Exhibit 99



DiVall Insured Income Properties 2, L.P.



QUARTERLY NEWS



|                                       |  |                   
|-------------------------------------- |  | ------------------
|A publication of The Provo Group, Inc. |  | FIRST QUARTER 2004



WHEN SOMEONE
OFFERS TO PURCHASE YOUR UNITS . . .



Many of you have, at one time or
another, received unsolicited offers in the mail to purchase your units. As you may already know, those offers do not come from The Provo Group (TPG) and are not endorsed by TPG. There are a few of these mini-tender
offers currently being circulated to DiVall investors. We feel it is important that you understand the following information when you consider selling your units to an unsolicited buyer:



. . . THEIR ONLY GOAL IS TO MAKE A PROFIT . . .



The person or company that is offering to buy your units is doing so as an investment and
expects to make a good return on the investment. Your investment is currently returning about 8% based on the estimated net asset value of the Partnership. In order for the buyer to make more than 8%, the buyer must pay less than the estimated net
asset value. For example, if they purchase your units for $350 per unit and the net asset value of your unit is $440, the buyer has $90 per unit as a built-in profit ( 25%) plus an annual return from quarterly distributions of, not 8%,
but 10.25%. Note that the buyers return is not guaranteed, and when he will be able to get the built-in profit (or loss) depends on when the Partnership is liquidated.



. . . TPG IS INVOLVED ONLY AS A TRANSFER AGENT . . .



The money from the sale of your units does not come from the Partnership or TPG, nor does the
money go through our office. Once TPG receives the signed contract from both the buyer and seller directing us to transfer the units, the units are transferred and a new certificate is issued to the buyer. However, we cannot be responsible to make
sure you actually get paid. If you do not receive your money as stated in your contract with the buyer, contact our office and we will use reasonable efforts to identify a contact for you with the buyer, but we will not be drawn into any payment
dispute you may have with the buyer.



. . . BE SURE TO
READ THE FINE PRINT . . .



It is important that you thoroughly read the
offers that are sent to you. The fine print can be difficult to understand and sometimes misleading. One area that seems to often lead to confusion/misunderstanding is who is entitled to receive (or get credit for) any distributions that occur
before the sale is completed and the unit is transferred. Watch this closely when evaluating an offer.



. . . AND KNOW YOUR BUYERS BACKGROUND . . .



Offers sometimes contain interesting information regarding the buyer. For example, a recent offer read (the buyer) entered into a consent with the SEC enjoining
them from offering, making or engaging in mini-tenders . . . this consent specifies that it does not pertain to offers to purchase limited partnership interests. You may want to investigate why a buyer got in trouble with the SEC before
agreeing to do business with them.



Some offers mention transfer fees. To cover
the expense of processing transfers, the Partnership does charge a $50 fee per transfer (not per unit). A recent mini-tender offer read offering $380 per unit, less thepartnership transfer fee of $60. We do not know
whether this misstatement of the amount of the Partnerships transfer fee was inadvertent or deliberate.



---

|       |  |          |  |       
|------ |  | -------- |  | ------
|PAGE 2 |  | DIVALL 2 |  | 1 Q 04



If you have any questions or concerns
regarding an offer you received in the mail, please do not hesitate to contact our office. We will try to answer any questions you may have. Additionally, if you ask us for it, our office will forward you a list of companies/individuals who have
purchased units from investors in the past and may be interested in purchasing your units. These people may be willing to pay more than the current mini-tenders, but we are not endorsing any of these potential buyers either.



In May 2005 the partnership intends to send out consents to investors to vote on whether or
not to place the partnerships assets up for sale.



DISTRIBUTION HIGHLIGHTS



| |  | $415,000 total amount distributed for the First Quarter 2004 which is $10,000 lower than originally projected primarily because of the Popeyes real estate taxes. (refer
to page 3 for details)
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | $8.97per unit (approx.) for the First Quarter 2004.
| | - | ---------------------------------------------------



| |  | The First Quarter distribution represents an approximate 8.1% annualized return from operations based on a net asset value of $20,500,000 as of 12/31/03.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | $1,234 to $1,084range of distributions per unit from thefirst unit sold to the last unit sold before the offering closed (2/90) respectively. (Distributions
are from both cash flow from operations and net cash activity from financing and investing/sale activities)
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



PROPERTY HIGHLIGHTS



Sales/Other Issues



|$ | Palm Beach, FL (currently operated as a Miami Subs restaurant)The Partnership currently has a contract pending for the sale of this property to a private investor for
$650,000. Closing is contracted to be in the Second Quarter of 2004.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Miami Subs, was delinquent at March 31, 2004 in the amount of $20,721 which represents past due rent and related late fees. Although this tenant agreed to make double payments we have yet to receive the balance due.
This tenant is in default and we are seeking possession of this property.



---

Litigation Issues



|$ | Popeyes (Park Forest, IL)This tenant was delinquent at March 31, 2004 in the amount of $270,000. This amount includes delinquent percentage rent for 2001 and
2002 ($103,509), related late fees ($61,049), and delinquent property taxes (approximately $105,000). The Partnership paid the delinquent taxes during the first quarter, which cover 2001, 2002 and the first half of 2003, in order to avoid adverse
action by the taxing authority.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The Partnership
commenced legal action against Popeyes last year, and in February we were granted a court order allowing the Partnership to remove Popeyes and gain possession of the property if we choose to do so. We are also pursuing a reduction in the
real estate tax assessment.



On April 22, we received $25,000
as an initial monthly installment by the tenant toward satisfying all outstanding real estate taxes previously paid buy us. There is no settlement agreement, but it is understood that if all of the past due taxes are brought current with us; we will
enter into a formal settlement agreement to stay any possession action or other litigation.



QUESTIONS & ANSWERS



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



Your distribution correspondence for the Second Quarter of 2004 is scheduled to be mailed on August 13, 2004.



|Ë | What was the December 31, 2003 net asset value?
|- | -----------------------------------------------



Approximately $440 per unit.



|Ë | If I have questions or comments, how can I reach your office?
|- | -------------------------------------------------------------



You can reach us at our new address, listed below, effective March 1, 2004.



|        |  |                                             
|------- |  | --------------------------------------------
|MAIL:   |  | DiVall Investor Relations                   
|        |  | c/o The Provo Group, Inc.                   
|        |  | 1100 Main Street, Suite 1830                
|        |  | Kansas City, MO 64105                       
|PHONE:  |  | 800-547-7686 OR (816) 421-7444 EXTENSION 224
|FAX:    |  | (816) 221-2130                              
|E-MAIL: |  | mevans@theprovogroup.com                    



3



---

DIVALL INSURED INCOME PROPERTIES 2 L.P.

STATEMENTS OF INCOME AND CASH FLOW CHANGES

FOR THE THREE MONTH PERIOD ENDED
MARCH 31, 2004



|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|-------------------------------------------------------------------- |  | --------------------- | ---------- | - | --------------------- | - | --------- | -------------- |  | - | -------- | -
|                                                                     |  | PROJECTED             |            |   | ACTUAL                |   |           | VARIANCE       | 
|                                                                     |  | 1STQUARTER 03/31/2004 |            |   | 1STQUARTER 03/31/2004 |   |           | BETTER (WORSE) | 
|OPERATING REVENUES                                                   |  |                       |            |   |                       |   |           |                |  |   |          |  
|Rental income                                                        |  | $                     | 433,200    |   |                       | $ | 438,520   |                |  | $ | 5,320    |  
|Interest income                                                      |  |                       | 2,500      |   |                       |   | 2,003     |                |  |   | (497     | )
|Bankruptcy claim                                                     |  |                       | 0          |   |                       |   | 24,271    |                |  |   | 24,271   |  
|Other income                                                         |  |                       | 0          |   |                       |   | 2,709     |                |  |   | 2,709    |  
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|TOTAL OPERATING REVENUES                                             |  | $                     | 435,700    |   |                       | $ | 467,503   |                |  | $ | 31,803   |  
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|OPERATING EXPENSES                                                   |  |                       |            |   |                       |   |           |                |  |   |          |  
|Insurance                                                            |  | $                     | 9,690      |   |                       | $ | 11,192    |                |  | $ | (1,502   | )
|Management fees                                                      |  |                       | 51,047     |   |                       |   | 50,998    |                |  |   | 49       |  
|Overhead allowance                                                   |  |                       | 4,119      |   |                       |   | 4,122     |                |  |   | (3       | )
|Advisory Board                                                       |  |                       | 4,425      |   |                       |   | 3,500     |                |  |   | 925      |  
|Administrative                                                       |  |                       | 14,160     |   |                       |   | 17,551    |                |  |   | (3,391   | )
|Professional services                                                |  |                       | 15,400     |   |                       |   | 12,275    |                |  |   | 3,125    |  
|Auditing                                                             |  |                       | 22,500     |   |                       |   | 15,499    |                |  |   | 7,001    |  
|Legal                                                                |  |                       | 12,000     |   |                       |   | 11,810    |                |  |   | 190      |  
|Property Expenses                                                    |  |                       | 18,000     |   |                       |   | 43,152    |                |  |   | (25,152  | )
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|TOTAL OPERATING EXPENSES                                             |  | $                     | 151,341    |   |                       | $ | 170,100   |                |  | $ | (18,759  | )
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|INVESTIGATION AND RESTORATION EXPENSES                               |  | $                     | 0          |   |                       | $ | 96        |                |  | $ | (96      | )
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|NON-OPERATING EXPENSES                                               |  |                       |            |   |                       |   |           |                |  |   |          |  
|Depreciation                                                         |  |                       | 66,144     |   |                       |   | 65,357    |                |  |   | 787      |  
|Amortization                                                         |  |                       | 3,198      |   |                       |   | 3,198     |                |  |   | (0       | )
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|TOTAL NON-OPERATING EXPENSES                                         |  | $                     | 69,342     |   |                       | $ | 68,555    |                |  | $ | 787      |  
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|TOTAL EXPENSES                                                       |  | $                     | 220,683    |   |                       | $ | 238,751   |                |  | $ | (18,068  | )
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|NET INCOME                                                           |  | $                     | 215,017    |   |                       | $ | 228,752   |                |  | $ | 13,735   |  
|                                                                     |  |                       |           
|                                                                     |  |                       |            |   |                       |   |           | VARIANCE       | 
|OPERATING CASH RECONCILIATION:                                       |  |                       |            |   |                       |   |           |                |  |   |          |  
|Depreciation and amortization                                        |  |                       | 69,342     |   |                       |   | 68,555    |                |  |   | (787     | )
|Recovery of amounts previously written off                           |  |                       | 0          |   |                       |   | (2,405    | )              |  |   | (2,405   | )
|(Increase) Decrease in current assets                                |  |                       | 265,530    |   |                       |   | 454,261   |                |  |   | 188,731  |  
|Increase (Decrease) in current liabilities                           |  |                       | (114,955   | ) |                       |   | (104,625  | )              |  |   | 10,330   |  
|(Increase) Decrease in cash reserved for payables                    |  |                       | 114,095    |   |                       |   | 103,711   |                |  |   | (10,384  | )
|Current cash flows advanced from (reserved for) future distributions |  |                       | (121,000   | ) |                       |   | (337,403  | )              |  |   | (216,403 | )
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|Net Cash Provided From Operating Activities                          |  | $                     | 428,029    |   |                       | $ | 410,846   |                |  | $ | (17,183  | )
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|CASH FLOWS (USED IN) FROM INVESTING AND FINANCING ACTIVITIES         |  |                       |            |   |                       |   |           |                |  |   |          |  
|Indemnification Trust (Interest earnings reinvested)                 |  |                       | (1,000     | ) |                       |   | (1,000    | )              |  |   | 0        |  
|Recovery of amounts previously written off                           |  |                       | 0          |   |                       |   | 2,405     |                |  |   | 2,405    |  
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|Net Cash (Used In) From Investing And Financing Activities           |  | $                     | (1,000     | ) |                       | $ | 1,405     |                |  | $ | 2,405    |  
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|Total Cash Flow For Quarter                                          |  | $                     | 427,029    |   |                       | $ | 412,251   |                |  | $ | (14,778  | )
|                                                                     |  |                       |           
|Cash Balance Beginning of Period                                     |  |                       | 614,518    |   |                       |   | 673,142   |                |  |   | 58,624   |  
|Less 4th quarter distributions paid 2/04                             |  |                       | (310,000   | ) |                       |   | (325,000  | )              |  |   | (15,000  | )
|Change in cash reserved for payables or future distributions         |  |                       | 6,905      |   |                       |   | 233,692   |                |  |   | 226,787  |  
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|Cash Balance End of Period                                           |  | $                     | 738,451    |   |                       | $ | 994,086   |                |  | $ | 255,635  |  
|                                                                     |  |                       |           
|Cash reserved for 1st quarter 2004 L.P. distributions                |  |                       | (425,000   | ) |                       |   | (415,000  | )              |  |   | 10,000   |  
|Cash reserved for payment of accrued expenses                        |  |                       | (82,590    | ) |                       |   | (103,711  | )              |  |   | (21,121  | )
|Cash advanced from (reserved for) future distributions               |  |                       | (181,000   | ) |                       |   | (421,000  | )              |  |   | (240,000 | )
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|Unrestricted Cash Balance End of Period                              |  | $                     | 49,861     |   |                       | $ | 54,375    |                |  | $ | 4,514    |  
|                                                                     |  |                       |            |   |                       |   |           |                |  |   |          |  
|                                                                     |  |                       |           
|                                                                     |  | PROJECTED             |            |   | ACTUAL                |   |           | VARIANCE       | 
|* Quarterly Distribution                                             |  | $                     | 425,000    |   |                       | $ | 415,000   |                |  | $ | (10,000  | )
|Mailing Date                                                         |  |                       | 05/15/2004 |   |                       |   | (enclosed | )              |  |   |         |  

---

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



---

PROJECTIONS FOR

DISCUSSION PURPOSES



DIVALL INSURED INCOME PROPERTIES 2 LP

2004 PROJECTED PROPERTY SUMMARY

AND RELATED RECEIPTS

AS OF MARCH 31,2004



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



|                             |  |                |  |             |  |                |           |        |   |        |                     |  |         |  |                              |  |                     |  |         |   |  |           |  |                |  |        |  
|---------------------------- |  | -------------- |  | ----------- |  | -------------- | --------- | ------ | - | ------ | ------------------- |  | ------- |  | ---------------------------- |  | ------------------- |  | ------- | - |  | --------- |  | -------------- |  | ------ | -
|                             |  |                |  | REAL ESTATE |  |                | EQUIPMENT |        |   | TOTALS |                    
|CONCEPT                      |  | LOCATION       |  | COST        |  | ANNUALBASERENT |           | %YIELD |   |        | LEASEEXPIRATIONDATE |  | COST    |  | PRINCIPALRETURNEDAS OF1/1/94 |  | 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                  |  | OGDEN, UT      |  | 646,425     |  | 107,750        |           | 16.67  | % |        |                     |  |         |  |                              |  |                     |  |         |   |  | 646,425   |  | 107,750        |  | 16.67  | %
|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(2)      |  | PHOENIX, AZ    |  | 865,900     |  | 66,000         |           | 7.62   | % |        |                     |  | 221,237 |  | 0                            |  | 0                   |  | 0.00    | % |  | 1,087,137 |  | 66,000         |  | 6.07   | %
|HOOTERS                     |  | R. HILLS, TX   |  | 1,246,719   |  | 95,000         |           | 7.62   | % |        |                     |  |         |  |                              |  |                     |  |         |   |  | 1,246,719 |  | 95,000         |  | 7.62   | %
|DAYTONAS All SPORTS CAFÉ(3) |  | DES MOINES, IA |  | 845,000     |  | 60,000         |           | 7.10   | % |        |                     |  | 52,813  |  | 0                            |  | 0                   |  | 0.00    | % |  | 897,813   |  | 60,000         |  | 6.68   | %
|KFC                          |  | SANTA FE, NM   |  | 451,230     |  | 60,000         |           | 13.30  | % |        |                     |  |         |  |                              |  |                     |  |         |   |  | 451,230   |  | 60,000         |  | 13.30  | %
|MIAMI SUBS(4)                |  | PALM BEACH, FL |  | 743,625     |  | 60,000         |           | 8.07   | % |        |                     |  |         |  |                              |  |                     |  |         |   |  | 743,625   |  | 60,000         |  | 8.07   | %

---

Note:

|1: | This property summary includes only property and equipment held by the Partnership during 2004.
|-- | -----------------------------------------------------------------------------------------------

|2: | Chinese Super Buffet obtained possession of the property in August 2002 and rent commenced in January 2003.
|-- | -----------------------------------------------------------------------------------------------------------

|3: | Hickory Parks lease on the property expired on December 31, 2002; however, Management accepted a two month hold over lease with subtenant, Daytonas, until a 5 year lease
was directly executed with them. The new lease was effective March 2003.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4: | Management executed a contract to sell the property in January 2004 for $650,000. The closing date is anticipated to be in the Second Quarter of 2004.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|5: | The property was leased to a new tenant, Panda Buffet, in February 2003 and rent commenced in July 2003.
|-- | --------------------------------------------------------------------------------------------------------



---

PROJECTIONS FOR

DISCUSSION PURPOSES



DIVALL INSURED INCOME PROPERTIES 2 LP

2002 PROPERTY SUMMARY

AND RELATED RECEIPTS



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



|                  |  |                  |  |             |  |                |           |        |   |        |                     |  |         |  |                              |  |                     |  |         |   |  |            |  |               |  |        |  
|----------------- |  | ---------------- |  | ----------- |  | -------------- | --------- | ------ | - | ------ | ------------------- |  | ------- |  | ---------------------------- |  | ------------------- |  | ------- | - |  | ---------- |  | ------------- |  | ------ | -
|                  |  |                  |  | REAL ESTATE |  |                | EQUIPMENT |        |   | TOTALS |                    
|CONCEPT           |  | LOCATION         |  | COST        |  | ANNUALBASERENT |           | %YIELD |   |        | LEASEEXPIRATIONDATE |  | COST    |  | PRINCIPALRETURNEDAS OF1/1/94 |  | 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 (5)  |  | GRAND FORKS, ND  |  | 739,375     |  | 33,000         |           | 4.46   | % |        |                     |  |         |  |                              |  |                     |  |         |   |  | 739,375    |  | 33,000        |  | 4.46   | %
|                  |  |                  |  |             |  |                |           |        |   |        |                     | 
|WENDYS           |  | AIKEN, SC        |  | 633,750     |  | 90,480         |           | 14.28  | % |        |                     |  |         |  |                              |  |                     |  |         |   |  | 633,750    |  | 90,480        |  | 14.28  | %
|WENDYS           |  | CHARLESTION, 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  |  |                  |  | 15,605,095  |  | 1,726,908      |           | 11.07  | % |        |                     |  | 640,021 |  | 69,606                       |  | 0                   |  | 0.00    | % |  | 16,245,116 |  | 1,726,908     |  | 10.63  | %
|                  |  |                  |  |             |  |                |           |        |   |        |                     |  |         |  |                              |  |                     |  |         |   |  |            |  |               |  |        |  

---

Note:

|1: | This property summary includes only property and equipment held by the Partnership during 2004.
|-- | -----------------------------------------------------------------------------------------------

|2: | Chinese Super Buffet obtained possession of the property in August 2002 and rent commenced in January 2003.
|-- | -----------------------------------------------------------------------------------------------------------

|3: | Hickory Parks lease on the property expired on December 31, 2002; however, Management accepted a two month hold over lease with subtenant, Daytonas, until a 5 year lease
was directly executed with them. The new lease was effective March 2003.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4: | Management executed a contract to sell the property in January 2004 for $650,000. The closing date is anticipated to be in the Second Quarter of 2004.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|5: | The property was leased to a new tenant, Panda Buffet, in February 2003 and rent commenced in July 2003.
|-- | --------------------------------------------------------------------------------------------------------