Exhibit 99.1

January 28, 2013

Dear Limited Partner in Rancon Realty Fund V:

During the time that Rancon V has existed, the investment culture has gone full-circle several times. Real estate investments, stocks and mutual funds, municipal bonds, even gold and precious metals have been in and out of favor. Revisions to state and federal income tax regulations have had an impact on the perceived and actual value of investments. Today, the media is filled with concerns about unemployment, gas prices and even the fiscal cliff. Throughout it all, the long-term goal of your partnership has remained the same – to create, improve and maintain the value of the properties owned by Rancon V.

HELP RANCON REALTY FUND V GO GREEN!

In an effort to reduce paper and the costs associated with printing and mailing of reports such as this one, we’d like to offer you the option of receiving your quarterly and annual reports and other similar communications via email. If you are interested, please send an email to rancon@myinvestment.com and include your email address, plus your name and current mailing address and the P* number from the address section on the outside cover of this report. Reports and other communications sent to you via email will be sent to you without cost. You may change your election at any time and, even if you elect to receive materials by email, you may request a paper copy of the referenced materials at no charge by calling Investor Services toll free at 888.909.7774.

PROPERTY UPDATE

The thirteen properties owned by Rancon Realty Fund V as a part of the Tri City Corporate Centre include the following nine office buildings and four retail properties.

Combined occupancy of the thirteen properties as of September 30, 2012, was 69%, a decrease from 74% as of September 30, 2011, primarily due to the downsizing of a major tenant at Brier Corporate Center. According to the recent CBRE MarketView report on the Inland Empire Office Market, “Since the fourth quarter of 2008, the overall vacancy rate in the Inland Empire has been above 20% and is expected to remain at this level…through the third quarter of next year.” Our goal is to continue strengthening the property values by maintaining and increasing occupancy, and by managing the upkeep and appearance of the properties and grounds.

261 Boeing Court

Livermore, California 94551

925.241.7143 Fax 925.371.0167

Toll-free 888.909.7774

Rancon V is required, by the terms of its partnership agreement, to dissolve by no later than December 31, 2015. In 2013, we intend to explore the options available in connection with the anticipated dissolution of the Partnership.

VALUATION ESTIMATE FOR 2013

The per Unit valuation estimate for Rancon Realty Fund V as of December 31, 2012, is $440 per Unit. The General Partners have established the per Unit valuation estimate based solely on the estimated net asset value of the Partnership’s properties and other assets. For further detail on how the valuation was determined, please refer to our Current Report on Form 8-K, dated January 25, 2013, which has been filed with the SEC, and can be obtained by request to Investor Services or from the SEC’s website at www.sec.gov.

Unlike stocks and mutual funds, which experience daily price changes, the Partnership’s valuation of its outstanding Units is made once a year, as of December 31, and is not revised throughout the year. It thus does not reflect changes in the net asset value of the Partnership’s properties and other assets that may occur throughout the year. No third-party appraisals were obtained in connection with the General Partners’ valuation of the Units, and the General Partners’ valuation and the methodology they employed to value the Units has not been verified or reviewed by any third-party advisor, including Rancon V’s auditors. The actual amount for which the Partnership’s properties are eventually sold may be materially lower than the current estimates of their fair market values made by the General Partners. The General Partners’ valuation of the Units also does not represent the price Units can be sold for on the informal secondary market. That price is generally 10 to 40% of the current per Unit valuation, less any fees or commissions that may be charged.

Some investors have contacted us, asking how to liquidate (sell) their Partnership Units. Remember that Rancon Realty Fund V is not publicly traded, so options for selling are extremely limited. Upon request, we can provide a list of potential buyers that you can contact and possibly negotiate with to facilitate the sale of your Units. While we can provide a list of potential buyers, we cannot confirm the potential buyers’ ability to follow through on any proposal they may make to you to purchase your Units. Anyone who purchases Rancon V units does so at prices between 10% and 40% of the current valuation estimate (noted above).

This letter also includes unaudited financial information for the quarter ended September 30, 2012. Reference is made to the Partnership’s Quarterly Report on Form 10-Q, as filed with the SEC, for further information on the Partnership’s result of operations for the quarter ended September 30, 2012.

If you have questions or need additional information, please don’t hesitate to contact Investor Services, toll free at 888.909.7774. We are here to help you – if you have questions about changing your address or transferring your IRA to a new custodian, contact us either by phone or by visiting our website at www.myinvestment.com. On the website, you can find information on how to contact us by email, and even submit a change of address electronically.

Sincerely,

Dan Stephenson		Judy Henrich
General Partner		Preferred Partnership  Services, Inc.

Note: Certain statements contained in this Report may be deemed to be forward-looking statements under the federal securities laws. Such statements generally can be identified by our use of words such as “may,” “will,” “can,” “intend,” “anticipate,” “estimate,” “think,” “continue,” or other similar words. For a list of the factors that could cause actual results to vary materially from those expressed in these forward-looking statements, see our Annual Report on Form 10-K for the year ended December 31, 2011, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2012.

2

Rancon Realty Fund V

261 Boeing Court

Livermore, CA 94551

Address Service Requested