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 June 30, 2000
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF
1934
For the transition period from ________
to ________.
Commission File Number: 0-
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) 392-2974
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
<CAPTION>
June
30,
December 31,
2000
1999 <S>
<C>
<C>
ASSETS
Cash and cash equivalents $
1,438,611 $
2,225,631
Investment in joint venture
81,646
8,111,989
Other assets
1,445
94,894
$
1,521,702 $10,432,514
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued liabilities $
148,927 $
109,196
Distributions payable to General Partners
133,638
-
282,565
109,196
Partners' capital (deficiency):
General partners
(5,528,357)
(5,432,367)
Limited partners ($500 per Unit, 304,437 Units
issued) 6,767,494
15,755,685
1,239,137 10,323,318
$
1,521,702 $10,432,514
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P.
INCOME STATEMENTS
Three and six months ended June 30, 2000 and 1999
<CAPTION>
Three months ended
Six
months ended
June 30,
June 30,
2000
1999
2000 1999
<S>
<C> <C> <C> <C>
Revenues:
Equity in earnings of joint
venture $ 5,166,114
$ 71,716
$ 5,278,010 $ 233,091
Interest and other 106,958
15,618
162,203 32,846
5,273,072
87,334 5,440,213 265,937
Expenses:
General and administrative 37,434
49,766
82,217 93,611
Net income $ 5,235,638 $
37,568 $
5,357,996 $ 172,326
Net income allocated to:
Limited partners $ 5,210,226 $
33,811 $
5,320,348 $ 155,093
General partners 25,412
3,757
37,648 17,233
$ 5,235,638 $
37,568 $ 5,357,996 $ 172,326
Net income per Unit of
limited partnership interest $ 17.12
$ 0.11
$ 17.48 $ 0.51
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME
PARTNERSHIP IV, L.P.
STATEMENT OF PARTNERS' CAPITAL
Six months ended June 30, 2000
<CAPTION>
Limited
General
Partners
Partners
Total
<S>
<C> <C>
<C>
Partners' capital (deficiency)
at January 1, 2000 $15,755,685
$(5,432,367)
$10,323,318
Net income 5,320,348
37,648 5,357,996
Distribution
(14,308,539)
(133,638)
(14,442,177)
Partners' capital (deficiency)
at June 30, 2000 $
6,767,494
$(5,528,357) $
1,239,137
See accompanying notes to financial
statements. [/CAPTION]
<PAGE>
</TABLE>
<TABLE>
DEAN WITTER REALTY INCOME
PARTNERSHIP IV, L.P.
STATEMENTS OF CASH FLOWS
Six months ended June 30, 2000 and 1999
<CAPTION>
2000 1999 <S>
<C>
<C>
Cash flows from operating activities:
Net income $
5,357,996 $
172,326
Adjustments to reconcile net income to net cash
provided by (used in)operating activities:
Equity in earnings of joint venture
(5,278,010) (233,091)
Decrease (increase) in other assets 93,449
(27,745)
Increase (decrease) in accounts payable and
accrued liabilities 39,731
(70,436)
Net cash provided by (used in)
operating activities 213,166
(158,946)
Cash flows from investing activities:
Distributions from joint venture
13,816,752
288,798
Additional investments in joint venture
(508,399)
(97,005)
Net cash provided by investing
activities 13,308,353
191,793
Cash flows used in financing activities:
Cash distributions
(14,442,177)
-
Increase in distributions payable to Genera
Partners 133,638
-
Net cash used in financing
activities (14,308,539)
-
(Decrease) increase in cash and cash
equivalents (787,020)
32,847
Cash and cash equivalents at beginning of
period 2,225,631
1,531,647
Cash and cash equivalents at end of period $
1,438,611 $ 1,564,494
See accompanying notes to financial statements.
</TABLE>
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP 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 in 1986.
The Partnership's last remaining property
investment is its 40.6% interest in the
partnership which owned Taxter Corporate
Park ("TPA"). As discussed in Note 2,
TPA sold the Taxter property on May 23,
2000, and this sale has
effectuated the dissolution of the
Partnership. Accordingly, the Partnership
is in the process of winding up its
affairs, and it plans to distribute the
balance of the Partnership's cash
reserves and terminate by December 31,
2000. However, there can be no assurance
that the Partnership can be terminated by
such date.
The Partnership's interest in TPA is
accounted for using 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,
necessary to present fairly the results
for the interim period. Except for the
gain on sale of the Taxter property
included in the equity in earnings of
joint venture, such adjustments consist
only of normal recurring accruals.
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
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV,
L.P.
Notes to Financial Statements
and Exchange Commission for the
year ended
December 31, 1999. Operating results
of interim periods may not be indicative
of the operating results for the entire
year.
2. Investment in Joint Venture
Pursuant to a Purchase and Sale Agreement
dated as of April 4, 2000, as amended
(the "Agreement"), on May 23, 2000, TPA
sold the land and buildings which comprise
the Taxter property to a subsidiary of Mack-
Cali Realty Corporation (the "Purchaser"),
an unaffiliated party, for a negotiated
sale price of $42.725 million. In
connection with the sale, TPA acquired
from an
affiliate and conveyed to the
Purchaser certain
interests in the Taxter property,
including interests that the affiliate
had acquired from KLM Royal Dutch
Airlines, for $6.75 million, in February
1999. Of the $42.725 million, TPA
remitted $6.75 million of the sale proceeds
to the affiliate in connection with
the transaction.
TPA is also owned 44.6% by Dean Witter
Realty Income Partnership III, L.P.,
an affiliated public
partnership, and 14.8% by Dean Witter
Realty Income Partnership II, L.P., an
affiliated public partnership.
The purchase price was paid in cash at
closing. At
closing, the Partnership received
approximately $13.4 million representing
its 40.6% share of the cash
received by TPA, net of its share of
TPA's closing costs, the amount of the
obligation owed to the affiliate and
other deductions.
On June 29, 2000, the Partnership
distributed, to Limited Partners only,
sale proceeds of approximately $13.0
million ($42.74 per Unit). The
Partnership retained a portion of the sale
proceeds to cover any contingencies that
may arise pursuant to the sale and, if
required, pay administrative
expenses and
liabilities that may arise while the
Partnership winds up its affairs. Any
sale
<PAGE>
<TABLE>
proceeds remaining, subsequent to the
payment of any contingencies, will be
distributed to Limited Partners only.
The Partnership's share of TPA's gain on
sale of the
Taxter property was approximately $5.0
million; such gain was allocated 100% to
the Limited Partners.
Summarized financial information of TPA is
as follows: <CAPTION>
June 30,
December 31,
2000 1999
<S> <C>
<C>
Land and buildings, net $
- $
15,238,168
Other 483,862
1,291,984
Total assets $
483,862
$ 16,530,152
Liabilities $
282,758
$ 399,638
Partners' Capital
201,104
16,130,514
Total liabilities and capital $
483,862
$ 16,530,152
Three months
Six months
ended June 30,
ended June
30,
2000 1999
2000
1999
<S> <C> <C> <C>
<C>
Operating $ $
$ $
income 919,503 1,509,1
2,127,6 2,817,31
07
43 6
Gain on sale of
real estate 16,119,49 -
16,119, -
9
499
17,039,00 1,509,1
18,247, 2,817,31
2 07
142 6
Expenses 464,827 1,332,4
1,397,3 2,243,19
65
61 9
Net income $16,574,1 $
$16,849 $
75 176,642
,781 574,117
On April 1, 2000, TPA reclassified its
investment in the Property as real
estate held for sale.
Accordingly, TPA did not record
depreciation expense on the building and
related improvements during the second
quarter of 2000.
</TABLE>
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV,
L.P.
3. Cash Reserve Distributions
On June 29, 2000, the Partnership also
distributed to Limited Partners only,
undistributed sale proceeds of
approximately $95,000 ($0.31 per Unit)
from the 1998 sale of Chesterbrook
Corporate Center and cash reserves of
approximately $3.95 per Unit. The cash
reserves distribution totaled
$1,336,379 with $1,202,741
distributed to the Limited Partners
and $133,638
payable to the General Partners. The
General Partners deferred receipt of their
share of the distribution to ensure that
the Partnership would have cash on hand to
cover all liabilities that may arise
while the
Partnership winds up its affairs. The
amounts deferred were charged against
partner's capital and recorded as
distributions payable.
On June 29, 2000, the Partnership's
distributions of the Taxter sale
proceeds (see Note 2), Chesterbrook sale
proceeds and Partnership cash reserves to
Limited Partners totaled $14,308,539
($47.00 per Unit).
4. Related Party Transactions
An affiliate of the Managing General
Partner performs administrative
functions, processes investor
transactions and prepares tax
information for the Partnership. For the
six-month periods ended June 30, 2000 and
1999, the Partnership incurred
approximately $36,000 and $40,000 for
these services, respectively. These
amounts are included in general and
administrative expenses.
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV,
L.P.
Item 2. Management's Discussion and
Analysis of Financial
Condition and Results
of
Operations liquidity and Capital Resources
The Partnership's interest in the Taxter
Corporate Park office property (the
"Property") was the Partnership's sole
remaining property interest. As
discussed in Note 2 to the financial
statements, the partnership ("TPA") which
owned the Property sold the Property on
May 23, 2000. The Property was
approximately 90%
leased at the time of the sale. The
favorable leasing status
and an improved real estate
market in
Westchester, New York, the location of
the Property, enabled TPA to obtain an
attractive price for the Property.
The Partnership Agreement provides that the
Partnership shall terminate upon the sale
of the Partnership's last investment, and
that dissolution shall be effective on the
day on which the event arises giving rise
to the dissolution. Accordingly, the
Partnership dissolved pursuant to the
terms of its Partnership Agreement,
effective May 23, 2000, the date on which
the Property was sold. By December 31,
2000, the Partnership plans to wind up its
affairs, distribute its remaining cash
reserves and terminate its existence
by filing a certificate of cancellation
in the office of the Delaware Secretary
of State. There can be no assurance that
the Partnership will terminate by
December 31, 2000.
As discussed in Notes 2 and 3 to
the Financial Statements, on June 29,
2000, the Partnership paid distributions
of sale proceeds and Partnership cash
reserves to Limited Partners totaling
$47.00 per Unit. To cover any
contingencies that may arise while the
Partnership winds up its affairs, the
Partnership
retained a portion of the Property sale
proceeds, and the General Partners
deferred receipt of their share of the
distribution of Partnership cash reserves.
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV,
L.P.
As of the date of closing of the sale of
the Property, the Partnership had
commitments to fund approximately $750,000
for its share of tenant improvements
and leasing commissions at the Property.
This amount was deducted from the
Partnership's share of the sale proceeds
it received at closing.
During the period the Partnership owned its
interest in the Property in 2000, the
Property generated positive cash flows
from operations.
During the six months ended June 30,
2000, the
Partnership's contributions to TPA (to fund
its share of tenant improvements and
leasing commissions at the Property) and
cash reserve distributions exceeded the
distributions received from TPA
(excluding the
distribution of sale proceeds) and cash
provided by Partnership operations. This
cash shortfall was funded with Partnership
cash reserves.
Except as discussed above and in
the 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
Fluctuations in the Partnership's operating
results for the three - and six- month
periods ended June 30, 2000 compared to
1999 are primarily attributable to the
following:
The increases in equity in earnings of
joint venture in 2000 are primarily due
to the Partnership's share of the gain
on sale of the Property (approximately
$5.0 million).
The increases in interest and other income
in 2000 are primarily due to the interest
earned on the Taxter sale proceeds until
such proceeds were distributed to
Limited Partners.
<PAGE>
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 PARTNERSHIP IV,
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) Reports on Form 8-K.
i) Report on Form 8-K
dated April 25, 2000 disclosing
TPA's agreement to sell
the Taxter Corporate Park
Property and the
Partnership's plan to pay a cash
Distribution of sale
proceeds.
ii)Reports on Form 8-K dated
May 23, 2000 disclosing
TPA's sale of Taxter
Corporate Park.
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV,
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: August 14, 2000 By: /s/
E. Davisson
Hardman, Jr.
E. Davisson
Hardman, Jr.
President
Date: August 14, 2000 By:
/S/ Raymond E. Koch
Raymond E.Koch
Raymond E. Koch
Principal Accounting
Officer
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P.
Quarter Ended June 30, 2000
Exhibit
Index
Exhibit
No.
Description
27 Financial
Data Schedule
E1
