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, 1996

                                       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
           (Address of principal                       (Zip Code)
            executive offices)

                                 (415) 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 September 30, 1996: 99,765

                                  Page 1 of 15

<PAGE>



PART I.       FINANCIAL INFORMATION

Item 1.       Financial Statements

                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

                           Consolidated Balance Sheets
                    (in thousands, except units outstanding)
                                   (Unaudited)

                                                   September 30,    December 31,
                                                        1996            1995
Assets
Real estate investments:
    Rental property, net of accumulated
     depreciation of $14,801 and
     $13,465 at September 30, 1996 and
     December 31, 1995, respectively                    $35,969         $36,000
    Land held for development                             9,559           9,799
    Land held for sale                                    1,005           1,005
                                                        -------         -------

     Total real estate investments                       46,533          46,804

Cash and cash equivalents                                 5,453             676
Pledged cash                                                  2             351
Accounts receivable                                         183             169
Deferred  financing  costs and other fees,
    net of accumulated amortization of $1,475
    and $1,233 at September 30, 1996 and
    December 31, 1995, respectively                       1,358           1,218
Prepaid expenses and other assets                         1,111             957
                                                        -------         -------
     Total assets                                       $54,640         $50,175
                                                        =======         =======













                                  - continued -

                                  Page 2 of 15

<PAGE>



                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

                           Consolidated Balance Sheets
              (in thousands, except units outstanding) - continued
                                   (Unaudited)

                                                  September 30,     December 31,
                                                       1996              1995

Liabilities and Partners' Equity (Deficit)
Liabilities:
    Accounts payable and accrued expenses             $   668           $   256
    Interest payable                                       75                --
    Notes payable                                      13,883             8,615
                                                      -------           -------

     Total liabilities                                 14,626             8,871
                                                      -------           -------

Commitments and contingent liabilities
  (see Note 5)

Partners' equity (deficit):
    General partners                                     (917)             (904)
    Limited partners, 99,765 limited
     partnership units outstanding at
     September 30, 1996 and December 31, 1995          40,931            42,208
                                                      -------           -------

     Total partners' equity                            40,014            41,304
                                                      -------           -------

     Total liabilities and partners' equity           $54,640           $50,175
                                                      =======           =======

















                 See accompanying notes to financial statements.

                                  Page 3 of 15

<PAGE>


<TABLE>
<CAPTION>

                                         RANCON REALTY FUND V,
                                    A CALIFORNIA LIMITED PARTNERSHIP

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

                                                    Three months ended         
   Nine months ended
                                               September 30,    August 31,  
September 30,    August 31,
                                                    1996           1995        
 1996            1995
                                                 ---------     ----------    
----------       --------

<S>                                               <C>            <C>           
<C>            <C>
Revenue:
   Rental income                                  $  1,753       $  1,497      
$  5,191       $  4,684
   Interest income                                      49             31      
      80             69
                                                  --------       --------      
--------       --------

      Total revenue                                  1,802          1,528      
   5,271          4,753
                                                  --------       --------      
--------       --------

Expenses:
   Operating, including $27 paid to
      Sponsor in 1995                                  853            819      
   2,465          2,273
   Interest expense                                    375            186      
     919            530
   Depreciation and amortization                       565            520      
   1,743          1,568
   Expenses associated with undeveloped land           160            151      
     525            515
   General and administrative expenses,
      including $83 paid to Sponsor in 1995            272            284      
     909            857
                                                  --------       --------      
--------       --------

      Total expenses                                 2,225          1,960      
   6,561          5,743
                                                  --------       --------      
--------       --------

Net loss                                          $   (423)      $   (432)     
$ (1,290)      $   (990)
                                                  ========       ========      
========       ========



Net loss per limited partnership unit             $  (4.20)      $  (4.29)     
$ (12.80)      $  (9.82)
                                                  ========       ========      
========       ========


Weighted average number of limited
   partnership units outstanding during
   each period used to compute net loss
   per limited partnership unit                     99,765         99,800      
  99,765         99,804
                                                  ========       ========      
========       ========






                            See accompanying notes to financial statements.

                                              Page 4 of 15
</TABLE>

<PAGE>



                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

      Consolidated Statements of Partners' Equity (Deficit) (in thousands)
        For the nine months ended September 30, 1996 and August 31, 1995
                                   (Unaudited)


                                            General      Limited
                                           Partners     Partners        Total

Balance at December 31, 1995               $   (904)    $ 42,208     $ 41,304

Net loss                                        (13)      (1,277)      (1,290)
                                           --------     --------     --------

Balance at September 30, 1996              $   (917)    $ 40,931     $ 40,014
                                           ========     ========     ========




Balance at November 30, 1994               $   (744)    $ 58,407     $ 57,663

Retirement of limited partnership units          --           (9)          (9)

Net loss                                        (10)        (980)        (990)
                                           --------     --------     --------

Balance at August 31, 1995                 $   (754)    $ 57,418     $ 56,664
                                           ========     ========     ========




















                 See accompanying notes to financial statements.

                                  Page 5 of 15

<PAGE>



                                   RANCON REALTY FUND V,
                              A CALIFORNIA LIMITED PARTNERSHIP
<TABLE>
<CAPTION>

                    Consolidated Statements of Cash Flows (in thousands)
                                        (Unaudited)
                                                                      Nine
months ended
                                                                 September 30, 
 August 31,
                                                                     1996      
    1995
                                                                  ----------   
 -------
<S>                                                                 <C>        
 <C>
Cash flows from operating activities:
  Net loss                                                          $ (1,290)  
 $   (990)
  Adjustments to reconcile net loss to net cash
  provided by operating activities:
       Depreciation and amortization                                   1,743   
    1,568
       Amortization of loan fees, included in interest expense            22   
       16
       Changes in certain assets and liabilities:
           Lease commissions paid                                       (126)  
     (177)
           Accounts receivable                                           (14)  
      (39)
           Prepaid expenses and other assets                            (154)  
      280
           Accounts payable and accrued expenses                         412   
     (212)
           Interest payable                                               75   
      (50)
           Payable to Sponsor                                             --   
     (194)
                                                                    --------   
 --------

           Net cash provided by operating activities                     668   
      202
                                                                    --------   
 --------

Cash flows from investing activities:
    Pledged cash released                                                349   
       --
    Additions to real estate investments                              (1,185)  
   (1,702)
                                                                    --------   
 --------

       Cash used for investing activities                               (836)  
   (1,702)
                                                                    --------   
 --------

Cash flows from financing activities:
  Net loan proceeds                                                   13,911   
    2,484
  Loan fees paid                                                        (323)  
       --
  Notes payable principal payments                                    (8,643)  
      (53)
  Retirement of limited partnership units                                 --   
       (9)
                                                                    --------   
 --------

       Net cash provided by financing activities                       4,945   
    2,422
                                                                    --------   
 --------

Net increase in cash and cash equivalents                              4,777   
      922

Cash and cash equivalents at beginning of period                         676   
    2,309
                                                                    --------   
 --------

Cash and cash equivalents at end of period                          $  5,453   
 $  3,231
                                                                    ========   
 ========

Supplemental disclosure of cash flow information:
  Cash paid for interest                                            $    822   
 $    653
                                                                    ========   
 ========
  Interest capitalized                                              $     --   
 $     73
                                                                    ========   
 ========
                       See accompanying notes to financial statements

                                                   Page 6 of 15
</TABLE>

<PAGE>


                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                               September 30, 1996
                                   (Unaudited)

Note 1.           THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES

In the opinion of Rancon Financial  Corporation  (RFC) and Daniel Lee Stephenson
(the  Sponsors) and  Glenborough  Inland Realty  Corporation,  the  accompanying
unaudited  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
September 30, 1996 and December 31, 1995,  the related  statements of operations
for the three and nine months ended  September 30, 1996 and August 31, 1995, and
changes in partners'  equity and cash flows for the nine months ended  September
30, 1996 and August 31, 1995.

Effective with the year ending  December 31, 1995, the  Partnership's  reporting
year end changed from November 30 to December 31.

Effective January 1, 1994, the Partnership had contracted with RFC to perform on
the Partnership's behalf,  financial,  accounting,  data processing,  marketing,
legal,  investor  relations,  asset and  development  management  and consulting
services.  These  services  are  subject to the  provisions  of the  Partnership
Agreement.

In December,  1994 RFC entered into an agreement with Glenborough  Inland Realty
Corporation  (Glenborough)  whereby  RFC sold to  Glenborough  the  contract  to
perform  the  rights  and  responsibilities   under  RFC's  agreement  with  the
Partnership   and  other   related   Partnerships   (collectively,   the  Rancon
Partnerships)  to perform or contract  on the  Partnership's  behalf  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.
Pursuant to the contract,  the Partnership will pay Glenborough for its services
as follows: (i) a specified asset administration fee of $967,000 per year, which
is fixed for five years  subject to reduction in the year  following the sale of
assets;  (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  tasks  for the
General  Partner of the Rancon  Partnerships  and RFC agreed to  cooperate  with
Glenborough, should Glenborough attempt to obtain a majority vote of the limited
partners  to   substitute   itself  as  the  General   Partner  for  the  Rancon
Partnerships.  This agreement became effective  January 1, 1995.  Glenborough is
not an affiliate of RFC.

As a result of this agreement,  RFC terminated  several of its employees between
December 31, 1994 and February  28,  1995.  Also as a result of this  agreement,
certain of the officers of RFC resigned from their positions  effective February
28, 1995, March 31, 1995 and July 1, 1995.

Consolidation  - In  order  to  satisfy  certain  lender  requirements  for  the
Partnership's  new loan secured by Two Carnegie  Plaza,  Lakeside  Tower and One
Parkside (see Note 6), Rancon Realty

                                  Page 7 of 15

<PAGE>


                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                               September 30, 1996
                                   (Unaudited)

Fund V Tri City Limited Partnership,  a Delaware limited partnership ("RRF V Tri
City") was formed in May,  1996.  The three  properties  securing  the loan were
contributed to RRF V Tri City by the  Partnership.  The limited partner of RRF V
Tri City is the  Partnership  and the general  partner is Rancon  Realty Fund V,
Inc., wholly owned by the Partnership.

Since the  Partnership  indirectly  owns 100% of RRF V Tri City,  the  financial
statements  of  RRF  V Tri  City  have  been  consolidated  with  those  of  the
Partnership.

Reclassification  - Certain 1995 balances have been reclassified to conform with
the current period presentation.

Note 2.           REFERENCE TO 1995 AUDITED FINANCIAL STATEMENTS

These  unaudited  financial  statements  should be read in conjunction  with the
Notes to  Financial  Statements  included in the fiscal 1995  audited  financial
statements.

Note 3.           RELATED PARTY TRANSACTIONS

The  Partnership  had an  agreement  with the  Sponsor for  property  management
services through December 31, 1994. The agreement  provided for a management fee
equal to 5% of gross  rentals  collected  while  managing the  properties.  Fees
incurred under this agreement  totaled  $27,000 for the one month ended December
31, 1994. Effective January 1, 1995, the Partnership contracted with Glenborough
to provide these services to the Partnership (see Note 1).

The Partnership  Agreement also provides for the  reimbursement  of actual costs
incurred  by  the  Sponsor  in  providing  certain  administrative,   legal  and
development  services  necessary for the prudent  operation of the  Partnership.
Effective  January 1, 1995,  such services are being  provided by Glenborough as
described in Note 1.

As a result of the agreement between RFC and Glenborough, RFC terminated certain
employees who were  previously  responsible  for performing the  administrative,
legal and development  services to the Partnership.  Upon  termination,  certain
employee costs including severance benefits were allocated to the various Rancon
Partnerships.  Such costs allocated to the Partnership  aggregated $194,000, and
were  accrued  by the  Partnership  in  fiscal  year  1994 and paid in the first
quarter of fiscal year 1995.

The remainder of the  reimbursable  costs  incurred by the  Partnership  totaled
$94,000 for the nine months  ended  August 31,  1995,  of which the  Partnership
capitalized $11,000. The amount incurred in 1995 is reduced by an $83,000 rebate
of the amounts  paid by the  Partnership  for  services  provided by the Sponsor
during the 1994 calendar year.

                                  Page 8 of 15

<PAGE>


                              RANCON REALTY FUND V,
                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                               September 30, 1996
                                   (Unaudited)


Note 4.           INVESTMENT IN REAL ESTATE

In  September,  1996,  construction  on a 6,500 square foot building for Outback
Steakhouse was completed.  The Partnership and the tenant entered into a 10-year
ground  lease with four 5-year  options.  As a result of the  completion  of the
property,  $570,000 was  reclassified  from land held for  development to rental
property.

Note 5.           COMMITMENTS AND CONTINGENT LIABILITIES

The Partnership is contingently  liable for subordinated real estate commissions
payable to the Sponsor in the amount of  $102,000 at  September  30,  1996.  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 nine  percent per annum on their  adjusted
invested capital.

Note 6.           NOTES PAYABLE

On May 10, 1996, the Partnership obtained new permanent financing of $9,600,000,
secured by real estate  referred  to as Lakeside  Tower,  One  Parkside  and One
Carnegie Plaza. After disbursing  $2,785,000 for the payoff of an existing loan,
$271,000 in loan fees, and funding $107,000 in reserves/escrow,  the Partnership
netted  $6,437,000  in  financing  proceeds.  The  proceeds  were  added  to the
Partnership's cash reserves to allow management greater flexibility in exploring
different options for strengthening the Partnership's financial position.

This new loan, which matures August 1, 2006, is a 10-year fixed rate loan with a
25-year  amortization.  It accrues  interest at a rate of 9.39% per annum,  with
$83,142 in principal and interest payments due monthly, commencing July 1, 1996.

On August 30, 1996, the Partnership  entered into a new financing  agreement for
its $5,812,000  note payable  secured by One Carnegie  Plaza.  The new agreement
required a  $1,500,000  principal  paydown in exchange  for a  reduction  in the
stated interest rate from 10.0% to 8.25%.  Accordingly,  on August 30, 1996, the
Partnership  made a  $1,500,000  principal  payment plus paid $57,000 of accrued
interest and loan fees.  The new loan terms  provide for monthly  principal  and
interest payments totaling $33,995 commencing  November 1, 1996, with a maturity
date of December 1, 2001.  Additionally,  the lower interest rate will result in
annual savings to the Partnership of approximately $75,000.


                                  Page 9 of 15

<PAGE>



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

LIQUIDITY AND CAPITAL RESOURCES

In February,  1989, Rancon Realty Fund V (the Partnership) was fully funded from
the sale of all limited  partnership  units in the amount of $90,743,000 (net of
selling and  organization  expenses).  As of September 30, 1996, the Partnership
had cash of $5,453,000  resulting  primarily  from the new  permanent  financing
described below. The remainder of the Partnership's  assets consist primarily of
its  investments  in real estate,  which totaled  approximately  $46,533,000  at
September 30, 1996.

The Partnership's primary sources of funds consist of the proceeds of its public
offerings of limited  partnership  units, new financing and cash provided by its
rental  activities.  Other sources of funds include  property sales and interest
income on deposits of funds invested temporarily, pending use in the development
of properties.

All but one of the  Partnership's  operating  properties  are located within the
Inland  Empire  submarket  of  the  Southern  California  region.  The  Southern
California  economy in general,  and the real estate industry in particular,  is
considered  to be in a  recessionary  cycle.  The  Partnership  may receive both
positive and negative  effects from these current market  conditions.  Potential
negative  effects  include  the  delinquency  of  lease  payments  owed  to  the
Partnership,  a decrease in competitive  market lease rates and land prices, and
an  inability  to  obtain  financing  for  further  property  development.   The
Partnership may benefit from the current  economic and financing  conditions due
to the general lack of new competitive  product being  constructed,  potentially
causing greater absorption of existing inventory.

The  Partnership  currently  owns  the  following  properties  in  the  Tri-City
Corporate  Center  area  within  the Inland  Empire  submarket  of the  Southern
California region:

     Property                        Type                 Square Feet
One Carnegie Plaza                 Office                    102,600
Two Carnegie Plaza                 Office                     68,900
Carnegie Business Center II        R & D                      50,800
Lakeside Tower                     Office                    112,600
Sante Fe                           Office                     36,300
One Parkside                       Office                     70,100
Bally's Health Club                Health Club                25,000
Outback Steakhouse                 Restaurant                  6,500

The  Partnership  also owns  approximately  43 acres of  unimproved  land in the
Tri-City area.

Additionally,  the Partnership currently owns the Rancon Center Ontario property
(245,000  square feet of leasable  office  space) in  Ontario,  California  plus
approximately  118  acres  of  unimproved  land in  various  parts  of  Southern
California.


                                  Page 10 of 15

<PAGE>



In  September,  1996,  construction  of a 6,500 square foot building for Outback
Steakhouse was completed.  Outback Steakhouse signed a 10-year ground lease with
four 5-year options which commenced at the end of September, 1996.

Phase I of Rancon Centre Ontario is completed,  with the Partnership  continuing
to own  approximately  245,000  leasable  square feet.  Phase II received  final
approval from the Ontario  Planning  Commission in November,  1992. Phase II was
originally scheduled to be subdivided into small lots suitable for approximately
39 buildings, ranging between 4,000 and 8,000 square feet. There is currently no
demand for properties such as this and the Partnership has allowed the tentative
map (which would have subdivided the property into small lots) to expire.  It is
likely  that the  Partnership  will  attempt to  identify  users  interested  in
build-to-suit  buildings of approximately 250,000 plus square feet. In an effort
to facilitate such build-to-suits,  the Partnership purchased a 5.76 acre parcel
in  December,  1995 that was located  between  Phase II and an also  undeveloped
Phase  III.  This  purchase  also  protected  the  value  of  the  Partnership's
investment  by  providing  the  Partnership  ownership  of  contiguous  land and
preventing   development   adverse  to  the  Partnership's   interest.   Further
development  of the  unimproved  land  remaining at Rancon  Centre  Ontario will
coincide with market demand.

There has been no development to date at the Partnership's  Perris-Ethanac  Road
or  Perris-Nuevo  Road projects.  Both properties are being marketed for sale by
the Partnership.

The Partnership  does not anticipate the sale of any significant  portion of its
properties  until after the  completion of  development of such property or upon
liquidation  of the  Partnership.  Any cash generated from property sales may be
utilized in the development of other properties, or distributed to the partners.

On May 10, 1996, the Partnership obtained new permanent financing of $9,600,000.
This loan is a 10-year  fixed  rate  loan with a 25-year  amortization,  bearing
interest at 9.39%.  The loan funded the payoff of an existing  loan plus accrued
interest  totaling  $2,785,000.  After paying  refinancing  fees of $271,000 and
funding  $107,000  into  a  reserve/escrow   account,   the  Partnership  netted
$6,437,000.  The proceeds were added to the Partnership's cash reserves to allow
management greater  flexibility in exploring different options for strengthening
the Partnership's  financial position.  The new loan requires $83,142 in monthly
principal and interest payments commencing July 1, 1996.

On August 30, 1996, the  Partnership  entered into a new financing  agreement on
its $5,812,000 loan secured by One Carnegie Plaza. As part of the new agreement,
the  Partnership  made a  $1,500,000  principal  paydown  plus paid  $57,000 for
accrued  interest  and loan fees.  In return for the  $1,500,000  paydown on the
loan,  the lender  reduced  its rate of  interest  from 10.0% to 8.25%,  thereby
saving the Partnership  approximately  $75,000  annually on the new balance over
the  remaining  five years of the loan term.  The new loan terms  provide  for a
maturity  date of December 1, 2001 and requires  monthly  principal and interest
payments of $33,995, commencing November 1, 1996.

Aside from the  foregoing,  the  Partnership  knows of no demands,  commitments,
events or uncertainties which might effect its liquidity or capital resources in
any material  respect.  The effect of inflation  on the  Partnership's  business
should be no greater than its effect on the economy as a whole.

                                  Page 11 of 15

<PAGE>




Management  believes  that the  Partnership's  cash balance as of September  30,
1996,  together with the cash from operations and/or future property sales, will
be  sufficient  to  finance  the  Partnership's  and the  properties'  continued
operations and development plans.

RESULTS OF OPERATIONS

The  Partnership's  reporting  year end has been  changed  from  November  30 to
December 31. Since the  Partnership's  operations are not seasonal,  comparisons
will reflect the three and nine months ended September 30, 1996 versus the three
and nine months ended August 31, 1995.

Rental income for the three and nine months ended  September 30, 1996  increased
$256,000 and $507,000 or 17% and 11% from the three and nine months ended August
31, 1995,  respectively,  due primarily to the commencement of operations of the
Bally's Health Club on January 1, 1996 and the increased occupancy at two of the
Partnership's larger properties, One Carnegie Plaza and Lakeside Tower.

Occupancy  rates at the  Partnership's  properties  as of September 30, 1996 and
August 31, 1995 were as follows:
                                              September 30,      August 31,
                                                  1996              1995

         One Carnegie Plaza                        87%               67%
         Two Carnegie Plaza                        83%               87%
         Carnegie Business Center II               65%               77%
         Lakeside Tower                            77%               66%
         Santa Fe                                 100%              100%
         One Parkside                              92%               83%
         Rancon Centre Ontario                    100%               92%
         Bally's Health Club                      100%               n/a
         Outback Steakhouse                       100%               n/a

Tenants at  Tri-City  occupying  substantial  portions of leased  space  include
Medisco  Pharmacy,  New  York  Life  Insurance,  the  California  Department  of
Transportation,  State of California  Health Services,  MacLachlan,  Burford and
Arias,  the  Atchison,  Topeka  and Santa Fe Rail  Company,  Sterling  Software,
Chicago  Title and Bally's  Health Club,  with leases  expiring at various dates
between June,  1997 and December,  2010.  These nine tenants,  in the aggregate,
occupy  approximately  212,000 square feet of the 473,000 total leasable  square
feet at Tri-City and account for 53% of the rental income  generated at Tri-City
and 48% of the total rental income for the Partnership.

United Pacific Mills,  with a lease  expiration  date of April,  1998,  occupies
74,850  square feet of the 245,000 total  leasable  square feet at Rancon Centre
Ontario and accounts  for 26% of the rental  income  generated at Rancon  Centre
Ontario and 3% of the total rental income generated by the Partnership.

Operating  expenses  for the three and nine  months  ended  September  30,  1996
increased $34,000 and $192,000 or 4% and 8% from the three and nine months ended
August 31,  1995,  respectively  due  primarily  to  increased  operating  costs
associated with increased occupancy, including the

                                  Page 12 of 15

<PAGE>



Bally's  Health Club  (Bally's)  facility  being placed into service  January 1,
1996. This increase in physical occupancy had a smaller impact on rental revenue
than  operating  expenses  due to the  accounting  treatment  of free rent where
rental  revenue  during the three and nine months ended  September  30, 1996 was
reduced to offset free rent given in  calendar  year 1995,  in essence  straight
lining rental revenue over the term of the related leases.

Depreciation  and amortization for the three and nine months ended September 30,
1996 increased $45,000 and $175,000 or 9% and 11% from the three and nine months
ended August 31, 1995,  respectively  due in large part to the conversion of the
Bally's  facility from a project under  construction to a depreciable  property.
The  increase in leasing  commissions  associated  with the general  increase in
occupancy has also resulted in higher amortization  expense during the three and
nine months ended September 30, 1996 over the three and nine months ended August
31, 1995.

Interest  expense  for the  three  and nine  months  ended  September  30,  1996
increased  $189,000 and $389,000 or 102% and 73%,  respectively,  from the three
and nine  months  ended  August  31,  1995 as a result  of the  increase  in the
Partnership's average outstanding debt in 1996.

After  excluding the $83,000 rebate received during the nine months ended August
31, 1995 for services  provided by the Sponsor  during the 1994  calendar  year,
gross general and administrative expenses actually decreased to $909,000 for the
nine months  ended  September  30, 1996 from  $940,000 for the nine months ended
August 31, 1995. The primary reason for the $31,000 or 3% decrease was legal and
other professional fees incurred in December, 1994.



                                  Page 13 of 15

<PAGE>



PART II.          OTHER INFORMATION


Item 1.  Legal Proceedings

                  None.

Item 2.  Changes in Securities

                  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:

                  #27 - Financial Data Schedule

         (b)      Reports on Form 8-K:

                  None.

                                  Page 14 of 15

<PAGE>


                                    SIGNATURE



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                     RANCON REALTY FUND V,
                                     a California Limited Partnership
                                     (Registrant)






Date: November 13, 1996              By:/s/Daniel L. Stephenson
                                        Daniel L. Stephenson, General Partner
                                        and Director, President, Chief Executive
                                        Officer and Chief Financial Officer of
                                        Rancon Financial Corporation,
                                        General Partner of Rancon Realty Fund V,
                                        a California Limited Partnership


                                  Page 15 of 15