10-Q 1 de-ipiv063001_10q.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 June 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.) 2 World Trade Center, New York, NY 10048 ---------------------------------------- ---------- (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 June 30, December 31, 2001 2000 -------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 561,979 $ 1,542,591 Investment in joint venture 11,404 11,404 Other assets 10,014 1,672 ------------------------------------------------------------------------------- $ 583,397 $ 1,555,667 =============================================================================== LIABILITIES AND PARTNERS' CAPITAL Accounts payable and accrued liabilities $ 131,989 $ 133,403 Distributions payable to General Partners 175,615 119,247 -------------------------------------------------------------------------------- 307,604 252,650 -------------------------------------------------------------------------------- Partners' capital (deficiency): General partners (5,577,216) (5,515,093) Limited partners ($500 per unit, 304,437 Units issued) 5,853,009 6,818,110 -------------------------------------------------------------------------------- 275,793 1,303,017 -------------------------------------------------------------------------------- $ 583,397 $ 1,555,667 ================================================================================ See accompanying notes to financial statements. DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. STATEMENTS OF OPERATIONS Three and six months ended June 30, 2001 and 2000

See accompanying notes to financial statements. DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. STATEMENT OF PARTNERS' CAPITAL Six months ended June 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 (51,790) (5,755) (57,545) Distributions (913,311) (56,368) (969,679) -------------------------------------------------------------------------------- Partners' capital (deficiency) at June 30, 2001 $5,853,009 $(5,577,216) $ 275,793 ================================================================================ See accompanying notes to financial statements. DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. STATEMENTS OF CASH FLOWS Six months ended June 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 in 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 and tax reporting purposes. Net (loss) income per Unit amounts are calculated by dividing net (loss) 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 amounts in 2000, such adjustments consist only of normal recurring accruals. These financial statements should be read 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 DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. Notes to Financial Statements 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. Summarized financial information of TPA is as follows: Three months Six months ended June 30, ended June 30, 2001 2000 2001 2000 ---------------------------------------------------------------------------- Operating income $ - $ 919,503 $ - $ 2,127,643 Gain on sale of Real estate - 16,119,499 16,119,499 ---------------------------------------------------------------------------- - 17,039,002 - 18,247,142 ---------------------------------------------------------------------------- Expenses - 464,827 - 1,397,361 ---------------------------------------------------------------------------- Net income $ - $16,574,175 $ - $16,849,781 ============================================================================ 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 six-month periods ended June 30, 2001 and 2000, the Partnership incurred approximately $20,000 and $36,000 for these services, respectively. These amounts are included in general and administrative expenses. DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. Notes to Financial Statements 4. Distributions ------------- On February 27, 2001, the Partnership distributed, 100% to Limited Partners, approximately $913,000 ($3.00 per Unit). This distribution consisted of $406,000 ($1.33 per Unit) of the remaining undistributed proceeds from the sale of the Taxter property and $507,000 ($1.67 per Unit) of Partnership cash reserves. 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 Partner's 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 in 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. 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, 2001 compared to 2000 are 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's share of the gain on sale of the Taxter property (approximately $5.0 million) was included in the equity in earnings of joint venture amounts in 2000. DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. The decreases in interest and other revenues in 2001 compared to 2000 are primarily due to the absence in 2001 of a 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) and the second quarter 2000 interest earned on the Taxter sale proceeds until such proceeds were distributed to Limited Partners. 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. DEAN WITTER REALTY INCOME PARTNERSHIP IV, L.P. PART II - OTHER INFORMATION --------------------------- Item 6. Exhibits and Reports on Form 8-K. a) Exhibits. None b) Reports on Form 8-K. Report on Form 8-K dated May 23, 2000 disclosing TPA's sale of Taxter Corporate Park. 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 9, 2001 By: /s/E. Davisson Hardman, Jr. --------------------------- E. Davisson Hardman, Jr. President Date: August 9, 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