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 March 31, 1997
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 names of registrant as specified in its charter)
Delaware 13-2641866
- - --------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
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)
========== =============
March 31, December 31,
1997 1996
---------- ------------
ASSETS
Property and equipment, net of accumulated
depreciation of $15,275,484 and $14,841,244,
respectively (Note 2) $70,242,073 $70,670,980
Cash and cash equivalents 2,717,373 2,398,013
Accounts receivable-tenants, net of allowance for
doubtful accounts of $107,158 and $302,609,
respectively 892,372 803,219
Deferred insurance costs, net of accumulated
amortization of $4,754,593 and $4,604,448,
respectively 1,251,211 1,401,356
Deferred refinancing costs, net of accumulated
amortization of $10,119 and $116,043,
respectively 16,279 17,599
Deferred leasing commissions, net of accumulated
amortization of $297,398 and $263,304,
respectively 457,422 468,653
Other assets 110,277 82,517
----------- -----------
TOTAL ASSETS $75,687,007 $75,842,337
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Notes payable $ 5,309,039 $ 5,565,841
Accounts payable and other liabilities 467,850 475,862
Real estate taxes payable 562,117 564,012
Due to General Partners and affiliates 273,251 141,192
----------- -----------
Total Liabilities 6,612,257 6,746,907
----------- -----------
CONTINGENCIES (NOTE 5)
PARTNERS' CAPITAL (DEFICIT):
Limited Partners (4,000,000 BUC$
issued and outstanding) 69,331,720 69,352,193
General Partners (256,970)) (256,763)
----------- ------------
TOTAL PARTNERS' CAPITAL 69,074,750 69,095,430
----------- -----------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $75,687,007 $75,842,337
=========== ===========
See Notes to Financial Statements
2
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Statements of Income
(Unaudited)
=======================
Three Months Ended
March 31,
----------------------
1997 1996
----------------------
REVENUES:
Rental income $1,942,476 $1,872,529
Recovery of common area maintenance charges 207,120 185,181
Real estate tax reimbursements 260,207 217,161
Interest income 10,817 6,715
Other 50,264 42,161
---------- ----------
Total revenues 2,470,884 2,323,747
---------- ----------
EXPENSES:
General and administrative 100,350 107,811
General and administrative-related parties (Note 3) 133,185 201,140
Operating 55,689 45,883
Repairs and maintenance 274,598 216,277
Real estate taxes 268,893 280,784
Insurance 60,468 63,867
Interest 122,124 135,041
Bad debt (161,452) 284,263
Depreciation and amortization 619,799 629,568
---------- ----------
Total expenses 1,473,654 1,964,634
---------- ----------
Net Income $ 997,230 $ 359,113
========== ==========
ALLOCATION OF
NET INCOME:
Limited partners $ 879,528 $ 247,792
========== ==========
General Partners $ 8,884 $ 2,503
========== ==========
Special distributions to General Partners $ 108,818 $ 108,818
========== ==========
Net Income per BUC $ .22 $ .06
========== ==========
See Notes to Financial Statements
3
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Statement of Changes in Partners' Capital (Deficit)
(Unaudited)
=================================================
Limited General
Total Partners Partners
-------------------------------------------------
Partners' capital (deficit) -
January 1, 1997 $69,095,430 $69,352,193 $ (256,763)
Net income 997,230 879,528 117,702
Distributions (1,017,910) (900,001) (117,909)
----------- ----------- -----------
Partners' capital (deficit) -
March 31, 1997 $69,074,750 $69,331,720 $ (256,970)
=========== =========== ===========
See Notes to Financial Statements
4
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Statements of Cash Flows
(Unaudited)
==========================
Three Months Ended
March 31,
--------------------------
1997 1996
--------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 997,230 $ 359,113
----------- -----------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 619,799 629,568
Decrease in accounts receivable-tenants 106,298 345,076
(Decrease) increase in allowance for doubtful
accounts (195,451) 284,000
(Increase) decrease in other assets (27,760) 12,714
Increase in due to General Partners and affiliates 132,059 66,497
Decrease in accounts payable and
other liabilities (8,012) (35,551)
Decrease in real estate tax payable (1,895) (81,140)
----------- -----------
Total adjustments 625,038 1,221,164
----------- -----------
Net cash provided by operating activities 1,622,268 1,580,277
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Improvements to property and equipment (5,333) (36,077)
Leasing commissions paid (22,863) (63,464)
----------- -----------
Net cash used in investing activities (28,196) (99,541)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payment on notes payable (256,802) (55,956)
Distributions paid (1,017,910) (1,017,910)
----------- -----------
Net cash used in financing activities (1,274,712) (1,073,866)
----------- -----------
Net increase in cash and cash equivalents 319,360 406,870
Cash and cash equivalents - beginning of period 2,398,013 2,057,134
----------- -----------
Cash and cash equivalents - end of period $2,717,373 $ 2,464,004
========== ===========
SUPPLEMENTAL INFORMATION:
Interest paid $ 123,459 $ 135,041
========== ===========
See Notes to Financial Statements
5
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Notes to Financial Statements
March 31, 1997
(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 the 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 March 31, 1997 and the results of its operations and
its cash flows for the three months ended March 31, 1997 and 1996. 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,
1996.
The Partnership reviews each of its property investments for possible impairment
at least annually, and more frequently if circumstances warrant. If this review
indicates that the carrying amount of the property may not be recoverable, the
Partnership estimates the future cash flows expected to result from the
operations of the property and its eventual sale. If the sum of these expected
future cash flows (undiscounted and without interest charges) is less than the
carrying amount of the property, it is written down to its estimated fair value.
The expected future cash flows used in this process rely upon estimates and
assumptions, including expense growth, occupancy, rental rates, and market
capitalization rates. The General Partners believe that the estimates and
assumptions used are appropriate. However, changes in market conditions and
circumstances may occur which would cause these estimates and assumptions to
change, resulting in revised cash flow projections. This, in turn, could lead to
future write-downs, which could be material. No write-downs for impairment have
been recorded as of March 31, 1997.
6
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Notes to Financial Statements
March 31, 1997
(Unaudited)
NOTE 2 - PROPERTY AND EQUIPMENT
The components of property and equipment are as follows:
March 31, December 31,
1997 1996
----------- ------------
Land $20,356,681 $20,356,681
Buildings and improvements 65,160,876 65,155,543
----------- -----------
85,517,557 85,512,224
Less: Accumulated depreciation (15,275,484) (14,841,244)
----------- -----------
$70,242,073 $70,670,980
=========== ===========
Amounts estimated to be recoverable from future operations and ultimate sales
were greater than the carrying value of each property owned at March 31, 1997
and December 31, 1996. 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 months ended
March 31, 1997 and 1996 were as follows:
Three Months Ended
March 31,
-------------------------
1997 1996
-------------------------
Expense reimbursement (a) $ 20,182 $ 69,593
Property management fees (b) 104,062 122,625
Leasing costs (c) 900 3,147
Insurance services (d) 8,041 5,775
--------- ---------
$ 133,185 $ 201,140
========= =========
(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. (the "Property Manager"), an affiliate of the Related General
Partner.
(c) Leasing costs, representing travel and other reimbursable expenses incurred,
are paid to the Property Manager in connection with the lease-up of vacant space
and lease renewals. In addition, capitalized leasing commissions paid to the
Property Manager for the three months ended March 31, 1997 and the year ended
December 31, 1996 were approximately $18,000 and $251,000 respectively.
(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
March 31, 1997
(Unaudited)
Note 3 - Related Party Transactions (continued)
The distributions earned by the General Partners for the three months ended
March 31, 1997 and 1996 were as follows:
Three Months Ended
March 31,
-------------------------
1997 1996
-------------------------
Special Distributions $ 108,818 $ 108,818
Regular Distributions of Cash Flows from Operations 9,091 9,091
--------- ---------
$ 117,909 $ 117,909
========= =========
As of March 31, 1997 Prudential Securities Incorporated ("PSI"), an affiliate of
PBP, owns 33,760 BUC$.
NOTE 4 - NOTES PAYABLE
On August 9, 1994, House of Fabrics, Inc. ("House of Fabrics"), a tenant at
Winery Square Shopping Center ("Winery Square"), closed a $350,000 promissory
note ("the Note") with High Peak Corporation ("Lender"), a third party lender,
for tenant improvements at the tenant's location. It is an amortizing note
carrying a fixed interest rate of 12%, maturing on August 1, 1999 and with fixed
monthly payments in the amount of $7,786 due and payable on the first day of
each month. As required by the Lender, the Partnership guaranteed the payment of
all principal, interest, any additional interest and other sums of any nature
whatsoever which may or shall become due and payable pursuant to the provisions
of the Note (the "Guarantee"). On November 3, 1994, House of Fabrics filed under
Chapter 11 of the Bankruptcy Code and pursuant to subsequent court proceedings,
certain of House of Fabrics' leases were rejected and those stores were closed
including the Winery Square location. Pursuant to such proceedings, as of March
1996, the tenant ceased operations and rental payments with respect to the
Winery Square location. Management has pursued various proposals to re-lease the
space and is currently in negotiations with a replacement tenant for most of the
space. Pursuant to the terms of the Guarantee, the Partnership continued to make
payments to the Lender of amounts due under the Note and payments were current
through January 17, 1997, at which time the balance of the loan was paid-off as
described below.
Together with the Lender, the Partnership also pursued a claim in the bankruptcy
proceedings for amounts due from House of Fabrics under the Note and the lease.
In December 1996, in accordance with the Order Confirming House of Fabrics'
Third Amended Plan of Reorganization dated May 23, 1996 (as modified) stock
certificates evidencing 15,251 shares and 13,910 shares of House of Fabrics
common stock were issued to the Lender and the Partnership, respectively,
against their allowed respective claims of $265,981 and $242,491. Under an
agreement with the Lender, the stock issued to the Lender was assigned to the
Partnership on January 17, 1997, the balance of the loan ($212,309) due the
Lender was paid-off and the Partnership was fully released under its Guaranty.
The stock is thinly traded but all 29,161 shares were sold as of February 28,
1997 for $5 per share, netting the Partnership $143,978 after brokerage
commissions and fees.
8
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Notes to Financial Statements
March 31, 1997
(Unaudited)
NOTE 5 - 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.
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 (the "Court") and consolidated for
pretrial proceedings under the caption In re Prudential Securities Incorporated
Limited Partnerships Litigation (MDL Docket 1005) (the "Class Action"). 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.
On December 31, 1996, the Court issued a preliminary approval order (the
"Order") with respect to settlement (the "Related Settlement") of the Class
Action against the Related General Partner and certain of its affiliates.
Pursuant to the stipulation of settlement entered into with counsel for the
class on December 24, 1996, the proposed Related Settlement contemplates, among
other matters, the reorganization (the "Reorganization") of the Partnership and
three other partnerships co-sponsored by affiliates of the Related General
Partner and PBP.
The proposed Related Settlement and Reorganization are subject to objections by
the BUC$holders and limited partners of the Partnership as well as each of the
other concerned partnerships and final approval of the Court after review of the
proposals at a fairness hearing.
Under the proposed Reorganization plan, the BUC$holders of the Partnership
and Summit Insured Equity L.P. II, Summit Preferred Equity L.P. and Eagle
Insured L.P. will receive shares in a newly formed real estate investment trust.
It is anticipated that the shares will be allocated proportionately among the
partnerships and their respective investors based upon appraisals and other
factors as supported by a third-party fairness opinion. Detailed
9
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Notes to Financial Statements
March 31, 1997
(Unaudited)
Note 5 - Contingencies (continued)
information about the proposed Related Settlement and Reorganization will be
sent to BUC$holders in the near future. The terms of the Reorganization include,
among other matters, the acquisition by affiliates of the Related Capital
Company ("RCC") of PBP's general partner interest (the "PBP Interest"), transfer
to the BUC$holders of one-half of the PBP Interest, reduction of the sum of the
aggregate annual fees currently payable to both General Partners by 25%, filing
an application to list the new company's shares on an exchange and the creation
of an infinite, as opposed to finite, life-operating business.
In connection with the proposed Related Settlement and Reorganization, on
December 19, 1996, PBP and RCC entered into an agreement for the purchase by RCC
or its affiliates of the PBP Interest. The agreement is subject to numerous
conditions, including the effectiveness of the Related Settlement of the Class
Action and the approval of the sale and withdrawal of PBP as a general partner
of the Partnership by the Court.
Pending final approval of the Related Settlement, the Court's Order prohibits
class members (including the BUC$holders) from, among other matters, (i)
transferring their BUC$ unless the transferee agrees to be bound by the Related
Settlement; (ii) granting a proxy to object to the Reorganization; or (iii)
commencing a tender offer for the BUC$. In addition, the General Partners are
enjoined from (i) recording any transfers made in violation of the Order and
(ii) providing the list of investors in any of the partnerships which are the
subject of the Reorganization to any person conducting a tender offer.
There can be no assurance that the conditions to the closing of the proposed
Related Settlement and Reorganization will be satisfied nor as to the time frame
in which a closing may occur. In the event a settlement cannot be reached, the
Related General Partner believes it has meritorious defenses to the consolidated
complaint and intends to vigorously defend this action.
NOTE 6 - SUBSEQUENT EVENT
In May 1997, distributions of $900,001 and $9,091 were paid to the BUC$holders
and General Partners, respectively, from cash flow from operations for the
quarter ended March 31, 1997.
10
<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 three months ended March 31, 1997, cash and cash equivalents
increased by approximately $319,000. This increase is primarily attributable to
cash flow from operations of $1,622,000, which exceeded debt payments of
$257,000, distributions of $1,018,000, capital expenditures of $5,000 and
leasing commissions of $23,000.
Future liquidity is expected to result from cash generated from the operations
of the properties, interest earned on the funds invested in short-term money
market instruments and ultimately through the sale or refinancing of the
properties. The Partnership anticipates that cash generated from operations will
provide sufficient liquidity to fund in future years the Partnership's operating
expenditures, debt service, future tenant and capital improvements and
distributions.
In May 1997, 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 March 31, 1997.
As more fully discussed in Results of Operations below, two anchor tenants
previously vacated their premises but continue to meet the terms of their lease,
including their rental payments.
For a discussion of the proposed settlement of the Class Action relating to the
Partnership, see Note 5 to the financial statements.
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
- - ---------------------
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 May 14, 1997, 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
continues to abide by the terms of its lease, including rental payments. As of
May 14, 1997 , this space has not been re-leased. Management continues to
explore a variety of proposals to lease or sublease this space.
Net income increased approximately $638,000 for the three months ended March 31,
1997 as compared to the corresponding period in 1996 for the reasons discussed
below.
Revenues for the three months ended March 31, 1997 consisted 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
months ended March 31, 1997 increased approximately 4% as compared to the
corresponding period in 1996 primarily due to an increase in occupancy at Cactus
Village.
11
<PAGE>
Recovery of common area maintenance charges increased approximately $22,000 for
the three months ended March 31, 1997 as compared to the same period in 1996
primarily due to an underaccrual of such charges at Hickory Plaza and Cactus
Village in 1996.
Real estate tax reimbursements increased approximately $43,000 for the three
months ended March 31, 1997 as compared to the same period in 1996 primarily due
to an underaccrual of reimbursements at Mountain View and Forest Park in 1996.
Interest income increased approximately $4,000 for the three months ended March
31, 1997 as compared to the same period in 1996 primarily due to higher cash and
cash equivalents balances in 1997.
Other income increased approximately $8,000 for the three months ended March 31,
1997 as compared to the same period in 1996 primarily due to an underaccrual of
insurance reimbursements at Winery Square in 1996.
General and administrative expenses-related parties decreased approximately
$68,000 for the three months ended March 31, 1997 as compared to the same period
in 1996 primarily due to an underaccrual of expense reimbursements to PSI at
December 31, 1995 as well as a decrease in property management fees at Westbird,
Pablo Plaza and Forest Park in 1997.
Operating expenses increased approximately $10,000 for the three months ended
March 31, 1997 as compared to the same period in 1996 primarily due to small
increases in utilities at Winery Square.
Repairs and maintenance increased approximately $58,000 for the three months
ended March 31, 1997 as compared to the same period in 1996 primarily due to an
increase in landscaping expenses at Cactus Village and Winery Square as well as
an increase in paving expenses at Kokomo Plaza and the restriping of the parking
lot at Winery Square.
Bad debt expense decreased approximately $446,000 for the three months ended
March 31, 1997 as compared to the same period in 1996 primarily due to a
decrease in reserves in 1997 at Kokomo Plaza, Winery Square, Cactus Village and
Forest Park and the collection of a portion of amounts previously written off
relating to a tenant at Winery Square.
12
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - This information is incorporated by reference to
Note 5 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
Thomas F. Lynch, III ceased to serve as President, Chief Executive
Officer, Chairman of the Board of Directors and Director of Prudential-Bache
Properties, Inc. effective May 2, 1997. Effective May 2, 1997, Brian J. Martin
was elected President, Chief Executive Officer, Chairman of the Board of
Directors and Director of Prudential-Bache Properties, Inc.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 Financial Data Schedule (filed herewith).
(b) Reports on Form 8-K:
Current report on Form 8-K dated December 31, 1996 was filed on
January 10, 1997 relating to a preliminary approval order with respect to the
settlement of the class action litigation.
13
<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: May 14, 1997 By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Vice President
(Principal Financial Officer)
Date: May 14, 1997 By: /s/ Richard A. Palermo
----------------------
Richard A. Palermo
Treasurer
(Principal Accounting Officer)
By: PRUDENTIAL-BACHE PROPERTIES, INC.
General Partner
Date: May 14, 1997 By: /s/ Eugene D. Burak
-------------------
Eugene D. Burak
Vice President
15
<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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 2,717,373
<SECURITIES> 0
<RECEIVABLES> 999,530
<ALLOWANCES> 107,158
<INVENTORY> 0
<CURRENT-ASSETS> 110,277
<PP&E> 85,517,557
<DEPRECIATION> 15,275,484
<TOTAL-ASSETS> 75,687,007
<CURRENT-LIABILITIES> 1,303,218
<BONDS> 5,309,039
0
0
<COMMON> 0
<OTHER-SE> 69,074,750
<TOTAL-LIABILITY-AND-EQUITY> 75,687,007
<SALES> 0
<TOTAL-REVENUES> 2,470,884
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,351,530
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 122,124
<INCOME-PRETAX> 997,230
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 997,230
<EPS-PRIMARY> .22
<EPS-DILUTED> 0
</TABLE>
