[LOGO]
THE PROVO GROUP
November 15, 1996
RE: THIRD QUARTER 1996 CORRESPONDENCE
DIVALL INSURED INCOME PROPERTIES 2, L.P. (THE "PARTNERSHIP")
Dear Limited Partner:
_____________________________
THIRD QUARTER 1996 HIGHLIGHTS
. Former general partner, ▇▇▇▇ ▇. . Former general partner, ▇▇▇▇ ▇.
▇▇▇▇▇▇, is currently scheduled ▇▇▇▇▇▇▇▇, recently pleaded
to be sentenced on DECEMBER 2, "no-contest" to criminal charges
1996 for his plea of "no contest" brought against him by the
to criminal charges brought against Wisconsin Attorney General's
him by the Wisconsin Attorney Office earlier this year. A
General's Office earlier this year. sentencing hearing date has been
"tentatively" scheduled for
JANUARY 1997.
. During the quarter, the APPLEBEE'S
restaurant in Port St. Lucie, Florida
was SOLD. (See "Property Highlights" below.)
_____________________________
THIRD QUARTER 1996 "DISTRIBUTION" HIGHLIGHTS
. 10.4% (approx.) annualized return . $2,500,000 "total" amount
from operations and other sources distributed for the THIRD QUARTER
and 4.1% (approx.) non-annualized 1996 which was comprised of 36%
return of capital from the sale of from operations and other sources
the Applebee's based on $37,300,000 and 64% from the sale of the
("net" remaining initial investment). Applebee's in Port St. Lucie,
Florida.
________
▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Post Office Box 2137
Madison, Wisconsin 53701-2137
608.244.7661
FAX ▇▇▇.▇▇▇.▇▇▇▇
[LOGO]
THE PROVO GROUP
DIVALL INSURED INCOME PROPERTIES 2, L.P.
November 15, 1996
Page 2
_______________________________
THIRD QUARTER 1996 "DISTRIBUTION" HIGHLIGHTS (CONT'D)
. $54.02 per unit (approx.) for the THIRD QUARTER 1996 from both cash flow from
operations and "net" cash activity from financing and investing activities.
. $744.00 to $546.00 range of distributions per unit from the first unit sold
to the last unit sold before the offering closed (February 1990),
respectively. Distributions are from both cash flow from operations and "net"
cash activity from financing and investing activities. (NOTE: ORIGINAL UNITS
WERE PURCHASED FOR $1,000/UNIT.)
_______________________________
STATEMENTS OF INCOME AND CASH FLOW HIGHLIGHTS
. 22% increase in OPERATING REVENUES . 29% increase in "TOTAL" EXPENSES
from projections. from projections.
. The Partnership experienced a . Rental income was $116,000 higher
$446,000 "NET" GAIN on the sale of than projected due to the
an Applebee's restaurant. receipt of "non-budgeted" rental
income as a result of the delay
. Operating expenses were $60,000 in closing the Applebee's sale.
more than budgeted primarily due In addition, percentage rents
to fees related to the Applebee's were received from various
sale. stores.
. The Partnership received $35,000 during the
quarter as a result of a bankruptcy settlement
with ▇▇▇▇▇▇▇▇ Management Company, tenant of
the Popeye's restaurant in Park Forest,
Illinois.
(See "Property Highlights" below.)
_______________________________
PROPERTY HIGHLIGHTS
VACANCIES
---------
. COUNTRY KITCHEN restaurant (Cedar Rapids, IA) was vacant at September 30,
1996. The Partnership continues to work with prospective tenants for either
the re-lease or sale of this property.
[LOGO]
THE PROVO GROUP
DIVALL INSURED INCOME PROPERTIES 2, L.P.
November 15, 1996
Page 3
_______________________________
PROPERTY HIGHLIGHTS (CONT'D)
VACANCIES (CONT'D)
------------------
. HARDEE'S restaurant (Delavan, WI) was vacant at September 30, 1996.
Terratron, Inc., tenant of this store, CLOSED its doors during the First
Quarter 1996 due to poor sales. The tenant, however, continues to make
monthly rental payments for the property. The Partnership is working to re-
lease this restaurant to a new tenant.
RENTS RECEIVABLE
----------------
. Terratron, Inc., tenant of . (cont'd) The Partnershis is currently
eight (8) HARDEE'S negotiating with HARDEE's
restaurants (Wisconsin and FOOD SYSTEMS, INC. as a
Utah), remained current with prospective tenant for these
its monthly rental payments; properties (except Utah and
however, they are delinquent Delavan, Wisconsin).
with their CATCH UP rental
payments at September 30, 1996. Delinquencies will be cured
at the time of closing
which is scheduled to occur
during the Fourth Quarter of
1996.
SALE OF PROPERTIES
------------------
. On September 30, 1996, the Partnership sold the APPLEBEE'S restaurant (Port
St. Lucie, Florida) for $1,535,000 which resulted in a net gain of $446,000.
This tenant exercised their option to purchase this property at NO LESS THAN
120% of the original cost. We disputed the basis of cost and delayed closing
for 11 months facilitating the collection of additional rentals in the amount
of $192,000.
OTHER PROPERTY MATTERS
----------------------
. ▇▇▇▇▇▇▇▇ Management Company, tenant of the POPEYE'S restaurant (Park Forest,
IL), filed Chapter 11 Bankruptcy in March 1994. Since that time, the
Partnership has been monitoring and responding to the bankruptcy proceedings.
(NOTE: THIS TENANT HAS REMAINED CURRENT WITH MONTHLY RENTAL PAYMENTS SINCE
FILING BANKRUPTCY.)
As part of the settlement of these bankruptcy issues, the Partnership
received a promissory note in the amount of $200,000 for prior delinquent
rent. In addition, the Partnership also received a $43,000 promissory note
for past due percentage rents. Monthly installment payments toward these
obligations began this quarter and will continue over the next 4-5 years.
DIVALL INSURED INCOME PROPERTIES 2, L.P.
November 15, 1996
Page 4
============================
RESTORATION HIGHLIGHTS
. Recoveries received during the . The Partnership continues its
THIRD QUARTER 1996 totalled "discovery" phase with respect
$13,000 (approx.) for the to the Boatmen's litigation. The
Partnership. trial against BOATMEN'S First
National Bank of Kansas City has
. "Total" recoveries received TO been "tentatively" re-scheduled
DATE for the Partnership amount to occur during the SECOND
to approximately $1,881,000. QUARTER OF 1997.
. The Partnership is negotiating its final settlements with the
DiVall "PRIVATE" Partnerships.
============================
RETURN OF CAPITAL
The following table has been updated to present the breakdown of distributions
since the Partnership's first quarterly distribution, for the period ended June
30, 1988 through September 30, 1996.
================================================================================
DISTRIBUTION CAPITAL
------------ -------
ANALYSIS BALANCE
-------- -------
Original Capital Balance - $46,280,300
Cash Flow From Operations Since Inception $ 20,972,299 -
Total Distributions Since Inception (29,955,268) -
------------
(Return) of Capital $ (8,982,969) (8,982,969)
============ -----------
"NET" REMAINING INITIAL INVESTMENT
BY ORIGINAL PARTNERS - $37,297,331
===========
================================================================================
(NOTE: For a more individualized discussion of return of capital contact
Investor Relations.)
DIVALL INSURED INCOME PROPERTIES 2, L.P.
November 15, 1996
Page 5
============================
ADVISORY BOARD
The thirteenth Advisory Board meeting was held on October 29 and 30, 1996. The
new Board member, ▇▇. ▇▇▇▇▇▇▇ ▇▇▇▇, who replaced Mr. ▇▇▇▇▇▇▇ ▇▇▇▇▇ (whose term
expired September 30, 1996), was given a comprehensive orientation of the
Partnerships' affairs. ▇▇. ▇▇▇▇ was nominated by the Limited Partners and
selected to represent DiVall Insured Income Properties 2, L.P. to serve a two
(2) year term.
The members carrying over from the prior Board include ▇▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
representing DiVall Insured Income Fund, L.P., ▇▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇ representing
DiVall Income Properties 3, L.P., and ▇▇. ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ representing the
broker/dealer community.
For further information regarding the new Advisory Board member, please refer
to the enclosed biographical summary.
============================
QUESTIONS & ANSWERS
1. HAS THERE BEEN A DECISION MADE REGARDING THE PARTNERSHIP'S LIQUIDATION
ALTERNATIVES OR THE POSSIBILITY OF REPOSITIONING ITS ASSETS?
. As a result of the feedback we received from investors in DiVall Insured
Income Properties 2, L.P. (survey results enclosed), it has been
recommended that the Partnership be dissolved over the next 3-5 years.
In the interim, management will continue to work aggressively to maximize
the values of the Partnership's asset portfolio.
WE APPRECIATE THE FEEDBACK WE RECEIVED FROM THE SURVEY. THANK YOU FOR YOUR
PARTICIPATION.
2. WHAT ARE MY "IMMEDIATE" LIQUIDATION OPTIONS FOR INTERESTS IN THE
PARTNERSHIP?
. The only option for immediate liquidation of interests, at this time, is
through the secondary market. According to current secondary market trading
information provided to management, interests in the Partnership are
selling between $375-$520 per unit.
IT IS IMPORTANT TO NOTE THAT PERIODICALLY YOU MAY RECEIVE DIRECT
"SOLICITATIONS" OF YOUR INTERESTS BY THIRD PARTIES. WE DO NOT CONTROL NOR
SUPPORT THESE SOLICITATION EFFORTS. WE STRONGLY URGE YOU TO THOROUGHLY
REVIEW ALL YOUR OPTIONS AND UNDERSTAND EACH SOLICITOR'S MOTIVATION. WE
ENCOURAGE YOU TO CONTACT US IF YOU HAVE ANY QUESTIONS ABOUT YOUR
INVESTMENT.
DIVALL INSURED INCOME PROPERTIES 2, L.P.
November 15, 1996
Page 6
==============================
QUESTIONS & ANSWERS (CONT'D)
3. WHEN CAN I EXPECT TO RECEIVE MY SCHEDULE K-1 FOR 1996?
. Our current schedule for mailing all 1996 Schedule K-1's for your
Partnership and its affiliated partnerships is no later than March 14,
1997.
4. WHEN WILL 1996 PER UNIT VALUES BE AVAILABLE FOR MY INVESTMENT IN THE
PARTNERSHIP?
. The Partnership's 1996 "year-end" valuation information is tentatively
scheduled to be available by the First Quarter of 1997. We will include
this information in our 1996 Annual Reports which we plan to mail by early
April 1997.
5. WHEN CAN I EXPECT MY NEXT DISTRIBUTION MAILING?
. Your next scheduled distribution correspondence for the Fourth Quarter of
1996 will be mailed on February 14, 1997.
As always, if you have any questions or need additional information, please
contact Investor Relations at ▇-▇▇▇-▇▇▇-▇▇▇▇ or ▇-▇▇▇-▇▇▇-▇▇▇▇. All written
inquiries may be mailed or faxed to our "NEW" location:
THE PROVO GROUP, INC.
Post Office Box 2137 ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
(FAX ▇▇▇-▇▇▇-▇▇▇▇)
Sincerely,
THE PROVO GROUP, INC.
By:/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ By:/s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
------------------------------ ---------------------------------
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Director of Investor Relations V.P. - Finance and Administration
Enclosures
DIVALL INSURED INCOME PROPERTIES 2 L.P.
STATEMENTS OF INCOME AND CASH FLOW CHANGES
FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 1996
--------------------------------------------------------------------------------------------------------------
PROJECTED ACTUAL VARIANCE
-------------------------------------------
3RD 3RD
QUARTER QUARTER BETTER
9/30/96 9/30/96 (WORSE)
--------- ----------- -----------
OPERATING REVENUES
Rental income $ 741,957 $ 857,490 $ 115,533
Direct financing interest 14,517 14,426 (91)
Interest income 17,123 20,272 3,149
Recovery of amounts previously written off 0 12,925 12,925
Gain on sale of assets 0 445,772 445,772
Other income 0 35,859 35,859
--------- ----------- -----------
TOTAL OPERATING REVENUES $ 773,597 $ 1,386,744 $ 613,147
--------- ----------- -----------
OPERATING EXPENSES
Insurance $ 7,795 $ 7,371 $ 424
Management fees 43,182 43,098 84
Restoration fees 0 517 (517)
Overhead allowance 3,600 3,591 9
Advisory Board 4,600 4,446 154
Administrative 16,058 23,157 (7,099)
Professional services 473 2,197 (1,724)
Auditing 12,000 13,239 (1,239)
Legal 11,600 13,721 (2,121)
Disposition fees 0 46,000 (46,000)
Defaulted tenants 300 2,269 (1,969)
--------- ----------- -----------
TOTAL OPERATING EXPENSES $ 99,608 $ 159,606 $ (59,998)
--------- ----------- -----------
GROUND RENT $ 30,945 $ 31,124 $ (179)
--------- ----------- -----------
INTEREST EXPENSE $0 $0 $ 0
--------- ----------- -----------
INVESTIGATION AND RESTORATION EXPENSES $ 1,212 $ 8,901 $ (7,689)
--------- ----------- -----------
NON-OPERATING EXPENSES
Depreciation $ 123,291 $ 129,489 $ (6,198)
Amortization 201 201 0
--------- ----------- -----------
TOTAL NON-OPERATING EXPENSES $ 123,492 $ 129,690 $ (6,198)
--------- ----------- -----------
TOTAL EXPENSES $ 255,257 $ 329,321 $ (74,064)
--------- ----------- -----------
NET INCOME $ 518,340 $ 1,057,423 $ 539,083
VARIANCE
-----------
OPERATING CASH RECONCILIATION:
Depreciation and amortization 123,492 129,690 6,198
Recovery of amounts previously written off 0 (12,925) (12,925)
Gain on sale of assets 0 (445,772) (445,772)
(Increase) Decrease in current assets (6,607) 121,304 127,911
Increase (Decrease) in current liabilities (8,236) 64,051 72,287
Decrease in Security Deposits 0 (12,975) (12,975)
(Increase) Decrease in cash reserved for payables 6,000 20,000 14,000
Advance from/(to) future cash flows for current distributions (22,000) 0 22,000
--------- ----------- -----------
Net Cash Provided From Operating Activities $ 610,989 $ 920,796 $ 309,807
--------- ----------- -----------
CASH FLOWS FROM (USED IN) INVESTING
AND FINANCING ACTIVITIES
Payments received from affiliated partnerships 0 0 0
Recoveries from former G.P. affiliates 0 12,925 12,925
Principal received on equipment leases 39,452 40,909 1,457
Sale of Investment Properties 0 1,534,610 1,534,610
Principal payments on mortgage notes 0 0 0
--------- ----------- -----------
Net Cash Provided From Investing And Financing
Activities $ 39,452 $ 1,588,444 $ 1,548,992
--------- ----------- -----------
Total Cash Flow For Quarter $ 650,441 $ 2,509,240 $ 1,858,799
Cash Balance Beginning of Period 931,259 2,137,845 1,206,586
Less 2nd quarter distributions paid 8/96 (650,000) (1,650,000) (1,000,000)
Change in cash reserved for payables or future distributions 16,000 (20,000) (36,000)
--------- ----------- -----------
Cash Balance End of Period $ 947,700 $ 2,977,085 $ 2,029,385
Cash reserved for 3rd quarter L.P. distributions (650,000) (2,500,000) (1,850,000)
Cash reserved for future distributions 0 (40,000) (40,000)
Cash reserved for payment of payables (138,000) (250,000) (112,000)
--------- ----------- -----------
Unrestricted Cash Balance End of Period $ 159,700 $ 187,085 $ 27,385
========= =========== ===========
--------------------------------------------------------------------------------------------------------------
PROJECTED ACTUAL VARIANCE
-------------------------------------------
* Quarterly Distribution $ 650,000 $ 2,500,000 $ 1,850,000
Mailing Date 11/15/96 (enclosed) -
--------------------------------------------------------------------------------------------------------------
* Refer to distribution letter for detail of quarterly distribution.
---------------------------------------------
PROJECTIONS FOR |ORIGINAL EQUITY $25,000,000|
DISCUSSION PURPOSES |NET DISTRIBUTION OF |
| CAPITAL SINCE INCEPTION $ 2,423,994|
| --------------|
|CURRENT EQUITY $22,576,006|
------------------------------==============-
DIVALL INSURED INCOME PROPERTIES L.P.
1996 PROPERTY SUMMARY
AND RELATED ESTIMATED RECEIPTS
PORTFOLIO
---------------------------------- -------------------------------------------
REAL ESTATE EQUIPMENT
---------------------------------- -------------------------------------------
-------------------------------- BASE % LEASE LEASE * % *
CONCEPT LOCATION COST RENT YIELD EXPIRATION COST RECEIPTS RETURN
-------------------------------- ---------------------------------- -------------------------------------------
CHI CHI'S GRAND FORKS, ND 984,801 0 0.00%
CHI CHI'S EAU CLAIRE, WI 1,042,730 136,260 13.07%
VACANT LAND COL. SPRINGS, CO 356,549 0 0.00%
DENNY'S** GLENDALE, AZ 1,105,926 95,000 8.59% 68,744 0 0.00%
DENNY'S** SCOTTSDALE, AZ 1,051,157 107,500 10.23% 40,553 0 0.00%
DENNY'S** MESA, AZ 1,028,036 82,100 7.99% 39,218 0 0.00%
DENNY'S** PEORIA, AZ 1,105,926 93,000 8.41% 58,781 0 0.00%
BW-III HOPKINS, MN 795,050 66,000 8.30% 1/15/2000 190,000 37,860 19.93%
DENNY'S BEAVER DAM, WI 659,299 66,000 10.01% 3/31/2000 190,000 37,860 19.93%
▇▇▇▇▇▇'S DES MOINES, IA 565,476 45,500 8.05% 39,600 0 0.00%
HARDEE'S FOND DU LAC, WI 1,026,931 90,000 8.76%
▇▇▇▇▇▇'S CHICAGO, IL 473,968 63,180 13.33%
▇▇▇▇▇▇'S CHICAGO, IL 610,893 81,420 13.33%
POPEYE'S CHICAGO, IL 484,501 64,620 13.34%
▇▇▇▇▇▇'S CHICAGO, IL 610,893 81,420 13.33%
POPEYE'S CHICAGO, IL 437,105 58,260 13.33%
POPEYE'S CHICAGO, IL 631,958 84,180 13.32%
▇▇▇▇▇▇'S CHICAGO, IL 579,295 77,280 13.34%
PORTERHOUSE CHICAGO, IL 905,807 0 0.00%
TACO CABANA ARLINGTON, TX 1,474,569 132,000 8.95%
TACO CABANA DALLAS, TX 1,369,243 132,000 9.64%
TACO CABANA DALLAS, TX 1,257,596 132,000 10.50%
TACO CABANA DALLAS, TX 1,308,153 132,000 10.09%
-------------------------------- ---------------------------------- -------------------------------------------
-------------------------------- ---------------------------------- -------------------------------------------
PORTFOLIO TOTALS (23 PROPERTIES) 19,865,862 1,819,720 9.16% 626,896 75,720 12.08%
-------------------------------- ---------------------------------- -------------------------------------------
OUTSTANDING DEBT
---------------------------------- -------------------------------------
AMOUNT ANNUAL CURRENT AMOUNT ANNUAL CURRENT
-------------------------------- OWED DEBT INTEREST OWED DEBT INTEREST
MORTGAGED PROPERTIES 9/30/96 SERVICE RATE 9/30/96 SERVICE RATE
-------------------------------- ---------------------------------- -------------------------------------
▇▇▇▇▇'▇ ▇▇▇▇▇▇▇, MN 107,613 14,783 10.75% 179,355 24,637 10.75%
DENNY'S BEAVER DAM, WI 70,837 8,726 9.50% 177,714 21,514 9.50%
MULTIPLE STORES AZ, TX 600,000 0 8.50%
-------------------------------- ---------------------------------- -------------------------------------
-------------------------------- ---------------------------------- -------------------------------------
TOTALS 778,450 23,509 - 357,069 46,151 -
-------------------------------- ---------------------------------- -------------------------------------
-------------------------------- ---------------------------------- -------------------------------------
NET AFTER DEBT 19,087,412 1,796,211 9.41% 269,827 29,569 10.96%
-------------------------------- ---------------------------------- -------------------------------------
---------------------------------- -------------
TOTALS TOTAL %
---------------------------------- ON 22,576,006
-------------------------------- EQUITY
CONCEPT LOCATION INVESTED RECEIPTS * RETURN * RAISE
-------------------------------- ---------------------------------- -------------
CHI CHI'S GRAND FORKS, ND 984,801 0 0.00%
CHI CHI'S EAU CLAIRE, WI 1,042,730 136,260 13.07%
VACANT LAND COL. SPRINGS, CO 356,549 0 0.00%
DENNY'S** GLENDALE, AZ 1,174,670 95,000 8.09%
DENNY'S** SCOTTSDALE, AZ 1,091,710 107,500 9.85%
DENNY'S** MESA, AZ 1,067,254 82,100 7.69%
DENNY'S** PEORIA, AZ 1,164,707 93,000 7.98%
BW-III HOPKINS, MN 985,050 103,860 10.54%
DENNY'S BEAVER DAM, WI 849,299 103,860 12.23%
▇▇▇▇▇▇'S DES MOINES, IA 605,076 45,500 7.52%
HARDEE'S FOND DU LAC, WI 1,026,931 90,000 8.76%
▇▇▇▇▇▇'S CHICAGO, IL 473,968 63,180 13.33%
▇▇▇▇▇▇'S CHICAGO, IL 610,893 81,420 13.33%
POPEYE'S CHICAGO, IL 484,501 64,620 13.34%
▇▇▇▇▇▇'S CHICAGO, IL 610,893 81,420 13.33%
POPEYE'S CHICAGO, IL 437,105 58,260 13.33%
POPEYE'S CHICAGO, IL 631,958 84,180 13.32%
▇▇▇▇▇▇'S CHICAGO, IL 579,295 77,280 13.34%
PORTERHOUSE CHICAGO, IL 905,807 0 0.00%
TACO CABANA ARLINGTON, TX 1,474,569 132,000 8.95%
TACO CABANA DALLAS, TX 1,369,243 132,000 9.64%
TACO CABANA DALLAS, TX 1,257,596 132,000 10.50%
TACO CABANA DALLAS, TX 1,308,153 132,000 10.09%
-------------------------------- ---------------------------------- -------------
-------------------------------- ---------------------------------- -------------
PORTFOLIO TOTALS (23 PROPERTIES) 20,492,758 1,895,440 9.25% 8.40%
-------------------------------- ---------------------------------- -------------
OUTSTANDING DEBT
----------------------
AMOUNT ANNUAL
-------------------------------- OWED DEBT
MORTGAGED PROPERTIES 9/30/96 SERVICE
-------------------------------- ----------------------
DENNY'S HOPKINS, MN 286,968 39,420
DENNY'S BEAVER DAM, WI 248,551 30,240
MULTIPLE STORES AZ, TX 600,000 0
-------------------------------- ----------------------
-------------------------------- ----------------------
TOTALS 1,135,519 69,660
-------------------------------- ----------------------
-------------------------------- ---------------------------------- -------------
NET AFTER DEBT 19,357,239 1,825,780 9.43% 8.09%
-------------------------------- ---------------------------------- -------------
* A portion of the amounts disclosed include a return of principal.
** Rent is based on 12.5% of monthly sales. Rent projected for 1996 is based on
1995 sales levels.
PROJECTIONS FOR
DISCUSSION PURPOSES
-----------------------------------------------
ORIGINAL EQUITY $46,280,300
DIVALL INSURED INCOME PROPERTIES 2 LP NET DISTRIBUTION OF
1996 PROPERTY SUMMARY CAPITAL SINCE INCEPTION $8,982,969
AND RELATED ESTIMATED RECEIPTS -----------
CURRENT EQUITY $37,297,331
===========
-----------------------------------------------
PORTFOLIO (Note 1)
REAL ESTATE EQUIPMENT
------------------------------- --------------------------------------------
ANNUAL LEASE ANNUAL
BASE % EXPIRATION LEASE %
CONCEPT LOCATION COST RENT YIELD DATE COST RECEIPTS RETURN
---------------------------------- ------------------------------- ---------------------------------------------
POPEYE'S PARK FOREST, IL 580,938 77,280 13.30%
SUNRISE PS PHOENIX, AZ 1,084,503 127,920 11.80% 12/31/96 79,219 16,373 20.67%
06/30/97 19,013 3,930 20.67%
VILLAGE INN GRAND FORKS, ND 739,375 84,000 11.36%
▇▇▇▇▇'▇ ▇▇▇▇▇, SC 633,750 90,480 14.28%
WENDY'S CHARLESTON, SC 580,938 77,280 13.30%
WENDY'S N. AUGUSTA, SC 660,156 87,780 13.30%
WENDY'S AUGUSTA, GA 728,813 96,780 13.28%
▇▇▇▇▇'S CHARLESTON, SC 596,781 76,920 12.89%
▇▇▇▇▇'S AIKEN, SC 776,344 96,780 12.47%
▇▇▇▇▇'S AUGUSTA, GA 649,594 86,160 13.26%
WENDY'S CHARLESTON, SC 528,125 70,200 13.29%
WENDY'S MT. PLEASANT, SC 580,938 77,280 13.30%
▇▇▇▇▇'▇ ▇▇▇▇▇▇▇▇, GA 633,750 84,120 13.27%
HALLANDALE TAG HALLANDALE, FL 792,188 30,000 3.79%
---------------------------------- ------------------------------- -----------------------------
PORTFOLIO TOTALS (36 Properties) 26,457,056 2,825,332 10.68% 2,772,876 215,531 7.77%
---------------------------------- ------------------------------- -----------------------------
TOTALS TOTAL % ON
------------------------------ $37,297,331
TOTAL EQUITY
CONCEPT LOCATION COST RECEIPTS RETURN RAISE
--------------------------------------------------------------------- -----------
POPEYE'S PARK FOREST, IL 580,938 77,280 13.30%
SUNRISE PS PHOENIX, AZ 1,182,735 148,222 12.53%
VILLAGE INN GRAND FORKS, ND 739,375 84,000 11.36%
▇▇▇▇▇'▇ ▇▇▇▇▇, SC 633,750 90,480 14.28%
WENDY'S CHARLESTON, SC 580,938 77,280 13.30%
WENDY'S N. AUGUSTA, SC 660,156 87,780 13.30%
WENDY'S AUGUSTA, GA 728,813 96,780 13.28%
▇▇▇▇▇'S CHARLESTON, SC 596,781 76,920 12.89%
▇▇▇▇▇'S AIKEN, SC 776,344 96,780 12.47%
▇▇▇▇▇'S AUGUSTA, GA 649,594 86,160 13.26%
WENDY'S CHARLESTON, SC 528,125 70,200 13.29%
WENDY'S MT. PLEASANT, SC 580,938 77,280 13.30%
▇▇▇▇▇'▇ ▇▇▇▇▇▇▇▇, GA 633,750 84,120 13.27%
HALLANDALE TAG HALLANDALE, FL 792,188 30,000 3.79%
---------------------------------- ------------------------------ ----------
PORTFOLIO TOTALS (36 Properties) 29,229,932 3,040,864 10.40% 8.15%
---------------------------------- ------------------------------ ----------
Note 1: This property summary includes only current property and equipment
held by the Partnership.
Equipment lease receipts shown include a return of capital.
Page 2 of 2
[LOGO]
--------------------------------------------------------------------------------
BIOGRAPHICAL SUMMARY FOR
------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇
---------------
Current Position: ▇▇. ▇▇▇▇ is in his sixth year as an Editorial Board member and
editorial writer for The Volusian, a DeLand, Florida, subsidiary of the
News-Journal Corporation in Daytona Beach, Florida.
Experience: ▇▇. ▇▇▇▇ retired in 1988 after 34 years with the Dispatch Printing
Co., serving his last eight years as Managing Editor of the Columbus Dispatch
and as a member of its Operating Committee. He previously was the executive
sports editor of the newspaper in Ohio's capital city. ▇▇. ▇▇▇▇'▇ 49 years in
professional journalism also include news reporting, editing and sports
assignments with the Daytona Journal Herald and Springfield News-Sun. He was
co-owner of the Daytona Beach Astros professional baseball club in 1979-1980.
Affiliations: ▇▇. ▇▇▇▇ is a Life Member of the National Amateur Athletic Union
as well as past president of the Ohio AAU, Ohio Associated Press Society and
Ohio AP Sports Writers Association. He was a founder and past president of the
Central Ohio Swimming Association.
Personal: ▇▇. ▇▇▇▇ and wife ▇▇▇▇▇▇▇ reside in the Spruce Creek Fly-In Community
near Daytona Beach. Both are graduates of ▇▇▇▇▇▇▇▇▇▇ University. ▇▇. ▇▇▇▇ was
presented the Ohio Associated Press Special Recognition Award in 1986,
▇▇▇▇▇▇▇▇▇▇'▇ Distinguished Graduate Award in 1987 and a Sigma Delta Chi
Professional Journalism Society Appreciation Award in 1988.
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DIVALL INSURED INCOME PROPERTIES 2, L.P. - INVESTMENT SURVEY RESPONSE SUMMARY SHEET
Total Number of DiVall 2 Investors = 2,746 Total Number of DiVall 2 Investor Responses = 900
Total Number of Units in DiVall 2 = 46,280.3 Total Number of DiVall 2 Unit Responses = 15,659.75
Total Investor Response Percentage 32.77%
Total Unit Response Percentage 33.84%
Strongly For For No Opinion Against Strongly Against
----------------- ----------------- ----------------- ----------------- ----------------
Investors Units Investors Units Investors Units Investors Units Investors Units
--------- ------ --------- ------ --------- ------ --------- ------ --------- ------
Maximize values for future liquidation. 64.78% 65.13% 18.44% 15.82% 11.22% 11.96% 3.78% 4.58% 1.78% 2.51%
Create additional current liquidity
alternatives. 24.78% 19.56% 25.22% 28.40% 35.89% 37.33% 7.89% 8.80% 6.22% 5.92%
Create long-term income and preserve
tax advantages. 22.22% 23.13% 20.00% 19.47% 27.78% 27.57% 14.44% 17.91% 15.56% 11.93%
Grow the portfolio through reinvestment
of distributions; additional L.P.
investment; and/or debt financing 7.22% 5.97% 6.44% 5.46% 25.56% 25.52% 21.22% 22.28% 38.56% 40.78%
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