6
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ]QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF
1934
For the period ended
March 31, 1999
OR
[ ]TRANSITION REPORT PURSUANT
TO SECTION 13
OR 15(d) OF
THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________
to ________.
Commission File Number: 0-
18147
DEAN WITTER REALTY INCOME PARTNERSHIP
IV, L.P.
(Exact name of registrant as specified in
governing instrument)
Delaware
13-
3378315
(State of organization)
(IRS Employer
Identification No.)
2 World Trade Center, New York, NY
10048
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area
code: (212) 392-1054
Former name, former address and former fiscal
year, if changed since last report: not
applicable
Indicate by check mark whether the registrant
(1)
has filed all
reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of
1934
during the preceding 12 months (or for such
shorter period that the registrant was required
to file such reports), and (2) has been
subject to
such filing
requirements for the past 90 days. Yes X
No
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1. Financial
Statements
DEAN WITTER
REALTY INCOME
PARTNERSHIP IV,
L.P.
BALANCE SHEETS
March 31, December 31,
1999 1998 <S>
<C>
<C>
ASSETS
Cash and cash
equivalents
$ 1,446,086 $
1,531,647
Investment in joint
venture 8,751,631
8,552,095
Other assets
21,670
20,726
$10,219,387 $10,104,468
LIABILITIES AND
PARTNERS' CAPITAL
Accounts payable and
accrued liabilities
$ 124,038 $
143,877
Partners' capital
(deficiency):
General
partners
(5,447,049
)
(5,460,525)
Limited partners
($500 per
Unit,
304,437
Units
issued) 15,542,398
15,421,116
10,095,349 9,960,591
$10,219,387 $10,104,468
</TABLE>
See accompanying notes
to financial
statements.
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME
PARTNERSHIP
IV, L.P.
INCOME STATEMENTS
Three months ended March
31, 1999
and 1998
<CAPTION>
1999 1998 <S>
<C>
<C>
Revenues:
Equity in earnings of
joint
venture
s $
161,375
$1,166,615
Interest and other
17,228
15,364
178,603 1,181,979
Expenses:
General and
administrative
43,845
118,127
Net income $
134,758
$1,063,852
Net income allocated to:
Limited partners $
121,282 $
957,467
General partners
13,476
106,385
$
134,758 $1,063,852 Net income per Unit of limited
partnership interest $ 0.40
$ 3.15
</TABLE>
See accompanying notes
to financial
statements.
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME
PARTNERSHIP
IV, L.P.
STATEMENT OF PARTNERS'
CAPITAL Three months
ended March 31, 1999
<CAPTION>
Limited General
Partners Partners
Total
<S>
<C> <C>
<C>
Partners' capital
(deficiency)
at January 1,
1999
$15,421,116
$(5,460,525)
$ 9,960,591
Net income
121,282
13,476
134,758
Partners' capital
(deficiency)
at March 31, 1999
$15,542,398
$(5,447,049)
$10,095,349
</TABLE>
See accompanying notes
to financial
statements.
<PAGE>
<TABLE>
DEAN WITTER REALTY
INCOME
PARTNERSHIP
IV, L.P.
STATEMENTS
OF CASH
FLOWS
Three months ended March
31,
1999 and 1998 <CAPTION>
1999 1998 <S>
<C>
<C>
Cash flows from operating
activities:
Net income
$
134,758 $
1,063,852
Adjustments to reconcile
net income
to net cash
used in operating
activities:
Equity in earni
n
g
s
o
f
j
o
i
n
t
v
e
n
t
u
r
e
s
(
1
6
1
,
3
7
5
)
(1,166,615)
Increase in other
assets
(944)
(6,200)
Decrease in accounts
payable and
accrued
liabilities
(19,839)
(46,805)
Net cash used in
operating
activities
(47,400)
(155,768)
Cash flows from investing
activities:
Distributions from joint
ventures
- -
864,415
Additional investments in
joint
ventures (38,161)
(402,320)
Net cash (used in)
provided by investing
activities (38,161)
462,095
Cash flows from financing
activities:
Cash distributions
- -
(1,238,044)
Decrease in cash and cash
equivalents (85,561)
(931,717)
Cash and cash equivalents
at beginning of
period 1,531,647
1,868,422
Cash and cash equivalents
at end of
period $ 1,446,086 $
936,705
</TABLE>
See accompanying notes to
financial
statements. <PAGE>
DEAN WITTER REALTY INCOME
PARTNERS
HIP IV,
L.P.
Notes to
Financial Statements
1. The Partnership
Dean Witter Realty
Income Partnership IV,
L.P. (the "Partnership")
is a limited partnership
organized under
the laws of the State of
Delaware on October 31,
1986.
The Partnership's
interests in Taxter Park
Associates ("Associates")
and DWR
Chesterbrook Associates,
the partnership which
owned an
interest in
Chesterbrook
Corporate Center
(sold 4/98),
are accounted for
on the equity
method.
The Partnership's
records are
maintained on the
accrual basis of
accounting for
financial and tax
reporting purposes.
Net income per
Unit amounts are
calculated by
dividing net income
allocated to
Limited Partners,
in accordance with
the Partnership
Agreement, by the
weighted average
number of Units
outstanding.
In the opinion
of management, the
accompanying
financial
statements, which
have not been
audited, include
all adjustments,
consisting only
of normal
recurring
accruals, necessary
to present fairly
the results for the
interim period.
These financial
statements should
be read
in
conjunction with
the annual
financial
statements and
notes thereto
included
in the
Partnership's
annual report on
Form 10-K filed
with the
Securities and
Exchange
Commission for the
year ended
December 31, 1998.
Operating results
of interim periods
may not be
indicative of the
operating results
for the entire
year.
2. Investment in
Joint Venture
In 1987,
Associates sold a
leasehold interest
in approximately
20% of the space at
Taxter Corporate
Park to KLM. In
1998, KLM accepted
a $6.75 million
purchase offer for
the leasehold
interest,
<PAGE>
DEAN WITTER REALTY
INCOME
P
A
R
T
N
E
R
S
H
I
P
I
V
,
L
.
P
.
Notes to Financial
Statements
which Associates
had the right to
match. The partners
of Associates
believe that
inclusion of the
KLM space improves
the value and
salability of the
property;
however, the
partners did not
have sufficient
cash to fund the
purchase.
Therefore, an
affiliate of the
Managing General
Partner (the
"Affiliate"), as
an accommodation,
purchased the
leasehold
interest on
February 8, 1999
for $6.75 million
and assumed the
rights and
obligations of KLM
thereunder.
On February 4,
1999, Associates
and KLM entered
into a new lease
which allows KLM to
continue to occupy
50% of the space
subject to the
lease hold
interest. On
February 8, 1999,
the Affiliate also
assumed the rights
and obligations of
Associates under
this new lease.
As part of the
purchase of the
leasehold
interest,
Associates received
an option to
purchase the
leasehold interest
and assume the new
lease from the
Affiliate for a
purchase price of
$6.75 million plus
the cost of any
tenant
improvements,
leasing commissions
and capital
expenditures
incurred by the
Affiliate in
connection with
leasehold interest
(collectively, the
"Resale Price").
Associates also
granted the
Affiliate an
option to require
Associates to
purchase the
leasehold interest
and assume the new
lease for
the Resale Price.
When the property
is sold,
Associates will be
obligated to
purchase the
leasehold interest
and assume the new
lease from the
Affiliate for the
new Resale Price.
<PAGE>
<TABLE>
DEAN WITTER REALTY
INCOME
P
A
R
T
N
E
R
S
H
I
P
I
V
,
L
.
P
.
Notes to Financial
Statements
Summarized
financial
information of
Associates is as
follows:
<CAPTION>
Quarter ended March
31,
1999 1998 <S>
<C> <C>
Revenues
$1,308,209
$1,409,492
Expenses
910,734
1,077,158
Net income
$
397,475 $
332,334
3. Related Party Transactions
In 1998, an affiliate of the
Managing General Partner
provided property
management services
for Taxter
Corporate Park and
five buildings at
the Chesterbrook
Corporate Center
(until the
buildings were
sold in April
1998). The
Partnership paid
the affiliate
management fees of
approximately
$25,000 in 1998.
This amount was
recorded as
expenses of the
joint ventures. In
1999, property
management
services for
Taxter Corporate
Park are provided
by an unaffiliated
party.
Another affiliate
of the Managing
General Partner
performs
administrative
functions,
processes investor
transactions and
prepares tax
information for
the Partnership.
For the threemonth
periods ended
March 31, 1999
and 1998, the
Partnership
incurred
approximately
$24,000 and $71,000
for these
services,
respectively. These
amounts are
included in general
and administrative
expenses. </TABLE>
<PAGE>
DEAN WITTER REALTY
INCOME
P
A
R
T
N
E
R
S
H
I
P
I
V
,
L
.
P
.
Item 2.
Management's
Discussion and
Analysis of
Financial
Condition and
Results of
Operations
Liquidity and
Capital Resources
The Partnership
raised $152,218,500
in a public
offering of 304,437
units which was
terminated in 1988.
The Partnership has
no plans to raise
additional capital.
The Partnership's
interest in the
Taxter property is
the Partnership's
sole
property
interest.
The partnership
which owns the
Taxter Corporate
Park (the "Taxter
Partnership") has
accepted a bid
from an
unaffiliated third
party to purchase
the property, and
the parties are
currently
negotiating the
terms of a
purchase and sale
agreement. However,
there can be no
assurance that the
Taxter property
will be sold.
On February 8,
1999, an affiliate
of the Managing
General Partner,
as an accommodation
to the Taxter
Partnership,
purchased the
leasehold interest
of KLM in
approximately 20%
of the property's
space. See Note 2
to the financial
statements.
During the three
months ended March
31, 1999, the
overall vacancy
levels in the
office market in
Westchester County,
New York and the
west Westchester
submarket in which
Taxter Corporate
Park is located
remained at
approximately 18%
and 14%,
respectively. Also,
during the
three months ended
March 31, 1999,
occupancy at the
property decreased
from 98% to 83%
primarily because
KLM vacated
approximately 10%
of the property's
space and
another tenant
vacated
approximately 7% of
the space.
Subsequent to
quarterend,
Cityscape, which
filed for
bankruptcy
protection in
1998, vacated
approximately 9%
of the property's
space. Leases
aggregating
approximately 39%
of the property's
space expire in
2001.
<PAGE>
DEAN WITTER REALTY
INCOME
P
A
R
T
N
E
R
S
H
I
P
I
V
,
L
.
P
.
During the three
months ended March
31, 1999, the
Taxter property
generated positive
cash flow from
operations (the
Partnership's
share of which
will be
distributed in
the second
quarter),
and it
is
anticipated that it will
continue to do so during the
remainder of 1999.
The Taxter Partnership expects
to pay for its
share of the
purchase price of
the former KLM
leasehold interest
from its share of
the proceeds from
the sale of
the Taxter
property. As of
March 31, 1999, the
Partnership had
commitments to fund
approximately
$134,000 for its
share of tenant
improvements and
leasing commissions
at the Taxter
property.
The Partnership,
through DWR
Chesterbrook
Associates, may
also be required
to fund costs of
capital
expenditures at the
Chesterbrook
property pursuant
to commitments made
prior to the sale
of the property,
if the aggregate
of such costs, when
all projects have
been completed,
exceeds the escrow
deposit made when
the property was
sold in April 1998.
The Partnership's
cash shortfall from
its 1999 first
quarter activities
was funded with
cash reserves.
The Partnership
did not pay any
distributions
during the three
months ended March
31, 1999.
Generally, future
cash distributions
will be paid from
proceeds received
from the sale of
the Taxter property
and
cash reserves.
Except as
discussed above
and in the
consolidated
financial
statements, the
Managing General
Partner is
not aware of any
trends or events,
commitments or
uncertainties that
may have a
material impact on
liquidity.
Operations
Equity in
earnings of joint
ventures and
general and
administrative
expenses decreased
in 1999 compared
to 1998 primarily
due to the sale of
the Chesterbrook
Corporate Center in
April 1998.
<PAGE>
DEAN WITTER REALTY
INCOME
P
A
R
T
N
E
R
S
H
I
P
I
V
,
L
.
P
.
There were no
other individually
significant factors
which caused
changes in revenues
or expenses.
Inflation
Inflation has been
consistently low
during the periods
presented in the
financial
statements and, as
a result, has not
had a significant
effect on the
operations of the
Partnership or its
properties.
<PAGE>
DEAN WITTER REALTY
INCOME
P
A
R
T
N
E
R
S
H
I
P
I
V
,
L
.
P
.
PART II - OTHER
INFORMATION
Item 6. Exhibits
and Reports
on Form 8-K.
a) Exhibits.
An
exhibit index has
been filed as part
of this Report on
Page E1.
b) R
e
p
o
r
t
s
o
n
F
o
r
m
8-
K
.
N
o
n
e
.
<PAGE>
DEAN WITTER REALTY
INCOME
P
A
R
T
N
E
R
S
H
I
P
I
V
,
L
.
P
.
SIGNATURES
Pursuant to the
requirements of the
Securities Exchange
Act of 1934, the
Registrant has duly
caused this report
to be signed on its
behalf by the
undersigned
thereunto duly
authorized.
DEAN WITTER REALTY
INCOME PARTNERSHIP
IV, L.P.
By: Dean Witter
Realty
Fourth
Income
Properties
Inc.
Managing General
Partner
Date: May 14,
1999
By:
/s/E. Davisson
Hardman, Jr.
E
.
D
a
v
i
s
s
o
n
H
a
r
d
m
a
n
,
J
r
.
P
r
e
s
i
d
e
n
t
Date: May 14,
1999
By:
/s/Charles M.
Charrow
C
h
a
r
l
e
s
M
.
C
h
a
r
r
o
w
C
o
n
t
r
o
l
l
e
r
(
P
r
i
n
c
i
p
a
l
Financial and
Accounting Officer)
<PAGE>
<TABLE>
DEAN WITTER REALTY
I
N
C
O
M
E
P
A
R
T
N
E
R
S
H
I
P
I
V
,
L
.
P
.
Quarter Ended March
31, 1999
Exhibit Index
<CAPTION>
Exhibit
No.
Description
<S>
<C>
27
Financial
Data
Schedule
</TABLE>
E1
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
6
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ]QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF
1934
For the period ended
March 31, 1999
OR
[ ]TRANSITION REPORT PURSUANT
TO SECTION 13
OR 15(d) OF
THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________
to ________.
Commission File Number: 0-
18147
DEAN WITTER REALTY INCOME PARTNERSHIP
IV, L.P.
(Exact name of registrant as specified in
governing instrument)
Delaware
13-
3378315
(State of organization)
(IRS Employer
Identification No.)
2 World Trade Center, New York, NY
10048
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area
code: (212) 392-1054
Former name, former address and former fiscal
year, if changed since last report: not
applicable
Indicate by check mark whether the registrant
(1)
has filed all
reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of
1934
during the preceding 12 months (or for such
shorter period that the registrant was required
to file such reports), and (2) has been
subject to
such filing
requirements for the past 90 days. Yes X
No
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial
Statements
DEAN WITTER
REALTY INCOME
PARTNERSHIP IV,
L.P.
BALANCE SHEETS
March 31, December 31,
1999 1998 <S>
<C>
<C>
ASSETS
Cash and cash
equivalents
$ 1,446,086 $
1,531,647
Investment in joint
venture 8,751,631
8,552,095
Other assets
21,670
20,726
$10,219,387 $10,104,468
LIABILITIES AND
PARTNERS' CAPITAL
Accounts payable and
accrued liabilities
$ 124,038 $
143,877
Partners' capital
(deficiency):
General
partners
(5,447,049
)
(5,460,525)
Limited partners
($500 per
Unit,
304,437
Units
issued) 15,542,398
15,421,116
10,095,349 9,960,591
$10,219,387 $10,104,468
See accompanying notes
to financial
statements.
<PAGE>
DEAN WITTER REALTY INCOME
PARTNERSHIP
IV, L.P.
INCOME STATEMENTS
Three months ended March
31, 1999
and 1998
<CAPTION>
1999 1998 <S>
<C>
<C>
Revenues:
Equity in earnings of
joint
venture
s $
161,375
$1,166,615
Interest and other
17,228
15,364
178,603 1,181,979
Expenses:
General and
administrative
43,845
118,127
Net income $
134,758
$1,063,852
Net income allocated to:
Limited partners $
121,282 $
957,467
General partners
13,476
106,385
$
134,758 $1,063,852 Net income per Unit of limited
partnership interest $ 0.40
$ 3.15
See accompanying notes
to financial
statements.
<PAGE>
DEAN WITTER REALTY INCOME
PARTNERSHIP
IV, L.P.
STATEMENT OF PARTNERS'
CAPITAL Three months
ended March 31, 1999
<CAPTION>
Limited General
Partners Partners
Total
<S>
<C> <C>
<C>
Partners' capital
(deficiency)
at January 1,
1999
$15,421,116
$(5,460,525)
$ 9,960,591
Net income
121,282
13,476
134,758
Partners' capital
(deficiency)
at March 31, 1999
$15,542,398
$(5,447,049)
$10,095,349
See accompanying notes
to financial
statements.
<PAGE>
DEAN WITTER REALTY
INCOME
PARTNERSHIP
IV, L.P.
STATEMENTS
OF CASH
FLOWS
Three months ended March
31,
1999 and 1998 <CAPTION>
1999 1998 <S>
<C>
<C>
Cash flows from operating
activities:
Net income
$
134,758 $
1,063,852
Adjustments to reconcile
net income
to net cash
used in operating
activities:
Equity in earni
n
g
s
o
f
j
o
i
n
t
v
e
n
t
u
r
e
s
(
1
6
1
,
3
7
5
)
(1,166,615)
Increase in other
assets
(944)
(6,200)
Decrease in accounts
payable and
accrued
liabilities
(19,839)
(46,805)
Net cash used in
operating
activities
(47,400)
(155,768)
Cash flows from investing
activities:
Distributions from joint
ventures
- -
864,415
Additional investments in
joint
ventures (38,161)
(402,320)
Net cash (used in)
provided by investing
activities (38,161)
462,095
Cash flows from financing
activities:
Cash distributions
- -
(1,238,044)
Decrease in cash and cash
equivalents (85,561)
(931,717)
Cash and cash equivalents
at beginning of
period 1,531,647
1,868,422
Cash and cash equivalents
at end of
period $ 1,446,086 $
936,705
See accompanying notes to
financial
statements. <PAGE>
DEAN WITTER REALTY INCOME
PARTNERS
HIP IV,
L.P.
Notes to
Financial Statements
1. The Partnership
Dean Witter Realty
Income Partnership IV,
L.P. (the "Partnership")
is a limited partnership
organized under
the laws of the State of
Delaware on October 31,
1986.
The Partnership's
interests in Taxter Park
Associates ("Associates")
and DWR
Chesterbrook Associates,
the partnership which
owned an
interest in
Chesterbrook
Corporate Center
(sold 4/98),
are accounted for
on the equity
method.
The Partnership's
records are
maintained on the
accrual basis of
accounting for
financial and tax
reporting purposes.
Net income per
Unit amounts are
calculated by
dividing net income
allocated to
Limited Partners,
in accordance with
the Partnership
Agreement, by the
weighted average
number of Units
outstanding.
In the opinion
of management, the
accompanying
financial
statements, which
have not been
audited, include
all adjustments,
consisting only
of normal
recurring
accruals, necessary
to present fairly
the results for the
interim period.
These financial
statements should
be read
in
conjunction with
the annual
financial
statements and
notes thereto
included
in the
Partnership's
annual report on
Form 10-K filed
with the
Securities and
Exchange
Commission for the
year ended
December 31, 1998.
Operating results
of interim periods
may not be
indicative of the
operating results
for the entire
year.
2. Investment in
Joint Venture
In 1987,
Associates sold a
leasehold interest
in approximately
20% of the space at
Taxter Corporate
Park to KLM. In
1998, KLM accepted
a $6.75 million
purchase offer for
the leasehold
interest,
<PAGE>
DEAN WITTER REALTY
INCOME
P
A
R
T
N
E
R
S
H
I
P
I
V
,
L
.
P
.
Notes to Financial
Statements
which Associates
had the right to
match. The partners
of Associates
believe that
inclusion of the
KLM space improves
the value and
salability of the
property;
however, the
partners did not
have sufficient
cash to fund the
purchase.
Therefore, an
affiliate of the
Managing General
Partner (the
"Affiliate"), as
an accommodation,
purchased the
leasehold
interest on
February 8, 1999
for $6.75 million
and assumed the
rights and
obligations of KLM
thereunder.
On February 4,
1999, Associates
and KLM entered
into a new lease
which allows KLM to
continue to occupy
50% of the space
subject to the
lease hold
interest. On
February 8, 1999,
the Affiliate also
assumed the rights
and obligations of
Associates under
this new lease.
As part of the
purchase of the
leasehold
interest,
Associates received
an option to
purchase the
leasehold interest
and assume the new
lease from the
Affiliate for a
purchase price of
$6.75 million plus
the cost of any
tenant
improvements,
leasing commissions
and capital
expenditures
incurred by the
Affiliate in
connection with
leasehold interest
(collectively, the
"Resale Price").
Associates also
granted the
Affiliate an
option to require
Associates to
purchase the
leasehold interest
and assume the new
lease for
the Resale Price.
When the property
is sold,
Associates will be
obligated to
purchase the
leasehold interest
and assume the new
lease from the
Affiliate for the
new Resale Price.
<PAGE>
DEAN WITTER REALTY
INCOME
P
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L
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P
.
Notes to Financial
Statements
Summarized
financial
information of
Associates is as
follows:
<CAPTION>
Quarter ended March
31,
1999 1998 <S>
<C> <C>
Revenues
$1,308,209
$1,409,492
Expenses
910,734
1,077,158
Net income
$
397,475 $
332,334
3. Related Party Transactions
In 1998, an affiliate of the
Managing General Partner
provided property
management services
for Taxter
Corporate Park and
five buildings at
the Chesterbrook
Corporate Center
(until the
buildings were
sold in April
1998). The
Partnership paid
the affiliate
management fees of
approximately
$25,000 in 1998.
This amount was
recorded as
expenses of the
joint ventures. In
1999, property
management
services for
Taxter Corporate
Park are provided
by an unaffiliated
party.
Another affiliate
of the Managing
General Partner
performs
administrative
functions,
processes investor
transactions and
prepares tax
information for
the Partnership.
For the threemonth
periods ended
March 31, 1999
and 1998, the
Partnership
incurred
approximately
$24,000 and $71,000
for these
services,
respectively. These
amounts are
included in general
and administrative
expenses.
<PAGE>
DEAN WITTER REALTY
INCOME
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Item 2.
Management's
Discussion and
Analysis of
Financial
Condition and
Results of
Operations
Liquidity and
Capital Resources
The Partnership
raised $152,218,500
in a public
offering of 304,437
units which was
terminated in 1988.
The Partnership has
no plans to raise
additional capital.
The Partnership's
interest in the
Taxter property is
the Partnership's
sole
property
interest.
The partnership
which owns the
Taxter Corporate
Park (the "Taxter
Partnership") has
accepted a bid
from an
unaffiliated third
party to purchase
the property, and
the parties are
currently
negotiating the
terms of a
purchase and sale
agreement. However,
there can be no
assurance that the
Taxter property
will be sold.
On February 8,
1999, an affiliate
of the Managing
General Partner,
as an accommodation
to the Taxter
Partnership,
purchased the
leasehold interest
of KLM in
approximately 20%
of the property's
space. See Note 2
to the financial
statements.
During the three
months ended March
31, 1999, the
overall vacancy
levels in the
office market in
Westchester County,
New York and the
west Westchester
submarket in which
Taxter Corporate
Park is located
remained at
approximately 18%
and 14%,
respectively. Also,
during the
three months ended
March 31, 1999,
occupancy at the
property decreased
from 98% to 83%
primarily because
KLM vacated
approximately 10%
of the property's
space and
another tenant
vacated
approximately 7% of
the space.
Subsequent to
quarterend,
Cityscape, which
filed for
bankruptcy
protection in
1998, vacated
approximately 9%
of the property's
space. Leases
aggregating
approximately 39%
of the property's
space expire in
2001.
<PAGE>
DEAN WITTER REALTY
INCOME
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During the three
months ended March
31, 1999, the
Taxter property
generated positive
cash flow from
operations (the
Partnership's
share of which
will be
distributed in
the second
quarter),
and it
is
anticipated that it will
continue to do so during the
remainder of 1999.
The Taxter Partnership expects
to pay for its
share of the
purchase price of
the former KLM
leasehold interest
from its share of
the proceeds from
the sale of
the Taxter
property. As of
March 31, 1999, the
Partnership had
commitments to fund
approximately
$134,000 for its
share of tenant
improvements and
leasing commissions
at the Taxter
property.
The Partnership,
through DWR
Chesterbrook
Associates, may
also be required
to fund costs of
capital
expenditures at the
Chesterbrook
property pursuant
to commitments made
prior to the sale
of the property,
if the aggregate
of such costs, when
all projects have
been completed,
exceeds the escrow
deposit made when
the property was
sold in April 1998.
The Partnership's
cash shortfall from
its 1999 first
quarter activities
was funded with
cash reserves.
The Partnership
did not pay any
distributions
during the three
months ended March
31, 1999.
Generally, future
cash distributions
will be paid from
proceeds received
from the sale of
the Taxter property
and
cash reserves.
Except as
discussed above
and in the
consolidated
financial
statements, the
Managing General
Partner is
not aware of any
trends or events,
commitments or
uncertainties that
may have a
material impact on
liquidity.
Operations
Equity in
earnings of joint
ventures and
general and
administrative
expenses decreased
in 1999 compared
to 1998 primarily
due to the sale of
the Chesterbrook
Corporate Center in
April 1998.
<PAGE>
DEAN WITTER REALTY
INCOME
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There were no
other individually
significant factors
which caused
changes in revenues
or expenses.
Inflation
Inflation has been
consistently low
during the periods
presented in the
financial
statements and, as
a result, has not
had a significant
effect on the
operations of the
Partnership or its
properties.
<PAGE>
DEAN WITTER REALTY
INCOME
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PART II - OTHER
INFORMATION
Item 6. Exhibits
and Reports
on Form 8-K.
a) Exhibits.
An
exhibit index has
been filed as part
of this Report on
Page E1.
b) R
e
p
o
r
t
s
o
n
F
o
r
m
8-
K
.
N
o
n
e
.
<PAGE>
DEAN WITTER REALTY
INCOME
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SIGNATURES
Pursuant to the
requirements of the
Securities Exchange
Act of 1934, the
Registrant has duly
caused this report
to be signed on its
behalf by the
undersigned
thereunto duly
authorized.
DEAN WITTER REALTY
INCOME PARTNERSHIP
IV, L.P.
By: Dean Witter
Realty
Fourth
Income
Properties
Inc.
Managing General
Partner
Date: May 14,
1999
By:
/s/E. Davisson
Hardman, Jr.
E
.
D
a
v
i
s
s
o
n
H
a
r
d
m
a
n
,
J
r
.
P
r
e
s
i
d
e
n
t
Date: May 14,
1999
By:
/s/Charles M.
Charrow
C
h
a
r
l
e
s
M
.
C
h
a
r
r
o
w
C
o
n
t
r
o
l
l
e
r
(
P
r
i
n
c
i
p
a
l
Financial and
Accounting Officer)
<PAGE>
DEAN WITTER REALTY
I
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Quarter Ended March
31, 1999
Exhibit Index
<CAPTION>
Exhibit
No.
Description
<S>
<C>
27
Financial
Data
Schedule
E1
</TABLE>
