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 September 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) 862-7444
(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 - SEPTEMBER 30,1997
INDEX
Part I. Financial Information:
Balance Sheets--September 30, 1997 and December 31, 1996
Statements of Operations--Three and Nine Months Ended September 30,
1997 and l996
Statement of Partners' Equity--Nine Months Ended September 30, 1997
Statements of Cash Flows-- Nine Months Ended September 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 - SEPTEMBER 30,1997
BALANCE SHEETS
September 30, December 31,
1997 1996
----------- -----------
<S> <C> <C>
ASSETS
Real estate ................................ $48,558,121 $49,566,804
Cash and cash equivalents .................. 6,720,169 5,353,731
Other assets ............................... 1,290,180 1,372,081
Receivables ................................ 379,097 89,074
----------- -----------
$56,947,567 $56,381,690
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Distributions payable ...................... $ 998,874 $ 684,832
Accounts payable and accrued expenses ...... 684,999 508,257
Due to affiliates .......................... 298,089 1,152,658
----------- -----------
1,981,962 2,345,747
----------- -----------
Commitments and contingencies
PARTNERS' EQUITY:
Limited partners' equity (371,766
units issued and outstanding) ......... 52,217,301 51,334,121
General partners' equity ................... 2,748,304 2,701,822
----------- -----------
54,965,605 54,035,943
----------- -----------
$56,947,567 $56,381,690
=========== ===========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - SEPTEMBER 30,1997
STATEMENTS OF OPERATIONS
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
-------------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Rental Revenue .......................... $2,046,917 $1,755,457 $7,633,161 $5,864,524
---------- ---------- ---------- ----------
Costs and Expenses:
Operating expenses ............. 501,045 419,172 1,471,158 1,392,085
Depreciation and amortization .. 455,100 425,729 1,295,300 1,277,187
Partnership asset management fee 220,101 220,101 660,303 660,303
Administrative expenses ........ 132,979 131,848 546,695 363,647
Property management fee ........ 55,863 48,941 181,934 157,072
---------- ---------- ---------- ----------
1,365,088 1,245,791 4,155,390 3,850,294
---------- ---------- ---------- ----------
Income before interest and other income . 681,829 509,666 3,477,771 2,014,230
Interest income ................ 85,215 48,252 218,862 115,449
Other income ................... 14,130 22,891 27,145 47,911
---------- ---------- ---------- ----------
Net income .............................. $ 781,174 $ 580,809 $3,723,778 $2,177,590
========== ========== ========== ==========
Net income attributable to:
Limited partners ............... $ 742,115 $ 551,769 $3,537,589 $2,068,710
General partners ............... 39,059 29,040 186,189 108,880
---------- ---------- ---------- ----------
Net income .............................. $ 781,174 $ 580,809 $3,723,778 $2,177,590
========== ========== ========== ==========
Net income per unit of limited part-
nership interest (371,766 units
outstanding) ................... $ 2.00 $ 1.48 $ 9.52 $ 5.56
========== ========== ========== ==========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - SEPTEMBER 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 nine months
ended September 30, 1997 ...................... 186,189 3,537,589 3,723,778
Distributions as a return of capital for
the nine months ended September 30, 1997
($7.14 per limited partnership unit) .......... (139,707) (2,654,409) (2,794,116)
------------ ------------ ------------
Balance, September 30, 1997 ................... $ 2,748,304 $ 52,217,301 $ 54,965,605
============ ============ ============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - SEPTEMBER 30,1997
STATEMENTS OF CASH FLOWS
For the Nine Months Ended
September 30,
----------------------------
1997 1996
----------- -----------
<S> <C> <C>
Cash Flows From Operating Activities:
Net income ................................... $ 3,723,778 $ 2,177,590
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization ....... 1,295,300 1,277,187
Straight line adjustment for stepped
lease rentals .................. 36,627 28,338
Changes in assets and liabilities:
Accounts payable and accrued expenses 176,742 (121,807)
Receivables ......................... (290,023) 31,891
Due to affiliates ................... (854,569) (12,730)
Other assets ........................ (68,647) (190,016)
----------- -----------
Net cash provided by operating activities .... 4,019,208 3,190,453
----------- -----------
Cash Flows From Investing Activities:
Improvements to real estate .................. (172,696) (89,826)
----------- -----------
Cash Flows From Financing Activities:
Distributions to partners .................... (2,480,074) (2,054,496)
----------- -----------
Increase in Cash and Cash Equivalents ................. 1,366,438 1,046,131
Cash and Cash Equivalents, Beginning of Year .......... 5,353,731 3,898,548
----------- -----------
Cash and Cash Equivalents, End of Quarter ............. $ 6,720,169 $ 4,944,679
=========== ===========
</TABLE>
See notes to financial statements
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - SEPTEMBER 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 - SEPTEMBER 30,1997
NOTES TO FINANCIAL STATEMENTS
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Recently Issued Accounting Pronouncements
The Financial Accounting Standards Board has recently issued several new
accounting pronouncements. Statement No. 128 "Earnings per Share" establishes
standards for computing and presenting earnings per share, and is effective for
financial statements for both interim and annual periods ending after December
15, 1997. Statement No. 129, "Disclosure of Information about Capital Structure"
establishes standards for disclosing information about an entity's capital
structure, and is effective for financial statements for periods ending after
December 15, 1997. Statement No. 130, "Reporting Comprehensive Income"
establishes standards for reporting and display of comprehensive income and its
components, and is effective for fiscal years beginning after December 15, 1997.
Statement No. 131, "Disclosures about Segments of an Enterprise and Related
Information" establishes standards for the way that public business enterprises
report information about operating segments in annual financial statements and
requires that those enterprises report selected information about operating
segments in interim financial reports issued to shareholders. It also
establishes standards for related disclosures about products and services,
geographic areas, and major customers and is effective for financial statements
for periods beginning after December 15, 1997.
Management does not believe that these new standards will have a material effect
on the Partnership's reported operating results, per unit amounts, financial
position or cash flows.
Certain reclassifications were made to the prior period financial statements in
order to conform them to the current period presentation.
Results of operations for the nine months ended September 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"). 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. Subject to the rights of the Limited Partners under the Limited
Partnership Agreement, Presidio controls the Partnership through its indirect
ownership of all the shares of the General Partners. On November 2, 1997 the
Administrative Services Agreement with Wexford Management LLC ("Wexford"), the
administrator for Presidio, expired pursuant to its terms. Pursuant to that
agreement, Wexford had authority to designate directors of the General Partners.
Effective November 3, 1997, Wexford and Presidio entered into an Administrative
Services Agreement dated as of November 3, 1997 (the "ASA"). The ASA provides
that Wexford will continue to provide consulting and administrative services to
Presidio and its affiliates for a term of six months. During the quarter ended
September 30, 1997, reimburseable expenses to Wexford by the Partnership
amounted to $25,500.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - SEPTEMBER 30,1997
NOTES TO FINANCIAL STATEMENTS
3. CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
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
September 30, 1997 and 1996, Resources Supervisory was entitled to receive
$55,863 and $48,941, respectively, of which $27,875 and $30,183 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 reimbursement of expenses paid to Wexford). For each of the
quarters ended September 30, 1997 and 1996, the Managing General Partner was
entitled to receive $50,000.
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 September 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 $39,059 and $29,040 for the quarters ended September 30, 1997
and 1996, respectively. They are also entitled to receive 5% of distributions,
which amounted to $50,871 and $34,241 for the quarters ended September 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 October 1997, Millenium Funding IV Corp., a wholly owned
indirect subsidiary of Presidio, purchased 5,952 units of the Partnership from
various limited partners. These units represent less than 1.6% of the
outstanding limited partnership units of the Partnership.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - SEPTEMBER 30,1997
NOTES TO FINANCIAL STATEMENTS
4. REAL ESTATE
The following table is a summary of the Partnership's real estate as of:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
------------ ------------
<S> <C> <C>
Land ................................... $ 8,040,238 $ 8,040,238
Buildings and improvements ............. 53,396,786 53,224,091
------------ ------------
61,437,024 61,264,329
Less: Accumulated depreciation ......... (12,878,903) (11,697,525)
------------ ------------
$ 48,558,121 $ 49,566,804
============ ============
</TABLE>
No write-downs for impairment were recorded for the nine months ended September
30, 1997 or 1996.
5. DISTRIBUTIONS PAYABLE
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
-------- --------
<S> <C> <C>
Limited partners ($2.55 and $1.75 per unit) ...... $948,003 $650,591
General partners ................................. 50,871 34,241
-------- --------
$998,874 $684,832
======== ========
</TABLE>
Such distributions were paid in the quarters subsequent to September 30, 1997
and December 31, 1996, respectively.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - SEPTEMBER 30,1997
NOTES TO FINANCIAL STATEMENTS
6. DUE TO AFFILIATES
<TABLE>
<CAPTION>
September 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 ............................. 27,988 58,046
Non-accountable expense reimbursement ............... 50,000 50,000
---------- ----------
$ 298,089 $1,152,658
========== ==========
</TABLE>
Such amounts were paid in the quarters subsequent to September 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
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 alleged 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 alleged, 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.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - SEPTEMBER 30,1997
NOTES TO FINANCIAL STATEMENTS
7. COMMITMENTS AND CONTINGENCIES (CONTINUED)
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 many of the same claims as the
Consolidated Complaint, eliminates certain legal infirmities from that
Consolidated Complaint, and presents more detailed factual allegations. In
particular, that pleading no longer asserts claims of fraud and negligent
misrepresentation. The General Partners believed that the Second Amended
Consolidated Complaint continued to be subject to challenge on legal grounds and
filed demurrers and a motion to strike. On October 7, 1997, the Court granted
substantial portions of these motions. Thereafter, the General Partners served
answers denying the allegations and asserting numerous affirmative defenses.
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 - SEPTEMBER 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
September 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 lease procurement costs.
During the nine months ended September 30, 1997, cash and cash equivalents
increased $1,366,438 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 $4,019,208 for the nine months
ended September 30, 1997. The Partnership used $172,696 for capital expenditures
related to capital and tenant improvements to the properties and $2,480,074 for
distributions to partners for the nine months ended September 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 commission, the amount of which cannot be
predicted with certainty. 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. Except as discussed herein,
management is not aware of any trends, events, commitments or uncertainties that
will have a significant impact on liquidity.
RESULTS OF OPERATIONS
The Partnership experienced an increase in net income for the nine and three
months ended September 30, 1997 compared to the same periods in 1996 primarily
due to an increase in rental revenues, partially offset by an increase in costs
and expenses during 1997.
Rental revenue increased during both the nine and three months ended September
30, 1997 as compared to the same periods in the prior year, primarily due to the
increased occupancy at Tri-Columbus. In addition, revenues increased during 1997
due to the 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 nine and three months ended September 30,
1997 compared to the same periods in 1996. Operating expenses increased for the
nine and three months ended September 30, 1997 compared to the same periods in
1996 due primarily to higher repair and maintenance costs at Sunrise due to the
receipts of insurance proceeds in 1996, offsetting previously incurred costs.
Administrative expenses increased for the nine months ended September 30, 1997
compared to the same period in 1996 due to higher legal and accounting fees
related to ongoing litigation. Property management fees increased during the
nine and three months ended September 30, 1997 due to the increase in revenues,
as previously discussed.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - SEPTEMBER 30,1997
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Interest income increased due to higher cash balances during the nine and three
months ended September 30, 1997 as compared to the same periods in 1996. Other
income decreased during the nine and three months ended September 30, 1997
compared to 1996 due to fewer ownership transfers, which result in transfer fees
received by the Partnership.
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 - SEPTEMBER 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 6 - Exhibits and Reports on Form 8-K
(a) Exhibits: There were no exhibits filed.
(b) Reports on Form 8-K:
Current report on Form 8-K dated August 7, 1997 Current report
on Form 8-K dated September 19, 1997
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88-FORM 10-Q - SEPTEMBER 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: November 14, 1997 By: /S/ Richard Sabella
--------------------
Richard Sabella
President
(Duly Authorized Officer)
Dated: November 14, 1997 By: /S/ Kevin Reardon
------------------
Kevin Reardon
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 September 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 6,720,169
<SECURITIES> 0
<RECEIVABLES> 379,097
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 56,947,567
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 54,965,605
<TOTAL-LIABILITY-AND-EQUITY> 56,947,567
<SALES> 0
<TOTAL-REVENUES> 7,633,161
<CGS> 0
<TOTAL-COSTS> 1,471,158
<OTHER-EXPENSES> 2,684,232
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,723,778
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,723,778
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,723,778
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
