<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark one)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended September 30, 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 0-20103
----------------------------------------------------------
Wells Real Estate Fund IV, L.P.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Georgia 58-1915128
- ------------------------------- ------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3885 Holcomb Bridge Road, Norcross, Georgia 30092
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (770) 449-7800
------------------------------
________________________________________________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
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>
Form 10-Q
---------
Wells Real Estate Fund IV, L.P.
-------------------------------
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - September 30, 1999
and December 31, 1998.................................... 3
Statements of Income for the Three Months and Nine Months
Ended September 30, 1999 and 1998........................ 4
Statement of Partners' Capital for the Year Ended
December 31, 1998 and the Nine Months Ended
September 30, 1999....................................... 5
Statements of Cash Flows for the Nine
Months Ended September 30, 1999 and 1998................. 6
Condensed Notes to Financial Statements.................. 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations............................................... 8
PART II. OTHER INFORMATION............................................ 15
</TABLE>
2
<PAGE>
WELLS REAL ESTATE FUND IV, L.P.
(A Georgia Public Limited Partnership)
Balance Sheets
<TABLE>
<CAPTION>
Assets September 30, 1999 December 31, 1998
------ ------------------ ------------------
<S> <C> <C>
Investment in joint ventures (Note 2) $9,571,070 $ 9,846,448
Cash and cash equivalents 74,116 102,960
Due from affiliates 227,455 241,930
---------- -----------
Total assets $9,872,641 $10,191,338
========== ===========
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Accounts payable and accrued expenses $ 0 $ 4,244
Partnership distributions payable 268,388 248,091
---------- -----------
Total liabilities $ 268,388 $ 252,335
---------- -----------
Partners' capital:
Limited partners
Class A - 1,322,909 Units outstanding 9,604,253 9,939,003
Class B - 38,551 Units outstanding 0 0
---------- -----------
Total partners' capital 9,604,253 9,939,003
---------- -----------
Total liabilities and partners' capital $9,872,641 $10,191,338
========== ===========
</TABLE>
See accompanying condensed notes to financial statements.
3
<PAGE>
WELLS REAL ESTATE FUND IV, L.P.
(a Georgia Public Limited Partnership)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
---------------------------- --------------------------
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30,1998
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
Revenues:
Equity in income of joint ventures (Note 2) $135,099 $135,860 $515,807 $486,992
Interest income 282 2,304 980 6,167
-------- -------- -------- --------
135,381 138,164 516,787 493,159
-------- -------- -------- --------
Expenses:
Legal and accounting 200 472 12,932 13,389
Computer costs 2,558 2,325 8,010 6,149
Partnership administration 10,044 14,348 38,224 33,475
-------- -------- -------- --------
12,802 17,145 59,166 53,013
-------- -------- -------- --------
Net income $122,579 $121,019 $457,621 $440,146
======== ======== ======== ========
Net income allocated to Class A
Limited Partners $122,579 $121,019 $457,621 $440,146
Net loss allocated to Class B
Limited Partners $ 0 $ 0 $ 0 $ 0
Net income per Class A
Limited Partner unit $ 0.09 $ 0.09 $ 0.35 $ 0.33
Net loss per Class B
Limited Partner unit $ 0 $ 0 $ 0 $ 0
Cash distribution per Class A
Limited Partner unit $ 0.20 $ 0.19 $ 0.60 $ 0.55
</TABLE>
See accompanying condensed notes to financial statements.
4
<PAGE>
WELLS REAL ESTATE FUND IV, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 1998
AND NINE MONTHS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Limited Partners Total
----------------------------------------
Class A Class B Partners'
------------------------ --------------
Units Amount Units Amount Capital
--------- ------------- ------ ------ -------------
<S> <C> <C> <C> <C> <C>
BALANCE, December 31, 1997 1,322,909 $10,334,768 38,551 $ 0 $10,334,768
Net income 0 574,034 0 0 574,034
Partnership distribution 0 (969,799) 0 0 (969,799)
--------- ----------- ------ ------ -----------
BALANCE, December 31, 1998 1,322,909 $ 9,939,003 38,551 0 9,939,003
Net income 0 457,621 0 0 457,621
Partnership distributions 0 (792,371) 0 0 (792,371)
--------- ----------- ------ ------ -----------
BALANCE, September 30, 1999 1,322,909 $ 9,604,253 38,551 $ 0 $ 9,604,253
========= =========== ====== ====== ===========
</TABLE>
See accompanying condensed notes to financial statements.
5
<PAGE>
WELLS REAL ESTATE FUND IV, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
Sept 30, 1999 Sept 30, 1998
-------------- --------------
<S> <C> <C>
Cash flow from operating activities:
Net income $ 457,621 $ 440,146
--------- ---------
Adjustments to reconcile net income to net cash
used in operating activities:
Equity in income of joint ventures (515,807) (486,992)
Changes in assets and liabilities:
Accounts Receivable 0 (88)
Accounts Payable (4,244) 0
--------- ---------
Total Adjustments (520,051) (487,080)
--------- ---------
Net cash used in
operating activities (62,430) (46,934)
--------- ---------
Cash flow from investing activities:
Investment in Joint Venture (65,371) (44,089)
Distributions received from joint ventures 871,030 764,775
--------- ---------
Net cash provided by investing activities 805,659 720,686
--------- ---------
Cash flow used in financing activities:
Partnership distributions paid (772,073) (713,690)
--------- ---------
Net decrease in cash and cash
equivalents (28,844) (39,938)
Cash and cash equivalents, beginning of year 102,960 163,903
--------- ---------
Cash and cash equivalents, end of period $ 74,116 $ 123,965
========= =========
</TABLE>
See accompanying condensed notes to financial statements.
6
<PAGE>
WELLS REAL ESTATE FUND IV, L.P.
(A Georgia Public Limited Partnership)
Condensed Notes to Financial Statements
September 30, 1999
(1) Summary of Significant Accounting Policies
------------------------------------------
(a) General
-------
Wells Real Estate Fund IV, L.P. (the "Partnership") is a Georgia public
limited partnership having Leo F. Wells, III and Wells Partners, L.P., as
General Partners. The Partnership was formed on October 25, 1990, for the
purpose of acquiring, developing, constructing, owning, operating, improving,
leasing and otherwise managing for investment purposes income-producing
commercial properties.
On March 4, 1991, the Partnership commenced an offering of up to $25,000,000
of Class A or Class B limited partnership units ($10.00 per unit) pursuant to
a Registration Statement on Form S-11 under the Securities Act of 1933. The
Partnership did not commence active operations until it received and accepted
subscriptions for 125,000 units which occurred on May 13, 1991. The offering
was terminated on February 29, 1992, at which time the Partnership had
obtained total contributions of $13,614,652 representing subscriptions from
1,285 Limited Partners.
The Partnership owns interests in properties through its equity ownership in
the following two joint ventures: (i) Fund III and Fund IV Associates, a joint
venture between the Partnership and Wells Real Estate Fund III, L.P. ( the
"Fund III - Fund IV Joint Venture"); and (ii) Fund IV and Fund V Associates, a
joint venture between the Partnership and Wells Real Estate Fund V, L.P. (the
"Fund IV - Fund V Joint Venture").
As of September 30, 1999, the Partnership owned interests in the following
properties through its ownership of the foregoing joint ventures: (i) a retail
shopping center located in Stockbridge, Georgia, southeast of Atlanta (the
"Stockbridge Village Shopping Center"), which is owned by the Fund III - Fund
IV Joint Venture; (ii) a two-story office building located in Richmond,
Virginia (the "G.E. Building/Richmond"), which is owned by the Fund III - Fund
IV Joint Venture; (iii) two substantially identical two-story office buildings
located in Clayton County, Georgia (the "Village Overlook Property", formerly
the "Medical Center Building"), which are owned by the Fund IV - Fund V Joint
Venture, and (iv) a four-story office building located in Jacksonville,
Florida (the "IBM Jacksonville Building"), which is owned by the Fund IV -
Fund V Joint Venture. All of the foregoing properties were acquired on an all
cash basis. For further information regarding these joint ventures and
properties, refer to the Partnership's Form 10-K for the year ended December
31, 1998.
7
<PAGE>
(b) Basis of Presentation
---------------------
The financial statements of the Partnership have been prepared in accordance
with instructions to Form 10-Q and do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. These quarterly statements have not been examined by
independent accountants, but in the opinion of the General Partners, the
statements for the unaudited interim periods presented include all
adjustments, which are of a normal and recurring nature, necessary to present
a fair presentation of the results for such periods. For further information,
refer to the financial statements and footnotes included in the Partnership's
Form 10-K for the year ended December 31, 1998.
(2) Investment in Joint Ventures
----------------------------
The Partnership owns interests in four properties as of September 30, 1999,
through ownership in two joint ventures. The Partnership does not have
control over the operations of the joint ventures; however, it does exercise
significant influence. Accordingly, investment in joint ventures is recorded
on the equity method. For further information, refer to Form 10-K of the
Partnership for the year ended December 31, 1998.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
--------------------------------------------------------------------
RESULTS OF OPERATIONS
- ---------------------
The following discussion and analysis should be read in conjunction with the
accompanying financial statements of the Partnership and notes thereto. This
Report contains forward-looking statements, within the meaning of Section 27A
of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934,
including discussion and analysis of the financial condition of the
Partnership, anticipated capital expenditures required to complete certain
projects, amounts of cash distributions anticipated to be distributed to
Limited Partners in the future and certain other matters. Readers of this
Report should be aware that there are various factors that could cause actual
results to differ materially from any forward-looking statement made in the
Report, which include construction costs which may exceed estimates,
construction delays, lease-up risks, inability to obtain new tenants upon the
expiration of existing leases, and the potential need to fund tenant
improvements or other capital expenditures out of operating cash flow.
Results of Operations and Changes in Financial Conditions
- ---------------------------------------------------------
(a) General
- -----------
As of September 30, 1999, the properties owned by the Partnership were 91.72%
occupied. Gross revenues of the Partnership were $135,381 for the three
months ended September 30, 1999, and $516,787 for the nine months ended
September 30, 1999, as compared to $138,164 for the three months ended
September 30, 1998 and $493,159 for the nine months ended September 30, 1998.
This increase in revenues was due primarily to increases in income of joint
ventures due primarily to increased rental
8
<PAGE>
renewal rates at the Stockbridge Village Shopping Center. As a result, net
income increased for the nine months ended September 30, 1999, as compared to
the same period ended September 30, 1998.
Expenses of the Partnership increased from $53,013 for the nine months ended
September 30, 1998 to $59,166 for the nine months ended September 30, 1999.
The increase in expenses was due to an increase in administrative costs
primarily professional fees and printing costs.
The Partnership's decrease in cash and cash equivalents from $123,965 as of
September 30, 1998, to $74,116 as of September 30, 1999, is the result of
increased distributions to limited partners and an additional investment in
joint ventures.
The Partnership made cash distributions to the Limited Partners holding Class
A Units of $.20 per Unit for the three months ended September 30, 1999. No
cash distributions were made to the Limited Partners holding Class B Units or
to the General Partners. The Partnership's distributions paid and payable
through the third quarter of 1999 have been paid from net cash from operations
and from distributions received from its equity investment in joint ventures.
The Partnership has recently been notified that General Electric has elected
not to renew its current lease for the G.E. Building, which expires March 31,
2000. Management has recently begun efforts to market and lease this building
to one or more new tenants. At the current time, the estimated cost of
refurbishments, tenant improvements and building maintenance is anticipated to
be approximately $750,000, which may vary significantly depending upon the
ultimate tenant or tenants actually obtained for this property. It is likely
that these costs will be required to be funded out of cash from operations of
the Partnership and Wells Fund III, which is likely to cause a substantial
reduction to distributions payable to Limited Partners in the year 2000.
Year 2000
- ---------
The Partnership is presently reviewing the potential impact of Year 2000
compliance issues on its information systems and business operations. A full
assessment of Year 2000 compliance issues was begun in late 1997 and was
completed by March 31, 1999. Renovations and replacements of equipment have been
and are being made as warranted. The costs incurred by the Partnership and its
affiliates thus far for renovations and replacements have been immaterial. As of
September 30, 1999 all testing of systems has been completed.
As to the status of the Partnerships' information technology systems, it is
presently believed that all major systems and software are Year 2000 compliant.
At the present time, it is believed that all major non-information technology
systems are Year 2000 compliant. The cost to upgrade any noncompliance systems
is believed to be immaterial.
The Partnership has confirmed with the Partnership's vendors, including third-
party service providers such as banks, that their systems are Year 2000
compliant.
The Partnership relies on computers and operating systems provided by equipment
manufacturers, and also on application software designed for use with its
accounting, property management and investment
9
<PAGE>
portfolio tracking. The Partnership has preliminary determined that any costs,
problems or uncertainties associated with the potential consequences of Year
2000 issues are not expected to have a material impact on the future operations
or financial condition of the Partnership. The Partnership will perform due
diligence as to the Year 2000 readiness of each property owned by the
Partnership and each property contemplated for purchase by the Partnership.
The Partnership's reliance on embedded computer systems (i.e. microcontrollers)
is limited to facilities related matters, such as office security systems and
environmental control systems.
The Partnership is currently formulating contingency plans to cover any areas
of concern. Alternate means of operating the business are being developed in
the unlikely circumstance that the computer and phone systems are rendered
inoperable. An off-site facility from which the Partnership could operate is
being sought as well as alternate means of communication with key third-party
vendors. A written plan is being developed for testing and dispensation to
each staff member of the General Partner of the Partnership.
Management believes that the Partnership's risk of Year 2000 problems is
minimal. In the unlikely event there is a problem, the worst case scenarios
would include the risks that the elevator or security systems within the
Partnership's properties would fail or the key third-party vendors upon which
the Partnership relies would be unable to provide accurate investor
information. In the event that the elevator shuts down, the Partnership has
devised a plan for each building whereby the tenants will use the stairs until
the elevators are fixed. In the event that the security system shuts down, the
Partnership has devised a plan for each building to hire temporary on-site
security guards. In the event that a third-party vendor has Year 2000 problems
relating to investor information, the Partnership intends to perform a full
system back-up of all investor information as of December 31, 1999, so that the
Partnership will have accurate hard-copy investor information.
10
<PAGE>
Property Operations
- -------------------
As of September 30, 1999, the Partnership owned interests in the following
properties through joint ventures:
IBM Jacksonville /Fund IV - Fund V Joint Venture
- ------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------ ------------------------------
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30, 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $ 370,168 $ 366,140 $ 1,110,650 $ 1,098,028
-------- -------- ---------- ----------
Expenses:
Depreciation 80,089 79,524 239,137 238,572
Management & leasing expenses 51,529 45,762 156,428 144,239
Other operating expenses 113,362 154,576 282,384 252,853
-------- -------- ---------- ----------
244,980 279,862 677,949 635,664
-------- -------- ---------- ----------
Net income $ 125,188 $ 86,278 $ 432,701 $ 462,364
======== ======== ========== ==========
Occupied % 94% 94% 94% 94%
Partnership's Ownership % 37.6% 37.6% 37.6% 37.6%
Cash Distribution to Partnership $ 84,349 $ 70,244 $ 269,606 $ 240,363
Net Income Allocated to the
Partnership $ 47,039 $ 32,454 $ 162,585 $ 173,996
</TABLE>
Rental income for the IBM Jacksonville Property increased slightly in 1999, as
compared to 1998 figures. Operating expenses increased in 1999, due to
substantial increases in the areas of repairs and maintenance, partially offset
by common area maintenance reimbursements that were drastically reduced for the
period. The foregoing was a result of both IBM and Siemens reducing their leased
space in the building. Tenants are billed an estimated amount for the current
year common area maintenance which is then reconciled the following year and the
difference billed to the tenant. As a result, income allocated to the
Partnership decreased for the nine months ended September 30, 1999, as compared
to the same period in 1998. Cash distributions allocated to the Partnership
increased due to the distribution of cash previously held in reserve. These
reserves were held to cover necessary tenant improvements which did not
materialize. Customized Transportation Inc. extended their lease for an
additional two years through February 28, 2001. Cash distributions increased for
1999 as compared to 1998. The Partnership contributed cash fundings to the Joint
Venture for tenant improvement in proportion to their ownership interests, and
therefore, the Partnership's ownership interest in the Fund IV - Fund V Joint
Venture remained the same.
11
<PAGE>
The Village Overlook Property (formerly The Medical Center Property)/Fund IV -
- ------------------------------------------------------------------------------
Fund V Joint Venture
- --------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------ ------------------------------
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30, 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 75,057 $128,171 $340,741 $364,210
Interest income 4,224 5,769 7,203 10,288
------- ------- ------- -------
79,281 133,940 347,944 374,498
------- ------- ------- -------
Expenses:
Depreciation 44,871 44,525 133,919 133,573
Management & leasing expenses 8,609 15,819 40,496 46,489
Other operating expenses 79,241 53,244 156,341 133,715
------- ------- ------- -------
132,721 113,588 330,756 313,777
------- ------- ------- -------
Net income (loss) $(53,440) $ 20,352 $ 17,188 $ 60,721
======= ======= ======= =======
Occupied % 62.4% 82% 62.4% 82%
Partnership's Ownership % 37.6% 37.6% 37.6% 37.6%
Cash Distribution to Partnership $ 0 $ 27,435 $ 51,685 $ 81,835
Net Income (Loss) Allocated to the
Partnership $(20,080) $ 7,655 $ 6,458 $ 22,848
</TABLE>
Rental income for the Village Overlook Properties (formerly the Medical Center
Property) decreased for the nine months ended September 30, 1999, as compared to
the same period in 1998. This was due primarily to the fact that one major
tenant, Georgia Baptist Healthcare System, did not renew their lease which
expired May 31, 1999. Two new tenants have signed leases for a total of 7,332
rentable square feet of space. On Care Management has contracted to lease 4,348
square feet for a term of 5 years commencing September 1, 1999 and Georgia
Pediatric Cardiology has signed a lease for 2,984 square feet commencing October
1, 1999, for a four year term. All efforts are being made by the Partnership to
find a tenant or tenants to occupy the remaining 10,515 square feet of vacant
space. Operating expenses increased in 1999, over 1998, due primarily to the
resurfacing of the parking lot as well as the repairs of the HVAC system in the
buildings. Cash distributions decreased for the nine months ended September 30,
1999 as compared to the same period for 1998 due to the reduction in rental
income and increase in operating expenses.
12
<PAGE>
The Stockbridge Village Shopping Center / Fund III - Fund IV Joint Venture
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------ ------------------------------
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30, 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $310,697 $312,855 $957,747 $898,740
Interest Income 2,800 2,425 9,100 6,355
------- ------- ------- -------
313,497 315,280 966,847 905,095
------- ------- ------- -------
Expenses:
Depreciation 89,214 87,501 266,524 258,368
Management and leasing expenses 28,163 29,558 90,813 84,381
Other operating expenses 16,059 44,681 13,316 83,314
------- ------- ------- -------
133,436 161,740 370,653 426,063
------- ------- ------- -------
Net income $180,061 $153,540 $596,194 $479,032
======= ======= ======= =======
Occupied % 95% 97% 95% 97%
Partnership's Ownership % 42.8% 42.7% 42.8% 42.7%
Cash Distributed to the Partnership $115,752 $101,505 $369,857 $302,222
Net Income Allocated to the Partnership $ 77,045 $ 65,536 $254,974 $204,467
</TABLE>
Rental income increased for the nine months ended September 30, 1999, as
compared to the same periods in 1998, due to increased rental renewal rates.
Rental income decreased in the third quarter of 1999, due to two leases which
expired and were not renewed. Other operating expenses decreased due primarily
to differences in the adjustment for prior year common area maintenance billings
to tenants and decreased expenditures for property taxes and parking lot repairs
in 1999. Tenants are billed an estimated amount for the current year common area
maintenance which is then reconciled the following year and the difference
billed to the tenant.
The Partnership's ownership in the Fund III - Fund IV Joint Venture increased in
1999, as compared to 1998, due to additional fundings by the Partnership, which
increased the Partnership's ownership in the Fund III - Fund IV Joint Venture.
13
<PAGE>
The G.E. Building/Richmond / Fund III - Fund IV Joint Venture
- -------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------ ------------------------------
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30, 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $131,857 $131,857 $395,569 $395,569
------- ------- ------- -------
Expenses:
Depreciation 49,053 49,056 147,165 147,162
Management and leasing expenses 10,178 10,095 30,452 30,204
Other operating expenses (44) 1,918 3,314 17,470
------- ------- ------- -------
59,187 61,069 180,931 194,836
------- ------- ------- -------
Net income $ 72,670 $ 70,788 $214,638 $200,733
======= ======= ======= =======
Occupied % 100% 100% 100% 100%
Partnership's Ownership % 42.8% 42.7% 42.8% 42.7%
Cash Distribution to Partnership $ 56,024 $ 53,953 $165,408 $155,785
Net Income Allocated to the Partnership $ 31,095 $ 30,215 $ 91,789 $ 85,680
</TABLE>
Rental income remained constant for 1999 and 1998. Net income and cash
distributions generated from the G.E. Building increased for the nine months
ended September 30, 1999, as compared to the same period in 1998, due to
increased expenses in the first quarter of 1998 for extraordinary roof repairs.
The Partnership's ownership in the Fund III - Fund IV Joint Venture increased in
1999, as compared to 1998, due to additional fundings by the Partnership, which
increased the Partnership's ownership.
G.E. has decided not to renew their lease which expires March 31, 2000.
Management has begun its efforts to lease the building to one or more new
tenants. At this time, the cost for new tenant buildout and building
maintenance is anticipated to be approximately $750,000.
14
<PAGE>
PART II - OTHER INFORMATION
Item 6(b). No reports on Form 8-K were filed during the third quarter of 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
WELLS REAL ESTATE FUND IV, L.P.
(Registrant)
Dated: November 10, 1999 By: /s/ Leo F. Wells, III
---------------------
Leo F. Wells, III, as Individual General
Partner and as President, Sole Director and Chief
Financial Officer of Wells Capital,
Inc., the General Partner of Wells Partners, L.P.
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 74,116
<SECURITIES> 9,571,070
<RECEIVABLES> 227,455
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 9,872,641
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 9,872,641
<CURRENT-LIABILITIES> 268,388
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 9,604,253
<TOTAL-LIABILITY-AND-EQUITY> 9,872,641
<SALES> 0
<TOTAL-REVENUES> 516,787
<CGS> 0
<TOTAL-COSTS> 59,166
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 457,621
<INCOME-TAX> 457,621
<INCOME-CONTINUING> 457,621
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 457,621
<EPS-BASIC> .35
<EPS-DILUTED> 0
</TABLE>
