)                     (1)
                                                                           --------------          -------------

         Net cash used for financing activities                                     (118)                    (96)
                                                                           --------------          -------------
Net increase in cash and cash equivalents                                          5,882                   7,427

Cash and cash equivalents at beginning of period                                   5,413                   3,073
                                                                           -------------           -------------

Cash and cash equivalents at end of period                                 $      11,295           $      10,500
                                                                           =============           =============

Supplemental disclosure of cash flow information:
     Cash paid for interest                                                $         599           $         609
                                                                           =============           =============
     Interest capitalized                                                  $          18           $          --
                                                                           =============           =============

          See accompanying notes to consolidated financial statements.

</TABLE>



                                  Page 5 of 19
<PAGE>

                              RANCON REALTY FUND V
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 2000
                                   (Unaudited)

Note 1.      THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES
             -------------------------------------------------------

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the  "Sponsors"  or  "General  Partner")  and  Glenborough   Corporation,   the
Partnership's  asset and  property  manager  ("Glenborough"),  the  accompanying
unaudited consolidated financial statements contain all adjustments  (consisting
of only normal accruals)  necessary to present fairly the financial  position of
Rancon Realty Fund V, A California Limited Partnership (the "Partnership") as of
June 30, 2000 and December 31, 1999, and the related consolidated  statements of
operations and cash flows for the six months ended June 30, 2000 and 1999.

Asset Sale and Dissolution Proposal
-----------------------------------
At the beginning of 1999, the Partnership's  business strategy had been to focus
on the eventual disposition of its assets at the optimal time and sales price. A
Consent  Solicitation  Statement (the "Solicitation") was sent to the holders of
limited partnership units ("Unitholders" or "Limited Partners") on July 6, 1999.
The  Solicitation  (incorporated  by reference to the Schedule 14A - Preliminary
Proxy Statement filed with the United States Securities and Exchange  Commission
("Commission")  in the second quarter of 1999)  discussed the General  Partner's
proposal to sell all of the Partnership's  real estate assets ("Asset Sale") and
liquidate the Partnership thereafter ("Dissolution Proposal"). The Partnership's
properties  consist of eight rental  properties  and  approximately  14 acres of
unimproved land  (approximately  6,000 square feet is under construction) in the
Tri-City   Corporate  Centre  in  San  Bernardino,   California  (the  "Tri-City
Properties").

As of August 25, 1999,  the  expiration  of the voting  period,  96,442  limited
partnership  units ("Units") were outstanding.  Of the total Units  outstanding,
76,475  Unitholders,  or 79%,  had voted  ("Units  Voted") and no  response  was
received  from the  remaining  21%.  A final  tabulation  of the  results of the
Solicitation  was made on August 25, 1999, with holders of 67,498 Units, or 88%,
of the Units Voted in favor, holders of 7,271 Units, or 10%, against and holders
of 1,706 Units, or 2%, abstaining.  A total of 48 and 32 Units in 2000 and 1999,
respectively,  were  repurchased  as a result of  Unitholders'  requests for the
Partnership  to take over such  Units.  As of June 30,  2000,  there were 96,364
Units outstanding.

Subsequent  to  obtaining  the consent of the majority of the  Unitholders,  the
General  Partner  grouped the properties into two or more packages of properties
(such  as  separate  packages  of  retail  properties,   office  properties  and
unimproved land) and included  properties in the Tri-City Corporate Centre which
are owned by Rancon Realty Fund IV ("Fund IV"), a partnership  also sponsored by
the  General  Partner.  Bidders  for any package of  properties  containing  the
Partnership's  and Fund IV's  properties  will be  required to specify how their
overall bid is allocated among the individual properties in the package, and the
proceeds  and expenses  from the sales of any such  package will be  apportioned
between  the  Partnership  and Fund IV based upon such  allocation.  The General
Partner hired an  independent  real estate firm to market the  properties and to
prepare  marketing  materials and  informational  brochures.  The  informational
brochures  were  presented to a number of  prospective  buyers and at the end of
September 1999, the General Partner

                                  Page 6 of 19
<PAGE>

had  received  39  signed   confidentiality   agreements   requesting   offering
memorandums.  The General  Partner closed the bidding process with a request for
"best and final  offers" and received six final bids on the Tri-City  properties
in early November 1999. In November 1999, the General Partner entered into a due
diligence  period with a potential  buyer.  In January 2000,  this due diligence
period was terminated  largely due to the impact of rising interest rates on the
potential  buyer's  ability to fund the acquisition  price.  The General Partner
subsequently  received three written offers from prospective buyers and selected
one. In June 2000,  this  prospective  buyer was completing its due diligence on
the Tri-City  properties,  and the Partnership was preparing a Purchase and Sale
Agreement  for  signature.  Interest  rates  continued  to rise,  and the  buyer
determined  that it was  unable  to fund  the  acquisition  due to the  changing
economic conditions.

After  extensive work on the potential sale of the Assets,  the General  Partner
has  determined  that,  at this time,  it is not  possible  to sell the Tri City
properties  to the most  qualified  bidders  primarily  due to the  increase  in
interest  rates.  The General Partner  currently  intends to retain the Tri City
properties  and has begun an  assessment  of  various  opportunities  to develop
additional  parcels of undeveloped  land. This aligns with the General Partner's
goals  of  increasing   revenues  at  the  Tri-City  Properties  and  increasing
distributions to Unitholders.

The Partnership  has not, as of the date of the filing of this Quarterly  Report
on Form 10-Q with the Commission, entered into any agreement for the sale of its
properties,  although the Partnership did, in 1997, grant to Glenborough  Realty
Trust Incorporated,  a Maryland corporation ("GLB"), a right to match offers for
the purchase of the Partnership's  properties ("GLB Matching Right"). GLB is not
an affiliate of the Partnership.

Pursuant to the GLB Matching Right and the right of first  refusal,  the General
Partner is required to give prompt  written notice to GLB of the price and other
terms and conditions of any offer received from an unaffiliated  third party, to
sell all or a portion of the  Partnership's  properties.  GLB has ten days after
receipt of the  Partnership's  written  notice to accept or reject the  purchase
price and other terms and  conditions of the sale. If GLB exercises its matching
right and agrees to purchase all or a portion of the Partnership's properties at
the specified price and on the other terms and  conditions,  the Partnership and
GLB must promptly execute a purchase  agreement which is to contain a reasonable
feasibility  study  period for GLB.  If, on the other  hand,  GLB  notifies  the
Partnership  that it does not intend to exercise its matching  right or fails to
respond within the ten-day  period,  then the  Partnership has the right to sell
all or a portion of the Partnership's properties to the unaffiliated third party
buyer as set forth in the Partnership's notice to GLB.

Prior to the completion of the sale of all of the  Partnership's  properties and
the  receipt in cash of the  proceeds  thereof,  the General  Partner  currently
intends,  but is not  obligated,  to make interim  distributions  to the Limited
Partners,  from time to time,  of all or a portion of the net proceeds  from the
sale of the  properties.  The  General  Partner  will not receive any of the net
proceeds from the sale

                                  Page 7 of 19
<PAGE>

of the  properties or upon  dissolution of the  Partnership  with respect to its
general partnership interests.

The  discussion  above  contains   forward-looking   statements   regarding  the
Partnership's plans, goals and expectations,  including statements regarding the
Partnership's estimate of the timing of the sale of the Partnership's  remaining
properties, the distribution of proceeds and the liquidation of the Partnership.
Forward-looking  statements  are  necessarily  speculative,  there being certain
risks and  uncertainties  that could  cause  actual  events or results to differ
materially from those referred to in the forward-looking statements. The General
Partners'  current  plans are subject to change,  both as a result of changes in
general  business and economic  conditions  as well as changes in the local real
estate markets where the Partnership's  properties are located.  There can be no
assurance  that  regulatory  approval  will be  obtained,  if and  when  consent
solicitation  materials will be mailed to Limited Partners,  that a proposal for
the sale of all of the Partnership's remaining properties and liquidation of the
Partnership  will be approved,  or if and when the properties will be sold, that
the proceeds will be distributed and the Partnership  liquidated.  The timing of
any  sale  of  the  Partnership's  remaining  properties,  the  distribution  of
proceeds,  and the  liquidation  of the  Partnership  are subject to various and
significant  uncertainties,  many of which are beyond the Partnership's  control
and  which  could  delay  any sale of the  Partnership's  remaining  properties,
liquidation  of the  Partnership,  and  distribution  of proceeds  significantly
beyond the time periods estimated above. Among such uncertainties are the demand
for the Partnership's  properties by potential  purchasers,  the availability of
capital for  potential  purchasers,  the actual dates when  properties  could be
sold, and the duration of any installment sales of any of the properties.

Allocation of Net Income and Net Loss
-------------------------------------
Allocation  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,  subject
to (i) 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
parnters  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

                                  Page 8 of 19
<PAGE>

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.

General Partner and Management Agreement
----------------------------------------
Effective  January 1,  1995,  Glenborough  entered  into an  agreement  with the
Partnership   and  other  related   Partnerships   (collectively,   the  "Rancon
Partnerships")  to  perform  or  contract  on  the  Partnership's   behalf,  for
financial,  accounting,  data processing,  marketing, legal, investor relations,
asset and development management and consulting services for the Partnership for
a period of ten years or until the  liquidation  of the  Partnership,  whichever
comes first.  Effective  January 1, 1998, the agreement was amended to eliminate
Glenborough's  responsibility  for  providing  investor  relations  services and
Preferred Partnership Services, Inc., a California Corporation unaffiliated with
the  Partnership,  contracted  to assume these  services.  In August  1998,  the
management agreement was further amended to provide Glenborough with a guarantee
of a specified amount of asset  management and property  management fees through
December 31, 1999,  regardless of whether the Partnership sold any or all of its
properties  prior to such  date.  In  exchange,  Glenborough  waived any and all
claims  related to  liquidated  damages under the agreement to which it may have
otherwise been entitled.

The  Partnership  will  pay  Glenborough  for its  services  as  follows:  (i) a
specified  asset  management  fee ($426,000 and $340,000 as of June 30, 2000 and
1999);  (ii) sales fees of 2% for improved  properties and 4% for land;  (iii) a
refinancing fee of 1% and (iv) a management fee of 5% of gross rental  receipts.
As part of this  agreement,  Glenborough  will  perform  certain  duties for the
General  Partner  of the  Rancon  Partnerships.  RFC  agreed to  cooperate  with
Glenborough, should Glenborough attempt to obtain a majority vote of the limited
partners  to  substitute  itself as the  Sponsor  for the  Rancon  Partnerships.
Glenborough is not an affiliate of RFC or the Partnership.

Basis of Accounting
-------------------
The accompanying  unaudited consolidated financial statements have been prepared
on the  accrual  basis of  accounting  in  accordance  with  generally  accepted
accounting  principles  under the presumption that the Partnership will continue
as a going concern.

                                  Page 9 of 19
<PAGE>
Consolidation
-------------
In May 1996,  the  Partnership  formed  Rancon  Realty  Fund V Tri-City  Limited
Partnership,  a Delaware limited partnership ("RRF V Tri-City").  As required by
the lender (Bear,  Stearns  Funding,  Inc.) of a $9,600,000 loan obtained by the
Partnership  in  1996,  the  Partnership  contributed  three  of  its  operating
properties  to RRF V Tri-City to provide a  bankruptcy  remote  borrower for the
lender. The loan,  secured by the properties in RRF V Tri-City,  has a principal
balance of  $9,135,000  at June 30,  2000,  and matures on August 1, 2006 with a
9.39% fixed interest rate and a 25-year  amortization of principal.  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 the consolidation.

Restatement of Equity
---------------------
Partners'  equity has been  restated  as of  December  31,  1999,  to reflect an
adjustment  to  correct  prior  years'  allocations  of net  income and net loss
between the general  partner and the  limited  partners in  accordance  with the
Partnership Agreement.

Note 2.      REFERENCE TO 1999 AUDITED FINANCIAL STATEMENTS
             ----------------------------------------------
These unaudited  consolidated financial statements should be read in conjunction
with the Notes to Financial Statements included in the December 31, 1999 audited
consolidated financial statements.

Note 3.      SALES OF REAL ESTATE
             --------------------

Perris-Ethanac land
--------------------
On  January  20,  1999,  the  Partnership  sold  approximately  24 acres of land
(referred to as the Perris- Ethanac land) located in Perris,  Riverside  County,
California,  to an  unaffiliated  third  party  for  $502,200.  The  Partnership
realized a $6,000  loss on the sale  which was  reflected  in the June 30,  1999
consolidated  statement  of  operations.  The sale  generated  net  proceeds  of
$446,000.

Perris-Nuevo land
-----------------
On  January  29,  1999,  the  Partnership  sold  approximately  60 acres of land
(referred to as the  Perris-Nuevo  land)  located in Perris,  Riverside  County,
California to an unaffiliated third party for $675,000.  As part of the terms of
the sale, the Partnership  loaned $475,000 to the buyer (the "Nuevo Note").  The
Nuevo Note is  secured by a deed of trust  encumbering  the  Perris-Nuevo  land,
bears interest at 6% per annum and had an original maturity date of November 15,
1999.

In November  1999, the note was amended to extend the maturity date to April 15,
2000 with a

                                  Page 10 of 19
<PAGE>
partial principal payment of $100,000.  The remaining note balance was $375,000.
In April  2000,  the note was  further  amended to extend the  maturity  date to
September  15, 2000 with a partial  principal  payment of  $75,000.  The current
remaining note balance is $300,000.

As  the  sale  included  a  $475,000  promissory  note  from  the  buyer  to the
Partnership,  the Partnership  deferred recognition of the $443,000 gain on sale
until  collection  of the note.  During the year ended  December 31,  1999,  the
Partnership recognized a gain of $104,000 after receiving the $100,000 principal
payment  discussed  above.  As of the end of the  second  quarter  of 2000,  the
Partnership  had  recognized  a gain of  $64,000  after  receiving  the  $75,000
principal  payment discussed above. The sale generated net proceeds of $113,000,
prior to collections on the note.

Rancon Centre Ontario
---------------------
Also  on  January  29,  1999,  the  Partnership  sold  five  distribution-center
buildings (referred to as Rancon Centre Ontario) located in Ontario,  California
to an unaffiliated third party for $7,650,000. The Partnership loaned $5,715,000
to the  buyer  (the "RCO  Note").  The RCO Note was  secured  by a deed of trust
encumbering the RCO Buildings,  bore interest at 8% and had an original maturity
date of March 1, 2000 with an option  to  extend  the  maturity  date to June 1,
2000. In March 2000,  the buyer  exercised  this option and extended the note to
June 1,  2000.  As the sale of  Rancon  Centre  Ontario  included  a  $5,715,000
promissory  note from the  Partnership to the buyer,  the  Partnership  deferred
recognition  of the  $3,274,000  gain on sale until  collection  of the note was
received. As of December 31, 1999, the Partnership had collected interest income
totaling  $421,000 from the RCO Note, which was included in the deferred gain in
the  accompanying  consolidated  balance  sheet as of December 31,  1999,  to be
recognized upon collection of the note.

On April 14, 2000, the buyer paid off the entire note amount of $5,715,000 prior
to the note maturity  date of June 1, 2000.  The proceeds have been added to the
Partnership's  cash reserves and the full gain on sale of $3,827,000,  including
$132,000 of interest income collected in 2000, was recognized  during the second
quarter  of 2000.  The sale  generated  net  proceeds  of  $1,529,000,  prior to
collections on the note.

Note 4.      COMMITMENTS AND CONTINGENT LIABILITIES
             --------------------------------------

The Partnership is contingently  liable for subordinated real estate commissions
payable to the Sponsors in the aggregate amount of $102,000 at June 30, 2000 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 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 financial
statements; however, the amount will be recorded if and when it becomes payable.

                                  Page 11 of 19
<PAGE>



Note 5.      NOTES PAYABLE
             -------------

The following notes payable were outstanding as of June 30,2000 and December 31,
1999 (in thousands):
<TABLE>
<CAPTION>
<S>                                                                           <C>             <C>
                                                                                 2000            1999
                                                                              ------------    ----------
Note payable with a 9.39% fixed rate of interest, monthly principal
and interest payments (based on a 25-year  amortization) of $83 and a
maturity date of August 1, 2006. The loan is secured by first deeds
of trust on Lakeside Tower, One Parkside and Two Carnegie Plaza.              $    9,135      $    9,203

Note  payable  with an 8.25% fixed rate of interest, monthly principal
and interest  payments (based on a 25-year  amortization)of $34 and a
maturity date of  December  1,  2001.  The  loan is  secured  by a first
deed of trust on One Carnegie Plaza.                                               4,077           4,112
                                                                              ----------      ----------

        Total notes payable                                                   $   13,212      $   13,315
                                                                              ==========      ==========
</TABLE>

Note 6.      DEFERRED INCOME
             ---------------
The Partnership's  deferred income of $275,000 as of June 30, 2000,  consists of
the remaining deferred gain on the sale of the Perris-Nuevo land.

Note 7.      LEGAL PROCEEDINGS
             -----------------
On March 7, 2000, The Burlington Northern and Santa Fe Railway Company, 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 its  lease.
According  to the filing,  the  alleged  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 intends to dispute
the claims in the complaint.  It is the  Partnership's  position that the tenant
has only a right of first refusal under its lease, not an option to purchase the
property,  and  the  terms  of the  possible  sale  of the  premises  which  are
referenced  in the letter  dated  November  29, 1999 were never  finalized,  and
therefore, the tenant did not have the right to purchase the property.


                                 Page 12 of 19
<PAGE>

                              RANCON REALTY FUND V
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 2000
                                   (Unaudited)

Item 2.         Management's Discussion and Analysis of Financial Condition and
                Results of Operations

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
As of June 30, 2000, the Partnership  had cash of $11,295,000.  The remainder of
the  Partnership's  assets  consist  primarily  of its net  investments  in real
estate, totaling approximately  $31,016,000 which includes $28,038,000 in rental
properties and $2,978,000 of land held for development within the Tri-City area.
The Partnership currently holds a $300,000 note receivable from the buyer of the
Perris-Nuevo  land. A $5,715,000 note receivable from the buyer of Rancon Centre
Ontario was recently paid off (see below for details).

The  Partnership's   primary   liabilities   include  notes  payable,   totaling
approximately  $13,212,000 at June 30, 2000,  which consist of two secured fixed
rate  loans  encumbering   properties  with  an  aggregate  net  book  value  of
approximately  $15,622,000  and maturity dates of December 1, 2001 and August 1,
2006.  These notes require  monthly  principal and interest  payments,  and bear
interest rates of 8.25% and 9.39%.

Perris-Ethanac land
-------------------
On  January  20,  1999,  the  Partnership  sold  approximately  24 acres of land
(referred to as the Perris- Ethanac land) located in Perris,  Riverside  County,
California,  to an  unaffiliated  third  party  for  $502,200.  The  Partnership
realized a $6,000  loss on the sale  which was  reflected  in the June 30,  1999
consolidated  statement  of  operations.  The sale  generated  net  proceeds  of
$446,000.

Perris-Nuevo land
-----------------
On  January  29,  1999,  the  Partnership  sold  approximately  60 acres of land
(referred to as the  Perris-Nuevo  land)  located in Perris,  Riverside  County,
California to an unaffiliated third party for $675,000.  As part of the terms of
the sale, the Partnership  loaned $475,000 to the buyer (the "Nuevo Note").  The
Nuevo Note is  secured by a deed of trust  encumbering  the  Perris-Nuevo  land,
bears interest at 6% per annum and had an original maturity date of November 15,
1999.

In November  1999, the note was amended to extend the maturity date to April 15,
2000 with a partial  principal  payment of $100,000.  The remaining note balance
was $375,000. In April 2000, the note was further amended to extend the maturity
date to  September  15, 2000 with a partial  principal  payment of $75,000.  The
current remaining note balance is $300,000.

As  the  sale  included  a  $475,000  promissory  note  from  the  buyer  to the
Partnership,  the Partnership  deferred recognition of the $443,000 gain on sale
until  collection  of the note is received.  During the year ended  December 31,
1999, the Partnership recognized a gain of $104,000 after receiving the $100,000
principal  payment discussed above. As of the end of the second quarter of 2000,
the  Partnership  had  recognized a gain of $64,000 after  receiving the $75,000
principal  payment discussed above. The sale generated net proceeds of $213,000,
prior

                                 Page 13 of 19
<PAGE>

to collections on the note.

Rancon Centre Ontario
---------------------
Also  on  January  29,  1999,  the  Partnership  sold  five  distribution-center
buildings (referred to as Rancon Centre Ontario) located in Ontario,  California
to an unaffiliated third party for $7,650,000. The Partnership loaned $5,715,000
to the  buyer  (the "RCO  Note").  The RCO Note was  secured  by a deed of trust
encumbering the RCO Buildings,  bore interest at 8% and had an original maturity
date of March 1, 2000 with an option  to  extend  the  maturity  date to June 1,
2000. In March 2000,  the buyer  exercised  this option and extended the note to
June 1, 2000.

As the sale of Rancon Centre Ontario included a $5,715,000  promissory note from
the  Partnership  to the buyer,  the  Partnership  deferred  recognition  of the
$3,274,000  gain on sale  until  collection  of the  note  was  received.  As of
December 31, 1999,  the  Partnership  had  collected  interest  income  totaling
$421,000  from the RCO Note,  which was  included  in the  deferred  gain in the
accompanying  consolidated  balance  sheet  as  of  December  31,  1999,  to  be
recognized upon collection of the note.

On April 14, 2000, the buyer paid off the entire note amount of $5,715,000 prior
to the note maturity  date of June 1, 2000.  The proceeds have been added to the
Partnership's  cash reserves and the full gain on sale of $3,827,000,  including
$132,000 of interest income collected in 2000, was recognized  during the second
quarter  of 2000.  The sale  generated  net  proceeds  of  $1,529,000,  prior to
collections on the note.

The Partnership is contingently  liable for subordinated real estate commissions
payable to the General  Partner in the amount of $102,000 at June 30, 2000,  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 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 financial
statements; however, the amount will be recorded if and when it becomes payable.

Operationally,  the  Partnership's  primary  source  of funds  consists  of cash
provided by its rental activities.  Other sources of funds may include permanent
financing,  property sales, 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 June 30,  2000,
together with the cash from operations,  sales and financing, 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


                                 Page 14 of 19
<PAGE>

operations  will not  fluctuate in the future and at times affect its ability to
meet its operating requirements.

Aside from the  foregoing  and the current plan to develop the  unimproved  land
within  the  Tri-City   Properties,   the  Partnership   knows  of  no  demands,
commitments,  events or  uncertainties,  which  might  effect its  liquidity  or
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 period ended June 30, 2000, the Partnership's cash provided by operating
activities totaled $692,000.

The  $137,000  increase in deferred  financing  costs and other fees at June 30,
2000, compared to December 31, 1999, was primarily due to lease commissions paid
for new and renewal leases.

The $62,000  increase in prepaid  expenses  and other  assets at June 30,  2000,
compared to December 31, 1999,  was primarily due to an increase in the mortgage
impound  accounts for property  taxes,  and  prepayments  for the third  quarter
investor relations services and association fees.

The  $117,000  decrease in accounts  payable and other  liabilities  at June 30,
2000,  compared to December 31, 1999,  was  primarily  due to payment of accrued
property taxes.

Investing Activities
--------------------
During the period  ended June 30,  2000,  the  Partnership's  cash  provided  by
investing  activities  totaled  $5,308,000,  which  consisted of  $5,922,000  of
principal and interest  collected on the RCO and Nuevo note receivables,  offset
by $614,000 of cash used for capital additions to real estate.

Financing Activities
--------------------
During the period ended June 30, 2000, the Partnership's cash used for financing
activities  totaled $118,000,  which consisted of principal  payments on its two
notes  payable of  $103,000  and $15,000  paid to redeem 48 limited  partnership
units.

                                 Page 15 of 19
<PAGE>


Results of Operations
---------------------
Revenues
--------
Rental income increased $513,000,  or 17%, and $333,000,  or 22%, during the six
and three months ended June 30, 2000, compared to the six and three months ended
June 30, 1999, respectively,  due primarily to increased occupancy at two of the
Partnership's properties.

                                                          June 30,
                                             -----------------------------------
                                                  2000                1999
                                             ---------------     ---------------
     One Carnegie Plaza                            85%                 58%
     Two Carnegie Plaza                            79%                 79%
     Carnegie Business Center II                   62%                 59%
     Lakeside Tower                                96%                 96%
     Santa Fe                                     100%                100%
     One Parkside                                 100%                100%
     Bally's Health Club                          100%                100%
     Outback Steakhouse                           100%                100%

As of June 30,  2000,  tenants at  Tri-City  occupying  substantial  portions of
leased rental space included:  (i) The Burlington  Northern and Santa Fe railway
company with a lease  through  September  2004;  (ii) Chicago Title with a lease
through  February 2004;  (iii) Sterling  Software with a lease through  November
2000;  (iv) Holiday Spa Health Club with a lease through  December 2010; and (v)
New York  Life  with a lease  through  May  2004.  These  five  tenants,  in the
aggregate,  occupied  approximately  139,712  square feet of the  478,000  total
leasable  square feet at Tri-City and  accounted  for  approximately  33% of the
total rental income of the Partnership during the second quarter of 2000.

The  twenty-seven-percentage  point  increase in occupancy from June 30, 1999 to
June 30, 2000 at One Carnegie  Plaza was the result of leasing 9,713 square feet
of previously vacant office space to three new tenants, and a 18,128 square foot
expansion for an existing tenant.

The three-percentage  point increase in occupancy from June 30, 1999 to June 30,
2000 at Carnegie  Business Center II was the result of leasing 4,183 square feet
of  previously  vacant space to an existing  tenant.  This increase was slightly
offset by a decrease in occupancy  due to an existing  tenant  downsizing  2,760
square feet of space upon expiration of their lease.

The gain on sale of real estate of $3,891,000 for the six and three months ended
June 30, 2000 consists of the  recognition of $3,827,000 of the deferred gain on
sale of Rancon Centre  Ontario,  and $64,000 of the deferred gain on sale of the
Perris-Nuevo land.

                                 Page 16 of 19
<PAGE>

Interest and other income  decreased  $249,000,  or 51%, and  $139,000,  or 49%,
during the six and three  months  ended June 30,  2000,  compared to the six and
three months ended June 30, 1999,  respectively,  primarily due to a decrease in
interest  income on a lower  average  invested cash balance  resulting  from the
November 1999 distribution of sale proceeds.

Expenses
--------
Operating expenses  decreased $83,000,  or 5%, for the six months ended June 30,
2000,  compared  to the six months  ended June 30,  1999,  primarily  due to the
recognition  of prior year bad debt in the first quarter of 1999 and the payment
of tax appeal fees in the first quarter of 1999,  neither of which were incurred
in the first quarter of 2000.  Operating  expenses varied slightly for the three
months ended June 30, 2000, compared to the three months ended June 30, 1999.

Interest expense decreased $27,000,  or 4%, and $15,000,  or 5%, for the six and
three  months  ended June 30,  2000,  compared to the six and three months ended
June 30, 1999,  respectively,  primarily due to the  capitalization  of interest
(beginning subsequent to June 30, 1999) related to development of a pad site at
one of the Partnership's properties.

Depreciation and amortization  increased $81,000, or 9%, and $38,000, or 9%, for
the six and three  months  ended June 30,  2000,  compared  to the six and three
months ended June 30,  1999,  respectively,  primarily  due to  depreciation  of
additions to rental properties.

The loss on sale of real estate of $6,000 for the six months ended June 30, 1999
resulted from the sale of the Perris-Ethanac land.

Expenses  associated  with  undeveloped  land  decreased  $45,000,  or 30%,  and
$24,000,  or 77%, for the six and three months ended June 30, 2000,  compared to
the six and three  months ended June 30, 1999,  respectively,  primarily  due to
refunds of real estate taxes received in 2000.

General and administrative  expenses increased $19,000,  or 3%, and $34,000,  or
11%, for the six and three  months ended June 30, 2000,  compared to the six and
three months ended June 30, 1999, respectively,  primarily due to an increase in
asset  management fees resulting from the CPI increase  adjustment to the fee.

The proposed  dissolution  costs incurred  during the six and three months ended
June 30,  2000 and  1999,  respectively,  consist  of  expenses  related  to the
Solicitation and the Asset Sale and Dissolution Proposal as discussed in Note 1.





                                 Page 17 of 19
<PAGE>

Part II.          OTHER INFORMATION


Item 1.           Legal Proceedings

                  On March 7, 2000, The Burlington Northern and Santa Fe Railway
                  Company,  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 its  lease.
                  According  to the  filing,  the  alleged  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 intends to dispute the claims in the
                  complaint.  It is the  Partnership's  position that the tenant
                  has only a right of first  refusal  under  its  lease,  not an
                  option to purchase the property, and the terms of the possible
                  sale of the premises  which are referenced in the letter dated
                  November 29, 1999 were never  finalized,  and  therefore,  the
                  tenant did not have the right to purchase the property.


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

                  Incorporated  herein  by  reference  to Note 1 of the Notes to
                  Consolidated Financial Statements.

Item 5.           Other Information

                  None.

Item 6.           Exhibits and Reports on Form 8-K

                  (a)  Exhibits:

                  #27 - Financial Data Schedule

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

                  None.








                                 Page 18 of 19
<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:    August 11, 2000      By:        /s/  DANIEL L. STEPHENSON
                                         --------------------------
                                         Daniel L. Stephenson, President

Date:    August 11, 2000      By:        /s/  DANIEL L. STEPHENSON
                                         --------------------------
                                         Daniel L. Stephenson, General Partner

                                 Page 19 of 19