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 0-16873
SUMMIT INSURED EQUITY L.P. II
-------------------------------------------------------
(Exact names of registrant as specified in its charter)
Delaware 13-3464704
- - ------------------------------- ------------------------------------
(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. II
(a limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
ASSETS
June 30, December 31,
1996 1995
----------- -----------
<S> <C> <C>
Property and equipment, net of accumulated depreciation of
$2,370,237 and $2,180,124, respectively (Note 2) $18,626,850 $18,742,999
Cash and cash equivalents 1,681,765 1,729,819
Accounts receivable-tenants, net of allowance for doubtful
accounts of $64,000 and $10,000, respectively 166,028 173,846
Deferred insurance costs, net of accumulated amortization
of $847,626 and $772,835, respectively 648,185 722,976
Deferred loan costs, net of accumulated amortization of
$35,879 and $31,892, respectively 43,234 7,974
Deferred leasing commissions, net of accumulated amortization
of $62,004 and $46,703, respectively 125,626 80,360
Other assets 30,185 6,544
----------- -----------
Total Assets $21,321,873 $21,464,518
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Note payable $ 1,384,539 $ 1,389,944
Accrued real estate taxes 172,810 142,806
Due to General Partners and affiliates (Note 3) 177,751 149,425
Accounts payable and other liabilities 137,243 131,085
----------- -----------
Total Liabilities 1,872,343 1,813,260
----------- -----------
Contingencies (Note 4)
Partners' Capital (Deficit):
Limited Partners (1,005,623 BUC$ issued and outstanding) 19,521,882 19,719,573
General Partners (72,352) (68,315)
----------- -----------
Total Partners' Capital 19,449,530 19,651,258
----------- -----------
Total Liabilities and Partners' Capital $21,321,873 $21,464,518
=========== ===========
</TABLE>
See notes to financial statements
-2-
<PAGE>
SUMMIT INSURED EQUITY L.P. II
(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 $ 470,829 $ 477,156 $ 933,336 $ 951,275
Recovery of common area maintenance
charges 49,726 53,982 99,453 107,964
Real estate tax reimbursements 73,728 76,605 147,456 153,209
Interest income 6,907 7,409 13,634 14,340
Other 1,938 3,460 3,189 4,642
---------- ---------- ---------- ----------
Total revenues 603,128 618,612 1,197,068 1,231,430
---------- ---------- ---------- ----------
Expenses:
General and administrative 40,097 58,034 52,080 75,422
General and administrative-
related parties (Note 3) 64,018 54,862 100,162 94,634
Operating 8,130 9,074 16,672 18,395
Repairs and maintenance 51,634 58,502 94,621 103,242
Real estate taxes 89,379 88,435 178,758 176,871
Insurance 11,821 11,784 23,642 23,568
Interest 31,185 30,535 60,674 61,125
Bad debt 9,016 32,702 56,974 56,785
Depreciation and amortization 144,213 138,595 285,786 276,108
---------- ---------- ---------- ----------
Total expenses 449,493 482,523 869,369 886,150
---------- ---------- ---------- ----------
Net Income $ 153,635 $ 136,089 $ 327,699 $ 345,280
========== ========== ========== ==========
Allocation of Net Income:
Limited Partners $ 123,595 $ 106,400 $ 267,210 $ 284,439
========== ========== ========== ==========
General Partners $ 2,522 $ 2,171 $ 5,453 $ 5,805
========== ========== ========== ==========
Special Distributions to General Partners $ 27,518 $ 27,518 $ 55,036 $ 55,036
========== ========== ========== ==========
Net Income per BUC $ .12 $ .11 $ .26 $ .28
========== ========== ========== ==========
</TABLE>
See notes to financial statements
-3-
<PAGE>
SUMMIT INSURED EQUITY L.P. II
(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 $ 19,651,258 $ 19,719,573 $ (68,315)
Net income 327,699 267,210 60,489
Distributions (529,427) (464,901) (64,526)
------------ ------------ ---------
Partners' capital (deficit) - June 30, 1996 $ 19,449,530 $ 19,521,882 $ (72,352)
============ ============ =========
</TABLE>
See notes to financial statements
-4-
<PAGE>
SUMMIT INSURED EQUITY L.P. II
(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 $ 327,699 $ 345,280
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 285,786 276,108
Increase in accounts receivable-tenants (46,181) (24,945)
Increase in allowance for doubtful accounts 54,000 47,000
Increase in other assets (23,642) (23,566)
Increase in due to General Partners and affiliates 28,326 14,435
Increase in accrued real estate taxes, accounts payable
and other liabilities 36,161 44,983
----------- -----------
Total adjustments 334,450 334,015
----------- -----------
Net cash provided by operating activities 662,149 679,295
----------- -----------
Cash flows from investing activities:
Improvements to property and equipment (75,558) (3,000)
Leasing commissions paid (60,567) (22,708)
----------- -----------
Net cash used in investing activities (136,125) (25,708)
----------- -----------
Cash flows from financing activities:
Increase in deferred loan costs (39,247) 0
Principal repayments on note payable (5,405) (4,918)
Distributions paid (529,426) (529,528)
----------- -----------
Net cash used in financing activities (574,078) (534,446)
----------- -----------
Net (decrease) increase in cash and cash equivalents (48,054) 119,141
Cash and cash equivalents at beginning of period 1,729,819 1,457,027
----------- -----------
Cash and cash equivalents at end of period $ 1,681,765 $ 1,576,168
=========== ===========
Supplemental information:
Interest paid $ 60,674 $ 61,125
=========== ===========
</TABLE>
See notes to financial statements
-5-
<PAGE>
SUMMIT INSURED EQUITY L.P. II
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(Unaudited)
NOTE 1 - General
Summit Insured Equity L.P. II (the "Partnership") is a limited
partnership which was formed under the laws of the State of Delaware on July 17,
1987. The general partners of the Partnership (the "General Partners") are RIDC
II, LP., a Delaware limited partnership (the "Related General Partner"), and
Prudential-Bache Properties, Inc., a Delaware corporation ("PBP"). The General
Partners manage and control the affairs of the Partnership.
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, 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 be read in conjunction with the annual financial statements
and notes thereto included in the Partnership's Form 10-K for the year ended
December 31, 1995.
The Partnership adopted Statement of Financial Accounting
Standards ("SFAS") No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets and 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 financial position or results of operations.
The determination of impairment value 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.
Certain prior year amounts have been reclassified to conform with
current year presentation.
-6-
<PAGE>
SUMMIT INSURED EQUITY L.P. II
(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:
June 30, December 31,
1996 1995
----------- -----------
Land $ 6,902,652 $ 6,902,652
Buildings and improvements 15,252,346 15,178,382
----------- -----------
22,154,998 22,081,034
Less: Amounts received from sellers'
rental guarantees 1,157,911 1,157,911
Accumulated depreciation 2,370,237 2,180,124
----------- -----------
$18,626,850 $18,742,999
=========== ===========
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 appraised values 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) $ 35,296 $ 22,000 $ 44,407 $ 34,518
Property management fees (b) 26,473 29,201 51,728 54,234
Leasing commissions (c) 819 2,236 1,167 3,032
Insurance services (d) 1,430 1,425 2,860 2,850
-------- -------- -------- --------
$ 64,018 $ 54,862 $100,162 $ 94,634
======== ======== ======== ========
</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 three 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 interest in Multi-Family Program Inc., a company which has provided
insurance services for the properties.
-7-
<PAGE>
SUMMIT INSURED EQUITY L.P. II
(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:
Three Months Ended Six Months Ended
June 30, June 30,
----------------- -----------------
1996 1995 1996 1995
------- ------- ------- -------
Special Distributions $27,518 $27,518 $55,036 $55,036
Regular Distributions of
Adjusted Cash from
Operations 4,745 4,745 9,490 9,490
------- ------- ------- -------
$32,263 $32,263 $64,526 $64,526
======= ======= ======= =======
As of June 30, 1996, Prudential Securities Incorporated ("PSI"),
an affiliate of PBP, owns 1,980 BUC$.
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 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 proceeding 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 compliant 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. II
(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.
NOTE 5 - Subsequent Events
The Partnership had a loan with Principal Mutual Life Insurance
Company ("Principal Mutual") which matured on December 1, 1995. On July 29,
1996, the Partnership completed a refinancing with Principal Mutual of its
mortgage in the amount of $1,400,000 and, on that date, the existing mortgage in
the amount of $1,383,661 was paid off. The new loan in the amount of $1,400,000
has an initial term of five years at a fixed interest rate of 7.03% per annum.
At the end of the initial five year term and again at the end of year ten, there
is a renewal option; the interest rate will be adjusted based on an index as
established by the lender. This loan is prepayable without penalty at those
times. Under the terms of the loan, principal and interest is payable in equal
monthly installments of $13,405 based on a 13.5 year amortization schedule with
the unpaid principal balance becoming fully due and payable at maturity on
January 1, 2010. Costs incurred in connection with this loan will be amortized
over the life of the loan. Between December 1, 1995 and the refinancing date,
the Partnership made the required payments pursuant to the terms of the matured
loan.
In August 1996, a distribution of $232,502 was paid to the
BUC$holders and $32,263 to the General Partners (in payment of their 2% interest
and special distributions) 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 primary source of funds continues to be the cash
flow from operations of three shopping centers.
During the six months ended June 30, 1996, cash and cash
equivalents decreased approximately $48,000 primarily as a result of capital
expenditures ($76,000), leasing commissions ($61,000), an increase in deferred
loan costs ($39,000) and distributions to partners ($529,000), which exceeded
cash flows from operations ($662,000).
The Partnership had a loan with Principal Mutual Life Insurance
Company ("Principal Mutual") which matured on December 1, 1995. On July 29,
1996, the Partnership completed a refinancing with Principal Mutual of its
mortgage in the amount of $1,400,000 and, on that date, the existing mortgage in
the amount of $1,383,661 was paid off. The new loan in the amount of $1,400,000
has an initial term of five years at a fixed interest rate of 7.03% per annum.
At the end of the initial five year term and again at the end of year ten, there
is a renewal option; the interest rate will be adjusted based on an index as
established by the lender. This loan is prepayable without penalty at those
times. Under the terms of the loan, principal and interest is payable in equal
monthly installments of $13,405 based on a 13.5 year amortization schedule with
the unpaid principal balance becoming fully due and payable at maturity on
January 1, 2010. Costs incurred in connection with this loan will be amortized
over the life of the loan. Between December 1, 1995 and the refinancing date,
the Partnership made the required payments pursuant to the terms of the matured
loan.
During August 1996, the Partnership paid a distribution, from
adjusted cash from operations of $232,502 to the BUC$holders of record for the
quarter ended June 30, 1996. Also during August 1996, the General Partners
received $32,263 in payment of their regular and special distributions from cash
from operations for the quarter ended June 30, 1996.
The Partnership's investment in the shopping centers is subject to
the risks arising from ownership of commercial properties. The Partnership has
invested in shopping centers with substantial anchor tenants. Anchor tenants
usually provide stability to a shopping center and a steady source of rental
payments. A shopping center's revenues from all of its tenants can be adversely
affected by the loss of its anchor tenant. If the rental income from the
shopping centers decreases, it could adversely affect distributions to
BUC$holders and could affect the price the Partnership is able to receive upon
sale of the properties.
Future liquidity is expected to result from cash generated from
the operations of the properties, interest earned on funds invested in
short-term money market instruments and ultimately through the sale or
refinancing of the properties. The Partnership anticipates that future tenant
and capital improvements will be funded from cash on hand and cash generated
from operations.
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 financial position or results of operations.
-10-
<PAGE>
The determination of impairment value 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 by approximately $18,000 and decreased by
approximately $18,000 for the three and six months ended June 30, 1996 as
compared to the corresponding periods in 1995 for the reasons described below.
Revenues for the three and six months ended June 30, 1996
consisted primarily of the results of the Partnership's investment in the three
shopping centers. Rental income decreased approximately 1.3% and 1.9% or $6,000
and $18,000 for the three and six months ended June 30, 1996 as compared to the
corresponding periods in 1995 primarily due to a decrease in occupancy at
Applewood Centre from 99% as of June 30, 1995 to 93% as of June 30, 1996.
Rolling Hills Square and Mountain Park Plaza, with occupancy rates of 89% and
97% at June 30, 1996, respectively, had increases in rental income due to a
decrease in rental concessions in 1996.
Total expenses excluding general and administrative, general and
administrative-related parties, repairs and maintenance and bad debts remained
fairly constant with less than a 1% change for the three and six months ended
June 30, 1996, respectively, as compared to the corresponding periods in 1995.
General and administrative expenses decreased approximately
$18,000 and $23,000 for the three and six months ended June 30, 1996 as compared
to the corresponding periods in 1995 primarily due to the appraisals of the
Partnership's three properties in 1995.
General and administrative-related parties expenses increased
approximately $9,000 and $6,000 for the three and six months ended June 30, 1996
as compared to the corresponding periods in 1995, due to an underaccrual of
expense reimbursements to the General Partners and their affiliates in 1995.
Repairs and maintenance decreased approximately $7,000 and $9,000
for the three and six months ended June 30, 1996 as compared to the
corresponding periods in 1995 primarily due to a decrease in landscaping
expenses at all three properties in 1996.
Bad debt expense decreased approximately $24,000 for the three
months ended June 30, 1996 as compared to the corresponding periods in 1995
primarily due to a decrease in reserves at Mountain Park Plaza during the three
months ended June 30, 1996.
-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 - No reports on Form 8-K were
filed during the quarter.
(a) Exhibits:
27 Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K -- No reports on 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. II
By: RIDC II, L.P.
General Partner
By: RELATED INSURED EQUITY ASSOCIATES II, 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. II and
is qualified in its entirety by reference to such
financial statements
</LEGEND>
<CIK> 0000820590
<NAME> Summit Insured Equity L.P. II.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,681,765
<SECURITIES> 0
<RECEIVABLES> 166,028
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 847,230
<PP&E> 20,997,087
<DEPRECIATION> 2,370,237
<TOTAL-ASSETS> 21,321,873
<CURRENT-LIABILITIES> 487,804
<BONDS> 1,384,539
0
0
<COMMON> 0
<OTHER-SE> 19,449,530
<TOTAL-LIABILITY-AND-EQUITY> 21,321,873
<SALES> 0
<TOTAL-REVENUES> 1,197,068
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 808,695
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 60,674
<INCOME-PRETAX> 327,699
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 327,699
<EPS-PRIMARY> .26
<EPS-DILUTED> 0
</TABLE>
