<PAGE>
EXHIBIT 99
DiVall Insured Income Properties 2, L.P.
QUARTERLY NEWS
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A publication of The Provo Group, Inc. SECOND QUARTER 2000
Partnership Measures Up
We are happy to report again this quarter .... that there is little to report.
Rents are being paid on a timely basis, distributions are on target, there are
no tenant disputes, lawsuits or other major issues surrounding this Partnership.
Last quarter we reported several delinquencies in rent, nearly all of which have
been collected. (See page 2 for more details).
Based on the monthly sales we have received to date, nearly all of the stores
seem to be performing very well. All but three of the Wendy's stores have been
successful in increasing their monthly sales, as have Hooters, Miami Subs and
Denny's (Northern). The Denny's located on N. 7/th/ Street shows some sales
decline, as do all the Hardee's locations. We have been contacted by the
corporate office of Hardee's. They are currently going through a major re-
franchising program. Once this process is complete, we hope to see a new trend
in the sales figures. We have been notified that the Hardee's located in South
Milwaukee has been slated for closing. If this were to occur, the store would
continue to be liable for the rent charges.
The following information was taken from the May/June 2000 edition of The
Partnership Spectrum/1/. It compares triple-net-lease Partnerships (similar to
DiVall) and we found it very informative.
(This table continues onto the next page, see for DiVall comparisons)
<TABLE>
<CAPTION>
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Partnership Value Per Unit Average Trade Average Debt Distribution
Price Discount Rate
(Qtrly$) %
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CNL Income Fund II $460.91 - GP $345.00 25% Low $41.25 12.0%
--------------------------------------------------------------------------------------------------
CNL Income Fund III $403.85 -GP $363.82 10% Low $40.00 11.0%
--------------------------------------------------------------------------------------------------
CNL Income Fund IV $420.38 -GP $366.90 13% Low $40.00 10.9%
--------------------------------------------------------------------------------------------------
CNL Income Fund V $380.80 -GP $337.27 11% Low $40.00 11.9%
--------------------------------------------------------------------------------------------------
CNL Income Fund VI $503.06 -GP $381.05 24% Low $45.00 11.8%
--------------------------------------------------------------------------------------------------
CNL Income Fund VII $1.01-GP $0.74 27% Low $.09 12.2%
--------------------------------------------------------------------------------------------------
CNL Income Fund VIII $1.08 $0.82 24% Low $.09 11.0%
--------------------------------------------------------------------------------------------------
CNL Income Fund IX $10.01 -GP $7.82 22% Low $.90 11.5%
--------------------------------------------------------------------------------------------------
</TABLE>
__________________
/1/ Copyright 2000 by Partnership Profiles, Inc. Editor: Spencer Jeffries
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------
CNL Income Fund X $10.08 -GP $8.14 19% Low $.90 11.1%
--------------------------------------------------------------------------------------------------
CNL Income Fund XI $10.64 -GP $8.35 22% Low $.875 10.5%
--------------------------------------------------------------------------------------------------
CNL Income Fund XII $10.56 -GP $8.46 20% Low $.85 10.0%
--------------------------------------------------------------------------------------------------
CNL Income Fund XIII $9.85 -GP $8.01 19% Low $.85 10.6%
--------------------------------------------------------------------------------------------------
CNL Income Fund XIV $9.99 -GP $7.27 27% Low $.825 11.3%
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CNL Income Fund XV $9.61 -GP $7.48 22% Low $.80 10.7%
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CNL Income Fund XVI $9.52 -GP $7.50 21% Low $.80 10.7%
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CNL Income Fund XVII $9.64 -GP $7.97 17% Low $.80 10.0%
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CNL Income Fund XVIII $9.80 -GP $7.43 24% Low $.80 10.8%
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Corporate Property $10.00 - I $7.26 27% High $.71 9.8%
Associates 10
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Corporate Property $10.40 - I $8.53 18% High $.82 9.6%
Associates 12
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Corporate Realty $16.83 - I $12.14 28% High $1.20 9.9%
Income Fund I
--------------------------------------------------------------------------------------------------
DiVall Insured Income $500 - GP $390.00 22% Low $45.76 11.7%
Properties 2
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Net I LP $808.54 - I $662.65 18% High $50.04 7.6%
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Net 2 LPO $87.31 - I $69.22 21% High $5.00 7.2%
--------------------------------------------------------------------------------------------------
Carey Institutional $13.00 - I $9.44 27% High $.83 8.8%
Properties
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</TABLE>
Average Discount = 21%
Average Distribution Yield = 10.5%
=====
A special thank you to The Partnership Spectrum for allowing us to reprint this
informative table for our investors.
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PROPERTY HIGHLIGHTS
. Mulberry Street Grill (Formerly Mr. Munchies - Indian School Road) was
delinquent at 06/30/00 in the amount of $15,070.90. Management was been
working diligently with this new operator to get the balance due paid in
full. The operator has made arrangements to make partial payments over the
next several months.
. Denny's (Camelback Road) - This property remains vacant at June 30, 2000.
The property has a ground lease which did not expire until August 2002.
Management was successful in negotiating for an early termination.
Therefore, we will not have any future ground rent or real estate tax
liability.
<PAGE>
PAGE 3 DIVALL 2 2 Q 00
DISTRIBUTION HIGHLIGHTS
. 9.77% (approx.) annualized return from operations based on $23,550,000
(estimated net asset value as of December 31, 1999).
. $575,000 total amount distributed for the Second Quarter 2000 which was
consistent with projections.
. $12.42 per unit (approx.) for the First Quarter 2000.
. $1,033.00 to $835.00 range of distributions per unit from the first unit
-----
sold to the last unit sold before the offering closed (February 1990),
----
respectively. (NOTE: Distributions are from both cash flow from operations
----
and "net" cash activity from financing and investing activities.)
____________________________________________________
STATEMENTS OF INCOME AND CASH FLOW HIGHLIGHTS
. 14% decrease in "total" operating revenues from projections.
. As reported last quarter, the decrease in revenues is almost entirely due
to an accounting change, which doesn't impact cash. Additionally, Denny's -
Camelback vacated their property.
. There was a 16% increase in expenses.
. Expenses were higher than anticipated partially due to the increase in
printing and mailing costs some of which were expected to be incurred
during the first quarter. Additionally, there have been unexpected legal
fees due to the potential eviction of Denny's - N. 7/th/ Street which was
resolved last quarter.
____________________________________________________
For questions or additional information, please contact Investor Relations at:
1-800-547-7686 or 1-816-421-7444
All written inquiries may be mailed or faxed to:
The Provo Group, Inc.
101 West 11th Street, Suite 1110
Kansas City, Missouri 64105
(FAX 816-221-2130)
E-Mail: [email protected]
____________________________________________________
<PAGE>
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DIVALL INSURED INCOME PROPERTIES 2 L.P.
STATEMENTS OF INCOME AND CASH FLOW CHANGES
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
PROJECTED ACTUAL VARIANCE
--------------------------------------------------------------
2ND 2ND
QUARTER QUARTER BETTER
OPERATING REVENUES 6/30/00 6/30/00 (WORSE)
-------------- ------------ -------------
<S> <C> <C> <C>
Rental income $ 695,536 $ 595,929 ($99,607)
Interest income 13,600 15,212 1,612
Other income 0 2,106 2,106
-------------- ------------ -------------
TOTAL OPERATING REVENUES $ 709,136 $ 613,247 ($95,889)
-------------- ------------ -------------
OPERATING EXPENSES
Insurance $ 4,317 $ 4,404 ($87)
Management fees 46,872 46,928 (56)
Overhead allowance 3,783 3,789 (6)
Advisory Board 2,599 3,968 (1,369)
Administrative 16,290 39,598 (23,308)
Professional services 8,850 6,355 2,495
Auditing 12,000 12,800 (800)
Legal 4,500 14,352 (9,852)
Write-off uncollectible receivables 0 6,810 (6,810)
Defaulted tenants 1,650 1,390 260
-------------- ------------ -------------
TOTAL OPERATING EXPENSES $ 100,861 $ 140,394 ($39,533)
-------------- ------------ -------------
GROUND RENT $ 31,650 $ 26,389 $ 5,261
-------------- ------------ -------------
INVESTIGATION AND RESTORATION EXPENSES $ 0 $ 37 ($37)
-------------- ------------ -------------
NON-OPERATING EXPENSES
Depreciation $ 88,098 $ 88,098 $ 0
Amortization 2,364 2,757 (393)
-------------- ------------ -------------
TOTAL NON-OPERATING EXPENSES $ 90,462 $90,855 ($393)
-------------- ------------ -------------
TOTAL EXPENSES $ 222,973 $ 257,675 ($34,702)
-------------- ------------ -------------
NET INCOME (LOSS) $ 486,163 $ 355,572 ($130,591)
-------------- ------------ -------------
OPERATING CASH RECONCILIATION: VARIANCE
-------------
Depreciation and amortization 90,462 90,855 393
Recovery of amounts previously written off 0 (927) (927)
Write-off uncollectible receivables 0 6,810 6,810
(Increase) Decrease in current assets (106,530) 49,422 155,952
Increase (Decrease) in current liabilities 10,080 5,075 (5,005)
(Increase) Decrease in cash reserved for payables (12,025) (6,000) 6,025
Advance from current cash flows for future
distributions 105,500 70,500 (35,000)
-------------- ------------ -------------
Net Cash Provided From Operating Activities $ 573,650 $ 571,307 ($2,343)
-------------- ------------ -------------
CASH FLOWS FROM (USED IN) INVESTING
AND FINANCING ACTIVITIES
Recoveries from former general partners 0 927 927
Proceeds from sale of property and equipment 0 0 0
-------------- ------------ -------------
Net Cash Provided From Investing And Financing
Activities $ 0 $ 927 $ 927
-------------- ------------ -------------
Total Cash Flow For Quarter $ 573,650 $ 572,234 ($1,416)
Cash Balance Beginning of Period 1,260,497 1,233,624 (26,873)
Less 1st quarter distributions paid 5/00 (575,000) (575,000) 0
Change in cash reserved for payables or
future distributions (93,475) (64,500) 28,975
-------------- ------------ -------------
Cash Balance End of Period $1,165,672 $1,166,358 $ 686
Cash reserved for 2nd quarter L.P. distributions (575,000) (575,000) 0
Cash reserved for payment of payables (290,749) (327,000) (36,251)
-------------- ------------ -------------
Unrestricted Cash Balance End of Period $ 299,923 $ 264,358 ($35,565)
============== ============ =============
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PROJECTED ACTUAL VARIANCE
--------------------------------------------------------------
* Quarterly Distribution $ 575,000 $ 575,000 $ 0
Mailing Date 8/15/00 (enclosed) -
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</TABLE>
* Refer to distribution letter for detail of quarterly distribution.
<PAGE>
PROJECTIONS FOR
DISCUSSION PURPOSES
DIVALL INSURED INCOME PROPERTIES 2 LP
2000 PROPERTY SUMMARY
AND RELATED ESTIMATED RECEIPTS
PORTFOLIO (Note 1)
<TABLE>
<CAPTION>
---------------------------- ------------------------------------ ---------------------------
REAL ESTATE EQUIPMENT TOTALS
---------------------------- ------------------------------------ ---------------------------
ANNUAL LEASE ANNUAL
---------------------------------- BASE % EXPIRATION LEASE % ANNUAL
CONCEPT LOCATION COST RENT YIELD DATE COST RECEIPTS RETURN COST RECEIPTS RETURN
---------------------------------- ---------------------------- ------------------------------------ ---------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
APPLEBEE'S COLUMBUS, OH 1,059,465 135,780 12.82% 84,500 0 0.00% 1,143,965 135,780 11.87%
BLOCKBUSTER OGDEN, UT 646,425 100,554 15.56% 646,425 100,554 15.56%
DENNY'S (3) PHOENIX, AZ 295,750 0 0.00% 224,376 0 0.00% 520,126 0 0.00%
DENNY'S PHOENIX, AZ 972,726 65,000 6.68% 183,239 0 0.00% 1,155,965 65,000 5.62%
DENNY'S PHOENIX, AZ 865,900 115,200 13.30% 221,237 0 0.00% 1,087,137 115,200 10.60%
DENNY'S TWIN FALLS, ID 699,032 83,200 11.90% 190,000 0 0.00% 889,032 83,200 9.36%
MR. MUNCHIES (3) PHOENIX, AZ 500,000 50,800 10.16% 14,259 0 0.00% 514,259 50,800 9.88%
HARDEE'S (5) S MILWAUKEE, WI 808,032 64,000 7.92% 808,032 64,000 7.92%
HARDEE'S (5) HARTFORD, WI 686,563 64,000 9.32% 686,563 64,000 9.32%
HARDEE'S (5) MILWAUKEE, WI 1,010,045 76,000 7.52% (4) 260,000 0 0.00% 1,421,983 76,000 5.34%
" " 151,938 0 0.00%
HARDEE'S (5) FOND DU LAC, WI 849,767 88,000 10.36% (4) 290,469 0 0.00% 1,140,236 88,000 7.72%
HARDEE'S (5) MILWAUKEE, WI 0 0 0.00% 780,000 0 0.00% 780,000 0 0.00%
HOOTER'S R. HILLS, TX 1,246,719 95,000 7.62% 1,246,719 95,000 7.62%
HOSTETTLER'S DES MOINES, IA 845,000 55,584 6.58% 52,813 0 0.00% 897,813 55,584 6.19%
KFC SANTA FE, NM 451,230 60,000 13.30% 451,230 60,000 13.30%
MIAMI SUBS PALM BEACH, FL 743,625 39,000 5.24% 743,625 39,000 5.24%
---------------------------------- ---------------------------- ------------------------------------ ---------------------------
</TABLE>
Note 1: This property summary includes only current property and equipment held
by the Partnership.
Equipment lease receipts shown include a return of capital.
2: Rent is based on 12.5% of monthly sales. Rent projected for 2000 is
based on 1999 sales levels.
3: The Partnership entered into a long-term ground lease in which the
Partnership is responsible for payment of rent.
4: The lease was terminated and the equipment sold to Hardee's Food Systems
in conjunction with their assumption of the Terratron leases in November
1996.
5: These leases were assumed by Hardee's Food Systems at a reduced rental
rate from that stated in the original leases.
Page 1 of 2
<PAGE>
PROJECTIONS FOR
DISCUSSION PURPOSES
DIVALL INSURED INCOME PROPERTIES 2 LP
1999 PROPERTY SUMMARY
AND RELATED ESTIMATED RECEIPTS
<TABLE>
<CAPTION>
PORTFOLIO (Note 1)
----------------------------- -------------------------------------- ----------------------------
REAL ESTATE EQUIPMENT TOTALS
----------------------------- -------------------------------------- ----------------------------
ANNUAL LEASE ANNUAL
BASE % EXPIRATION LEASE % TOTAL
-------------------------------
CONCEPT LOCATION COST RENT YIELD DATE COST RECEIPTS RETURN COST RECEIPTS RETURN
------------------------------- ----------------------------- -------------------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
POPEYE'S PARK FOREST, IL 580,938 77,280 13.30% 580,938 77,280 13.30%
SUNRISE PS PHOENIX, AZ 1,084,503 127,920 11.80% 79,219 0 0.00% 1,182,735 127,920 10.82%
19,013 0 0.00%
VILLAGE INN GRAND FORKS, ND 739,375 84,000 11.36% 739,375 84,000 11.36%
WENDY'S AIKEN, SC 633,750 90,480 14.28% 633,750 90,480 14.28%
WENDY'S CHARLESTION, SC 580,938 76,920 13.24% 580,938 76,920 13.24%
WENDY'S N. AUGUSTA, SC 660,156 87,780 13.30% 660,156 87,780 13.30%
WENDY'S AUGUSTA, GA 728,813 96,780 13.28% 728,813 96,780 13.28%
WENDY'S CHARLESTON, SC 596,781 76,920 12.89% 596,781 76,920 12.89%
WENDY'S AIKEN, SC 776,344 96,780 12.47% 776,344 96,780 12.47%
WENDY'S AUGUSTA, GA 649,594 86,160 13.26% 649,594 86,160 13.26%
WENDY'S CHARLESTON, SC 528,125 70,200 13.29% 528,125 70,200 13.29%
WENDY'S MT. PLEASANT, SC 580,938 77,280 13.30% 580,938 77,280 13.30%
WENDY'S MARTINEZ, GA 633,750 84,120 13.27% 633,750 84,120 13.27%
--------------------------------- ----------------------------- -------------------------------------- ----------------------------
--------------------------------- ----------------------------- -------------------------- ----------------------------
PORTFOLIO TOTALS (28 Properties) 20,454,284 2,224,738 10.88% 2,551,063 0 0.00% 23,005,347 2,224,739 9.67%
--------------------------------- ----------------------------- -------------------------- ----------------------------
</TABLE>
Note 1: This property summary includes only current property and equipment
held by the Partnership.
Equipment lease receipts shown include a return of capital.
Page 2 of 2
