10-Q 1 de-fiv10q93001.txt QUARTERLY REPORT 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 September 30, 2001 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.) 1221 Avenue of the Americas, New York, NY 10020 ------------------------------------------ ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (800) 829-8585 -------------- 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 --- --- PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. BALANCE SHEETS SEPTEMBER 30, DECEMBER 31, 2001 2000 ----------- ----------- ASSETS Cash and cash equivalents $ 565,051 $ 1,542,591 Investment in joint venture 11,404 11,404 Other assets 9,985 1,672 ----------- ----------- $ 586,440 $ 1,555,667 =========== =========== LIABILITIES AND PARTNERS' CAPITAL Accounts payable and accrued liabilities $ 116,691 $ 133,403 Distributions payable to General Partners 175,615 119,247 ----------- ----------- 292,306 252,650 ----------- ----------- Partners' capital (deficiency): General Partners (5,575,381) (5,515,093) Limited Partners ($500 per Unit, 304,437 Units issued) 5,869,515 6,818,110 ----------- ----------- 294,134 1,303,017 ----------- ----------- $ 586,440 $ 1,555,667 =========== =========== See accompanying notes to financial statements DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. STATEMENTS OF OPERATIONS THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

See accompanying notes to financial statements DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. STATEMENT OF PARTNERS' CAPITAL (DEFICIENCY) NINE MONTHS ENDED SEPTEMBER 30, 2001 LIMITED GENERAL PARTNERS PARTNERS TOTAL ----------- ----------- ----------- Partners' capital (deficiency) at January 1, 2001 $ 6,818,110 $(5,515,093) $ 1,303,017 Net loss (35,284) (3,920) (39,204) Distributions (913,311) (56,368) (969,679) ----------- ----------- ----------- Partners' capital (deficiency) at September 30, 2001 $ 5,869,515 $(5,575,381) $ 294,134 =========== =========== =========== See accompanying notes to financial statements DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

See accompanying notes to financial statements 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 was its 40.6% interest in the partnership ("TPA") which owned Taxter Corporate Park. TPA sold the Taxter property on May 23, 2000, and this sale has effectuated the dissolution of the Partnership. However, the Partnership can't wind up its affairs and distribute the balance of the Partnership's cash reserves until TPA terminates its operations (see Note 2). The Managing General Partner plans to terminate the Partnership as soon as possible; however, there can be no guaranty that the Partnership will be terminated by December 31, 2001. The Partnership's interest in TPA was accounted for using the equity method. The Partnership's records are maintained on the accrual basis of accounting for financial reporting and tax reporting purposes. Net income (loss) per Unit of limited partnership interest amounts are calculated by dividing net income (loss) allocated to Limited Partners 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 the sale of the Taxter property included in equity in earnings of joint venture in the second quarter of 2000, 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 and Exchange Commission for the year ended December 31, 2000. Operating results of interim periods may not be indicative of the operating results for the entire year. 2. INVESTMENT IN JOINT VENTURE The Partnership understands that TPA has certain operating issues that TPA must resolve, both with the buyer of the Taxter property and other third parties, before TPA can terminate its operations. Resolution of these issues is not anticipated to require any significant funding from the Partnership. DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. NOTES TO FINANCIAL STATEMENTS 2. INVESTMENT IN JOINT VENTURE (CONT'D) Summarized income statements of TPA are as follows:

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 nine months ended September 30, 2001 and 2000, the Partnership incurred approximately $30,000 and $54,000, respectively, for these services. These amounts are included in general and administrative expenses. The affiliate has also paid certain expenses on behalf of the Partnership. As of September 30, 2001, the Partnership's accounts payable and accrued liabilities include approximately $60,000 due to the affiliate. 4. DISTRIBUTIONS On February 27, 2001, the Partnership distributed, 100% to Limited Partners, approximately $913,000 ($3.00 per Unit). This distribution consisted of approximately $406,000 ($1.33 per Unit) of previously undistributed proceeds from the sale of the Taxter property and cash reserves of $507,000 ($1.67 per Unit). The General Partners deferred receipt of their share of the cash reserves distribution (approximately $56,000) 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 partners' capital and recorded as distributions payable. 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 As discussed in Note 1 to the Financial Statements, the partnership ("TPA") which owned the Taxter office property sold the property on May 23, 2000. The Partnership's interest in TPA was the Partnership's only remaining property interest. The Partnership dissolved pursuant to the terms of its Partnership Agreement, effective May 23, 2000, the date on which the Taxter property was sold. 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 as soon as possible; however, there can be no guaranty that the Partnership will be terminated by December 31, 2001. As discussed in Note 4 to the Financial Statements, on February 27, 2001, the Partnership paid, to Limited Partners only, a distribution of $3.00 per Unit. The Partnership believes that its remaining cash reserves are adequate for its needs until the Partnership is terminated. The office of the Managing General Partner was located at the World Trade Center in New York. The Partnership did not hold any of its assets at this location. The Managing General Partner does not expect that the September 11, 2001 tragedy at the World Trade Center will adversely affect the operations of the Partnership. Except as described above and in the financial statements, the Managing General Partner is not aware of any trends or events, commitments or uncertainties that may impact liquidity in a material way. OPERATIONS Fluctuations in the Partnership's operating results for the three and nine month periods ended September 30, 2001 compared to 2000 were primarily attributable to the following: The absence of the Partnership's equity in earnings of joint venture in 2001 is due to the loss of operating income from TPA after it sold the Taxter property in May 2000. The Partnership recognized its share of the gain on sale of the Taxter property (approximately $5.0 million) in its equity in earnings of joint venture in the second quarter of 2000. The decrease in interest and other revenues during the nine months ended September 30, 2001 compared to 2000 was primarily due to the absence in 2001 of the second quarter 2000 interest earned on the Taxter sale proceeds until such proceeds were distributed to Limited Partners and a DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. OPERATIONS (CONT'D) first quarter 2000 receipt of $28,000 in settlement of litigation with the original building contractor and architect of the Pasadena Financial Center property (sold 1997). General and administrative expenses have decreased in 2001 compared to 2000 because the Partnership is winding up its affairs in 2001. There were no other individually significant factors which caused changes in revenues and 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. DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. PART II - OTHER INFORMATION ITEM 6. EXHIBITS & REPORTS ON FORM 8-K (a) Exhibits. None (b) Reports on Form 8-K Report on Form 8-K dated September 11, 2001, disclosing the change of the address of the Partnership's executive office due to the destruction of the World Trade Center. 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: November 13, 2001 By: /s/ E. Davisson Hardman, Jr. ---------------------------- E. Davisson Hardman, Jr. President Date: November 13, 2001 By: /s/ Raymond E Koch ------------------ Raymond E. Koch Vice President, Assistant Secretary and Controller (Principal Financial and Accounting Officer)

WITTER DEAN REALTY INCOME PARTNERSHIP IV L P 10-Q