5
<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,
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) 392-1054
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
<CAPTION>
March
31,
December 31,
2000
1999 <S>
<C>
<C>
ASSETS
Cash and cash equivalents $
1,909,377 $
2,225,631
Investment in joint venture
8,567,492
8,111,989
Other assets
95,966
94,894
$10,572,835 $10,432,514
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued liabilities $
127,159 $
109,196
Partners' capital (deficiency):
General partners
(5,420,131)
(5,432,367)
Limited partners ($500 per Unit, 304,437 Units
issued) 15,865,807
15,755,685
10,445,676 10,323,318
$10,572,835 $10,432,514
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P.
INCOME STATEMENTS
Three months ended March 31, 2000 and 1999
<CAPTION>
2000
1999 <S>
<C>
<C>
Revenues:
Equity in earnings of joint venture $
111,896 $ 161,375
Interest and other 55,245
17,228
167,141 178,603
Expenses:
General and administrative 44,783
43,845
Net income $
122,358 $ 134,758
Net income allocated to:
Limited partners $
110,122 $ 121,282
General partners 12,236
13,476
$
122,358 $ 134,758
Net income per Unit of limited partnership interest
$ 0.36 $ 0.40
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P.
STATEMENT OF PARTNERS' CAPITAL
Three months ended March 31, 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 110,122
12,236 122,358
Partners' capital (deficiency)
at March 31, 2000
$15,865,807 $
(5,420,131)
$10,445,676
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P.
STATEMENTS OF CASH FLOWS
Three months ended March 31, 2000 and 1999
<CAPTION>
2000 1999 <S>
<C>
<C>
Cash flows from operating activities:
Net income $
122,358 $
134,758
Adjustments to reconcile net income to net cash
provided by (used in) operating
activities:
Equity in earnings of joint venture
(111,896)
(161,375)
Increase in other assets (1,072)
(944)
Increase (decrease) in accounts payable and
accrued liabilities 17,963
(19,839)
Net cash provided by (used in)
operating activities 27,353(47,400)
Cash flows from investing activities:
Distributions from joint venture
80,419
- -
Additional investments in joint venture
(424,026)
(38,161)
Net cash used in investing activities
(343,607) (38,161)
Decrease in cash and cash equivalents
(316,254) (85,561)
Cash and cash equivalents at beginning of period
2,225,631 1,531,647
Cash and cash equivalents at end of period
$1,909,377 $ 1,446,086
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 40.6% interest in
Taxter Park Associates ("TPA") is
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, 1999. Operating
results of interim periods may not be
indicative of the operating results for
the entire year.
TPA has entered into an agreement with an
unaffiliated third party to sell the
Taxter property for $43 million.
Consummation of the sale (which is expected
to occur in May 2000) is subject to
customary closing costs and conditions,
including final due diligence by the
buyer. If the sale is consummated in
accordance with the agreement and without
modification of the sale price, the
Partnership's share of the net sale proceeds
would be approximately $13.4 million after
satisfaction of the Partnership's
obligations
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV,
L.P.
Notes to Financial Statements
arising in connection with an affiliate's
1999 purchase from KLM Royal Dutch
Airlines of its space at the property.
There can be no assurance that the sale
contemplated by the agreement will be
consummated and that, if the sale is
consummated, the final sale price would not
be less
than $43 million.
The sale of the Taxter property would
cause the dissolution of the Partnership;
however, the timing of the final
liquidation of the Partnership is uncertain
at this time.
2. Investment in Joint Venture
Summarized financial information of TPA is
as follows:
March
31, December 31,
2000 1999
Land and buildings, net
$15,362,553
$15,238,168
Other
2,383,416
1,291,984
Total assets
$17,745,969
$16,530,152
Liabilities $
493,522 $
399,638
Partners' capital
17,252,447
16,130,514
Total liabilities and partners' capital
$17,745,969
$16,530,152
Quarter ended March 31,
2000
1999
Revenues
$1,208,140 $1,308,209
Expenses
932,534
910,734
Net income $
275,606 $ 397,475
<PAGE>
3. 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
three-month periods ended March 31,
2000 and 1999, the Partnership
incurred approximately $18,000 and $24,000
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 40.6% interest in the
partnership ("TPA") which owns the Taxter
Corporate Park office property is the
Partnership's sole property interest. TPA
has entered into an agreement with an
unaffiliated third party to sell the
property for $43 million. Consummation
of the sale (which is expected to occur in
May 2000) is subject to customary closing
costs and conditions, including final due
diligence by the buyer.
If the sale is consummated in
accordance with the agreement and
without modification of the sale price,
the Partnership's share of the net sale
proceeds would be approximately $13.4
million after satisfaction of the
Partnership's obligations arising in
connection with an affiliate's 1999
purchase from KLM Royal Dutch Airlines of
its space at the property. Accordingly, if
the sale is consummated in accordance
with the agreement and without
modification of the sale price, the
Partnership would expect to distribute
net sale proceeds of approximately $43
per Unit to Limited Partners.
Approximately $42 per Unit will be
distributed shortly after the sale and $1
per Unit is expected to be distributed
approximately six months after closing of
the sale.
There can be no assurance that the sale
contemplated by the agreement will be
consummated and that, if the sale is
consummated, the final sale price would not
be less than $43 million.
The sale of property would cause the
dissolution of the Partnership; however,
the timing of the final liquidation
of the Partnership is uncertain at this
time.
As of March 31, 2000, the Partnership had
commitments to fund approximately $901,000
for its share of tenant improvements and
leasing commissions at the Taxter
property. The Partnership will use its
cash reserves to fund such expenditures;
any unfunded costs <PAGE>
at the time the Taxter property is sold may
be deducted from the Partnership's share of
the sale proceeds.
During the three months ended March 31,
2000, the Taxter property generated
positive cash flow from operations, and
it is anticipated that it will continue to
do so during the period the Partnership
continues to own its interest in the
property.
During the three months ended March 31,
2000, the Partnership's contributions to
the Taxter Partnership (to fund its share
of tenant improvements and leasing
commissions at the property) exceeded the
distributions received from the Taxter
Partnership and net cash provided by
Partnership operations. The Partnership's
cash shortfall was funded with cash
reserves.
The Partnership did not pay any
distributions during the three months
ended March 31, 2000.Generally,
future cash distributions will be paid
from proceeds received from the sale of
the Taxter property and cash reserves.
The Partnership believes its cash reserves
are adequate
for its needs during the remainder of 2000.
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 month period ended
March 31, 2000 compared to 1999 are
primarily attributable to the following:
The decrease in equity in earnings of
joint venture during the three-month
period in 2000 is primarily due to lower
occupancy at the Taxter property.
<PAGE>
The increase in interest and other income
in 2000 is primarily due to a receipt of
$28,000 in settlement of litigation with
the original building contractor and
architect of the Pasadena Financial
Center property (sold 1997).
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.
Report dated April
25, 2000 regarding the
agreement of Taxter Park
Associates to sell its property.
<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: May 12, 2000 By:
/s/E. Davisson
Hardman, Jr.
E. Davisson
Hardman, Jr.
President
Date: May 12, 2000 By:
/s/Charles M.
Charrow
Charles M.
Charrow
Controller
(Principal
Financial and Accounting Officer)
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP IV,
L.P.
Quarter Ended March 31, 2000
Exhibit
Index
Exhibit
No.
Description
27 Financial
Data Schedule
E1
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Registrant is a limited partnership which invests in a real estate
joint ventures. In accordance with industry practice, its balance
sheet is unclassified. For full information, refer to the accompanying
unaudited financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 1,909,377
<SECURITIES> 0
<RECEIVABLES> 95,966
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,572,835<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 10,445,676<F2>
<TOTAL-LIABILITY-AND-EQUITY> 10,572,835<F3>
<SALES> 0
<TOTAL-REVENUES> 167,141<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 44,783
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 122,358
<INCOME-TAX> 0
<INCOME-CONTINUING> 122,358
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 122,358
<EPS-BASIC> 0.36<F5>
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivable, total assets include an investment
in joint venture of $8,567,492.
<F2>Represents partners' capital.
<F3>Liabilities include accounts payable and accrued liabilities of
$127,159.
<F4>Total revenues include equity in earnings of joint ventures of $111,896
and interest and other revenue of $55,245.
<F5>Represents net income per Unit of limited partnership interest.
</FN>
</TABLE>
