<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                   FORM 10-Q


(Mark One)

[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                                 or
                               ----------------------------------------------

[_]  Transition report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

For the transition period from _______________________ to ______________________

Commission file number                           0-16518
                       ---------------------------------------------------------

                           WELLS REAL ESTATE FUND II
--------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)

                 Georgia                                         58-1678709
------------------------------------------------      --------------------------
       (State or other jurisdiction of                     (I.R.S. Employer
       incorporation or organization)                   Identification Number)


   6200 The Corners Pkwy., Norcross, Georgia                   30092
------------------------------------------------      --------------------------
    (Address of principal executive offices)                  (Zip Code)

Registrant's telephone number, including area code          (770) 449-7800
                                                      --------------------------

________________________________________________________________________________
  (Former name, former address, and former fiscal year, if changed since last
                                    report)

Indicate by check mark 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>

                                   FORM 10-Q

                           WELLS REAL ESTATE FUND II

                    (A Georgia Public Limited Partnership)


                                     INDEX

<TABLE>
<CAPTION>
                                                                                            Page No.
                                                                                            --------
<S>                                                                                         <C>
PART I.   FINANCIAL INFORMATION

  Item 1. Financial Statements

          Balance Sheets--March 31, 2000 and December 31, 1999                                     3

          Statements of Income for the Three Months Ended March 31, 2000
            and 1999                                                                               4

          Statements of Partners' Capital for the Year Ended December 31, 1999 and the
            Three Months Ended March 31, 2000                                                      5

          Statements of Cash Flows for the Three Months Ended March 31, 2000
            and 1999                                                                               6

          Condensed Notes to Financial Statements                                                  7

  Item 2. Management's Discussion and Analysis of Financial Condition and Results of
          Operations                                                                              11

PART II.  OTHER INFORMATION                                                                       19
</TABLE>

                                      -2-
<PAGE>

                           WELLS REAL ESTATE FUND II

                    (A Georgia Public Limited Partnership)


                                BALANCE SHEETS




<TABLE>
<CAPTION>
                                                                       March 31,        December 31,
                                                                         2000              1999
                                                                     -----------        ------------
<S>                                                                  <C>                <C>
ASSETS:
 Investment in joint venture (Note 2)                                $20,369,946        $20,666,589
 Cash and cash equivalents                                                68,073             90,558
 Due from affiliate                                                      450,580            451,788
                                                                     -----------        -----------
       Total assets                                                  $20,888,599        $21,208,935
                                                                     ===========        ===========

LIABILITIES AND PARTNERS' CAPITAL:
 Liabilities:
   Accounts payable                                                  $     4,098        $     3,385
   Partnership distributions payable                                     483,160            483,167
                                                                     -----------        -----------
       Total liabilities                                                 487,258            486,552
                                                                     -----------        -----------
 Partners' capital:
   Limited partners:
     Class A--108,572 units                                           20,401,341         20,722,383
     Class B--30,221 units                                                     0                  0
                                                                     -----------        -----------
       Total partners' capital                                        20,401,341         20,722,383
                                                                     -----------        -----------
       Total liabilities and partners' capital                       $20,888,599        $21,208,935
                                                                     ===========        ===========
</TABLE>

           See accompanying condensed notes to financial statements.

                                      -3-
<PAGE>

                           WELLS REAL ESTATE FUND II

                     (A Georgia Public Limited Partnership)


                              STATEMENTS OF INCOME


<TABLE>
<CAPTION>
                                                                 Three Months Ended
                                                           -----------------------------
                                                             March 31,       March 31,
                                                               2000            1999
                                                           ------------    -------------
<S>                                                        <C>             <C>
REVENUES:
 Equity in income of joint ventures (Note 2)                   $153,938         $ 63,327
 Interest income                                                     38               56
                                                               --------         --------
                                                                153,976           63,383

EXPENSES:
 Partnership administration                                           0                0
                                                               --------         --------
NET INCOME                                                     $153,976         $ 63,383
                                                               ========         ========

NET INCOME ALLOCATED TO CLASS A LIMITED PARTNERS               $153,976         $ 63,383
                                                               ========         ========

NET LOSS ALLOCATED TO CLASS B LIMITED PARTNERS                 $   0.00         $   0.00
                                                               ========         ========

NET INCOME PER CLASS A LIMITED PARTNER UNIT                    $   1.42         $   0.58
                                                               ========         ========

NET LOSS PER CLASS B LIMITED PARTNER UNIT                      $   0.00         $   0.00
                                                               ========         ========

CASH DISTRIBUTION PER CLASS A LIMITED PARTNER UNIT             $   4.38         $   3.72
                                                               ========         ========
</TABLE>

           See accompanying condensed notes to financial statements.

                                      -4-
<PAGE>

                           WELLS REAL ESTATE FUND II

                     (A Georgia Public Limited Partnership)


                        STATEMENTS OF PARTNERS' CAPITAL

                      FOR THE YEAR ENDED DECEMBER 31, 1999

                   AND THE THREE MONTHS ENDED MARCH 31, 2000


<TABLE>
<CAPTION>
                                                      Limited Partners                               Total
                                     --------------------------------------------------------
                                             Class A                        Class B                Partners'
                                     ---------------------------      -----------------------
                                       Units           Amounts           Units       Amounts        Capital
                                     -----------    ------------      ----------    ---------       -------
<S>                                  <C>            <C>               <C>           <C>           <C>
BALANCE, December 31, 1998            108,572       $22,044,258         30,221            $0      $22,044,258

 Net income                                 0           371,178              0             0          371,178
 Partnership distributions                  0        (1,693,053)             0             0       (1,693,053)
                                      -------       -----------         ------        ------      -----------
BALANCE, December 31, 1999            108,572        20,722,383         30,221             0       20,722,383

 Net income                                 0           153,976              0             0          153,976
 Partnership distributions                  0          (475,018)             0             0         (475,018)
                                      -------       -----------         ------        ------      -----------
BALANCE, March 31, 2000               108,572       $20,401,341         30,221            $0      $20,401,341
                                      =======       ===========         ======        ======      ===========
</TABLE>

           See accompanying condensed notes to financial statements.

                                      -5-
<PAGE>

                           WELLS REAL ESTATE FUND II

                     (A Georgia Public Limited Partnership)


                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                       Three Months Ended
                                                                 -----------------------------
                                                                   March 31,        March 31,
                                                                     2000             1999
                                                                 ------------    -------------
<S>                                                              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income                                                      $ 153,976          $  63,383
                                                                 ---------          ---------
 Adjustments to reconcile net income to net cash provided by
  operating activities:
     Equity in income of joint ventures                           (153,938)           (63,327)
     Changes in assets and liabilities:
       Withholdings and accounts payable                               713                  0
                                                                 ---------          ---------
         Total adjustments                                        (153,225)           (63,327)
                                                                 ---------          ---------
         Net cash provided by operating activities                     751                 56
                                                                 ---------          ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
 Distributions received from joint ventures                        451,789            336,500
                                                                 ---------          ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Partnership distributions paid                                   (475,025)          (327,377)
                                                                 ---------          ---------

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS               (22,485)             9,179

CASH AND CASH EQUIVALENTS, beginning of year                        90,558             27,011
                                                                 ---------          ---------
CASH AND CASH EQUIVALENTS, end of period                         $  68,073          $  36,190
                                                                 =========          =========
</TABLE>

           See accompanying condensed notes to financial statements.

                                      -6-
<PAGE>

                           WELLS REAL ESTATE FUND II

                    (A Georgia Public Limited Partnership)


                    CONDENSED NOTES TO FINANCIAL STATEMENTS



1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     (a) General

     Wells Real Estate Fund II (the "Partnership") is a Georgia public limited
     partnership having Leo F. Wells, III and Wells Capital, Inc., a
     Corporation, as General Partners. The Partnership was formed on June 23,
     1986, for the purpose of acquiring, developing, constructing, owning,
     operating, improving, leasing, and otherwise managing for investment
     purposes income-producing commercial or industrial properties.

     On September 8, 1986, the Partnership commenced a public offering of its
     limited partnership units pursuant to a Registration Statement filed on
     Form S-11 under the Securities Act of 1933. The Partnership terminated its
     offering on September 7, 1988 and received gross proceeds of $34,948,250
     representing subscriptions from 4,440 Limited Partners, composed of two
     classes of limited partnership interests, Class A and Class B limited
     partnership units.

     The Partnership owns equity interests in properties through its ownership
     in the following joint ventures: (i) Fund II-Fund II-OW Joint Venture, a
     joint venture between the Partnership and Wells Real Estate Fund II-OW (the
     "Fund II-Fund II-OW Joint Venture"); (ii) Fund II-Fund III Joint Venture, a
     joint venture between the Fund II-Fund II-OW Joint Venture and Wells Real
     Estate Fund III, L.P. ("Fund II-Fund III Associates"); (iii) Fund II-III-V
     I-VII Joint Venture, a joint venture among the Fund II-Fund III Joint
     Venture, Wells Real Estate Fund VI, L.P., and Wells Real Estate Fund VII,
     L.P. ("Fund II, III, VI, VII Associates"); (iv) Fund I-Fund II Joint
     Venture, a joint venture between the Fund II-Fund II-OW Joint Venture and
     Wells Real Estate Fund I ("Tucker Joint Venture"); and (v) Fund I, II, II-
     OW, VI, VII Joint Venture, a joint venture among Wells Real Estate Fund I,
     the Fund II-Fund II-OW Joint Venture, Wells Real Estate Fund VI, L.P., and
     Wells Real Estate Fund VII, L.P. ("Fund I, II, II-OW, VI, VII Joint
     Venture").

     As of March 31, 2000, the Partnership owned interests in the following
     properties through its ownership of the foregoing joint ventures: (i) a
     two-story office building located in Charlotte, North Carolina ("First
     Union at Charlotte"); (ii) a four-story office building located in
     metropolitan Houston, Texas (the "Atrium"); (iii) a restaurant located in
     Fulton County, Georgia (the "Brookwood Grill"); (iv) an office/retail
     center in Fulton County, Georgia ("Holcomb Bridge Road"); (v) a retail
     shopping and commercial office complex located in Tucker, Georgia
     ("Heritage Place at Tucker"); and (vi) a shopping center located in
     Cherokee County, Georgia ("Cherokee Commons"). All of the foregoing
     properties were acquired on an all cash basis. For further information
     regarding these joint ventures and properties, refer to the Partnership's
     Form 10-K for the year ended December 31, 1999.

                                      -7-
<PAGE>

     (b) Basis of Presentation

     The financial statements of Wells Real Estate Fund II have been prepared in
     accordance with instructions to Form 10-Q and do not include all of the
     information and footnotes required by generally accepted accounting
     principles for complete financial statements. These quarterly statements
     have not been examined by independent accountants, but in the opinion of
     the General Partners, the statements for the unaudited interim periods
     presented include all adjustments, which are of a normal and recurring
     nature, necessary to present a fair presentation of the results for such
     periods.

 2.  INVESTMENTS IN JOINT VENTURES

     The Partnership owned interests in six properties as of March 31, 2000
     through its interest in the Fund II-Fund II-OW Joint Venture. The
     Partnership does not have control over the operations of the joint
     ventures; however, it does exercise significant influence. Accordingly,
     investment in the joint venture is recorded on the equity method.

     Fund II-Fund II-OW Joint Venture

     The Partnership owns all of its properties through a joint venture (the
     "Fund II-Fund II-OW Joint Venture") formed on March 1, 1988 between the
     Partnership and Wells Real Estate Fund II-OW ("Wells Fund II-OW"). Wells
     Fund II-OW is a Georgia public limited partnership affiliated with the
     Partnership through common general partners. The investment objectives of
     Wells Fund II-OW are substantially identical to those of the Partnership.
     As of March 31, 2000, the Partnership's equity interest in Wells Fund II-
     Fund II-OW Joint Venture was approximately 95%, and the equity interest of
     Wells Fund II-OW was approximately 5%. The Partnership does not have
     control over the operations of the joint venture; however, it does exercise
     significant influence. Accordingly, investments in the joint venture are
     recorded using the equity method.

                                      -8-
<PAGE>

     Following are the financial statements for Fund II-Fund II-OW:


                              FUND II-FUND II-OW

                           (A Georgia Joint Venture)


                                BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                           March 31,         December 31,
                                                                              2000               1999
                                                                          -----------        ------------
<S>                                                                       <C>                <C>
ASSETS:
 Real estate, at cost:
   Land                                                                   $ 1,367,856         $ 1,367,856
   Building and improvements, less accumulated depreciation of
    $3,083,367 in 2000 and $2,991,452 in 1999                               4,687,751           4,779,666
                                                                          -----------        ------------
       Total real estate assets                                             6,055,607           6,147,522
                                                                          -----------        ------------

 Investments in joint ventures                                             15,437,646          15,654,420
 Cash and cash equivalents                                                    155,115             162,241
 Due from affiliates                                                          319,817             312,901
 Accounts receivable                                                                0               2,149
 Prepaid expenses and other assets                                             20,969              24,473
                                                                          -----------        ------------
       Total assets                                                       $21,989,154         $22,303,706
                                                                          ===========        ============

LIABILITIES AND PARTNERS' CAPITAL:
 Liabilities:
   Partnership distributions payable                                      $   475,848         $   477,122
                                                                          -----------        ------------
       Total liabilities                                                      475,848             477,122
                                                                          -----------        ------------
 Partners' capital:
   Wells Real Estate Fund II                                               20,369,946          20,666,589
   Wells Real Estate Fund II-OW                                             1,143,360           1,159,995
                                                                          -----------        ------------
       Total partners' capital                                             21,513,306          21,826,584
                                                                          -----------        ------------
       Total liabilities and partners' capital                            $21,989,154         $22,303,706
                                                                          ===========        ============
</TABLE>



           See accompanying condensed notes to financial statements.

                                      -9-
<PAGE>

                              FUND II-FUND II-OW

                           (A Georgia Joint Venture)


                             STATEMENTS OF INCOME




<TABLE>
<CAPTION>
                                                                                  Three Months Ended
                                                                               -------------------------
                                                                               March 31         March 31
                                                                                 2000             1999
                                                                               ---------        --------
<S>                                                                            <C>
REVENUES:
   Rental income                                                                $211,018        $114,717
   Equity in income of joint ventures                                            103,045          90,697
   Interest income                                                                   138             105
                                                                               ---------        --------
                                                                                 314,201         205,519
                                                                               ---------        --------

EXPENSES:
   Management and leasing fees                                                    12,790           6,883
   Lease acquisition costs                                                         4,589           4,589
   Operating costs--rental property                                                3,766           6,892
   Depreciation                                                                   91,917          91,917
   Legal and accounting                                                           22,607           3,684
   Computer costs                                                                  3,067           1,664
   Partnership administration                                                     12,895          23,012
                                                                               ---------        --------
                                                                                 151,631         138,641
                                                                               ---------        --------
NET INCOME                                                                      $162,570        $ 66,878
                                                                               =========        ========

NET INCOME ALLOCATED TO WELLS REAL ESTATE FUND II                               $153,938        $ 63,327
                                                                                ========        ========

NET INCOME ALLOCATED TO WELLS REAL ESTATE FUND II-OW                            $  8,632        $  3,551
                                                                                ========        ========
</TABLE>



           See accompanying condensed notes to financial statements.

                                      -10-
<PAGE>

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
     RESULTS OF OPERATIONS

     The following discussion and analysis should be read in conjunction with
     the accompanying financial statements of the Partnership and notes thereto.
     This Report contains forward-looking statements, within the meaning of
     Section 27A of the Securities Act of 1933 and Section 21E of the Securities
     Exchange Act of 1934, including discussion and analysis of the financial
     condition of the Partnership, anticipated capital expenditures required to
     complete certain projects, amounts of cash distributions anticipated to be
     distributed to Limited Partners in the future and certain other matters.
     Readers of this Report should be aware that there are various factors that
     could cause actual results to differ materially from any forward-looking
     statement made in this Report, which include construction costs which may
     exceed estimates, construction delays, lease-up risks, inability to obtain
     new tenants upon the expiration of existing leases, and the potential need
     to fund tenant improvements or other capital expenditures out of operating
     cash flow.

1.   RESULTS OF OPERATIONS AND CHANGES IN FINANCIAL CONDITIONS

     General

     As of March 31, 2000, the developed properties owned by the Fund II-Fund
     II-OW Joint Venture were 97.4% occupied, as compared to 97.5% occupied as
     of March 31, 1999.

     Gross revenues of the Partnership increased to $153,976 for the three
     months ended March 31, 2000 from $63,383 for the three months ended March
     31, 1999 due to increased rental renewal rates at the Charlotte Property.
     Total administrative expenses of the Partnership which are incurred at the
     joint venture level increased slightly due to increased management and
     leasing fees which are charges based on rental income.

     The Partnership's net cash provided by investing activities and net cash
     used in financing activities increased in 2000, compared to 1999, due to
     increases in distributions from joint ventures as net income increased at
     the Charlotte property.

     Fund II-Fund II-OW Joint Venture distributions accrued to the Partnership
     for the three-month periods ended March 31, 2000 and December 31, 1999 were
     $450,580 and $451,787, respectively.

     The Partnership made cash distributions to the Limited Partners holding
     Class A Units for the first quarter of 2000 in the amount of $4.38 per Unit
     as compared to $3.72 for the first quarter of 1999. No cash distributions
     were made by the Partnership to the Limited Partners holding Class B Units
     or to the General Partner.

     As of March 31, 2000, the Fund II-Fund II-OW Joint Venture had used all of
     the remaining funds available for investment in properties.

     The Partnership is unaware of any known demands, commitments, events, or
     capital expenditures other than that which is required from the normal
     operations of its properties that will result in the Partnership's
     liquidity increasing or decreasing in any material way. The Partnership
     expects to meet liquidity requirements and budget demands through cash flow
     from operations.

     The Partnership has recently made the decision to begin selling its
     properties. At this time, two properties have been identified that will be
     offered for sale within the next several months. The Partnership's goal is
     to have all Fund II properties sold by the end of 2002. As the properties
     are sold, all proceeds will be returned to limited partners in accordance
     with the Partnership's prospectus. Management estimates that the fair
     market value of each of the properties exceeds the carrying value of

                                      -11-
<PAGE>

     the corresponding real estate assets; consequently, no impairment loss has
     been recorded. In the event that the net sales proceeds are less than the
     carrying value of the property sold, the Partnership would recognize a loss
     on the sale. Management is not contractually or financially obligated to
     sell any of its properties, and it is management's current intent to fully
     realize the Partnership's investment in real estate. The success of the
     Partnership's future operations and the ability to realize the investment
     in its assets will be dependent on the Partnership's ability to maintain
     rental rates, occupancy and an appropriate level of operating expenses in
     future years. Management believes that the steps that it is taking will
     enable the Partnership to realize its investment in its assets.

                                      -12-
<PAGE>

2.   PROPERTY OPERATIONS

     As of March 31, 2000, the Partnership owned interests in the following
     properties through the Fund II-Fund II-OW Joint Venture:

           First Union at Charlotte/Fund II-Fund II-OW Joint Venture

<TABLE>
<CAPTION>
                                                                          Three Months Ended
                                                                     ------------------------------
                                                                       March 31,       March 31,
                                                                         2000            1999
                                                                     --------------  --------------
     <S>                                                             <C>             <C>
     Revenues:
        Rental income                                                $      211,018  $      114,717
                                                                     --------------  --------------
     Expenses:
        Depreciation                                                         91,917          91,917
        Management and leasing expenses                                      17,379          11,472
        Other operating expenses                                              3,627           6,787
                                                                     --------------  --------------
                                                                            112,923         110,176
                                                                     --------------  --------------
     Net income                                                      $       98,095  $        4,541
                                                                     ==============  ==============

     Occupied percentage                                                      100.0%          100.0%
                                                                     ==============  ==============

     Partnership's ownership percentage                                        94.7%           94.7%
                                                                     ==============  ==============

     Cash distributions to the Fund II-Fund II-OW Joint Venture*     $      194,600  $      116,449
                                                                     ==============  ==============

     Net income generated to the Fund II-Fund II-OW Joint Venture*   $       98,095  $        4,541
                                                                     ==============  ==============
</TABLE>

     *The Partnership holds a 95% ownership in the Fund II-Fund II-OW Joint
     Venture.

     Rental income, net income, and cash distributions increased for the three
     months ended March 31, 2000 as compared to the three months ended March 31,
     1999 due to an increased renewal rental rate beginning in May 1999.
     Expenses increased as compared to the same periods in 1998 due primarily to
     increased management fees which are charges based on rental income.

                                      -13-
<PAGE>

            Boeing at the Atrium/Fund II and Fund III Joint Venture

<TABLE>
<CAPTION>
                                                                          Three Months Ended
                                                                   ------------------------------
                                                                      March 31,        March 31,
                                                                        2000             1999
                                                                   -------------    -------------
<S>                                                                <C>              <C>
Revenues:
   Rental income                                                   $     367,536    $     367,536
                                                                   -------------    -------------
Expenses:
   Depreciation                                                          216,930          214,105
   Management and leasing expenses                                        45,060           44,774
   Other operating expenses                                              150,182          196,170
                                                                   -------------    -------------
                                                                         412,172          455,049
                                                                   -------------    -------------
Net loss                                                           $     (44,636)   $     (87,513)
                                                                   =============    =============

Occupied percentage                                                          100%             100%
                                                                   =============    =============

Partnership's ownership percentage                                            58%              58%
                                                                   =============    =============

Cash distributions to the Fund II-Fund II-OW Joint Venture*        $      86,980    $      89,632
                                                                   =============    =============

Net loss allocated to the Fund II-Fund II-OW Joint Venture*        $     (27,356)   $     (53,646)
                                                                   =============    =============
</TABLE>

*The Partnership holds a 95% ownership in the Fund II-Fund II-OW Joint Venture.

Rental income remained stable for the three months ended March 31, 2000 as
compared to the three months ended March 31, 1999. Other operating expenses
decreased due to an increase in common area maintenance reimbursements billed to
tenants. Tenants are billed an estimated amount for the current year common area
maintenance which is then reconciled the following year and the difference
billed to the tenant.

Cash distributions to the Fund II-Fund II-OW Joint Venture decreased even though
net loss decreased by $42,877 due primarily to capital expenditures on the
property's exterior caulking and coating during the first quarter of 2000 for
approximately $50,000.

                                      -14-
<PAGE>

             The Brookwood Grill/Fund II and Fund III Joint Venture

<TABLE>
<CAPTION>
                                                                          Three Months Ended
                                                                     ------------------------------
                                                                        March 31         March 31,
                                                                          2000             1999
                                                                     ---------------  -------------
<S>                                                                  <C>              <C>
Revenues:
   Rental income                                                     $        56,187  $      56,188
   Equity in income of joint venture                                          16,903         17,491
                                                                     ---------------  -------------
                                                                              73,090         73,679
                                                                     ---------------  -------------
Expenses:
   Depreciation                                                               13,503         13,503
   Management and leasing expenses                                             6,704          8,728
   Other operating expenses                                                   10,092          5,525
                                                                     ---------------  -------------
                                                                              30,299         27,756
                                                                     ---------------  -------------
Net income                                                           $        42,791  $      45,923
                                                                     ===============  =============

Occupied percentage                                                              100%           100%
                                                                     ===============  =============

Partnership's ownership percentage                                                59%            59%
                                                                     ===============  =============

Cash distributions to the Fund II-Fund II-OW Joint Venture*          $        57,710  $      55,427
                                                                     ===============  =============

Net income allocated to the Fund II-Fund II-OW Joint Venture*        $        26,680  $      28,633
                                                                     ===============  =============
</TABLE>

* The Partnership holds a 95% ownership in the Fund II-Fund II-OW Joint Venture.

Rental income, net income, and cash distributions to the Fund II-Fund II-OW
Joint Venture remained relatively stable for the three months ended March 31,
2000, as compared to 1999, due to the stable occupancy rate.

                                      -15-
<PAGE>

          Holcomb Bridge Road/Fund II, III, VI, and VII Joint Venture

<TABLE>
<CAPTION>
                                                                                           Three Months Ended
                                                                                     -----------------------------
                                                                                       March 31,       March 31,
                                                                                          2000            1999
                                                                                     -------------   -------------
<S>                                                                                  <C>             <C>
Revenues:
   Rental income                                                                     $     222,157   $     230,063
                                                                                     -------------   -------------
Expenses:
   Depreciation                                                                            104,130          94,129
   Management and leasing expenses                                                          30,586          38,874
   Other operating expenses                                                                 17,218          24,394
                                                                                     -------------   -------------
                                                                                           151,934         157,397
                                                                                     -------------   -------------
Net income                                                                           $      70,223   $      72,666
                                                                                     =============   =============

Occupied percentage                                                                            100%            100%
                                                                                     =============   =============

Partnership's ownership percentage                                                            14.2%           14.2%
                                                                                     =============   =============

Cash distributions to the Fund II-Fund III Joint Venture*                            $      45,947   $      35,418
                                                                                     =============   =============

Net income allocated to the Fund II-Fund III Joint Venture*                          $      16,903   $      17,491
                                                                                     =============   =============
</TABLE>

*The Partnership holds a 59.1% ownership in the Fund II-Fund III Joint Venture.

Rental income decreased for the three months ended March 31, 2000 as compared to
the three months ended March 31, 1999 due to straight line rent adjustment
during the first quarter of 1999.

Cash distributions to the Fund II-Fund III Joint Venture increased, even though
net income decreased slightly, due to lease acquisition fees paid of
approximately $20,000 in 1999.

                                      -16-
<PAGE>

        Heritage Place at Tucker Property/Fund I-Fund II Joint Venture

<TABLE>
<CAPTION>
                                                                                           Three Months Ended
                                                                                     -----------------------------
                                                                                       March 31,       March 31,
                                                                                          2000            1999
                                                                                     -------------   -------------
<S>                                                                                  <C>             <C>
Revenues:
   Rental income                                                                     $     337,144   $     336,859
   Interest income                                                                             142             136
                                                                                     -------------   -------------
                                                                                           337,286         336,995
                                                                                     -------------   -------------
Expenses:
   Depreciation                                                                            122,336         108,796
   Management and leasing expenses                                                          28,578          44,484
   Other operating expenses                                                                129,039          95,544
                                                                                     -------------   -------------
                                                                                           279,953         248,824
                                                                                     -------------   -------------
Net income                                                                           $      57,333   $      88,171
                                                                                     =============   =============

Occupied percentage                                                                             88%             91%
                                                                                     =============   =============

Partnership's ownership percentage                                                            42.5%           42.5%
                                                                                     =============   =============

Cash distributions to the Fund II-Fund II-OW Joint Venture*                          $      34,763   $      59,448
                                                                                     =============   =============

Net income allocated to the Fund II-Fund II-OW Joint Venture*                        $      25,743   $      39,598
                                                                                     =============   =============
</TABLE>

*The Partnership holds a 95% ownership in the Fund II-Fund II-OW Joint Venture.

Rental income remained relatively stable even though there was a decrease in the
occupancy level of the property. This was due to an adjustment in straight line
rent. Total expenses increased in 2000 as compared to 1999 due primarily to
increased depreciation expense, property taxes and repairs to the air condition
system. Cash distributions decreased in 2000 as compared to 1999 due to capital
improvements of approximately $100,000 for air conditioning systems funded from
cash flow.

                                      -17-
<PAGE>

        Cherokee Commons/Fund I, III, II-OW, VI, and VII Joint Venture

<TABLE>
<CAPTION>
                                                                                           Three Months Ended
                                                                                     -----------------------------
                                                                                       March 31,       March 31,
                                                                                          2000            1999
                                                                                     -------------   -------------
<S>                                                                                  <C>             <C>
Revenues:
   Rental income                                                                     $     242,861   $     227,383
   Interest income                                                                               7              20
                                                                                     -------------   -------------
                                                                                           242,868         227,403
                                                                                     -------------   -------------
Expenses:
   Depreciation                                                                            110,562         110,112
   Management and leasing expenses                                                          16,355          26,135
   Other operating expenses                                                                (26,968)        (30,556)
                                                                                     -------------   -------------
                                                                                            99,949         105,691
                                                                                     -------------   -------------
Net income                                                                           $     142,919   $     121,712
                                                                                     =============   =============

Occupied percentage                                                                             97%             96%
                                                                                     =============   =============

Partnership's ownership percentage                                                            51.7%           51.7%
                                                                                     =============   =============

Cash distributions to the Fund II-Fund II-OW Joint Venture*                          $     140,365   $     124,124
                                                                                     =============   =============

Net income allocated to the Fund II-Fund II-OW Joint Venture*                        $      77,978   $      66,407
                                                                                     =============   =============
</TABLE>

*The Partnership holds a 95% ownership in the Fund II-Fund II-OW Joint Venture.

Rental income increased in 2000 as compared to 1999 due to increased occupancy
and increased rental revenue rates. Management and leasing expenses decreased in
2000, as compared to 1999, due to increased leasing commissions for 1999 and a
catch-up of 1998 management fees in 1999. Other operating expenses remain
negative for 2000 and 1999 due to timing differences in the billing of common
area maintenance to tenants. Tenants are billed an estimate amount for the
current year common area maintenance which is then reconciled in the following
year and the difference billed to the tenant.

                                      -18-
<PAGE>

                          PART II. OTHER INFORMATION


ITEM 6 (b.) No reports on Form 8-K were filed during the first quarter of 2000.

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

                                    WELLS REAL ESTATE FUND II
                                    (Registrant)
Dated:  May 11, 2000       By:      /s/ Leo F. Wells, III
                                    ---------------------
                                    Leo F. Wells, III, as Individual
                                    General Partner, and as President
                                    and Chief Financial Officer
                                    of Wells Capital, Inc.,
                                    the Corporate General Partner

                                      -19-