================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
Commission file number 0-16855
HIGH EQUITY PARTNERS L.P. - SERIES 88
(Exact name of registrant as specified in its charter)
DELAWARE 13-3394723
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
411 West Putnam Avenue, Greenwich, CT 06830
(Address of principal executive offices)
(203) 862-7000
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check 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>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
INDEX
Part I. Financial Information:
Balance Sheets--June 30, 1997 and December 31, 1996
Statements of Operations--Three and Six Months Ended June 30,
1997 and l996
Statement of Partners' Equity--Six Months Ended
June 30, 1997
Statements of Cash Flows-- Six Months Ended
June 30, 1997 and 1996
Notes to Financial Statements
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Part II. Other Information:
Legal Proceedings, Exhibits and Reports on Form 8-K
<PAGE>
<TABLE>
<CAPTION>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30, 1997
BALANCE SHEETS
June 30, 1997 December 31, 1996
----------- -----------
<S> <C> <C>
ASSETS
Real estate ................................ $48,804,030 $49,566,804
Cash and cash equivalents .................. 6,849,033 5,353,731
Other assets ............................... 1,323,563 1,372,081
Receivables ................................ 151,072 89,074
----------- -----------
$57,127,698 $56,381,690
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Distributions payable ...................... $ 997,899 $ 684,832
Accounts payable and accrued expenses ...... 634,606 508,257
Due to affiliates .......................... 311,888 1,152,658
----------- -----------
1,944,393 2,345,747
----------- -----------
Commitments and contingencies
PARTNERS' EQUITY:
Limited partners' equity (371,766
units issued and outstanding) ........... 52,423,189 51,334,121
General partners' equity ................... 2,760,116 2,701,822
----------- -----------
55,183,305 54,035,943
----------- -----------
$57,127,698 $56,381,690
=========== ===========
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
STATEMENTS OF OPERATIONS
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Rental Revenue ........................ $3,544,391 $2,121,568 $5,586,244 $4,109,067
---------- ---------- ---------- ----------
Costs and Expenses:
Operating expenses ............... 489,352 508,567 970,113 972,913
Depreciation and amortization .... 420,100 425,729 840,200 851,458
Partnership asset management fee . 220,101 220,101 440,202 440,202
Administrative expenses .......... 204,949 116,954 413,716 231,799
Property management fee .......... 69,816 59,391 126,071 108,131
---------- ---------- ---------- ----------
1,404,318 1,330,742 2,790,302 2,604,503
---------- ---------- ---------- ----------
Income before interest and other income 2,140,073 790,826 2,795,942 1,504,564
Interest income .................. 71,773 30,299 133,647 67,197
Other income ..................... 7,415 17,470 13,015 25,020
---------- ---------- ---------- ----------
Net income ............................ $2,219,261 $ 838,595 $2,942,604 $1,596,781
========== ========== ========== ==========
Net income attributable to:
Limited partners ................. $2,108,298 $ 796,665 $2,795,474 $1,516,942
General partners ................. 110,963 41,930 147,130 79,839
---------- ---------- ---------- ----------
Net income ............................ $2,219,261 $ 838,595 $2,942,604 $1,596,781
========== ========== ========== ==========
Net income per unit of limited part-
nership interest (371,766 units
outstanding) ..................... $ 5.67 $ 2.14 $ 7.52 $ 4.08
========== ========== ========== ==========
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
STATEMENT OF PARTNERS' EQUITY
General Limited
Partners' Partners'
Equity Equity Total
------------ ------------ ------------
<S> <C> <C> <C>
Balance, January 1, 1997 ............... $ 2,701,822 $ 51,334,121 $ 54,035,943
Net income for the six months
ended June 30, 1997 .................... 147,130 2,795,474 2,942,604
Distributions as a return of capital for
the six months ended June 30, 1997
($4.59 per limited partnership unit) ... (88,836) (1,706,406) (1,795,242)
------------ ------------ ------------
Balance, June 30, 1997 ................. $ 2,760,116 $ 52,423,189 $ 55,183,305
============ ============ ============
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
STATEMENTS OF CASH FLOWS
For the Six Months Ended
June 30,
----------------------------
1997 1996
----------- -----------
<S> <C> <C>
Cash Flows From Operating Activities:
Net income .................................. $ 2,942,604 $ 1,596,781
Adjustments to reconcile net income
To net cash provided by operating activities:
Depreciation and amortization ........... 840,200 851,458
Straight line adjustment for stepped
lease rentals ......................... 24,418 18,892
Changes in assets and liabilities:
Accounts payable and accrued expenses ... 126,349 (269,826)
Receivables ............................. (61,998) (36,721)
Due to affiliates ....................... (840,770) (3,195)
Other assets ............................ (51,847) (137,244)
----------- -----------
Net cash provided by operating activities ... 2,978,956 2,020,145
----------- -----------
Cash Flows From Investing Activities:
Improvements to real estate ................. (1,479) (80,332)
----------- -----------
Cash Flows From Financing Activities:
Distributions to partners ................... (1,482,175) (1,369,664)
----------- -----------
Increase in Cash and Cash Equivalents ............ 1,495,302 570,149
Cash and Cash Equivalents, Beginning of Year ..... 5,353,731 3,898,548
----------- -----------
Cash and Cash Equivalents, End of Quarter ........ $ 6,849,033 $ 4,468,697
=========== ===========
See notes to financial statements
</TABLE>
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
NOTES TO FINANCIAL STATEMENTS
l. GENERAL
The accompanying financial statements, notes and discussions should be read in
conjunction with the financial statements, related notes and discussions
contained in the Partnership's annual report on Form l0-K/A for the year ended
December 3l, l996.
The financial information contained herein is unaudited; however, in the opinion
of management, all adjustments (consisting only of normal recurring adjustments)
necessary for a fair presentation of such financial information have been
included.
2. SIGNIFICANT ACCOUNTING POLICIES
Impairment of Assets
The Partnership evaluates the recoverability of the net carrying value of its
real estate and related assets at least annually, and more often if
circumstances dictate. If this review indicates that the carrying value of a
property may not be recoverable, the Partnership estimates the future cash flows
expected to result from the use of the property and its eventual disposition,
generally over a five-year holding period. In performing this review, management
takes into account, among other things, the existing occupancy, the expected
leasing prospects of the property and the economic situation in the region where
the property is located.
If the sum of the expected future cash flows, undiscounted, is less than the
carrying amount of the property, the Partnership recognizes an impairment loss,
and reduces the carrying amount of the asset to its estimated fair value. Fair
value is the amount at which the asset could be bought or sold in a current
transaction between willing parties, that is, other than in a forced or
liquidation sale. Management estimates fair value using discounted cash flows or
market comparables, as most appropriate for each property. Independent certified
appraisers are utilized to assist management, when warranted.
Impairment write-downs recorded by the Partnership do not affect the tax basis
of the assets and are not included in the determination of taxable income or
loss.
Because the cash flows used to evaluate the recoverability of the assets and
their fair values are based upon projections of future economic events, such as
property occupancy rates, rental rates, operating cost inflation and market
capitalization rates, the amounts ultimately realized at disposition may differ
materially from the net carrying values at the balance sheet dates. The cash
flows and market comparables used in this process are based on good faith
estimates and assumptions developed by management. Unanticipated events and
circumstances may occur and some assumptions may not materialize; therefore,
actual results may vary materially from the estimates. The Partnership may in
the future provide additional write-downs, which could be material, in
subsequent years if real estate markets or local economic conditions change.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
NOTES TO FINANCIAL STATEMENTS
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Recently Issued Accounting Pronouncement
The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 128, "Earnings per Share" in February, 1997. This
pronouncement establishes standards for computing and presenting earnings per
share, and is effective for the Partnership's 1997 year-end financial
statements. The Partnership's management has determined that this standard will
have no impact on the Partnership's computation or presentation of net income
per unit of limited partnership interest.
Certain reclassifications were made to the prior year financial statements in
order to conform them to the current period presentation.
Results of operations for the six months ended June 30, 1997 are not necessarily
indicative of the results to be expected for the entire year.
3. CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES
The Managing General Partner of the Partnership, Resources High Equity, Inc., is
a wholly-owned subsidiary of Presidio Capital Corp. ("Presidio" - See Part II,
Item 5, Other Events. Presidio AGP Corp., which is a wholly-owned subsidiary of
Presidio, is the Associate General Partner (together with the Managing General
Partner, the "General Partners"). The General Partners and affiliates of the
General Partners are also engaged in businesses related to the acquisition and
operation of real estate. Presidio is also the parent of other corporations that
are or may in the future be engaged in businesses that may be in competition
with the Partnership. Accordingly, conflicts of interest may arise between the
Partnership and such other businesses. Wexford Management LLC ("Wexford") has
been engaged to perform administrative services to Presidio and its direct and
indirect subsidiaries as well as the Partnership. During the quarter ended June
30, 1997, reimbursable expenses to Wexford by the Partnership amounted to
$22,350. Wexford is engaged to perform similar services for other similar
entities that may be in competition with the Partnership.
The Partnership has a property management services agreement with Resources
Supervisory Management Corp. ("Resources Supervisory"), an affiliate of the
Managing General Partner, to perform certain functions relating to the
management of the properties of the Partnership. A portion of the property
management fees are paid to unaffiliated management companies which perform
certain management functions for certain properties. For the quarters ended June
30, 1997 and 1996, Resources Supervisory was entitled to receive $69,816 and
$59,391, respectively, of which $28,029 and $31,098 was paid to unaffiliated
management companies, respectively.
For the administration of the Partnership, the Managing General Partner is
entitled to receive reimbursement of expenses of a maximum of $200,000 per year
(exclusive of the administrative expenses paid to Wexford). For each of the
quarters ended June 30, 1997 and 1996, the Managing General Partner was entitled
to receive $50,000.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
NOTES TO FINANCIAL STATEMENTS
3. CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
For managing the affairs of the Partnership, the Managing General Partner is
entitled to receive an annual partnership asset management fee equal to 1.05% of
the amount of original gross proceeds paid or allocable to the acquisition of
property by the Partnership. For each of the quarters ended June 30, 1997 and
1996, the Managing General Partner was entitled to receive $220,101.
The General Partners are allocated 5% of the net income of the Partnership,
which amounted to $110,963 and $41,930 for the quarters ended June 30, 1997 and
1996, respectively. They are also entitled to receive 5% of distributions, which
amounted to $49,896 and $34,241 for the quarters ended June 30, 1997 and 1996,
respectively.
During the liquidation stage of the Partnership, the Managing General Partner or
an affiliate may be entitled to receive certain fees, which are subordinated to
the limited partners receiving their original invested capital and certain
specified minimum returns on their investment.
From July 1996 through July 1997, Millenium Funding IV Corp., a wholly owned
indirect subsidiary of Presidio, purchased 5,241 units of the Partnership from
various limited partners. These units represent less than 1.5% of the
outstanding limited partnership units of the Partnership.
4. REAL ESTATE
The following table is a summary of the Partnership's real estate as of:
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
------------ ------------
<S> <C> <C>
Land ................................... $ 8,040,238 $ 8,040,238
Buildings and improvements ............. 53,225,569 53,224,091
------------ ------------
61,265,807 61,264,329
Less: Accumulated depreciation ......... (12,461,777) (11,697,525)
------------ ------------
$ 48,804,030 $ 49,566,804
============ ============
</TABLE>
No write-downs were recorded for the six months ended June 30, 1997 or 1996.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
NOTES TO FINANCIAL STATEMENTS
5. DISTRIBUTIONS PAYABLE
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
-------- --------
<S> <C> <C>
Limited partners ($2.55 and $1.75 per unit) ...... $948,003 $650,591
General partners ................................. 49,896 34,241
-------- --------
$997,899 $684,832
======== ========
</TABLE>
Such distributions were paid in the quarters subsequent to June 30, 1997 and
December 31, 1996, respectively.
6. DUE TO AFFILIATES
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
---------- ----------
<S> <C> <C>
Partnership asset management fee .................... $ 220,101 $ 220,101
Settlement and ligitation cost reimbursement (Note 7) -- 824,511
Property management fee ............................. 41,787 58,046
Non-accountable expense reimbursement ............... 50,000 50,000
---------- ----------
$ 311,888 $1,152,658
========== ==========
</TABLE>
Such amounts were paid in the quarters subsequent to June 30, 1997 and December
31, 1996, respectively.
7. COMMITMENTS AND CONTINGENCIES
On or about May 11, 1993 High Equity partners L.P. - Series 86 ("HEP-86"), an
affiliated partnership, was advised of the existence of an action (the
"California Action') in which a complaint (the "HEP Complaint") was filed in the
Superior Court for the State of California for the County of Los Angeles (the
"Court") on behalf of a purported class consisting of all of the purchasers of
limited partnership interests in HEP-86. On April 7, 1994 the plaintiffs were
granted leave to file an amended complaint (the "Amended Complaint").
On November 30, 1995, after the Court preliminarily approved a settlement of the
California Action but ultimately declined to grant final approval and after the
Court granted motions to intervene the original and Intervening Plaintiffs filed
a Consolidated Class and Derivative Action Complaint (the "Consolidated
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
NOTES TO FINANCIAL STATEMENTS
7. COMMITMENTS AND CONTINGENCIES (CONTINUED)
Complaint") against the Administrative and Investment General Partners of
HEP-86, the managing general partner of HEP-85, the managing general partner of
the Partnership and the indirect corporate parent of the General Partners. The
Consolidated Complaint alleges various state law class and derivative claims,
including claims for breach of fiduciary duties; breach of contract; unfair and
fraudulent business practices under California Bus. & Prof. Code Sec. 17200;
negligence; dissolution, accounting and receivership; fraud; and negligent
misrepresentation. The Consolidated Complaint alleges, among other things, that
the general partners caused a waste of HEP Partnership assets by collecting
management fees in lieu of pursuing a strategy to maximize the value of the
investments owned by the limited partners; that the general partners breached
their duty of loyalty and due care to the limited partners by expropriating
management fees from the partnerships without trying to run the HEP Partnerships
for the purposes for which they are intended; that the general partners are
acting improperly to enrich themselves in their position of control over the HEP
Partnerships and that their actions prevent non-affiliated entities from making
and completing tender offers to purchase HEP Partnership Units; that by refusing
to seek the sale of the HEP Partnerships' properties, the general partners have
diminished the value of the limited partners' equity in the HEP Partnerships;
that the general partners have taken a heavily overvalued partnership asset
management fee; and that limited partnership units were sold and marketed
through the use of false and misleading statements.
On February 24, 1997, after the Court again preliminarily approved a settlement
of the California Action but again ultimately declined to grant final approval,
the Court recused itself from considering a motion to intervene and to file a
new complaint in intervention by two of the objectors to the Revised Settlement,
granted the request of one plaintiffs' law firm to withdraw as class counsel and
scheduled future hearings on various matters.
Thereafter, the Intervening Plaintiffs filed and then revised an Amended
Consolidated Class Action and Derivative Action Complaint (the Second Amended
Consolidated Complaint) which asserts substantially the same claims as the
Consolidated Complaint, eliminates certain legal infirmities from that
Consolidated Complaint, and presents more detailed factual allegations. The
General Partners believe that the Second Amended Consolidated Complaint
continues to be subject to challenge on legal grounds and have filed demurrers
and a motion to strike. These matters likely will be heard and determined by the
court in early September 1997.
The Limited Partnership Agreement provides for indemnification of the General
Partners and their affiliates in certain circumstances. The Partnership has
agreed to reimburse the General Partners for their actual costs incurred in
defending this litigation and the costs of preparing settlement materials.
Through December 31, 1996, the General Partners had billed the Partnership a
total of $824,511 for these costs which was paid in February 1997.
The General Partners believe that each of the claims asserted in the
Consolidated Complaint are meritless and intend to continue to vigorously defend
the California Action. It is impossible at this time to predict what the defense
of the California Action will cost, the Partnership's financial exposure as a
result of the indemnification agreement discussed above, and whether the costs
of defending could adversely affect the Managing General Partner's ability to
perform its obligations to the Partnership.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Working capital reserves are temporarily invested in short-term instruments and
together with operating cash flow are expected to be sufficient to fund
anticipated capital improvements to the Partnership's properties. As of June 30,
1997, total working capital reserves amounted to approximately $3,979,000. The
Partnership intends to distribute to its partners less than all of its future
cash flow from operations in order to assure adequate working capital reserves
for capital improvements and capitalized lease procurement costs.
During the six months ended June 30, 1997, cash and cash equivalents increased
$1,495,302 as a result of cash flows from operations in excess of capital
expenditures and distributions to partners. The Partnership's primary source of
funds is cash flow from the operation of its properties, principally rents
received from tenants, which amounted to $2,978,956 for the six months ended
June 30, 1997. The Partnership used $1,479 for capital expenditures related to
capital and tenant improvements to the properties and $1,482,175 for
distributions to partners for the six months ended June 30, 1997.
The Partnership expects to continue to utilize a portion of its cash flow from
operations and its reserves to pay for various capital and tenant improvements
to the properties and leasing commissions. Capital and tenant improvements and
leasing commissions may in the future exceed the Partnership's cash flow from
operations. In that event, the Partnership would utilize the remaining working
capital reserves or sell one or more properties.
RESULTS OF OPERATIONS
The Partnership experienced an increase in net income for the six and three
months ended June 30, 1997 compared to the same periods in 1996 primarily due to
an increase in rental revenues during the second quarter of 1997, partially
offset by an increase in costs and expenses during 1997.
Rental revenue increased during both the six and three months ended June 30,
1997 as compared to the same periods in the prior year primarily due to
approximately $1.5 million received in April, 1997 pursuant to the bankruptcy
settlement of Handy Andy, the sole tenant at Melrose II.
Costs and expenses increased for the six and three months ended June 30, 1997
compared to the same periods in 1996. Administrative expenses increased for both
the six and three months ended June 30, 1997 compared to the same periods in
1996 due to higher legal and accounting fees related to ongoing litigation and
the HEP settlement. Property management fees increased during the six and three
months ended June 30, 1997 due to the increase in revenues, as previously
discussed. Operating expenses decreased slightly for the six and three months
ended June 30, 1997 compared to the same periods in 1996. Bad debt expenses and
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
professional fees were lower at Sunrise during 1997 due to the bankruptcy filing
by a tenant during the first half of 1996, which precipitated the write-off of
receivables from the tenant and the retention of outside professionals. These
decreases were partially offset by higher repair and maintenance costs at
Sunrise due to insurance proceeds were received in 1996, offsetting previously
incurred costs.
Interest income increased due to higher cash balances during the six and three
months ended June 30, 1997 as compared to the same periods in 1996. Other income
decreased during the six and three months ended June 30, 1997 compared to 1996
due to fewer investor transfers.
Inflation is not expected to have a material impact on the Partnership's
operations or financial position.
Legal Proceedings
The Partnership is a party to certain litigation. See Note 7 to financial
statements for a description thereof.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30,1997
PART II. OTHER INFORMATION
Item 1 - Legal Proceedings
(a) See Management's Discussion and Analysis of Financial
Condition and Results of Operations and Notes to Financial
Statements - Note 7 which is herein incorporated by reference.
Item 5 - Other Events
On July 25, 1997, Weford Management LLC ("Wexford"), the administrator
for Presidio Capital Corp. ("Presidio"), the parent company of
Resources High Equity, Inc. and Presidio AGP Corp., the Managing and
Associate General Parnters, respectively, of High Equity Partners L.P.
- Series 88, (the "Partnership"), received notive from Presidio Holding
Company, LLC, which stated that it was the holder of 63% of the
outstanding Class A common shares of Presidio, and that it was seeking
to remove the three current Class A directors and replace them with
Edward Scheetz, David Hamamoto and David King effective as of 12:00
p.m. on September 2, 1997. There exists substantial doubt as to the
effectiveness of such notice. On August 15, 1997, Presidio applied to
the Judge of the High Court in the British Virgin Islands for a
declaration that the written resolution of Presidio Holding LLC dated
July 25, 1997 was invalid and of no effect insofar as it purports to be
a written resolution of the Class A Members of Presidio.
As of August 18, 1997, there have been no changes in the composition of
the officers or directors of the general partners. In addition, the
administrative services agreement with Wexford remains in effect and is
scheduled to terminate November 1997.
Item 6 - Exhibits and Reports on Form 8K
(a) Exhibits: There were no exhibits filed.
(b) Reports on Form 8K: None
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - JUNE 30, 1997
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.
High Equity Partners L.P. - Series 88
By: Resources High Equity, Inc.
Managing General Partner
Dated: August 18, 1997 By: /S/Joseph M. Jacobs
-------------------
Joseph M. Jacobs
President
(Duly Authorized Officer)
Dated: August 18, 1997 By: /S/Jay L. Maymudes
------------------
Jay L. Maymudes
Vice President, Secretary
and Treasurer
(Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary information extracted from the financial
statements of the June 30, 1997 Form 10-Q of High Equity Partners
L.P.-Series 88 and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 6,849,033
<SECURITIES> 0
<RECEIVABLES> 151,072
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 57,127,698
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 55,183,305
<TOTAL-LIABILITY-AND-EQUITY> 57,127,698
<SALES> 0
<TOTAL-REVENUES> 5,586,244
<CGS> 0
<TOTAL-COSTS> 970,113
<OTHER-EXPENSES> 1,820,189
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,942,604
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,942,604
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,942,604
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
