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 June 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)
<TABLE>
<S> <C>
Delaware 13-2641866
- - -------------------------------------------------------------- -----------------------------------
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
625 Madison Avenue, New York, New York 10022
- - -------------------------------------------------------------- -----------------------------------
(Address of principal executive offices) (Zip Code)
</TABLE>
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)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
----------- --------------
<S> <C> <C>
ASSETS
Property and equipment, net of accumulated depreciation of
$14,164,017 and $13,262,215, respectively (Note 2) $71,675,523 $72,538,235
Cash and cash equivalents 2,683,238 2,057,134
Accounts receivable-tenants, net of allowance for doubtful
accounts of $567,000 and $509,000, respectively 297,989 878,701
Deferred insurance costs, net of accumulated amortization
of $4,304,158 and $4,003,868, respectively 1,701,646 2,001,936
Deferred refinancing costs, net of accumulated amortization
of $113,403 and $110,764, respectively 20,239 22,878
Deferred leasing commissions, net of accumulated amortization
of $235,967 and $188,004, respectively 360,548 285,179
Other assets 47,408 77,982
----------- -----------
Total Assets $76,786,591 $77,862,045
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Notes payable $ 5,679,293 $ 5,792,615
Accounts payable and other liabilities 431,769 533,115
Real estate taxes payable 676,581 646,100
Due to General Partners and affiliates (Note 3) 233,012 149,780
----------- -----------
Total Liabilities 7,020,655 7,121,610
----------- -----------
Contingencies (Note 4)
Partners' Capital (Deficit):
Limited Partners (4,000,000 BUC$ issued and outstanding) 70,015,994 70,980,748
General Partners (250,058) (240,313)
----------- -----------
Total Partners' Capital 69,765,936 70,740,435
----------- -----------
Total Liabilities and Partners' Capital $76,786,591 $77,862,045
=========== ===========
</TABLE>
See notes to financial statements
-2-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Rental income $1,698,687 $1,768,518 $3,571,216 $3,613,864
Recovery of common area
maintenance charges 185,180 205,442 370,361 410,884
Real estate tax reimbursements 217,162 235,668 434,323 471,335
Interest income 8,294 6,979 15,009 10,981
Other 33,919 46,750 76,080 94,760
---------- ---------- ---------- ----------
Total revenues 2,143,242 2,263,357 4,466,989 4,601,824
---------- ---------- ---------- ----------
Expenses:
General and administrative 108,062 145,804 215,945 206,416
General and administrative-related
parties (Note 3) 132,184 133,218 333,252 264,612
Operating 40,475 35,802 86,358 82,975
Repairs and maintenance 240,047 172,998 456,324 373,274
Real estate taxes 280,785 256,004 561,569 512,007
Insurance 63,868 35,688 127,735 83,394
Interest 133,621 138,795 268,662 278,259
Depreciation and amortization 633,181 620,622 1,262,749 1,243,357
Bad debt (191,189) 300,984 93,074 300,984
---------- ---------- ---------- ----------
Total expenses 1,441,034 1,839,915 3,405,668 3,345,278
---------- ---------- ---------- ----------
Net Income $702,208 $ 423,442 $1,061,321 $1,256,546
========== ========== ========== ==========
Allocation of Net income:
Limited Partners $ 587,456 $ 311,478 $ 835,248 $1,028,521
========== ========== ========== ==========
General Partners $ 5,934 $ 3,146 $ 8,437 $ 10,389
========== ========== ========== ==========
Special Distributions to
General Partners $ 108,818 $ 108,818 $ 217,636 $ 217,636
========== ========== ========== ==========
Net income per BUC $ .15 $ .08 $ .21 $ .26
========== ========== ========== ==========
</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 1,061,321 835,248 226,073
Distributions (2,035,820) (1,800,002) (235,818)
----------- ----------- ---------
Partners' capital (deficit) - June 30, 1996 $69,765,936 $70,015,994 $(250,058)
=========== =========== =========
</TABLE>
See notes to financial statements
-4-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
-------------------------
1996 1995
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income $1,061,321 $1,256,546
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 1,262,749 1,243,357
Decrease (increase) in accounts receivable-tenants 522,899 (56,362)
Increase in allowance for doubtful accounts 57,813 263,000
Decrease (increase) in other assets 30,574 (180,947)
Increase in due to General Partners and affiliates 83,232 71,732
(Decrease) increase in accounts payable and other liabilities (101,346) 25,068
Increase in real estate tax payable 30,481 156,379
---------- ----------
Total adjustments 1,886,402 1,522,227
---------- ----------
Net cash provided by operating activities 2,947,723 2,778,773
---------- ----------
Cash flows from investing activities:
Improvements to property and equipment (40,877) (44,731)
Leasing commissions paid (131,600) (37,629)
---------- ----------
Net cash used in investing activities (172,477) (82,360)
---------- ----------
Cash flows from financing activities:
Principal payment on notes payable (113,322) (58,782)
Distributions paid (2,035,820) (2,035,820)
Increase in deferred refinancing costs 0 (18,967)
---------- ----------
Net cash used in financing activities (2,149,142) (2,113,569)
---------- ----------
Net increase in cash and cash equivalents 626,104 582,844
Cash and cash equivalents - beginning of period 2,057,134 1,433,699
---------- ----------
Cash and cash equivalents - end of period $2,683,238 $2,016,543
========== ==========
Supplemental information:
Interest paid $ 268,662 $ 278,259
========== ==========
</TABLE>
See notes to financial statements
-5-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
JUNE 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's fiscal year
ends on December 31. 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 June 30, 1996 and the results of
its operations for the three and six months ended June 30, 1996 and 1995 and its
cash flows for the six months ended June 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 properties to be held and used is determined to exist when
estimated amounts recoverable through future operations on an undiscounted basis
are below the properties' 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 June 30, 1996.
-6-
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(Unaudited)
NOTE 2 - Property and Equipment
The components of property and equipment are as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
----------- ------------
<S> <C> <C>
Land $20,828,781 $20,828,781
Buildings and improvements 66,792,043 66,752,953
----------- -----------
87,620,824 87,581,734
Less: Amounts accrued or received from sellers'
rental guarantees (1,781,284) (1,781,284)
Accumulated depreciation (14,164,017) (13,262,215)
----------- -----------
$71,675,523 $72,538,235
=========== ===========
</TABLE>
Amounts estimated to be recoverable from future operations and
ultimate sales were greater than the carrying value of the real estate owned at
June 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 six months ended June 30, 1996 and 1995 were as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- ----------------------------
1996 1995 1996 1995
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Expense reimbursement (a) $ 22,715 $ 25,452 $ 92,308 $ 41,888
Property management fees (b) 100,806 100,748 223,431 208,967
Leasing commissions (c) 2,959 2,718 6,106 5,157
Insurance services (d) 5,704 4,300 11,407 8,600
-------- -------- -------- --------
$132,184 $133,218 $333,252 $264,612
======== ======== ======== ========
</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
JUNE 30, 1996
(Unaudited)
NOTE 3 - Related Party Transactions (continued)
The distributions earned by the General Partners for the three and
six months ended June 30, 1996 and 1995 were as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- ------------------------
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Special Distributions $ 108,818 $108,818 $217,636 $217,636
Regular Distributions
of Cash Flows from
Operations 9,091 9,091 18,182 18,182
--------- -------- -------- --------
$ 117,909 $117,909 $235,818 $235,818
========= ======== ======== ========
</TABLE>
As of June 30, 1996, Prudential Securities Incorporated ("PSI"),
an affiliate of PBP, a General Partner, owns 33,760 BUC$.
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
JUNE 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 this action.
On August 9, 1994, House of Fabrics, Inc., a tenant at Winery
Square Shopping Center, 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. As of June 30,
1996, House of Fabrics is current on its required debt service payments.
NOTE 5 - Subsequent Event
In August 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 June 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 six months ended June 30, 1996, cash and cash
equivalents of the Partnership and its eleven consolidated subsidiary
partnerships increased by approximately $626,000. This increase is primarily
attributable to cash flow from operations of $2,948,000, which exceeded debt
payments of $113,000, distributions of $2,036,000, and capital expenditures
(including leasing commissions) of $172,000.
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 August 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 June 30, 1996.
As more fully discussed below, two anchor tenants have vacated
their premises, however, both continue to meet the financial terms of their
leases.
In November 1994, House of Fabrics, a tenant of Winery Square in
Fairfield, California leasing 13,800 square feet filed for Chapter 11
bankruptcy. Through March 1996, they continued to operate the store and made
their scheduled rental payments. In March 1996, the court determined that House
of Fabrics should close the store and the lease was rejected effective March 31,
1996. Management is actively seeking replacement tenants for this space.
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 properties to be held and used is determined to exist when
estimated amounts recoverable through future operations on an undiscounted basis
are below the properties' 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 years. No write-downs for impairments have been recorded
as of June 30, 1996.
Net income increased approximately by $279,000 for the three
months ended June 30, 1996 and decreased $195,000 for the six months ended June
30, 1996 as compared to the corresponding periods in 1995 for the reasons
discussed below.
-10-
<PAGE>
Revenues for the three and six months ended June 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 six months ended June 30, 1996 decreased approximately 4% 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 normal rent increases at the other
properties. Total expenses, excluding general and administrative, general and
administrative-related parties, repairs and maintenance, insurance and bad debt,
increased 4% and 3% for the three and six months ended June 30, 1996 as compared
to the corresponding periods in 1995. The excluded items are more fully
described below.
Other income decreased approximately $13,000 and $19,000 for the
three and six months ended June 30, 1996 as compared to the corresponding
periods in 1995, primarily due to a decrease in late charges and other rental
income.
General and administrative expense decreased approximately $38,000
for the three months ended June 30, 1996 and increased approximately $9,000 for
the six months ended June 30, 1996 as compared to the corresponding periods in
1995. The three month decrease was primarily due to the costs of appraisals of
the Partnership's eleven properties in 1995. This decrease was more than offset
during the six months primarily due to an increase in legal fees in 1996
relating to the collection of delinquent common area maintenance charges for
1990 and 1991 from two tenants at Winery Square.
General and administrative expense-related parties increased
approximately $68,000 for the six months ended June 30, 996 as compared to the
corresponding period in 1995. This increase was primarily due to an underaccrual
of expense reimbursements to PSI at December 31, 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 $67,000
and $83,000 for the three and six months ended June 30, 1996 as compared to the
corresponding periods in 1995 primarily due to an increase in roof repairs and
structural repairs at Westbird and increases in snow removal at four other
properties.
Insurance expense increased approximately $28,000 and $44,000 for
the three and six months ended June 30, 1996 as compared to the corresponding
periods in 1995. These increases were primarily due to an overstatement of
prepaid insurance at June 30, 1995.
Bad debt expense decreased approximately $492,000 and $208,000 for
the three and six months ended June 30, 1996 as compared to the corresponding
periods in 1995 primarily due to a decrease in reserves at Town West, Kokomo
Plaza, Winery Square, Cactus Village and Highland Fair in 1996 as compared to
1995.
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 August 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 August 13, 1996, this space has not been re-leased.
-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: August 13, 1996 By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Vice President
Date: August 13, 1996 By: /s/ Lawrence J. Lipton
----------------------
Lawrence J. Lipton
Treasurer
(Principal Financial and Accounting Officer)
By: PRUDENTIAL-BACHE PROPERTIES, INC.
General Partner
Date: August 13, 1996 By: /s/ Eugene D. Burak
-------------------
Eugene D. Burak
Vice President
-14-
<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 (Replace this text with the
legend)
</LEGEND>
<CIK> 0000801440
<NAME> Summit Insured Equity L.P.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-1-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,683,238
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,427,830
<PP&E> 85,839,540
<DEPRECIATION> 14,164,017
<TOTAL-ASSETS> 76,786,591
<CURRENT-LIABILITIES> 1,341,362
<BONDS> 5,679,293
0
0
<COMMON> 0
<OTHER-SE> 69,765,936
<TOTAL-LIABILITY-AND-EQUITY> 76,786,591
<SALES> 0
<TOTAL-REVENUES> 4,466,989
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,137,006
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 268,662
<INCOME-PRETAX> 1,061,321
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,061,321
<EPS-PRIMARY> .21
<EPS-DILUTED> 0
</TABLE>
