<PAGE>
- --------------------------------------------------------------------------------
UNITED STATES
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 March 31, 2000
Commission file number 0-15753
HIGH EQUITY PARTNERS L.P. - SERIES 86
(Exact name of registrant as specified in its charter)
DELAWARE 13-3314609
(State or other jurisdiction of (I.R.S.Employer
incorporation or organization) Identification No.)
5 Cambridge Center, 9th Floor, Cambridge, MA 02142
(Address of principal executive offices)
(617) 234-3000
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if
changed since last report)
Indicate by check 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 / /
================================================================================
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
INDEX
Page
----
Part I. Financial Information
Item I. Financial Statements
Balance Sheets - March 31, 2000 and December 31, 1999 .............. 1
Statements of Operations - Three Months Ended
March 31, 2000 and 1999 ............................................ 2
Statement of Partners' Equity - Three Months Ended March 31, 2000 .. 3
Statements of Cash Flows - Three Months Ended
March 31, 2000 and 1999 ............................................ 4
Notes to Financial Statements ...................................... 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ................................ 11
Item 3. Quantitative and Qualitative Disclosures about Market Risk ......... 13
Part II. Other Information:
Exhibits and Reports on Form 8-K ................................... 14
Signatures .................................................................. 15
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
BALANCE SHEETS
March 31, 2000 December 31, 1998
-------------- -----------------
ASSETS
Real estate -- net $46,878,062 $47,277,773
Cash and cash equivalents 13,665,535 12,675,936
Other assets 3,393,517 3,381,222
Receivables - net 76,546 78,570
----------- -----------
$64,013,660 $63,413,501
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Accounts payable and accrued expenses $ 1,711,951 $ 1,774,695
Due to affiliates 276,282 466,528
----------- -----------
1,988,233 2,241,223
----------- -----------
Commitments and contingencies (Note 6 and 7)
PARTNERS' EQUITY:
Limited partners' equity (588,010 units
issued and outstanding) 58,923,210 58,112,718
General partners' equity 3,102,217 3,059,560
----------- -----------
62,025,427 61,172,278
----------- -----------
$64,013,660 $63,413,501
=========== ===========
See notes to financial statements.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
STATEMENTS OF OPERATIONS
For the Three Months
Ended March 31,
-------------------------
2000 1999
---- ----
Rental Revenue $2,916,165 $3,024,622
---------- ----------
Costs and Expenses:
Operating expenses 1,028,854 984,680
Depreciation and amortization 551,425 514,576
Partnership asset management fee 216,077 321,358
Administrative expenses 314,306 719,186
Property management fee 102,131 99,331
---------- ----------
2,212,793 2,639,131
---------- ----------
Income before interest and other income 703,372 385,491
Interest income 149,777 105,669
Other income -- 78,200
---------- ----------
Net income $ 853,149 $ 569,360
========== ==========
Net income attributable to:
Limited partners $ 810,492 $ 540,892
General partners 42,657 28,468
---------- ----------
Net income $ 853,149 $ 569,360
========== ==========
Net income per unit of limited partnership
interest (588,010 units outstanding) $ 1.38 $ 0.92
========== ==========
See notes to financial statements.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
STATEMENT OF PARTNERS' EQUITY
General Limited
Partners' Partners'
Equity Equity Total
------ ------ -----
Balance, January 1, 2000 $ 3,059,560 $58,112,718 $61,172,278
Net income for the three months
ended March 31, 2000 42,657 810,492 853,149
----------- ----------- -----------
Balance, March 31, 2000 $ 3,102,217 $58,923,210 $62,025,427
=========== =========== ===========
See notes to financial statements.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
STATEMENTS OF CASH FLOWS
For the Three Months Ended
March 31,
----------------------------
2000 1999
---- ----
Cash Flows From Operating Activities:
Net income $ 853,149 $ 569,360
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 551,425 514,576
Straight line adjustment for stepped
lease rentals 8,947 (25,041)
Changes in asset and liabilities:
Accounts payable and accrued expenses (62,744) 605,601
Due to affiliates (190,246) (93,167)
Receivables 2,024 (107,776)
Other assets (96,502) (24,654)
------------ ------------
Net cash provided by operating activities 1,066,053 1,438,899
------------ ------------
Cash Flows From Investing Activities:
Improvements to real estate (76,454) (121,628)
------------ ------------
Cash Flows From Financing Activities:
Distributions to partners -- (711,801)
------------ ------------
Increase in Cash and Cash Equivalents 989,599 605,470
Cash and Cash Equivalents, Beginning of Year 12,675,936 10,220,165
------------ ------------
Cash and Cash Equivalents, End of Quarter $ 13,665,535 $ 10,825,635
============ ============
See notes to financial statements.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
1. GENERAL
The accompanying financial statements, notes and discussions should be
read in conjunction with the financial statements, related notes and
discussions contained in the Partnership's Annual Report on Form l0-K for
the year ended December 3l, 1999.
The financial information contained herein is unaudited; however, in the
opinion of management, all adjustments necessary (consisting only of
normal recurring adjustments) for a fair presentation of such financial
information have been included. Results of operations for the three months
ended March 31, 2000 are not necessarily indicative of the results to be
expected for the entire year.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment in Joint Ventures
Certain properties were purchased in joint ventures ownership with
affiliated partnership that have the same, or affiliated general partners
as the Partnership. The Partnership owns an undivided interest and is
severally liable for indebtedness it incurs in connection with its
ownership interest in those properties. Therefore, the Partnership is
financial statements present the assets, liabilities, revenues and
expenses of the joint venture on a pro rata basis in accordance with the
Partnerships percentage of ownership.
Real Estate
Real Estate is carried at cost, net of adjustments for impairment. Repairs
and maintenance are charged to expense as incurred. Replacement and
betterments are capitalized. The Partnership evaluates the recoverability
of the net carrying value of its real estate and related assets at least
annually, and more often if circumstances dictate. If this review
indicates that the carrying value of a property may not be recoverable,
the Partnership estimates the future cash flows expected to result from
the use of the property and its eventual disposition, generally over a
five-year holding period. In performing this review, management takes into
account, among other things, the existing occupancy, the expected leasing
prospects of the property and the economic situation in the region where
the property is located.
If the sum of the expected future cash flows, undiscounted, is less than
the carrying amount of the property, the Partnership recognizes an
impairment loss, and reduces the carrying amount of the asset to its
estimated fair value. Fair value is the amount at which the asset could be
bought or sold in a current transaction between willing parties, that is,
other than in a forced or liquidation sale. Management estimates fair
value using discounted cash flows or market comparables, as most
appropriate for each property. Independent certified appraisers are
utilized to assist management, when warranted.
Impairment write-downs recorded by the Partnership do not affect the tax
basis of the assets and are not included in the determination of taxable
income or loss.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Real Estate (continued)
Because the expected cash flows used to evaluate the recoverability of the
assets and their fair values are based upon projections of future economic
events, such as property occupancy rates, rental rates, operating cost
inflation and market capitalization rates, the amounts ultimately realized
at disposition may differ materially from the net carrying values at the
balance sheet dates. The cash flows and market comparables used in this
process are based on good faith estimates and assumptions developed by
management. Unanticipated events and circumstances may occur and some
assumptions may not materialize; therefore, actual results may vary
materially from the estimates. The Partnership may in the future provide
additional write-downs, which could be material, if real estate markets or
local economic conditions change.
3. RELATED PARTY TRANSACTION
The Investment General Partner of the Partnership, Resources High Equity,
Inc. and the Administrative General Partner of the Partnership, Resources
Capital Corp., are wholly-owned subsidiaries of Presidio Capital Corp.
("Presidio"). Presidio AGP Corp., which is a wholly-owned subsidiary of
Presidio, is the Associate General Partner (together with the Investment
and Administrative General Partners, the "General Partners"). The General
Partners and affiliates of the General Partners are also engaged in
businesses related to the acquisition and operation of real estate.
Presidio is also the parent of other corporations (and affiliated with
other entities) that are or may in the future be engaged in businesses
that may be in competition with the Partnership. Accordingly, conflicts of
interest may arise between the Partnership and such other businesses.
Subject to the right of the limited partners under the Limited Partnership
Agreement, Presidio controls the Partnership through its indirect
ownership of the General Partners. Effective July 31, 1998, Presidio is
indirectly controlled by NorthStar Capital Investment Corp., a Maryland
corporation.
From August 28, 1997 to October 21, 1999, Presidio was party to a
management agreement with NorthStar Presidio Management Company LLC
("NorthStar Presidio"), an affiliate of NorthStar Capital Investment
Corp., pursuant to which NorthStar Presidio provided the day-to-day
management of Presidio and its direct and indirect subsidiaries and
affiliates, including the Partnership. For the three months ended March
31, 1999, reimbursable expenses incurred by NorthStar Presidio related to
the Partnership amounted to approximately $25,500. Effective October 21,
1999 Presidio entered into a service agreement with AP-PCC III, L.P. (the
"Agent") pursuant to which the Agent was retained to provide asset
management and investor relation services to the Partnership and other
entities affiliated with the Partnership.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
3. RELATED PARTY TRANSACTIONS (CONTINUED)
The Partnership has a property management services agreement with
Resources Supervisory Management Corp. ("Resources Supervisory"), an
affiliate of the General Partners, to perform certain functions relating
to the management of the properties of the Partnership. A portion of the
property management fees were paid to unaffiliated management companies
which are engaged for the purpose of performing certain of the management
functions for certain properties.
For the quarters ended March 31, 2000 and 1999, Resources Supervisory was
entitled to receive $102,131 and $99,331, respectively, of which $91,926
and $84,650 was paid to unaffiliated management companies, respectively
for property management services and the balance was retained by Resources
Supervisory.
For the administration of the Partnership, the Administrative General
Partner is entitled to receive reimbursement of expenses of a maximum of
$200,000 per year. The Administrative General Partner received $50,000 for
each of the quarters ended March 31, 2000 and 1999.
For managing the affairs of the Partnership, the Managing General Partner
is also entitled to receive an annual partnership management fee. Pursuant
to the amendment to the Partnership Agreement, which became effective on
August 20, 1999, the annual partnership management fee for 1999 was
reduced to $973,293. Further, the Partnership Agreement was amended (for
the year 2000 and beyond) so that the partnership management fee will be
1.25% of the Gross Asset Value of the Partnership, defined as the
appraised value of all the assets of the Partnership based on the most
recent appraisal. For the quarters ended March 31, 2000 and 1999 the
Managing General Partner earned $216,077 and $321,358, respectively.
The General Partners are allocated 5% of the net income of the Partnership
which amounted to $42,657 and $28,468 for the quarters ended March 31,
2000 and 1999, respectively. They are also entitled to receive 5% of
distributions, which amounted to $35,590 for the quarter ended March 31,
1999.
During the liquidation stage of the Partnership, the Investment General
Partner or an affiliate may be entitled to receive certain fees, which are
subordinated to the limited partners receiving their original invested
capital and certain specified minimum returns on their investment. All
fees received by the General Partners are subject to certain limitations
as set forth in the Partnership Agreement.
From July 1996 through March 12, 1998, Millennium Funding III Corp., a
wholly owned indirect subsidiary of Presidio, purchased 45,320 units of
the Partnership from various limited partners.
In connection with a tender offer for units of the Partnership made on
March 12, 1998 (the "Offer") by Olympia Investors, L.P. ("Olympia"),
Olympia and Presidio entered into an agreement dated March 6, 1998 (the
"Agreement"). Subsequent to the expiration of the offer, Olympia announced
that it had accepted for payment 32,750 units properly tendered pursuant
to the Offer. Pursuant to the Agreement,
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Presidio purchased 50% of those units owned by Olympia as a result of the
Offer, or 16,375 units, for $91.73 per unit. In addition, Olympia has the
right to cause Presidio to purchase its remaining units for a price based
on procedures set forth in the agreement. Olympia purported to exercise
this right subsequent to quarter end.
Subsequent to the expiration of the tender offer described above,
Millennium Funding III Corp. purchased an additional 17,471 limited
partnership units from August 1998 through May 1999. The total number of
units purchased by Millennium Funding III Corp. represents approximately
13.5% of the outstanding limited partnership units of the Partnership.
Pursuant to the settlement of class action lawsuit (see Note 7), Millenium
Funding III LLC, a wholly owned subsidiary of Presidio completed a tender
offer in January 2000, purchasing approximately 6.7% or 39,596 limited
partnership units for $103.05 per unit or $4,080,368 in total. As a result
of these purchases as well as the other purchases of units by the
affiliates of the General Partners, affiliates of the General Partner own
139,649 units representing approximately 23.75% of the total outstanding
units.
4. REAL ESTATE
The following table is a summary of the Partnership's real estate as of:
March 31, 2000 December 31, 1999
-------------- -----------------
Land $ 11,669,652 $ 11,669,652
Buildings and improvements 59,620,738 59,545,284
------------ ------------
71,290,390 71,214,936
Less: Accumulated depreciation (24,412,328) (23,933,163)
------------ ------------
$ 46,878,062 $ 47,277,773
============ ============
5. DUE TO AFFILIATES
March 31, 2000 December 31, 1999
-------------- -----------------
Partnership asset management fee $216,077 $330,577
Property asset management fee 10,205 35,951
Non-accountable expense reimbursement 50,000 100,000
-------- --------
$276,282 $466,528
======== ========
Such amounts were paid in the subsequent quarters.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
6. COMMITMENTS AND CONTINGENCIES
a) 568 Broadway Joint Venture is currently involved in litigation with a
number of present or former tenants who are in default on their lease
obligations. Several of these tenants have asserted claims or counter
claims seeking monetary damages. The plaintiffs' allegations include but
are not limited to claims for breach of contract, failure to provide
certain services, overcharging of expenses and loss of profits and income.
These suits seek total damages of in excess of $20 million plus additional
damages of an indeterminate amount. The Broadway Joint Venture's action
for rent against Solo Press was tried in 1992 and resulted in a judgement
in favor of the Broadway Joint Venture for rent owed. The Partnership
believes this will result in dismissal of the action brought by Solo Press
against the Broadway Joint Venture. Since the facts of the other actions
which involve material claims or counterclaims are substantially similar,
the partnership believes that the Broadway Joint Venture will prevail in
those actions as well.
b) A former retail tenant of 568 Broadway (Galix Shops, Inc.) and a related
corporation which is a retail tenant of a building adjacent to 568
Broadway filed a lawsuit in the Supreme Court of the State of New York,
County of New York, against the Broadway Joint Venture which owns 568
Broadway. The action was filed on April 13, 1994. The plaintiffs allege
that by erecting a sidewalk shed in 1991, 568 Broadway deprived plaintiffs
of light, air and visibility to their customers. The sidewalk shed was
erected, as required by local law, in connection with the inspection and
restoration of the 568 Broadway building facade, which is also required by
local law. Plaintiffs further alleged that the excavation of the sidewalk
shed for a continuous period of over two years is unreasonable and
unjustified and that such conduct by defendants has deprived plaintiffs of
the use and enjoyment of the property. The suit seeks a judgment requiring
removal of the sidewalk shed (since removed), compensatory damages of $20
million, and punitive damages of $10 million. The Partnership believes
that this suit is meritless and intends to vigorously defend it.
7. SETTLEMENT OF LAWSUIT
In April 1999, the California Superior Court approved the terms of the
settlement of a class action and derivative litigation involving the
Partnership. Under the terms of the settlement, the General Partners
agreed to take the actions described below subject to first obtaining the
consent of limited partners to amendments to the Agreement of Limited
Partnership of the Partnership summarized below. The settlement became
effective in August 1999 following approval of the amendments. As amended,
the Partnership Agreement (a) provides for a Partnership Asset Management
Fee equal to 1.25% of the Gross Asset Value of the Partnership and a fixed
1999 Partnership Asset Management Fee of $973,293 or $312,139 less than
the amount that would have been paid for 1999 under the prior formula and
(b) fixes the amount that the General Partners will be liable to pay to
limited partners upon liquidation of the Partnership as repayment of fees
previously received (the "Fee Give-Back Amount").
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
7. SETTLEMENT OF LAWSUIT (CONTINUED)
As of December 31, 1999, the Fee Give-Back Amount was $4.38 per Unit which
amount will be reduced by approximately $.49 per Unit for each full
calendar year after 1999 in which a liquidation does not occur. As
amended, the Partnership Agreement provides that, upon a reorganization of
the Partnership into a real estate investment trust or other public
entity, the General Partners will have no further liability to pay the Fee
Give-Back Amount. In accordance with the terms of the settlement, Presidio
Capital Corp., an affiliate of the General Partners, guaranteed payment of
the Fee Give-Back Amount.
As required by the settlement, an affiliate of the General Partners,
Millennium Funding III, LLC, made a tender offer to limited partners to
acquire up to 39,596 Units (representing approximately 6.7% of the
outstanding Units) at a price of $103.05 per Unit. The offer closed in
January 2000 and all 39,596 Units were acquired in the offer.
The final requirement of the settlement obligated the General Partners to
use their best efforts to reorganize the Partnership into a real estate
investment trust or other entity whose shares were listed on a national
securities exchange or on the NASDAQ National Market System. A
Registration Statement was filed with the Securities and Exchange
Commission on February 11, 2000 with respect to the restructuring of the
Partnership into a publicly-traded real estate investment trust. The
Registration Statement has not yet become effective and the consent of a
majority of limited partners will be needed to effect the restructuring.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The matters discussed in this form 10-Q contain certain forward-looking
statements and involve risks uncertainties (including changing market
conditions, competitive and regulatory matters, etc.) detailed in the
disclosures contained in this Form 10-Q and the other filings with the
Securities and Exchange Commission made by the Partnership from time to time.
The discussion of the Partnership's liquidity, capital resources and results of
operations, including forward looking statements pertaining to such matters,
does not take into account the effects of any changes to the Partnership's
operations. Accordingly, actual results could differ materially from those
projected in the forward-looking statements as a result of a number of factors,
including those identified herein.
This item should be read in conjunction with the consolidated financial
statements and other items contained elsewhere in the report.
Liquidity and Capital Resources
The Partnership had $13,665,535 in cash and cash equivalents at March 31, 2000.
Cash and cash equivalents are temporarily invested in short term instruments and
together with cash flow from operations are expected to be sufficient to fund
future capital improvements to the Partnership's properties.
The Partnership's level of liquidity based upon cash and cash equivalents
increased by $989,599 at March 31, 2000 as compared to December 31, 1999. The
increase in cash and cash equivalents at March 31, 2000 is due to $1,066,053 of
cash provided by operating activities which was partially offset by $76,454 of
cash used for capital expenditures. The Partnership primary source of funds is
cash flow from the operation of its properties, principally rents received from
tenants less property operating expenses. .
The Partnership expects to continue to utilize a portion of its cash flow from
operations and its reserves to pay for various capital and tenant improvements
to its properties and for leasing commissions. Vacancies at Mathew Festival and
Commonwealth are currently being marketed to a variety of potential tenants. The
Partnership is currently funding operating expenses at these locations from cash
reserves. If and when replacement tenants are secured, it is likely that capital
expenditures will be required to fund tenant improvements and leasing
commissions. Capital and tenant improvements and leasing commissions may in the
future exceed the Partnership's cash flow from operations. In that event, the
Partnership would utilize its remaining working capital reserves, reduce
distributions, or sell one or more properties. Except as discussed above,
management is not aware of any other trends, events, commitments, or
uncertainties that will have a significant impact on liquidity.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (CONTINUED)
As discussed in "Item 1. Financial Statements-Note 7", the Partnership entered
into a settlement agreement relating to a class action lawsuit. In light of the
current implementation of the settlement and the filing of the Registration
Statement pursuant to which the General Partners are using their best efforts to
reorganize the Partnership into a real estate investment trust, the General
Partners have suspended any distributions until such reorganization is either
approved or disapproved.
Results of Operations
The Partnership experienced a 48% increase in net income to $853,149 for the
three months ended March 31, 2000 from $569,360 for the three months ended March
31, 1999. The increase in net income is due to a decrease in costs and expenses
and an increase in interest income which more than offset decreases in rental
revenue and other income.
Rental revenues for the three months ended March 31, 2000 decreased to
$2,916,165 or 3.5% from $3,024,622 for the same period in 1999. Rental revenues
decreased primarily due to lower percentage rental income.
Costs and expenses decreased by $426,338 or 16.2% for the three months ended
March 31, 2000 as compared to 1999, primarily due to a decrease in
administrative expenses ($404,880) and partnership asset management fees
($105,281). These decreases were partially offset by an increase in operating
expenses ($44,174), depreciation and amortization ($36,849) and property
management fees ($2,800).
Administrative expenses decreased as legal expenses associated with the class
action litigation were incurred in 1999 with no similar changes in 2000. In
addition, partnership asset management fees decreased for the first quarter of
2000 as compared to the first quarter of 1999. Operating expenses increased due
to higher utility expense and real estate taxes. Depreciation and amortization
expense increased due to real estate improvements in 1999.
Interest income increased during the three months ended March 31, 2000 as
compared to the same period in 1999 due to higher cash balances. Other income
decreased during the three months ended March 31, 2000 due to not receiving any
investor transfer fees.
Inflation is not expected to have a material impact on the Partnership's
operations or financial position.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Partnership is not subject to market risk as its cash and cash
equivalents are invested in short term money market mutual funds. The
Partnership has no loans outstanding.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
PART II. OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits:
27. Financial schedule is filed as an exhibit to this report.
(a) Reports on Form 8-K:
No report of Form 8-K was filed during this period.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 86
FORM 10-Q - MARCH 31, 2000
SIGNATURES
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.
High Equity Partners L.P. - Series 86
By: Resources Capital Corp.,
Administrative General Partner
Dated: May 12, 2000 By: /s/ Michael L. Ashner
---------------------
Michael L. Ashner
President and Director
(Principal Executive Officer)
Dated: May 12, 2000 By: /s/ Carolyn B. Tiffany
----------------------
Carolyn B. Tiffany
Vice President and Treasurer
(Principal Financial and Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from unaudited
financial statements for the three month period ending March 31, 2000 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1
<CASH> 13,665,535
<SECURITIES> 0
<RECEIVABLES> 453,860
<ALLOWANCES> (377,314)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 71,290,391
<DEPRECIATION> (24,412,329)
<TOTAL-ASSETS> 64,013,660
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 62,025,427
<TOTAL-LIABILITY-AND-EQUITY> 64,013,660
<SALES> 0
<TOTAL-REVENUES> 2,916,165
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,898,487
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 853,149
<INCOME-TAX> 0
<INCOME-CONTINUING> 853,149
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 853,149
<EPS-BASIC> 1.38
<EPS-DILUTED> 1.38
</TABLE>
