SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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 0-15703
SUMMIT INSURED EQUITY L.P.
--------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-2641866
- - --------------------------------------- -----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
625 Madison Avenue, New York, New York 10022
- - --------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 421-5333
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
--- ---
<PAGE>
PART I
Item 1. Financial Statements
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
<S> <C> <C>
Property and equipment, net of accumulated depreciation of
$14,612,150 and $13,262,215, respectively (Note 2) $71,243,606 $72,538,235
Cash and cash equivalents 2,815,844 2,057,134
Accounts receivable-tenants, net of allowance for doubtful
accounts of $480,000 and $509,000, respectively 428,642 878,701
Deferred insurance costs, net of accumulated amortization
of $4,454,303 and $4,003,868, respectively 1,551,501 2,001,936
Deferred refinancing costs, net of accumulated amortization
of $114,723 and $110,764, respectively 18,919 22,878
Deferred leasing commissions, net of accumulated amortization
of $272,841 and $188,004, respectively 429,480 285,179
Other assets 129,491 77,982
----------- -----------
Total Assets $76,617,483 $77,862,045
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Notes payable $ 5,620,478 $ 5,792,615
Accounts payable and other liabilities 485,066 533,115
Real estate taxes payable 847,019 646,100
Due to General Partners and affiliates 278,870 149,780
----------- -----------
Total Liabilities 7,231,433 7,121,610
=========== ===========
Contingencies (Note 4)
Partners' Capital (Deficit):
Limited Partners (4,000,000 BUC$ issued and outstanding) 69,639,907 70,980,748
General Partners (253,857) (240,313)
----------- -----------
Total Partners' Capital 69,386,050 70,740,435
----------- -----------
Total Liabilities and Partners' Capital $76,617,483 $77,862,045
=========== ===========
See notes to financial statements
</TABLE>
-2-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ -------------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Rental income $1,757,237 $1,789,036 $5,328,453 $5,402,900
Recovery of common area
maintenance charges 185,180 205,441 555,541 616,325
Real estate tax reimbursements 217,161 235,667 651,484 707,002
Interest income 12,110 39,787 27,119 50,768
Other 59,154 54,508 135,234 149,268
---------- ---------- ---------- ----------
Total revenues 2,230,842 2,324,439 6,697,831 6,926,263
---------- ---------- ---------- ----------
Expenses:
General and administrative 62,731 109,518 278,676 315,934
General and administrative-related
parties (Note 3) 172,120 159,231 505,372 423,843
Operating 51,101 46,312 137,459 129,287
Repairs and maintenance 284,161 222,199 740,485 595,473
Real estate taxes 280,784 256,003 842,353 768,010
Insurance 59,740 105,635 187,475 189,029
Interest 132,930 137,773 401,592 416,032
Depreciation and amortization 636,472 622,770 1,899,221 1,866,127
Bad debt (87,222) (36,432) 5,852 264,552
---------- ---------- ---------- ----------
Total expenses 1,592,817 1,623,009 4,998,485 4,968,287
========== ========== ========== ==========
Net Income $ 638,025 $ 701,430 $1,699,346 $1,957,976
========== ========== ========== ==========
Allocation of Net Income:
Limited partners $ 523,915 $ 586,686 $1,359,163 $1,615,207
========== ========== ========== ==========
General Partners $ 5,292 $ 5,926 $ 13,729 $ 16,315
========== ========== ========== ==========
Special distributions to
General Partners $ 108,818 $ 108,818 $ 326,454 $ 326,454
========== ========== ========== ==========
Net Income per BUC $ .13 $ .15 $ .34 $ .40
========== ========== ========== ==========
</TABLE>
See notes to financial statements
-3-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
(Unaudited)
<TABLE>
<CAPTION>
Total Limited Partners General Partners
----------- ---------------- ----------------
<S> <C> <C> <C>
Partners' capital (deficit) - January 1, 1996 $70,740,435 $70,980,748 $(240,313)
Net income 1,699,346 1,359,163 340,183
Distributions (3,053,731) (2,700,004) (353,727)
----------- ----------- ---------
Partners' capital (deficit) - September 30, 1996 $69,386,050 $69,639,907 $(253,857)
=========== =========== =========
</TABLE>
See notes to financial statements
-4-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30,
-------------------------------
1996 1995
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $1,699,346 $1,957,976
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 1,899,221 1,866,127
Decrease (increase) in accounts receivable-tenants 479,466 (251,218)
(Decrease) increase in allowance for doubtful accounts (29,407) 227,000
Increase in other assets (51,509) (70,604)
Increase in due to General Partners and affiliates 129,090 71,806
Decrease in accounts payable and other liabilities (48,049) (31,217)
Increase in real estate tax payable 200,919 277,219
---------- ----------
Total adjustments 2,579,731 2,089,113
---------- ----------
Net cash provided by operating activities 4,279,077 4,047,089
---------- ----------
Cash flows from investing activities:
Improvements to property and equipment (57,093) (90,795)
Leasing commissions paid (237,406) (51,718)
---------- ----------
Net cash used in investing activities (294,499) (142,513)
---------- ----------
Cash flows from financing activities:
Principal payment on notes payable (172,137) (112,019)
Distributions paid (3,053,731) (3,053,731)
Increase in deferred refinancing costs 0 (26,398)
---------- ----------
Net cash used in financing activities (3,225,868) (3,192,148)
---------- ----------
Net increase in cash and cash equivalents 758,710 712,428
Cash and cash equivalents - beginning of period 2,057,134 1,433,699
---------- ----------
Cash and cash equivalents - end of period $2,815,844 $2,146,127
========== ==========
Supplemental information:
Interest paid $ 401,592 $ 416,032
========== ==========
</TABLE>
See notes to financial statements
-5-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
NOTE 1 - General
Summit Insured Equity L.P., a Delaware limited partnership (the
"Partnership"), was organized on December 12, 1985 and had no operations until
commencement on December 23, 1986 of the public offering of beneficial unit
certificates (BUC$) representing assignments of limited partnership interests in
the Partnership. The General Partners of the Partnership (the "General
Partners") are Related Insured Equity Associates, Inc. (the "Related General
Partner") and Prudential-Bache Properties, Inc. ("PBP"). The General Partners
manage and control the affairs of the Partnership. The Partnership was formed to
acquire, on an all-cash basis, existing income producing shopping centers, and
to improve, operate, and hold such properties for investment.
These financial statements have been prepared without audit. In the opinion
of management, the financial statements contain all adjustments (consisting of
only normal recurring adjustments) necessary to present fairly the financial
position of the Partnership as of September 30, 1996 and, the results of its
operations for the three and nine months ended September 30, 1996 and 1995 and
its cash flows for the nine months ended September 30, 1996 and 1995. However,
the operating results for the interim periods may not be indicative of the
results for the full year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these financial
statements should be read in conjunction with the financial statements and notes
thereto included in the Partnership's Form 10-K for the year ended December 31,
1995.
Certain balances for the prior period have been reclassified to conform
with the current financial statement information.
The Partnership adopted Statement of Financial Accounting Standards
("SFAS") No. 121, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed Of" in 1995. Under SFAS No. 121, impairment of
a property to be held and used is determined to exist when estimated amounts
recoverable through future operations on an undiscounted basis are below the
property's carrying value. If a property is determined to be impaired, it should
be recorded at the lower of its carrying value or its estimated fair value.
Adoption of this accounting pronouncement had no impact on the Partnership's
results of operations or financial position.
The determination of impairment is based, not only upon future cash flows,
which rely upon estimates and assumptions including expense growth, occupancy
and rental rates, but also upon market capitalization and discount rates as well
as other market indicators. The General Partners believe that the estimates and
assumptions used are appropriate in evaluating the carrying amount of the
Partnership's properties. However, changes in market conditions and
circumstances may occur in the near term which would cause these estimates and
assumptions to change, which, in turn, could cause the amounts ultimately
realized upon the sale or other disposition of the properties to differ
materially from their estimated fair value. Such changes may also require
write-downs in future periods. No write-downs for impairments have been recorded
as of September 30, 1996.
-6-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
NOTE 2 - Property and Equipment
The components of property and equipment are as follows:
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------ ------------
<S> <C> <C>
Land $20,828,781 $20,828,781
Buildings and improvements 66,808,259 66,752,953
----------- ----------
87,637,040 87,581,734
Less: Amounts accrued or received from sellers'
rental guarantees (1,781,284) (1,781,284)
Accumulated depreciation (14,612,150) (13,262,215)
----------- ----------
$71,243,606 $72,538,235
=========== ===========
</TABLE>
Amounts estimated to be recoverable from future operations and ultimate
sales were greater than the carrying value of each property owned at September
30, 1996 and December 31, 1995. However, the carrying value of certain
properties may be in excess of their fair value as of such dates.
NOTE 3 - Related Party Transactions
The costs and expenses incurred to related parties for the three and
nine months ended September 30, 1996 and 1995 were as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
1996 1995 1996 1995
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Expense reimbursement (a) $ 64,096 $ 50,568 $156,404 $ 92,456
Property management fees (b) 99,701 97,744 323,132 306,711
Leasing commissions (c) 2,618 6,619 8,724 11,776
Insurance services (d) 5,705 4,300 17,112 12,900
-------- -------- -------- --------
$172,120 $159,231 $505,372 $423,843
======== ======== ======== ========
</TABLE>
(a) The General Partners and their affiliates perform services for the
Partnership which include, but are not limited to: accounting and financial
management, registrar, transfer and assignment functions, asset management,
investor communications; printing and other administrative services. The amount
of reimbursement from the Partnership is limited by the provisions of the
Partnership agreement.
(b) The Partnership's eleven properties are being managed by RCC
Property Advisors, Inc. ("RCC"), an affiliate of the Related General Partner.
(c) Leasing commissions are paid to RCC in connection with the lease-up
of vacant space and lease renewals.
(d) Four of the officers of the Related General Partner have ownership
interests in Multi-Family Program Inc., a company which has provided insurance
services for the properties.
-7-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
NOTE 3 - Related Party Transactions (continued)
The distributions earned by the General Partners for the three and nine
months ended September 30, 1996 and 1995 were as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ---------------------
1996 1995 1996 1995
--------- --------- --------- ---------
Special Distributions $ 108,818 $ 108,818 $ 326,454 $ 326,454
Regular Distributions
of Cash Flows from
Operations 9,091 9,091 27,273 27,273
--------- --------- --------- ---------
$ 117,909 $ 117,909 $ 353,727 $ 353,727
========= ========= ========= =========
As of September 30, 1996, Prudential Securities Incorporated ("PSI"),
an affiliate of PBP, a General Partner, owns 33,760 BUC$.
NOTE 4 - Contingencies
On or about October 18, 1993, a putative class action, captioned Kinnes
et al. v. Prudential Securities Group Inc. et al. (CV-93-654), was filed in the
United States District Court for the District of Arizona, purportedly on behalf
of investors in the Partnership, against the Partnership, PBP, PSI and a number
of other defendants. Plaintiffs alleged violations of the federal Racketeer
Influenced and Corrupt Organizations Act ("RICO") statutes, breach of fiduciary
duty, fraud and deceit, negligence, and demanded an accounting. Plaintiffs
sought unspecified compensatory, punitive, and treble damages, as well as
rescission, plus costs and attorneys' fees from all defendants except the
Partnership, from which they sought only an accounting. The defendants filed a
motion to dismiss on December 22, 1993.
By order of the Judicial Panel on Multidistrict Litigation dated April
14, 1994, the Kinnes case, together with a number of other actions not involving
the Partnership, were transferred to a single judge of the United States
District Court for the Southern District of New York and consolidated for
pretrial proceedings under the caption In re Prudential Securities Incorporated
Limited Partnerships Litigation (MDL Docket 1005). On June 8, 1994, plaintiffs
in the transferred cases filed a complaint that consolidated the previously
filed complaints and named as defendants, among others, PSI, certain of its
present and former employees, and the General Partners. The Partnership was not
named a defendant in the consolidated complaint, but the name of the Partnership
was listed as being among the limited partnerships at issue in the case.
On August 9, 1995, PBP, PSI and other Prudential defendants entered
into a Stipulation and Agreement of Partial Compromise and Settlement with legal
counsel representing plaintiffs in the consolidated actions. The court
preliminarily approved the settlement agreement by order dated August 29, 1995
and, following a hearing held November 17, 1995, found that the agreement was
fair, reasonable, adequate and in the best interests of the plaintiff class. The
court gave final approval to the settlement, certified a class of purchasers of
specific limited partnerships, including the Partnership, released all settled
claims by members of the class against the PSI settling defendants and
permanently barred and enjoined class members from instituting, commencing or
prosecuting any settled claim against the released parties. The full amount due
under the settlement agreement has been paid by PSI. The consolidated action
remains pending against the Related General Partner and certain of its
affiliates.
-8-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
NOTE 4 - Contingencies (continued)
The Related General Partner has been engaged in settlement negotiations
with counsel for the plaintiffs. In the event a settlement can not be reached,
the Related General Partner believes it has meritorious defenses to the
consolidated complaint and intends to vigorously defend against this action.
On August 9, 1994, House of Fabrics, Inc., a tenant at Winery Square
Shopping Center ("Winery"), closed on a $350,000 promissory note ("the Note")
with High Peak Corporation ("Lender") for tenant improvements at the tenant's
location. The Note is for $350,000, matures on August 1, 1999 and carries a
fixed interest rate of 12%. Monthly payments in the amount of $7,786 are payable
on the first day of every month until August 1, 1999. As required by the Lender,
the Partnership has guaranteed the payment of all principal, interest,
additional interest and other sums of any nature whatsoever, which may or shall
become due and payable pursuant to the provisions of the Note. On November 3,
1994, House of Fabrics, Inc. filed under Chapter 11 of the bankruptcy code.
Pursuant to the court proceedings, House of Fabrics closed certain of its stores
including the Winery location. As of March 1996 the tenant ceased operations and
rental payments. Management is currently in negotiations with a replacement
tenant for part of the space and together with High Peak Corporation, is
pursuing a claim in the bankruptcy court for amounts due under the Note.
Pursuant to the guarantee, the Partnership has been making payments which are
due to High Peak under the Note and the Note is current as of September 30,
1996.
NOTE 5 - Subsequent Event
In November 1996, distributions of $900,001 and $9,091 were paid to the
BUC$holders and General Partners, respectively, from cash from operations for
the quarter ended September 30, 1996.
-9-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
- - -------------------------------
The Partnership's current primary source of funds is cash flow from
operations of eleven shopping centers.
During the nine months ended September 30, 1996, cash and cash
equivalents increased by approximately $759,000. This increase is primarily
attributable to cash flow from operations of $4,279,000, which exceeded debt
payments of $172,000, distributions of $3,054,000, and capital expenditures
(including leasing commissions) of $294,000.
Future liquidity is expected to result from cash generated from the
operations of the properties and, ultimately, from the sale of the properties.
The Partnership anticipates that future tenant and capital improvements as
required in the normal course of business will be funded from cash generated
from operations.
In November 1996, distributions of $900,001 and $9,091 were paid to the
BUC$holders and General Partners, respectively, from cash from operations for
the quarter ended September 30, 1996.
On August 9, 1994, House of Fabrics, Inc., a tenant at Winery Square
Shopping Center ("Winery"), closed on a $350,000 promissory note ("the Note")
with High Peak Corporation ("Lender") for tenant improvements at the tenant's
location. The Note is for $350,000, matures on August 1, 1999 and carries a
fixed interest rate of 12%. Monthly payments in the amount of $7,786 are payable
on the first day of every month until August 1, 1999. As required by the Lender,
the Partnership has guaranteed the payment of all principal, interest,
additional interest and other sums of any nature whatsoever, which may or shall
become due and payable pursuant to the provisions of the Note. On November 3,
1994, House of Fabrics, Inc. filed under Chapter 11 of the bankruptcy code.
Pursuant to the court proceedings, House of Fabrics closed certain of its stores
including the Winery location. As of March 1996 the tenant ceased operations and
rental payments. Management is currently in negotiations with a replacement
tenant for part of the space and together with High Peak Corporation, is
pursuing a claim in the bankruptcy court for amounts due under the Note.
Pursuant to the guarantee, the Partnership has been making payments which are
due to High Peak under the Note and the Note is current as of September 30,
1996.
Safeway, the anchor tenant of Cactus Village Shopping Center closed its
facility in December 1991 due to poor sales. However, the tenant continues to
fully abide by all aspects of its lease which will expire in September 2006.
There have been several proposals received for leasing this space, but as of
November 13, 1996, this space has not been re-leased.
In November 1995, Publix, the anchor tenant of Pablo Plaza Shopping
Center in Jacksonville, Florida, moved out of its space to a newer, larger space
approximately one mile away. Their lease expires in November 1998, and Publix
intends to continue to abide by the terms of its lease until expiration. As of
November 13, 1996, this space has not been re-leased.
Management is not aware of any trends or events, commitments or
uncertainties, which have not otherwise been disclosed that will or are likely
to impact liquidity in a material way. The Partnership's investments in
properties are diversified by location so that if one area of the country is
experiencing downturns in the economy, the remaining properties may be
experiencing upswings. However, the geographic diversification of the portfolio
may not protect against a general downturn in the national economy.
Results of Operations
- - ---------------------
The Partnership adopted Statement of Financial Accounting Standards
("SFAS") No. 121, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed Of" in 1995. Under SFAS No. 121, impairment of
a property to be held and used is determined to exist when estimated amounts
recoverable through future operations on an undiscounted basis are below the
property's carrying value. If a property is determined to be impaired, it should
be recorded at the lower of its carrying value or its estimated fair value.
Adoption of this accounting pronouncement had no impact on the Partnership's
results of operations or financial position.
-10-
<PAGE>
The determination of impairment is based, not only upon future cash
flows, which rely upon estimates and assumptions including expense growth,
occupancy and rental rates, but also upon market capitalization and discount
rates as well as other market indicators. The General Partners believe that the
estimates and assumptions used are appropriate in evaluating the carrying amount
of the Partnership's properties. However, changes in market conditions and
circumstances may occur in the near term which would cause these estimates and
assumptions to change, which, in turn, could cause the amounts ultimately
realized upon the sale or other disposition of the properties to differ
materially from their estimated fair value. Such changes may also require
write-downs in future years. No write-downs for impairments have been recorded
as of September 30, 1996.
Net income decreased approximately $63,000 and $259,000 for the three
and nine months ended September 30, 1996 as compared to the corresponding
periods in 1995 for the reasons discussed below.
Revenues for the three and nine months ended September 30, 1996 consist
primarily of the results of the operations of the eleven shopping centers in
which the Partnership has invested. Rental income from these properties during
the three and nine months ended September 30, 1996 decreased approximately 2%
and 1%, respectively, as compared to the corresponding periods in 1995 primarily
due to decreases at Highland Fair and Winery Square due to the loss of several
tenants at both locations partially offset by an increase in occupancy at
Southaven and Forest Park.
Interest income decreased approximately $28,000 and $24,000 for the
three and nine months ended September 30, 1996 as compared to the corresponding
periods in 1995. These decreases are primarily due to interest income earned on
an escrow account for several years at one of the Partnership's properties,
which was recognized in the third quarter of 1995.
General and administrative expense decreased approximately $47,000 and
$37,000 for the three and nine months ended September 30, 1996 as compared to
the corresponding periods in 1995. The decrease for the three months was
primarily due to legal expenses incurred in connection with the collection of
receivables from two of the tenants at one of the Partnership's properties
during the third quarter of 1995. The decrease for the nine months was primarily
due to the costs of appraisals of the Partnership's eleven properties in 1995,
which was partially offset by increased legal expense in the first quarter of
1996 relating to the collections of receivables referred to above.
General and administrative expense-related parties increased
approximately $13,000 and $82,000 for the three and nine months ended September
30, 1996 as compared to the corresponding periods in 1995. These increases were
primarily due to an underaccrual of expense reimbursements to PBP in 1995 and
increases in property management fees at three of the Partnership's properties
in the first quarter of 1996.
Repairs and maintenance expense increased approximately $62,000 and
$145,000 for the three and nine months ended September 30, 1996 as compared to
the corresponding periods in 1995 primarily due to an increase in roof repairs
at Westbird and Hickory Plaza and the relamping of parking lots at Hickory Plaza
and Winery Square.
Insurance expense decreased approximately $46,000 for the three months
ended September 30, 1996 as compared to the corresponding period in 1995
primarily due to an overstatement of prepaid insurance at June 30, 1995 which
was corrected in the third quarter of 1995.
Bad debt expense decreased approximately $51,000 and $259,000 for the
three and nine months ended September 30, 1996 as compared to the corresponding
periods in 1995. The decrease for the three months was primarily due to a larger
decrease in reserves at Hickory Plaza and Town West. The decrease for the nine
months was primarily due to a decrease in reserves at Town West, Hickory Plaza,
Winery Square and Highland Fair in 1996 as compared to 1995.
-11-
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - This information is incorporated by
reference to Note 4 to the financial statements filed herewith in
Item 1 of Part I of the Registrant's Quarterly Report.
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
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 (filed herewith).
(b) Reports on Form 8-K - No reports of Form 8-K were filed during
the quarter.
-12-
<PAGE>
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.
SUMMIT INSURED EQUITY L.P.
By: RELATED INSURED EQUITY ASSOCIATES, INC.
General Partner
Date: November 13, 1996 By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Vice President
(Principal Financial Officer)
Date: November 13, 1996 By: /s/ Richard A. Palermo
----------------------
Richard A. Palermo
Treasurer
(Principal Accounting Officer)
By: PRUDENTIAL-BACHE PROPERTIES, INC.
General Partner
Date: November 13, 1996 By: /s/ Eugene D. Burak
-------------------
Eugene D. Burak
Vice President
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial information
extracted from the financial statements for Summit
Insured Equity, L.P. and is qualified in its entirety
by reference to such financial statements
</LEGEND>
<CIK> 0000801440
<NAME> Summit Insured Equity L.P.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 2,815,844
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,558,033
<PP&E> 85,855,756
<DEPRECIATION> 14,612,150
<TOTAL-ASSETS> 76,617,483
<CURRENT-LIABILITIES> 1,610,955
<BONDS> 5,620,478
0
0
<COMMON> 0
<OTHER-SE> 69,386,050
<TOTAL-LIABILITY-AND-EQUITY> 76,617,483
<SALES> 0
<TOTAL-REVENUES> 6,697,831
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,596,893
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 401,592
<INCOME-PRETAX> 1,699,346
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
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