EXHIBIT 99.0

DiVall Insured Income Properties 2, L.P.

QUARTERLY NEWS

|                                       |  |                    
|-------------------------------------- |  | -------------------
|A publication of The Provo Group, Inc. |  | FOURTH QUARTER 2005

STABLE EARNINGS

The first three quarters of 2005 were without any significant negative variations from our cash flow plan. We planned to distribute a total of $1,290,000 ($27.87 per unit) for the First, Second and Third Quarters of
2005 and we actually distributed $1,305,000 ($28.20 per unit). The Fourth Quarter of 2005 distribution of $2,000,000 ($43.21 per unit) is higher than the planned distribution of $430,000, due to the sale of the North Richland Hills, TX property in
December of 2005 (see property highlights on page 2.)

The portfolio is performing as expected without the variety of litigation issues we have experienced
in past years. We expect consistent performance in 2006, with quarterly distributions projected to be $325,000 ($7.02 per unit) or an annualized projected return of approximately 7% based on the net asset value as of December 31, 2005 of
approximately $410 per unit. The Blockbuster property re-positioning (see property highlights on page 2) during 2006 impacts the distribution yield by approximately 1.2%. We do expect to sell at least one property in 2006, which will dramatically
increase the projected distributions.

Effective December 2005, we engaged our current accounting firm of Altschuler Melvoin and Glasser LLP to perform the
2005 audit and 2006 interim quarter reviews. The Partnership separately engaged their affiliate RSM McGladrey, Inc. to provide tax consultation and return preparation related to 2005.



|                                                                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                         
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|DISTRIBUTION
HIGHLIGHTS                                                                                                                                                                                                                                                                              
|      $2,000,000distributed for the Fourth Quarter of 2005 which is approximately $1,570,000 higher than originally projected primarily due to the return of capital from the
Hooters- North Richland Hills, TX sale.                                                                             |  |       $3,305,000 total amount distributed for the four Quarters of 2005, higher than budget
primarily due to the sale of the Hooters- Richland Hills, TX property in December of 2005.                                                                                                
|                                                                                                                                                                                                                                                                                                      | 
|      $43.21 per unit (approximately) for the Fourth Quarter of 2005 distribution, which includes a
$32.53 per unit return of capital. The approximate annualized operating return for the four quarters of 2005 was 8.8% based on the net asset value of $440 per unit as of December 31, 2004. |  |       $1,348 to $1,199range of cumulative distributions per unit from thefirst unit sold
to the lastunit sold before the offering closed (3/90), respectively. (Distributions are from both cash flow from operations and net cash activity from financing and investing activities).



|                        |  |  
|----------------------- |  | -
|SEE INSIDE              |  |  
|Property Highlights     |  | 2
|Questions & Answers     |  | 2
|New Contact Information |  | 2



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PAGE 2



|                        |  |       
|----------------------- |  | ------
|DIVALL 2 QUARTERLY NEWS |  | 4 Q 05

PROPERTY HIGHLIGHTS

Lease Renewals

Ogden, UT (currently
operated as a Blockbuster store):The lease on the current 6,000 square foot space expired on January 31, 2006. Management does not expect to compromise the rental value of this property long-term to accommodate Blockbusters current
operating difficulties. We would prefer to absorb short-term vacancy losses and re-position the asset with a stronger and diversified tenancy.

Sales

North Richland Hills, TX (previously operated as a Hooters restaurant):The Partnership
sold this property in December of 2005 to a closely held entity affiliated with the Hooters restaurant operator for $1,575,000.

QUESTIONS & ANSWERS



| |  |  | When can I expect my next distribution mailing?
| | - |  | -----------------------------------------------

Your distribution correspondence for the First Quarter of 2006 is scheduled to be mailed on May 15, 2006.



| |  |  | What was the December 31, 2005 net asset value?
| | - |  | -----------------------------------------------

The net asset value was $410 per unit. See enclosed Net Asset Value letter from the General Partner.



| |  |  | When can I expect to receive my 2005 Schedule K-1?
| | - |  | --------------------------------------------------

IRS regulations do not require the 2005 K-1s to be mailed out until April 15th, but we plan to mail the K-1s by March 15, 2006.



| |  |  | Ive moved, how do I update my account registration?
| | - |  | ----------------------------------------------------

Please mail or fax to DiVall Investor Relations a signed letter stating your new address and telephone number. Updates cannot be accepted over the telephone or via voicemail messages.



| |  |  | If I have questions or comments, how can I reach DiVall Investor Relations?
| | - |  | ---------------------------------------------------------------------------

You can reach DiVall Investor Relations at the address listed below. As noted in our Third Quarter of 2005 newsletter the information
below contains recent changes.

NEW CONTACT INFORMATION



|       |  |                                              
|------ |  | ---------------------------------------------
|MAIL:  |  | DiVall Investor Relations                    
|       |  | c/o Phoenix American Financial Services, Inc.
|       |  | 2401 Kerner Blvd.                            
|       |  | San Rafael, CA 94901                         
|PHONE: |  | 1-800-547-7686                               
|FAX:   |  | 1-415-485-4553                               



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DIVALL INSURED INCOME PROPERTIES 2 L.P.

STATEMENTS OF INCOME AND CASH FLOW CHANGES

FOR THE THREE MONTH PERIOD ENDED
DECEMBER 31, 2005



|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|-------------------------------------------------------------------- |  | -------------------- | ---------- | - | -------------------- | - | ---------- | -------------- |  | - | ---------- | -
|                                                                     |  | PROJECTED            |            |   | ACTUAL               |   |            | VARIANCE       | 
|                                                                     |  | 4THQUARTER12/31/2005 |            |   | 4THQUARTER12/31/2005 |   |            | BETTER (WORSE) | 
|OPERATING REVENUES                                                   |  |                      |            |   |                      |   |            |                |  |   |            |  
|Rental income                                                        |  | $                    | 725,050    |   |                      | $ | 696,751    |                |  | $ | (28,299    | )
|Interest income                                                      |  |                      | 2,195      |   |                      |   | 6,554      |                |  |   | 4,359      |  
|Gain on sale of property                                             |  |                      | 0          |   |                      |   | 668,168    |                |  |   | 668,168    |  
|Other income                                                         |  |                      | 0          |   |                      |   | 8,857      |                |  |   | 8,857      |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|TOTAL OPERATING REVENUES                                             |  | $                    | 727,245    |   |                      | $ | 1,380,331  |                |  | $ | 653,086    |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|OPERATING EXPENSES                                                   |  |                      |            |   |                      |   |            |                |  |   |            |  
|Insurance                                                            |  | $                    | 9,729      |   |                      | $ | 9,715      |                |  | $ | 14         |  
|Management fees                                                      |  |                      | 52,230     |   |                      |   | 53,136     |                |  |   | (906       | )
|Overhead allowance                                                   |  |                      | 4,311      |   |                      |   | 4,296      |                |  |   | 15         |  
|Advisory Board                                                       |  |                      | 3,500      |   |                      |   | 3,500      |                |  |   | 0          |  
|Administrative                                                       |  |                      | 6,030      |   |                      |   | 5,749      |                |  |   | 281        |  
|Professional services                                                |  |                      | 11,190     |   |                      |   | 14,533     |                |  |   | (3,343     | )
|Auditing                                                             |  |                      | 16,200     |   |                      |   | 19,285     |                |  |   | (3,085     | )
|Legal                                                                |  |                      | 9,000      |   |                      |   | 2,262      |                |  |   | 6,738      |  
|Property Expenses                                                    |  |                      | 3,900      |   |                      |   | 3,273      |                |  |   | 627        |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|TOTAL OPERATING EXPENSES                                             |  | $                    | 116,090    |   |                      | $ | 115,749    |                |  | $ | 341        |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|INVESTIGATION AND RESTORATION EXPENSES                               |  | $                    | 0          |   |                      | $ | 114        |                |  | $ | (114       | )
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|NON-OPERATING EXPENSES                                               |  |                      |            |   |                      |   |            |                |  |   |            |  
|Depreciation                                                         |  |                      | 65,358     |   |                      |   | 62,292     |                |  |   | 3,066      |  
|Amortization                                                         |  |                      | 3,198      |   |                      |   | 3,198      |                |  |   | (0         | )
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|TOTAL NON-OPERATING EXPENSES                                         |  | $                    | 68,556     |   |                      | $ | 65,491     |                |  | $ | 3,065      |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|TOTAL EXPENSES                                                       |  | $                    | 184,646    |   |                      | $ | 181,354    |                |  | $ | 3,292      |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|NET INCOME                                                           |  | $                    | 542,599    |   |                      | $ | 1,198,977  |                |  | $ | 656,378    |  
|                                                                     |  |                      |           
|                                                                     |  |                      |            |   |                      |   |            | VARIANCE       | 
|OPERATING CASH RECONCILIATION:                                       |  |                      |            |   |                      |   |            |                |  |   |            |  
|Depreciation and amortization                                        |  |                      | 68,556     |   |                      |   | 65,491     |                |  |   | (3,065     | )
|Recovery of amounts previously written off                           |  |                      | 0          |   |                      |   | (2,857     | )              |  |   | (2,857     | )
|Gain on sale of property                                             |  |                      | 0          |   |                      |   | (668,168   | )              |  |   | (668,168   | )
|(Increase) Decrease in current assets                                |  |                      | (281,467   | ) |                      |   | (202,766   | )              |  |   | 78,701     |  
|Increase (Decrease) in current liabilities                           |  |                      | 6,625      |   |                      |   | (32,750    | )              |  |   | (39,375    | )
|(Increase) Decrease in cash reserved for payables                    |  |                      | (8,795     | ) |                      |   | 27,954     |                |  |   | 36,749     |  
|Current cash flows advanced from (reserved for) future distributions |  |                      | 115,900    |   |                      |   | 126,256    |                |  |   | 10,356     |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|Net Cash Provided From Operating Activities                          |  | $                    | 443,418    |   |                      | $ | 512,136    |                |  | $ | 68,718     |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|CASH FLOWS (USED IN) FROM INVESTING AND FINANCING ACTIVITIES         |  |                      |            |   |                      |   |            |                |  |   |            |  
|Indemnification Trust (Interest earnings reinvested)                 |  |                      | (1,500     | ) |                      |   | (3,535     | )              |  |   | (2,035     | )
|Recovery of amounts previously written off                           |  |                      | 0          |   |                      |   | 2,857      |                |  |   | 2,857      |  
|Net proceeds from sale of property                                   |  |                      |            |   |                      |   | 1,505,426  |                |  |   | 1,505,426  |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|Net Cash (Used In) From Investing And Financing Activities           |  | $                    | (1,500     | ) |                      | $ | 1,504,748  |                |  | $ | 1,506,248  |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|Total Cash Flow For Quarter                                          |  | $                    | 441,918    |   |                      | $ | 2,016,885  |                |  | $ | 1,574,967  |  
|Cash Balance Beginning of Period                                     |  |                      | 808,422    |   |                      |   | 791,133    |                |  |   | (17,289    | )
|Less 3rd quarter 2005 distributions paid November 2005               |  |                      | (430,000   | ) |                      |   | (435,000   | )              |  |   | (5,000     | )
|Change in cash reserved for payables or future distributions         |  |                      | (107,105   | ) |                      |   | (154,210   | )              |  |   | (47,105    | )
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|Cash Balance End of Period                                           |  | $                    | 713,234    |   |                      | $ | 2,218,808  |                |  | $ | 1,505,574  |  
|                                                                     |  |                      |           
|Cash reserved for 4th quarter 2005 L.P. distributions                |  |                      | (430,000   | ) |                      |   | (2,000,000 | )              |  |   | (1,570,000 | )
|Cash reserved for payment of accrued expenses                        |  |                      | (100,658   | ) |                      |   | (90,653    | )              |  |   | 10,005     |  
|Cash advanced from (reserved for) future distributions               |  |                      | (64,813    | ) |                      |   | 0          |                |  |   | 64,813     |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|Unrestricted Cash Balance End of Period                              |  | $                    | 117,763    |   |                      | $ | 128,155    |                |  | $ | 10,392     |  
|                                                                     |  |                      |            |   |                      |   |            |                |  |   |            |  
|                                                                     |  |                      |           
|                                                                     |  | PROJECTED            |            |   | ACTUAL               |   |            | VARIANCE       | 
|*         Quarterly Distribution                                     |  | $                    | 430,000    |   |                      | $ | 2,000,000  |                |  | $ | 1,570,000  |  
|Mailing Date                                                         |  |                      | 02/15/2006 |   |                      |   | (enclosed  | )              |  |   |           |  

---

|* | Refer to distribution letter for detail of quarterly distribution.
|- | ------------------------------------------------------------------



---

PROJECTIONS FOR

DISCUSSION
PURPOSES

DIVALL INSURED INCOME PROPERTIES 2 LP

2006 PROJECTED PROPERTY SUMMARY

AND RELATED RECEIPTS

FOR CURRENT OPERATING PROPERTIES

AS
OF DECEMBER 31, 2005



|PORTFOLIO | (Note 1)
|--------- | --------



|                          |  |                |  |             |  |                  |           |         |   |        |                       |  |         |  |                                 |  |                       |  |          |   |  |           |  |                 |  |        |  
|------------------------- |  | -------------- |  | ----------- |  | ---------------- | --------- | ------- | - | ------ | --------------------- |  | ------- |  | ------------------------------- |  | --------------------- |  | -------- | - |  | --------- |  | --------------- |  | ------ | -
|                          |  |                |  | REAL ESTATE |  |                  | EQUIPMENT |         |   | TOTALS |                      
|CONCEPT                   |  | LOCATION       |  | COST        |  | ANNUAL BASE RENT |           | % YIELD |   |        | LEASE EXPIRATION DATE |  | COST    |  | PRINCIPAL RETURNED AS OF 1/1/94 |  | ANNUAL LEASE RECEIPTS |  | % RETURN |   |  | COST      |  | ANNUAL RECEIPTS |  | RETURN |  
|APPLEBEES                |  | COLUMBUS, OH   |  | 1,059,465   |  | 135,780          |           | 12.82   | % |        |                       |  | 84,500  |  | 29,849                          |  | 0                     |  | 0.00     | % |  | 1,143,965 |  | 135,780         |  | 11.87  | %
|BLOCKBUSTER (2)           |  | OGDEN, UT      |  | 646,425     |  | 9,250            |           | 1.43    | % |        |                       |  |         |  |                                 |  |                       |  |          |   |  | 646,425   |  | 9,250           |  | 1.43   | %
|DENNYS                   |  | PHOENIX, AZ    |  | 972,726     |  | 65,000           |           | 6.68    | % |        |                       |  | 183,239 |  | 0                               |  | 0                     |  | 0.00     | % |  | 1,155,965 |  | 65,000          |  | 5.62   | %
|CHINESE SUPER BUFFET      |  | PHOENIX, AZ    |  | 865,900     |  | 66,000           |           | 7.62    | % |        |                       |  | 221,237 |  | 0                               |  | 0                     |  | 0.00     | % |  | 1,087,137 |  | 66,000          |  | 6.07   | %
|DAYTONAS All SPORTS CAFÉ |  | DES MOINES, IA |  | 845,000     |  | 70,000           |           | 8.28    | % |        |                       |  | 52,813  |  | 0                               |  | 0                     |  | 0.00     | % |  | 897,813   |  | 70,000          |  | 7.80   | %
|KFC                       |  | SANTA FE, NM   |  | 451,230     |  | 60,000           |           | 13.30   | % |        |                       |  |         |  |                                 |  |                       |  |          |   |  | 451,230   |  | 60,000          |  | 13.30  | %

---

Note:

| | 1: | This property summary includes only property and equipment held by the Partnership as of December 31, 2005.
| | -- | -----------------------------------------------------------------------------------------------------------

| | 2: | The Blockbuster lease is set to expire as of January 31, 2006 in the 6,000 square foot space. Management does not expect to compromise the rental value of this property
long-term to accommodate Blockbusters currrent operating difficulties. We would prefer to absorb short-term vacancy losses and re-position the asset with a stronger and diversified tenancy.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Page 1 of 2



---

PROJECTIONS FOR

DISCUSSION PURPOSES

DIVALL INSURED INCOME PROPERTIES 2 LP

2006 PROJECTED PROPERTY SUMMARY

AND
RELATED RECEIPTS

FOR CURRENT OPERATING PROPERTIES

AS OF DECEMBER 31, 2005

|PORTFOLIO | (Note 1)
|--------- | --------



|                  |  |                  |  |             |  |                |           |        |   |        |                     |  |        |  |                               |  |                     |   |         |            |  |           |  |               |   |        |  
|----------------- |  | ---------------- |  | ----------- |  | -------------- | --------- | ------ | - | ------ | ------------------- |  | ------ |  | ----------------------------- |  | ------------------- | - | ------- | ---------- |  | --------- |  | ------------- | - | ------ | -
|                  |  |                  |  | REAL ESTATE |  |                | EQUIPMENT |        |   | TOTALS |                    
|CONCEPT           |  | LOCATION         |  | COST        |  | ANNUALBASERENT |           | %YIELD |   |        | LEASEEXPIRATIONDATE |  | COST   |  | PRINCIPALRETURNEDAS OF 1/1/94 |  | ANNUALLEASERECEIPTS |   | %RETURN |            |  | COST      |  | TOTALRECEIPTS |   | RETURN |  
|POPEYES          |  | PARK FOREST, IL  |  | 580,938     |  | 77,280         |           | 13.30  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 580,938   |  | 77,280        |   | 13.30  | %
|SUNRISE PRESCHOOL |  | PHOENIX, AZ      |  | 1,084,503   |  | 123,318        |           | 11.37  | % |        |                     |  | 79,219 |  | 33,047                        |  | 0                   |   | 0.00    | %          |  | 1,182,735 |  | 123,318       |   | 10.43  | %
|                  |  |                  |  |             |  |                |           |        |   |        |                     |  | 19,013 |  | 6,710                         |  | 0                   |   | 0.00    | %          |  |           |  |               |   |        |  
|PANDA BUFFET      |  | GRAND FORKS, ND  |  | 739,375     |  | 35,000         |           | 4.73   | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 739,375   |  | 35,000        |   | 4.73   | %
|                  |  |                  |  |             |  |                |           |        |   |        |                     | 
|WENDYS           |  | AIKEN, SC        |  | 633,750     |  | 90,480         |           | 14.28  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 633,750   |  | 90,480        |   | 14.28  | %
|WENDYS           |  | CHARLESTON, SC   |  | 580,938     |  | 77,280         |           | 13.30  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 580,938   |  | 77,280        |   | 13.30  | %
|WENDYS           |  | N. AUGUSTA, SC   |  | 660,156     |  | 87,780         |           | 13.30  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 660,156   |  | 87,780        |   | 13.30  | %
|WENDYS           |  | AUGUSTA, GA      |  | 728,813     |  | 96,780         |           | 13.28  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 728,813   |  | 96,780        |   | 13.28  | %
|WENDYS           |  | CHARLESTON, SC   |  | 596,781     |  | 76,920         |           | 12.89  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 596,781   |  | 76,920        |   | 12.89  | %
|WENDYS           |  | AIKEN, SC        |  | 776,344     |  | 96,780         |           | 12.47  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 776,344   |  | 96,780        |   | 12.47  | %
|WENDYS           |  | AUGUSTA, GA      |  | 649,594     |  | 86,160         |           | 13.26  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 649,594   |  | 86,160        |   | 13.26  | %
|WENDYS           |  | CHARLESTON, SC   |  | 528,125     |  | 70,200         |           | 13.29  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 528,125   |  | 70,200        |   | 13.29  | %
|WENDYS           |  | MT. PLEASANT, SC |  | 580,938     |  | 77,280         |           | 13.30  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 580,938   |  | 77,280        |   | 13.30  | %
|WENDYS           |  | MARTINEZ, GA     |  | 633,750     |  | 84,120         |           | 13.27  | % |        |                     |  |        |  |                               |  |                     |   |         |            |  | 633,750   |  | 84,120        |   | 13.27  | %
|                  |  |                  |  |             |  |                |           |        |   |        |                     |  |        |  |                               |  |                     |   |         |            |  |           |  |               |   |        |  
|PORTFOLIO TOTALS  |  | 13,614,751       |  | 1,485,408   |  | 10.91          | %         |        |   |        | 640,021             |  | 69,606 |  | 0                             |  | 0.00                | % |         | 14,254,772 |  | 1,485,408 |  | 10.42         | %
|                  |  |                  |  |             |  |                |           |        |   |        |                     |  |        |  |                               |  |                     |   |         |            |  |           |  |               |   |        |  

---

Note:

| | 1: | This property summary includes only property and equipment held by the Partnership as of December 31, 2005.
| | -- | -----------------------------------------------------------------------------------------------------------

| | 2: | The Blockbuster lease is set to expire as of January 31, 2006 in the 6,000 square foot space. Management does not expect to compromise the rental value of this property
long-term to accommodate Blockbusters currrent operating difficulties. We would prefer to absorb short-term vacancy losses and re-position the asset with a stronger and diversified tenancy.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Page 2 of 2