================================================================================
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 March 31, 1998
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 - MARCH 31, 1998
INDEX
Part I. Financial Information:
Balance Sheets--March 31, 1998 and December 31, 1997
Statements of Operations--Three Months Ended March 31,
1998 and l997
Statement of Partners' Equity--Three Months Ended
March 31, 1998
Statements of Cash Flows-- Three Months Ended
March 31, 1998 and 1997
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 - MARCH 31, 1998
BALANCE SHEETS
March 31, December 31,
1998 1997
------------ -----------
<S> <C> <C>
ASSETS
Real estate - net........................... $48,028,670 $48,282,393
Cash and cash equivalents .................. 6,691,507 6,540,252
Other assets ............................... 1,227,193 1,280,167
Receivables ................................ 285,995 194,041
----------- -----------
$56,233,365 $56,296,853
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Distributions payable ...................... $ 997,899 $ 997,899
Accounts payable and accrued expenses ...... 661,019 761,559
Due to affiliates .......................... 511,351 584,780
----------- -----------
2,170,269 2,344,238
----------- -----------
Commitments and contingencies
PARTNERS' EQUITY:
Limited partners' equity (371,766
units issued and outstanding) ........... 51,359,920 51,254,962
General partners' equity ................... 2,703,176 2,697,653
----------- -----------
54,063,096 53,952,615
----------- -----------
$56,233,365 $56,296,853
=========== ===========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
STATEMENTS OF OPERATIONS
For the Three Months
Ended March 31,
---------------------------
1998 1997
---------- ----------
<S> <C> <C>
Rental Revenue ............................... $2,205,607 $2,041,853
---------- ----------
Costs and Expenses:
Operating expenses ...................... 162,679 480,761
Depreciation and amortization ........... 392,683 420,100
Partnership asset management fee ........ 220,101 220,101
Administrative expenses ................. 335,754 208,767
Property management fee ................. 60,828 56,255
---------- ----------
1,172,045 1,385,984
---------- ----------
Income before interest and other income ...... 1,033,562 655,869
Interest income ......................... 73,968 61,874
Other income ............................ 850 5,600
---------- ----------
Net income ................................... $1,108,380 $ 723,343
========== ==========
Net income attributable to:
Limited partners ........................ $1,052,961 $ 687,176
General partners ........................ 55,419 36,167
---------- ----------
Net income ................................... $1,108,380 $ 723,343
========== ==========
Net income per unit of limited part-
nership interest (371,766 units
outstanding) ............................ $ 2.83 $ 1.85
========== ==========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
STATEMENT OF PARTNERS' EQUITY
General Limited
Partners' Partners'
Equity Equity Total
----------- ----------- -----------
<S> <C> <C> <C>
Balance, January 1, 1998 ............... $ 2,697,653 $51,254,962 $53,952,615
Net income for the three months
ended March 31, 1998 ................... 55,419 1,052,961 1,108,380
Distributions as a return of capital for
the three months ended March 31, 1998
($2.55 per limited partnership unit) ... (49,896) (948,003) (997,899)
----------- ----------- -----------
Balance, March 31, 1998 ................ $ 2,703,176 $51,359,920 $54,063,096
=========== =========== ===========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
STATEMENTS OF CASH FLOWS
For the Three Months
Ended March 31,
----------------------------
1998 1997
----------- -----------
<S> <C> <C>
Cash Flows From Operating Activities:
Net income .................................. $ 1,108,380 $ 723,343
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization ........... 392,683 420,100
Straight line adjustment for stepped
lease rentals ......................... 26,103 12,208
Changes in assets and liabilities:
Accounts payable and accrued expenses ... (100,540) (215,042)
Receivables ............................. (91,954) (11,484)
Due to affiliates ....................... (73,429) (855,055)
Other assets ............................ (16,007) (22,463)
----------- -----------
Net cash provided by operating activities ... 1,245,236 51,607
----------- -----------
Cash Flows From Investing Activities:
Improvements to real estate ................. (96,082) (811)
----------- -----------
Cash Flows From Financing Activities:
Distributions to partners ................... (997,899) (684,832)
----------- -----------
Increase (Decrease) in Cash and Cash Equivalents . 151,255 (634,036)
Cash and Cash Equivalents, Beginning of Year ..... 6,540,252 5,353,731
----------- -----------
Cash and Cash Equivalents, End of Quarter ........ $ 6,691,507 $ 4,719,695
=========== ===========
</TABLE>
See notes to financial statements
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
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 for the year ended
December 3l, l997.
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 - MARCH 31, 1998
NOTES TO FINANCIAL STATEMENTS
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
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 three months ended March 31, 1998 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.
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
March 31, 1998 and 1997, Resources Supervisory was entitled to receive $60,828
and $56,255, respectively, of which $34,578 and $28,752 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.
For each of the quarters ended March 31, 1998 and 1997, 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 March 31, 1998 and
1997, 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 $55,419 and $36,167 for the quarters ended March 31, 1998 and
1997, respectively. They are also entitled to receive 5% of distributions, which
amounted to $49,896 and $38,940 for the quarters ended March 31, 1998 and 1997,
respectively.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
NOTES TO FINANCIAL STATEMENTS
3. CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
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. All fees received by the General
Partners are subject to certain limitations as set forth in the Partnership
Agreement.
From July 1996 through May 1, 1998, Millenium Funding IV Corp., a wholly owned
indirect subsidiary of Presidio, purchased 47,270 units of the Partnership from
various limited partners, which represent approximately 12.7% of the outstanding
limited partnership units of the Partnership.
Pursuant to an agreement dated as of March 6, 1998 among Presidio, American Real
Estate Holding L.P. and Olympia Investors L.P. (the "Purchaser"), on March 12,
1998, the Purchaser commenced a tender offer to purchase up to 40% of the
outstanding units of limited partnership interest at a purchase price of $117.00
per unit.
4. REAL ESTATE
The following table is a summary of the Partnership's real estate as of:
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
------------ -------------
<S> <C> <C>
Land ......................... $ 8,040,238 $ 8,040,238
Buildings and improvements ... 53,434,981 53,338,898
------------ ------------
61,475,219 61,379,136
Less: Accumulated depreciation (13,446,549) (13,096,743)
------------ ------------
$ 48,028,670 $ 48,282,393
============ ============
</TABLE>
No write-downs for impairment were recorded for the three months ended March 31,
1998 or 1997.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
NOTES TO FINANCIAL STATEMENTS
5. DISTRIBUTIONS PAYABLE
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
--------- -----------
<S> <C> <C>
Limited partners ($2.55 per unit) $948,003 $948,003
General partners ................ 49,896 49,896
-------- --------
$997,899 $997,899
======== ========
</TABLE>
Such distributions were paid in the quarters subsequent to March 31, 1998 and
December 31, 1997, respectively.
6. DUE TO AFFILIATES
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
-------- --------
<S> <C> <C>
Partnership asset management fee ........................ $220,101 $220,101
Reorganization and ligitation cost reimbursement (Note 7) 215,000 215,000
Property management fee ................................ 26,250 99,679
Non-accountable expense reimbursement .................. 50,000 50,000
-------- --------
$511,351 $584,780
======== ========
</TABLE>
Such amounts were paid in the quarters subsequent to March 31, 1998 and December
31, 1997, 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 the Partnership. On April 7, 1994 the plaintiffs were
granted leave to file an amended complaint (the "Amended Complaint") on
behalf of a class consisting of all the purchasers of limited
partnership interest in HEP-86, the Partnership, and Integrated
Resources High Equity Partners, Series 85 ("HEP-85"), another
affiliated partnership.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
NOTES TO FINANCIAL STATEMENTS
7. COMMITMENTS AND CONTINGENCIES (CONTINUED)
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
managing general partner of HEP-85 and the Partnership and the
Investment General Partner of HEP-86; the Administrative General
Partner of HEP-86 (the "General Partners"); a subsidiary of the
indirect corporate parent of the General Partners; 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 the 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 acted
improperly to enrich themselves in their position of control over the
HEP partnerships and that their actions prevented non-affiliated
entities from making and completing tender offers to purchase units in
the HEP partnership; that by refusing to seek the sale of the HEP
partnerships' properties, the General Partners diminished the value of
the limited partners' equity in the HEP partnerships; that the General
Partners took a heavily overvalued partnership asset management fee;
and that limited partnership units were sold and marketed through the
use of false and misleading statements.
The Court entered an order on January 14, 1997 rejecting the settlement
and concluding that there had not been an adequate showing that the
settlement was fair and reasonable. On February 24, 1997, the Court
granted the request of one plaintiffs' law firm to withdraw as class
counsel. Thereafter, in June 1997, the plaintiffs again amended their
complaint (the "Second Amended Complaint"). The Second Amended
Complaint asserts substantially the same claims as the Consolidated
Complaint, except that it no longer contains causes of action for
fraud, for negligent misrepresentation, or for negligence. The
defendants served answers denying the allegations and asserting
numerous affirmative defenses. In February 1998, the Court certified
three plaintiff classes consisting of the current unit holders in each
of the three HEP partnerships. On March 11, 1998, the Court stayed the
California Action temporarily to permit the parties to engage in
renewed settlement discussions.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
NOTES TO FINANCIAL STATEMENTS
7. COMMITMENTS AND CONTINGENCIES (CONTINUED)
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 March 31, 1998, the General
Partners had billed the Partnership a total of $1,039,511 for these
costs, of which $824,511 was paid.
The General Partners believe that each of the claims asserted in the
Second Amended 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.
On February 6,1998, Everest Investors 8, LLC ("Everest") commenced an
action in the Superior Court of the State of California for the County
of Los Angeles (Case No. BC 185554), against, among others, the HEP
partnerships, Resources Pension Shares 5 LP (an affiliated
partnership), the general partners of each of the partnerships, and DCC
Securities Corp. In the action, Everest alleged, among other things,
that the partnerships and the general partners breached the provisions
of the applicable partnership agreements by refusing to recognize
transfers to Everest of limited partnership units purportedly acquired
pursuant to tender offers that had been made by Everest (the "Everest
Tender Units"). Everest sought injunctive relief (a) directing the
recognition of transfers to Everest of the Everest Tender Units and the
admission of Everest as a limited partner with respect to the Everest
Tender Units and (b) enjoining the transfer of the Everest Tender Units
to any either party. Everest seeks damages, including punitive damages,
for alleged breach of contract, defamation and intentional interference
with contractual relations. Everest's motion for a temporary
restraining order was denied on February 6, 1998. A hearing on
Everest's application for a preliminary injunction had been scheduled
for February 26, however, on February 20, 1998, Everest asked the Court
to take its application off calendar. The defendants served answers
denying the allegations and asserting numerous affirmative defenses.
Merits discovery has commenced. The Partnerships and the General
Partners believe that Everest claims are without merit and intend to
vigorously contest the action.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
NOTES TO FINANCIAL STATEMENTS
7. COMMITMENTS AND CONTINGENCIES (CONTINUED)
On March 27, 1998, Everest commenced an action in the United States
District Court for the Central District of California against, among
others, the general partners of the HEP Partnerships. In the action,
Everest alleged, among other things, various violations of the Williams
Act Section 14(d) of the Securities Exchange Act of 1934 in connection
with the general partners' refusal to recognize transfers to Everest of
limited partnership units purportedly acquired pursuant to the Everest
tender offers and the letters sent by the general partners to the
limited partners advising them of the general partners' determination
that the Everest tender offers violated applicable securities laws. The
general partners believe that Everest's claim are without merit and
intend to vigorously contest the action.
On March 30, 1998, the Partnership commenced an action in the United
States District Court for the Southern District of New York against
Everest to obtain injunctive and declaratory relief with respect to a
tender offer for limited partnership units in the Partnership that was
commenced by Everest on or about March 18, 1998. In the action, the
Partnership alleges that in conducting that tender offer, Everest
violated sections 14(d) and 14(e) of the Securities Exchange Act of
1934 (the Williams Act) and the rules and regulation promulgated
thereunder. Everest has not yet served any response to the
Partnership's complaint in the action.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
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 March
31, 1998, 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 three months ended March 31, 1998, cash and cash equivalents
increased $151,255 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 $1,245,236 for the three months
ended March 31, 1998. The Partnership used $96,082 for capital expenditures
related to capital and tenant improvements to the properties and $997,899 for
distributions to partners for the three months ended March 31, 1998.
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, reduce distributions, or sell one or more properties. Except
as discussed above, management is not aware of any other 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 three months ended
March 31, 1998 compared to the same period in 1997 primarily due to an increase
in rental revenues and a decrease in costs and expenses during 1997.
Rental revenue increased during the three months ended March 31, 1998 as
compared to the same period in the prior year, primarily due to the higher
common area maintenance reimbursements at Sunrise and increased occupancy at
Melrose II.
Costs and expenses decreased for the three months ended March 31, 1998 compared
to the same period in 1997. Operating expenses decreased for the three months
ended March 31, 1998 compared to the same period in 1997 due primarily to lower
repair and maintenance costs at Sunrise due to the receipt of insurance proceeds
in 1998, offsetting previously incurred costs.
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Administrative expenses increased for the three months ended March 31, 1998
compared to the same period in 1997 due to higher legal and accounting fees
related to ongoing litigation and the HEP settlement. Property management fees
increased during the three months ended March 31, 1998 due to the increase in
revenues, as previously discussed.
Interest income increased due to higher cash balances during the three months
ended March 31, 1998 as compared to the same period in 1997. Other income
decreased during the three months ended March 31, 1998 compared to 1997 due to
fewer ownership 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 - MARCH 31, 1998
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:
None
<PAGE>
HIGH EQUITY PARTNERS L.P. - SERIES 88 - FORM 10-Q - MARCH 31, 1998
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: May 12, 1998 By: /S/ Richard Sabella
--------------------
Richard Sabella
President
(Duly Authorized Officer)
Dated: May 12, 1998 By: /S/ Lawrence Schachter
-----------------------
Lawrence Schachter
Senior Vice President and
Chief Financial Officer
(Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary information extracted from the financial
statements of the March 31, 1998 Form 10-Q of High Equity Partners L.P.-Series
88 and is qualified in its entirety by reference to such financial statemens.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 6,691,507
<SECURITIES> 0
<RECEIVABLES> 285,995
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 56,233,365
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 54,063,096
<TOTAL-LIABILITY-AND-EQUITY> 56,233,365
<SALES> 0
<TOTAL-REVENUES> 2,205,607
<CGS> 0
<TOTAL-COSTS> 162,679
<OTHER-EXPENSES> 1,009,366
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,108,380
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,108,380
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,108,380
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
