<PAGE>
FORM 10-Q - MARCH 31, 2000
- --------------------------------------------------------------------------------
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, 2000
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.)
5 Cambridge Center, 9th Floor, Cambridge, MA 02142
(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-SERIES 88
FORM 10-Q - MARCH 31, 2000
INDEX
Part I. Financial Information: Page
----
Item 1. Financial Statements
Balance Sheets - March 31, 2000 and December 31, 1999.................. 1
Statements of Operations - Three Months Ended March 31, 2000
and l999 ............................................................ 2
Statement of Partners' Equity - Three Months Ended
March 31, 2000...................................................... 3
Statements of Cash Flows - Three Months Ended
March 31, 2000 and 1999.............................................. 4
Notes to Financial Statements.......................................... 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations................................ 11
Item 3. Quantitative and Qualitative Disclosures about Market Risk......... 12
Part II. Other Information:
Exhibits and Reports on Form 8-K....................................... 13
Signatures.................................................................. 14
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
BALANCE SHEETS
March 31, 2000 December 31, 1999
-------------- -----------------
ASSETS
Real estate - net $ 45,614,053 $ 45,961,310
Cash and cash equivalents 7,074,856 6,433,530
Other assets 1,621,851 1,454,764
Receivables - net 340,716 338,098
------------ ------------
$ 54,651,476 $ 54,187,702
============ ============
LIABILITIES AND PARTNERS' EQUITY
Accounts payable and accrued expenses $ 775,591 $ 883,464
Due to affiliates 221,203 448,230
----------- -----------
996,794 1,331,694
----------- -----------
Commitments and contingencies (Note 6 and 7)
PARTNERS' EQUITY:
Limited partners' equity (371,766
units issued and outstanding) 50,971,929 50,213,189
General partners' equity 2,682,753 2,642,819
---------- ----------
53,654,682 52,856,008
---------- ----------
$ 54,651,476 $ 54,187,702
============ ============
See notes to financial statements.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
STATEMENTS OF OPERATIONS
For the Three Months Ended
March 31,
-----------------------------
2000 1999
---- ----
Rental Revenue $ 2,055,166 $ 1,743,975
----------- ------------
Costs and Expenses:
Operating expenses 461,616 481,180
Depreciation and amortization 387,513 390,750
Partnership asset management fee 167,420 220,101
Administrative expenses 255,106 717,243
Property management fee 61,989 47,027
----------- ------------
1,333,644 1,856,301
----------- ------------
Income (loss) before interest and other income 721,522 (112,326)
Interest income 77,152 63,261
Other income -- 67,660
----------- ------------
Net income $ 798,674 $ 18,595
=========== ===========
Net income attributable to:
Limited partners $ 758,740 $ 17,665
General partners 39,934 930
----------- -----------
Net income $ 798,674 $ 18,595
=========== ===========
Net income per unit of limited partnership
interest (371,766 units outstanding) $ 2.04 $ 0.05
=========== ===========
See notes to financial statements.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
STATEMENT OF PARTNERS' EQUITY
General Partners' Limited Partners'
Equity Equity Total
----------- ------------ ------------
Balance, January 1, 2000 $ 2,642,819 $ 50,213,189 $ 52,856,008
Net income for the three months
ended March 31, 2000 39,934 758,740 798,674
----------- ------------ ------------
Balance, March 31, 2000 $ 2,682,753 $ 50,971,929 $ 53,654,682
=========== ============ ============
See notes to financial statements.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31,
----------------------------------------
2000 1999
----- ----
Cash Flows From Operating Activities:
Net income $ 798,674 $ 18,595
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 387,513 390,750
Straight line adjustment for stepped
lease rentals (10,524) 10,283
Changes in assets and liabilities:
Accounts payable and accrued expenses 7,872) 713,499
Receivables (2,618) (25,625)
Due to affiliates (227,027) (53,382)
Other assets (187,022) (7,937)
---------- ----------
Net cash provided by operating activities 651,124 1,046,183
---------- ----------
Cash Flows From Investing Activities:
Improvements to real estate (9,798) (21,179)
---------- ----------
Cash Flows From Financing Activities:
Distributions to partners - (997,899)
----------- -----------
Increase in Cash and Cash Equivalents 641,326 27,105
Cash and Cash Equivalents, Beginning of Year 6,433,530 6,520,698
---------- ----------
Cash and Cash Equivalents, End of Quarter $7,074,856 $6,547,803
========== ==========
See notes to financial statements.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
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, l999.
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. Results of operations for the
three months ended March 31, 2000 are not necessarily indicative of the
results to be expected for the entire year.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment in Joint Ventures
Certain properties were purchased in joint venture ownership with
affiliated partnerships that have the same, or affiliated, general
partners as the Partnership. The Partnership owns as undivided interest
and is severably liable for indebtedness it incurs in connection with
its ownership interest in those properties. Therefore, the
Partnership's financial statements present the assets, liabilities,
revenues, and expenses of the joint venture on a pro rata basis in
accordance with the Partnership's percentage of ownership.
Real Estate
Real estate is carried at cost, net of adjustments for impairment.
Repairs and maintenance are charged to expense as incurred. Replacement
and betterments are capitalized. 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.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Real Estate (continued)
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 expected 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.
3. RELATED PARTY TRANSACTIONS
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 (and affiliated with other
entities) 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 right of the limited partners under the Limited
Partnership Agreement, Presidio controls the Partnership through its
indirect ownership of the General Partners. Effective July 31, 1998,
Presidio is indirectly controlled by NorthStar Capital Investment
Corp., a Maryland corporation.
From August 28, 1997 to October 21, 1999, Presidio was party to a
management agreement with NorthStar Presidio Management Company LLC
("NorthStar Presidio"), an affiliate of NorthStar Capital Investment
Corp., pursuant to which NorthStar Presidio provided the day-to-day
management of Presidio and its direct and indirect subsidiaries and
affiliates, including the Partnership. For the three months ended March
31, 1999, reimbursable expenses incurred by NorthStar Presidio related
to the Partnership amounted to approximately $25,500. Effective October
21, 1999, Presidio entered into a Services Agreement with AP-PCC III,
L.P. (the "Agent") pursuant to which the Agent was retained to provide
Asset Management and Investor Relation Services to the Partnership and
other entities affiliated with the Partnership.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
3. RELATED PARTY TRANSACTIONS (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 March 31, 2000 and 1999, Resources Supervisory
was entitled to receive $61,989 and $47,027, respectively, of which
$58,206 and $27,488 was paid to unaffiliated management companies,
respectively, for property management services and the balance was
retained by Resources Supervisory.
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, 2000 and
1999, the Managing General Partner received $50,000.
For managing the affairs of the Partnership, the Managing General
Partner is entitled to receive an annual partnership asset management
fee. Pursuant to the amendment to the Partnership Agreement, which
became effective on August 20, 1999, the annual partnership management
fee for 1999 was reduced to $719,411. Further, the Partnership
Agreement was amended (for the year 2000 and beyond) so that the
partnership management fee will be 1.25% of the Gross Asset Value of
the Partnership, defined as the appraised value of all the assets of
the Partnership based on the most recent appraisal. For each of the
quarters ended March 31, 2000 and 1999 the Managing General Partner
earned $167,420 and $220,101, respectively.
The General Partners are allocated 5% of the net income of the
Partnership, which amounted to $39,934 and $930 for the quarters ended
March 31, 2000 and 1999, respectively. They are also entitled to
receive 5% of distributions, which amounted to $49,896 for the quarter
ended March 31, 1999.
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 March 12, 1998, Millennium Funding IV Corp., a
wholly owned indirect subsidiary of Presidio, purchased 47,270 units of
the Partnership from various limited partners.
In connection with a tender offer for units of the Partnership made on
March 12, 1998 (the "Offer") by Olympia Investors, L.P. ("Olympia"),
Olympia and Presidio entered into an agreement dated March 6, 1998 (the
"Agreement"). Subsequent to the expiration of the offer,
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Olympia announced that it had accepted for payment 14,955 units
properly tendered pursuant to the Offer. Pursuant to the Agreement,
Presidio purchased 50% of those units owned by Olympia as a result of
the Offer, or 7,478 units, for $132.26 per unit. In addition, Olympia
has the right to cause Presidio to purchase its remaining units for a
price based on procedures set forth in the agreement. Olympia purported
to exercise this right subsequent to quarter end.
Subsequent to the expiration of the tender offer described above,
Millennium Funding IV Corp. purchased an additional 12,396 limited
partnership units from August 1998 through May 1999. The total number
of units purchased by Millenium Funding IV Corp. represents
approximately 18.1% of the outstanding limited partnership units of the
Partnership.
Pursuant to the settlement of a class action lawsuite (see Note 7), an
affiliate of the General Partners, Millennium Funding IV, LLC, made a
tender offer to limited partners to acquire up to 25,034 Units
(representing approximately 6.7% of the outstanding Units) at a price
of $113.15 per Unit. The offer closed in January 2000 and all 25,034
Units were acquired in the offer. As a result of these purchases as
well as the other purchases of units by affiliates of the General
Partners, affiliates of the General Partners own 105,106 units
representing approximately 28.27% of the total outstanding units.
4. REAL ESTATE
The following table is a summary of the Partnership's real estate as
of:
March 31, 1999 December 31, 1999
-------------- -----------------
Land $ 8,040,238 $ 8,040,238
Buildings and improvements 53,894,057 53,884,258
------------ ------------
61,934,295 61,924,496
============ ============
Less: Accumulated depreciation (16,320,242) (15,963,186)
=========== ============
$ 45,614,053 $ 45,961,310
============ ============
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
5. DUE TO AFFILIATES
March 31, 2000 December 31, 1999
-------------- -----------------
Partnership asset management fee $ 167,420 $ 279,206
Property management fee 3,783 69,024
Non-accountable expense reimbursement 50,000 100,000
---------- ----------
$ 221,203 $ 448,230
========== ==========
Such amounts were paid in the subsequent quarters.
6. COMMITMENTS AND CONTINGENCIES
a) 568 Broadway Joint Venture is currently involved in litigation with a
number of present or former tenants who are in default on their lease
obligations. Several of these tenants have asserted claims or counter
claims seeking monetary damages. The plaintiffs' allegations include
but are not limited to claims for breach of contract, failure to
provide certain services, overcharging of expenses and loss of profits
and income. These suits seek total damages of in excess of $20 million
plus additional damages of an indeterminate amount. The Broadway Joint
Venture's action for rent against Solo Press was tried in 1992 and
resulted in a judgement in favor of the Broadway Joint Venture for rent
owed. The Partnership believes this will result in dismissal of the
action brought by Solo Press against the Broadway Joint Venture. Since
the facts of the other actions which involve material claims or
counterclaims are substantially similar, the Partnership believes that
the Broadway Joint Venture will prevail in those actions as well.
b) A former retail tenant of 568 Broadway (Galix Shops, Inc.) and a
related corporation which is a retail tenant of a building adjacent to
568 Broadway filed a lawsuit in the Supreme Court of The State of New
York, County of New York, against the Broadway Joint Venture which owns
568 Broadway. The action was filed on April 13, 1994. The Plaintiffs
allege that by erecting a sidewalk shed in 1991, 568 Broadway deprived
plaintiffs of light, air and visibility to their customers. The
sidewalk shed was erected, as required by local law, in connection with
the inspection and restoration of the 568 Broadway building facade,
which is also required by local law. Plaintiffs further allege that the
erection of the sidewalk shed for a continuous period of over two years
is unreasonable and unjustified and that such conduct by defendants has
deprived plaintiffs of the use and enjoyment of their property. The
suit seeks a judgement requiring removal of the sidewalk shed (since
removed) compensatory damages of $20 million and punitive damages of
$10 million. The Partnership believes that this suit is merit less and
intends to vigorously defend it.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
7. SETTLEMENT OF LAWSUIT
In April 1999, the California Superior Court approved the terms of the
settlement of a class action and derivative litigation involving the
Partnership. Under the terms of the settlement, the General Partners
agreed to take the actions described below subject to first obtaining
the consent of limited partners to amendments to the Agreement of
Limited Partnership of the Partnership summarized below. The settlement
became effective in August 1999 following approval of the amendments.
As amended, the Partnership Agreement (a) provides for a Partnership
Asset Management Fee equal to 1.25% of the Gross Asset Value of the
Partnership and a fixed 1999 Partnership Asset Management Fee of
$719,411 or $160,993 less than the amount that would have been paid for
1999 under the prior formula and (b) fixes the amount that the General
Partners will be liable to pay to limited partners upon liquidation of
the Partnership as repayment of fees previously received (the "Fee
Give-Back Amount").
As of December 31, 1999, the Fee Give-Back Amount was $3.57 per Unit
which amount will be reduced by approximately $.40 per Unit for each
full calendar year after 1999 in which a liquidation does not occur. As
amended, the Partnership Agreement provides that, upon a reorganization
of the Partnership into a real estate investment trust or other public
entity, the General Partners will have no further liability to pay the
Fee Give-Back Amount. In accordance with the terms of the settlement,
Presidio Capital Corp., an affiliate of the General Partners,
guaranteed payment of the Fee Give-Back Amount.
As required by the settlement, an affiliate of the General Partners,
Millennium Funding IV LLC, made a tender offer to limited partners to
acquire up to 25,034 Units (representing approximately 6.7% of the
outstanding Units) at a price of $113.15 per Unit. The offer closed in
January 2000 and all 25,034 Units were acquired in the offer.
The final requirement of the settlement obligated the General Partners
to use their best efforts to reorganize the Partnership into a real
estate investment trust or other entity whose shares were listed on a
national securities exchange or on the NASDAQ National Market System. A
Registration Statement was filed with the Securities and Exchange
Commission on February 11, 2000 with respect to the restructuring of
the Partnership into a publicly-traded real estate investment trust.
The Registration Statement has not yet become effective and the consent
of a majority of limited partners will be needed to effect the
restructuring.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The matters discussed in this form 10-Q contain certain forward-looking
statements and involve risks uncertainties (including changing market
conditions, competitive and regulatory matters, etc.) detailed in the
disclosures contained in this Form 10-Q and the other filings with the
Securities and Exchange Commission made by the Partnership from time to time.
The discussion of the Partnership's liquidity, capital resources and results of
operations, including forward looking statements pertaining to such matters,
does not take into account the effects of any changes to the Partnership's
operations. Accordingly, actual results could differ materially from those
projected in the forward-looking statements as a result of a number of factors,
including those identified herein.
This item should be read in conjunction with the consolidated financial
statements and other items contained elsewhere in the report.
Liquidity and Capital Resources
Cash and cash equivalents are temporarily invested in short term instruments and
together with cash flow from operations are expected to be sufficient to fund
future capital improvements to the Partnership's properties.
The Partnership's level of liquidity based upon cash and cash equivalents
increased by $641,326 to $7,074,856 at March 31, 2000 as compared to December
31, 1999. The increase in cash and cash equivalents at March 31, 2000 is due to
$651,124 of cash provided by operating activities which was partially offset by
$9,798 of cash used for capital expenditures. The Partnership primary source of
funds is cash flow from the operation of its properties, principally rents
received from tenants less property operating expenses. .
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 its properties and for leasing commissions. Vacancies at Tri-Columbus and
Melrose II are currently being marketed to a variety of potential tenants. The
Partnership is currently funding operating expenses at these locations from cash
reserves. If and when replacement tenants are secured, it is likely that capital
expenditures will be required to fund tenant improvements 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 its 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.
As discussed in "Item 1. Financial Statements-Note 7", the Partnership entered
into a settlement agreement relating to a class action lawsuit. In light of the
current implementation of the settlement and the filing of the Registration
Statement pursuant to which the General Partners are using their best efforts to
reorganize the Partnership into a real estate investment trust, the General
Partners have suspended any distributions until such reorganization is either
approved or disapproved.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The Partnership experienced an increase in net income for the three months ended
March 31, 2000 to $798,074 as compared to $18,595 for the same period in 1999
due to an increase in rental revenues and a decrease in costs and expenses which
were partially offset by a decrease in other income.
Rental revenues for the three months ended March 31, 2000 increased to
$2,055,166 or 17.8% from $1,743,975 for the same period in 1999. Rental revenues
increased due to increased occupancy at Tri-Columbus, as well as higher expense
reimbursement income.
Costs and expenses decreased by $522,657 or 28% for the three months ended March
31, 2000 as compared to 1999, primarily due to decreases in administrative
expenses ($462,137) depreciation and amortization ($3,237) partnership asset
management fees ($52,681) and operating expenses ($19,564). These decreases were
partially offset by an increase in property management fees ($14,962).
Administrative expense decreased as legal expenses associated with the class
action litigation were incurred in 1999 with no similar charges in 2000. In
addition, partnership asset management fees decreased for the first quarter of
2000 as compared to the first quarter of 1999. See, Item 1. Financial
Statements, Note 3. Operating expenses decreased due to lower non-recurring
repairs and maintenance expenses. The increase in property management fees is
the result from higher rental revenues.
Interest income increased due to higher cash balances during the three months
ended March 31, 2000 as compared to the same period in 1999. Other income
decreased during the three months ended March 31, 2000 as compared to 1999 due
to a decrease in transfer fees in 2000.
Inflation is not expected to have a material impact on the Partnership's
operations or financial position.
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
The Partnership is not subject to market risk as its cash and cash equivalents
are invested in short term money market mutual funds. The Partnership has no
loans outstanding.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
PART II. OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits: There were no exhibits filed.
27. Financial data schedule is filed as an exhibit to this report.
(b) Reports on Form 8-K
No report on Form 8-K was filed during this period.
<PAGE>
HIGH EQUITY PARTNERS-SERIES 88
FORM 10-Q - MARCH 31, 2000
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, 2000 By: /s/ Michael L. Ashner
----------------------
Michael L. Ashner
President and Director
(Principal Executive Officer)
Dated: May 12, 2000 By: /s/ Carolyn B. Tiffany
-----------------------
Carolyn B. Tiffany
Vice President and Treasurer
(Principal Financial and Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
unaudited financial statements for the three month period ended March 31, 2000
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 7,074,856
<SECURITIES> 0
<RECEIVABLES> 568,216
<ALLOWANCES> (227,500)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 61,934,295
<DEPRECIATION> (16,320,242)
<TOTAL-ASSETS> 54,651,476
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 53,654,682
<TOTAL-LIABILITY-AND-EQUITY> 54,651,476
<SALES> 0
<TOTAL-REVENUES> 2,055,116
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,078,538
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 798,674
<INCOME-TAX> 0
<INCOME-CONTINUING> 798,674
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 798,654
<EPS-BASIC> 2.04
<EPS-DILUTED> 2.04
</TABLE>
