Exhibit 99.0

DiVall Insured Income Properties 2, L.P.

QUARTERLY NEWS



|                                       |  |  |  |                    
|-------------------------------------- |  |  |  | -------------------
|A publication of The Provo Group, Inc. |  |  |  | FOURTH QUARTER 2007



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|CHANGE PROJECTED FOR 2008  Management is
projecting a total distribution from operating cash flow of about $23 per partnership unit for 2008. The distribution projection assumes stable revenue from all of the properties, except for Blockbuster, Daytonas and
Popeyes.As noted in Property Highlights on page 2 of this Newsletter, the leases on Blockbuster and Daytonas are set to expire early this year and 2008 projections do not include any revenue from these properties beyond
the terms of the expiring leases. Due to past defaults by Popeyes, the 2008 projections do not include monthly cash collections from the tenant. The amount actually distributed to investors will be increased by any revenue derived from the
Blockbusters and Dennys properties after the expiration of the leases, and any cash collections from Popeyes. Distributions will be decreased by tenant delinquencies (other than Popeyes), or other adverse developments
impacting the Partnership.  As noted in Property Highlights, the sale of the
Wendys property in Charleston is projected to take place during the Second Quarter of 2008, although there is no assurance that the sale will be completed. If the sale is consummated, net proceeds of about $23 per unit would be distributed to
investors, and is not included in the projected distributions from operating cash flow above.  Two other properties are listed for sale (see Property Highlights on page 2), and if they are sold this would positively impact the distributions.



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SECOND QUARTER OF 2007 DISTRIBUTION HIGHER THAN PROJECTED  The Fourth Quarter of 2007 distribution of $375,000 (approximately $8.10 per unit) is higher than the re-projected distribution of $290,000 ($6.27 per
unit). The increase is primarily due to the December land easement sale at the Popeyes- Park Forest property and the Fourth Quarter collections of current and past due rent and property tax escrow payments from Popeyes. (See Property
Highlights on page 2)



|                                                                                                                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                              
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                         
|2007 CASH
FLOW DISTRIBUTION HIGHLIGHTS                                                                                                                                                                                                   
|     $2,855,000distributed for thefourQuarters of 2007, which is $1,585,000 higher than originally projected.                                                                                                                            |  |      The approximate annualized operating
return for the four Quarters of 2007 was approximately 8.1%, based on the 12/31/06 Net Asset Value of $405 and the adjusted (net of Sunrise Preschool property sold) 12/31/06 Net Asset Value of $372 (See Questions &
Answers on page 2 for discussion of NAV).
|                                                                                                                                                                                                                                          | 
|     The total
distributions represent$62.34 per unit,and included approximately $33 per unit in return of capital (predominantly Sunrise Preschool, Phoenix, AZ property net sale proceeds which were distributed in August of
2007). |  |      $1,452 to $1,302range 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).                      

AUDIT AND TAX PREPARATION

In December, we engaged our current public accounting firm of McGladrey and Pullen, LLP to perform the 2007 audit and 2008 interim quarterly reviews. The Partnership
separately engaged M&P affiliate, RSM McGladrey, Inc., to provide tax consultation and return preparation services related to 2007.



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



---

|       |  |                         |  |       
|------ |  | ----------------------- |  | ------
|PAGE 2 |  | DIVALL 2 QUARTERLY NEWS |  | 4 Q 07

PROPERTY HIGHLIGHTS

PROPERTIES HELD FOR SALE



| |  |  | Ogden, Utah (operates as Blockbuster Video): A new agreement for the sale of the property was executed with a broker in December (current asking price is
$1,250,000). Approximately $21,000 in roofing expenditures on the property were capitalized in the Second Quarter of 2007. The lease on the property expires as of January 31, 2008, and Management did not include a renewal or a new tenant in the
2008 budget. Management will work with the broker in 2008 to negotiate either a sale of the property; a lease renewal; or a new tenant lease.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | 1515 Savannah Hwy., Charleston, South Carolina (operated as a Wendys restaurant): The tenant informed us that the facility was not meeting its
profitability objective, and they wished to sublet. The proposed new operator expressed a desire to purchase the property, and a sales contract was executed in August. The closing has been delayed while the prospective buyer seeks approval from the
local authorities for proposed changes in the facility. While there is never a guarantee that the sale will close, we now anticipate that closing will take place in the Second Quarter of 2008. This would result in net sales proceeds of approximately
$1.1 million, which would be distributed in August. The Wendys operation shut down in September of 2007, but the tenant continues to meet its obligation to pay the rent.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Phoenix, Arizona (operates as a Dennys restaurant):The tenant renewed the lease through April 30, 2009. We believe this property may be
attractive as a purchase by another restaurant operator with greater financing capabilities than the existing tenant. Accordingly, we have listed the property for sale with a broker (current asking price is $975,000).
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

OTHER



| |  |  | Des Moines, IA (operates as Daytonas All Sports Café): The lease on the property expires as of February 28, 2008 and Management did not
include a lease renewal or a new tenant in the 2008 budget. Management will work to negotiate either a lease renewal with Daytonas; or a new tenant lease.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Park Forest, IL (operates as a Popeyes restaurant):We previously reported that the tenant had failed to meet its monthly rent and property tax
obligations. Management instituted legal action for possession of the property, and the tenant subsequently executed a settlement agreement. We are now able to report that the tenant has paid its entire past due amounts and is current under the
terms of the lease and the settlement agreement as of December 31, 2007 (approximately $45,000 were received from the tenant during the Fourth Quarter).
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In December of 2007, a small parcel of the Park Forest property was sold to the Illinois Department of Transportation. The net proceeds of $34,000 ($.73
per unit), are included in the February 15, 2008 distribution.

QUESTIONS & ANSWERS



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

Your distribution correspondence for the First Quarter of 2008 is scheduled to be mailed on February 15, 2008.



| |  | When can I expect the December 31, 2007 Net Asset Value (NAV)?
|- |  | --------------------------------------------------------------

The Net Asset Value letter from the General Partner is scheduled to be mailed in February of 2008. Please note that a year-end NAV should
be adjusted (reduced) for any subsequent property sales during the following year.



| |  | When can I expect to receive my 2007 Schedule K-1?
|- |  | --------------------------------------------------

According to IRS regulations we are not required to mail K-1s until
April 15th. The 2007 K-1s are scheduled to be mailed out by mid- March of 2008.



| |  | When can I expect to receive my 2007 Annual Form 10-K Report?
|- |  | -------------------------------------------------------------

Your Annual Report is scheduled to be mailed in May of 2008.



| |  | 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:

CONTACT INFORMATION



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



---

DIVALL INSURED INCOME PROPERTIES 2 L.P.

STATEMENTS OF INCOME AND CASH FLOW CHANGES

FOR THE THREE MONTH PERIOD ENDED
DECEMBER 31, 2007



|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|-------------------------------------------------------------------- |  | -------------------- | ---------- | - | -------------------- | - | --------- | ------------- |  | -- | ------- | -
|                                                                     |  | PROJECTED            |            |   | ACTUAL               |   |           | VARIANCE      | 
|                                                                     |  | 4THQUARTER12/31/2007 |            |   | 4THQUARTER12/31/2007 |   |           | BETTER(WORSE) | 
|OPERATING REVENUES                                                   |  |                      |            |   |                      |   |           |               |  |    |         |  
|Rental income                                                        |  | $                    | 657,849    |   |                      | $ | 618,072   |               |  | ($ | 39,777  | )
|Interest income                                                      |  |                      | 7,700      |   |                      |   | 9,986     |               |  |    | 2,286   |  
|Gain on sale of investment property                                  |  |                      | 0          |   |                      |   | 25,159    |               |  |    | 25,159  |  
|Other income                                                         |  |                      | 0          |   |                      |   | 4,401     |               |  |    | 4,401   |  
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|TOTAL OPERATING REVENUES                                             |  | $                    | 665,549    |   |                      | $ | 657,618   |               |  | ($ | 7,931   | )
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|OPERATING EXPENSES                                                   |  |                      |            |   |                      |   |           |               |  |    |         |  
|Insurance                                                            |  | $                    | 12,486     |   |                      | $ | 9,885     |               |  | $  | 2,601   |  
|Management fees                                                      |  |                      | 56,925     |   |                      |   | 56,711    |               |  |    | 214     |  
|Overhead allowance                                                   |  |                      | 4,590      |   |                      |   | 4,585     |               |  |    | 5       |  
|Advisory Board                                                       |  |                      | 2,625      |   |                      |   | 2,625     |               |  |    | 0       |  
|Administrative                                                       |  |                      | 6,640      |   |                      |   | 5,696     |               |  |    | 944     |  
|Professional services                                                |  |                      | 18,090     |   |                      |   | 17,747    |               |  |    | 343     |  
|Auditing                                                             |  |                      | 17,700     |   |                      |   | 28,150    |               |  |    | (10,450 | )
|Legal                                                                |  |                      | 9,000      |   |                      |   | 871       |               |  |    | 8,129   |  
|Property Expenses                                                    |  |                      | 6,702      |   |                      |   | 4,921     |               |  |    | 1,781   |  
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|TOTAL OPERATING EXPENSES                                             |  | $                    | 134,758    |   |                      | $ | 131,191   |               |  | $  | 3,567   |  
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|INVESTIGATION AND RESTORATION EXPENSES                               |  | $                    | 0          |   |                      | $ | 124       |               |  | ($ | 124     | )
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|NON-OPERATING EXPENSES                                               |  |                      |            |   |                      |   |           |               |  |    |         |  
|Depreciation                                                         |  | $                    | 55,862     |   |                      | $ | 50,458    |               |  | $  | 5,404   |  
|Amortization                                                         |  |                      | 4,296      |   |                      |   | 4,371     |               |  |    | (75     | )
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|TOTAL NON-OPERATING EXPENSES                                         |  | $                    | 60,158     |   |                      | $ | 54,829    |               |  | $  | 5,329   |  
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|TOTAL EXPENSES                                                       |  | $                    | 194,916    |   |                      | $ | 186,144   |               |  | $  | 8,772   |  
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|NET INCOME                                                           |  | $                    | 470,633    |   |                      | $ | 471,473   |               |  | $  | 840     |  
|                                                                     |  |                      |           
|                                                                     |  |                      |            |   |                      |   |           | VARIANCE      | 
|OPERATING CASH RECONCILIATION:                                       |  |                      |            |   |                      |   |           |               |  |    |         |  
|Depreciation and amortization                                        |  |                      | 60,158     |   |                      |   | 54,829    |               |  |    | (5,329  | )
|Recovery of amounts previously written off                           |  |                      | 0          |   |                      |   | (3,107    | )             |  |    | (3,107  | )
|Gain on sale of investment property                                  |  |                      |            |   |                      |   | (25,159   | )             |  |    | (25,159 | )
|(Increase) Decrease in current assets                                |  |                      | (320,467   | ) |                      |   | (265,153  | )             |  |    | 55,314  |  
|Increase (Decrease) in current liabilities                           |  |                      | (946       | ) |                      |   | 2,599     |               |  |    | 3,545   |  
|(Increase) Decrease in cash reserved for payables                    |  |                      | (937       | ) |                      |   | (4,485    | )             |  |    | (3,548  | )
|Current cash flows advanced from (reserved for) future distributions |  |                      | 122,450    |   |                      |   | 117,962   |               |  |    | (4,488  | )
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|Net Cash Provided From Operating Activities                          |  | $                    | 330,891    |   |                      | $ | 348,959   |               |  | $  | 18,068  |  
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|CASH FLOWS (USED IN) FROM INVESTING AND FINANCING ACTIVITIES         |  |                      |            |   |                      |   |           |               |  |    |         |  
|Indemnification Trust (Interest earnings reinvested)                 |  | $                    | (5,000     | ) |                      | $ | (3,708    | )             |  | $  | 1,292   |  
|Recovery of amounts previously written off                           |  |                      | 0          |   |                      |   | 3,107     |               |  |    | 3,107   |  
|Net proceeds from sale of investment property                        |  |                      |            |   |                      |   | 33,609    |               |  |    | 33,609  |  
|Payment of Leasing Commissions                                       |  |                      | 0          |   |                      |   | (3,240    | )             |  |    | (3,240  | )
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|Net Cash (Used In) From Investing And FinancingActivities            |  | $                    | (5,000     | ) |                      | $ | 29,767    |               |  | $  | 34,767  |  
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|Total Cash Flow For Quarter                                          |  | $                    | 325,891    |   |                      | $ | 378,726   |               |  | $  | 52,835  |  
|Cash Balance Beginning of Period                                     |  |                      | 676,621    |   |                      |   | 702,162   |               |  |    | 25,541  |  
|Less 3rd quarter 2007 L.P. distributions paid 11/07                  |  |                      | (325,000   | ) |                      |   | (290,000  | )             |  |    | 35,000  |  
|Change in cash reserved for payables or future distributions         |  |                      | (121,513   | ) |                      |   | (113,477  | )             |  |    | 8,036   |  
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|Cash Balance End of Period                                           |  | $                    | 555,999    |   |                      | $ | 677,411   |               |  | $  | 121,412 |  
|Cash reserved for 4th quarter 2007 L.P. distributions                |  |                      | (325,000   | ) |                      |   | (375,000  | )             |  |    | (50,000 | )
|Cash reserved for payment of accrued expenses                        |  |                      | (95,514    | ) |                      |   | (163,785  | )             |  |    | (68,271 | )
|Cash advanced from (reserved for) future distributions               |  |                      | 0          |   |                      |   | (4,488    | )             |  |    | (4,488  | )
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|Unrestricted Cash Balance End of Period                              |  | $                    | 135,485    |   |                      | $ | 134,138   |               |  | $  | (1,347  | )
|                                                                     |  |                      |            |   |                      |   |           |               |  |    |         |  
|                                                                     |  |                      |           
|                                                                     |  | PROJECTED            |            |   | ACTUAL               |   |           | VARIANCE      | 
|*       Quarterly Distribution                                       |  | $                    | 325,000    |   |                      | $ | 375,000   |               |  | $  | 50,000  |  
|Mailing Date                                                         |  |                      | 02/15/2008 |   |                      |   | (enclosed | )             |  |    |        |  



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



---

|                    |  |                                       |  | 
|------------------- |  | ------------------------------------- |  | 
|PROJECTIONS FOR     |  | DIVALL INSURED INCOME PROPERTIES 2 LP |  | 
|DISCUSSION PURPOSES |  | 2008 PROJECTED PROPERTY SUMMARY       |  | 

AND RELATED RECEIPTS

FOR CURRENT INVESTMENT PROPERTIES

AS OF DECEMBER 31, 2007



|                              |  |                |  |             |  |                |           |        |   |        |                     |  |         |  |                               |  |                     |  |         |   |  |           |  |                |  |        |  
|----------------------------- |  | -------------- |  | ----------- |  | -------------- | --------- | ------ | - | ------ | ------------------- |  | ------- |  | ----------------------------- |  | ------------------- |  | ------- | - |  | --------- |  | -------------- |  | ------ | -
|PORTFOLIO                     |  | (Note 1)       |  |             |  |                |           |        |   |        |                     |  |         |  |                               |  |                     |  |         |   |  |           |  |                |  |        |  
|                              |  |                |  | REAL ESTATE |  |                | EQUIPMENT |        |   | TOTALS |                    
|CONCEPT                       |  | LOCATION       |  | COST        |  | ANNUALBASERENT |           | %YIELD |   |        | LEASEEXPIRATIONDATE |  | COST    |  | PRINCIPALRETURNEDAS OF 1/1/94 |  | ANNUALLEASERECEIPTS |  | %RETURN |   |  | COST      |  | ANNUALRECEIPTS |  | 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     |  | 9,000          |           | 1.39   | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 646,425   |  | 9,000          |  | 1.39   | %
|DENNYS (3)                   |  | PHOENIX, AZ    |  | 972,726     |  | 72,000         |           | 7.40   | % |        |                     |  | 183,239 |  | 0                             |  | 0                   |  | 0.00    | % |  | 1,155,965 |  | 72,000         |  | 6.23   | %
|CHINESE SUPER BUFFET          |  | PHOENIX, AZ    |  | 865,900     |  | 71,500         |           | 8.26   | % |        |                     |  | 221,237 |  | 0                             |  | 0                   |  | 0.00    | % |  | 1,087,137 |  | 71,500         |  | 6.58   | %
|DAYTONAS All SPORTS CAFÉ (4) |  | DES MOINES, IA |  | 845,000     |  | 12,000         |           | 1.42   | % |        |                     |  | 52,813  |  | 0                             |  | 0                   |  | 0.00    | % |  | 897,813   |  | 12,000         |  | 1.34   | %
|KFC                           |  | SANTA FE, NM   |  | 451,230     |  | 60,000         |           | 13.30  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 451,230   |  | 60,000         |  | 13.30  | %



Note:

|1: | This property summary includes only investment property held by the Partnership as of December 31, 2007.
|-- | --------------------------------------------------------------------------------------------------------

|2: | The Blockbuster lease expires on January 31, 2008 and Management is not assured that the lease will be renewed or a new tenant will be found. Therefore, for report purposes
only one month of rent is shown. In December of 2007, Management executed a listing agreement with an unaffiliated broker for the sale of the property. The current asking price is $1.25 million. The Broker is also authorized to pursue a lease
extension with Blockbuster or a lease with a new tenant.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3: | The Dennys lease was renewed as of November 30, 2007 for a period of 18 months. In early January of 2008, Management executed a listing agreement with an unaffiliated
broker for the sale of the property. The current asking price is $975,000.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4: | The Daytonas lease expires on February 28, 2008 and Management is not assured that the lease will be renewed or that a new tenant will be found. Therefore, only two
months of rent are shown for report purposes.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5: | A sales contract was executed in August of 2007 for the sale of the property at a sales price of $1.17 million. Closing was expected to be during the Fourth Quarter of 2007, but at
the request of the buyer, it is now anticipated to be during the Second Quarter of 2008. Until closing, the Partnership will receive monthly rent of $6,440 from the tenant who ceased operations effective September 30, 2007. For report purposes,
since there is no assurance of a completed sale, the annual base rent shown includes a full twelve months of rent.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

|                    |  |                                       |  | 
|------------------- |  | ------------------------------------- |  | 
|PROJECTIONS FOR     |  | DIVALL INSURED INCOME PROPERTIES 2 LP |  | 
|DISCUSSION PURPOSES |  | 2008 PROJECTED PROPERTY SUMMARY       |  | 

AND RELATED RECEIPTS

FOR CURRENT INVESTMENT PROPERTIES

AS OF DECEMBER 31, 2007



|                 |  |                  |  |             |  |                |           |        |   |        |                     |  |         |  |                               |  |                     |  |         |   |  |            |  |               |  |        |  
|---------------- |  | ---------------- |  | ----------- |  | -------------- | --------- | ------ | - | ------ | ------------------- |  | ------- |  | ----------------------------- |  | ------------------- |  | ------- | - |  | ---------- |  | ------------- |  | ------ | -
|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  | %
|PANDA BUFFET     |  | GRAND FORKS, ND  |  | 739,375     |  | 37,000         |           | 5.00   | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 739,375    |  | 37,000        |  | 5.00   | %
|WENDYS          |  | AIKEN, SC        |  | 633,750     |  | 90,480         |           | 14.28  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 633,750    |  | 90,480        |  | 14.28  | %
|WENDYS (5)      |  | 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 |  |                  |  | 12,530,248  |  | 1,318,340      |           | 10.52  | % |        |                     |  | 541,789 |  | 29,849                        |  | 0                   |  | 0.00    | % |  | 13,072,037 |  | 1,318,340     |  | 10.09  | %



Note:

|1: | This property summary includes only investment property held by the Partnership as of December 31, 2007.
|-- | --------------------------------------------------------------------------------------------------------

|2: | The Blockbuster lease expires on January 31, 2008 and Management is not assured that the lease will be renewed or a new tenant will be found. Therefore, for report purposes
only one month of rent is shown. In December of 2007, Management executed a listing agreement with an unaffiliated broker for the sale of the property. The current asking price is $1.25 million. The Broker is also authorized to pursue a lease
extension with Blockbuster or a lease with a new tenant.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3: | The Dennys lease was renewed as of November 30, 2007 for a period of 18 months. In early January of 2008, Management executed a listing agreement with an unaffiliated
broker for the sale of the property. The current asking price is $975,000.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4: | The Daytonas lease expires on February 28, 2008 and Management is not assured that the lease will be renewed or that a new tenant will be found. Therefore, only two
months of rent are shown for report purposes.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5: | A sales contract was executed in August of 2007 for the sale of the property at a sales price of $1.17 million. Closing was expected to be during the Fourth Quarter of 2007, but at
the request of the buyer, it is now anticipated to be during the Second Quarter of 2008. Until closing, the Partnership will receive monthly rent of $6,440 from the tenant who ceased operations effective September 30, 2007. For report purposes,
since there is no assurance of a completed sale, the annual base rent shown includes a full twelve months of rent.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------