0000812630 2011-09-30 0000812630 2010-12-31 0000812630 2011-07-01 2011-09-30 0000812630 2010-07-01 2010-09-30 0000812630 2011-01-01 2011-09-30 0000812630 2010-01-01 2010-09-30 0000812630 2009-12-31 0000812630 2010-09-30 xbrli:shares iso4217:USD DEL TACO INCOME PROPERTIES IV 0000812630 --12-31 No No Yes Non-accelerated Filer 10-Q false 2011-09-30 Q3 2011

116423

111469

34325

34544

552

704

151300

146717

868344

368356

1289860

484789

3011349

1646676

1619037

1364673

1392312

1515973

1539029

17276

16581

6453

10477

23729

27058

137953

1371881

1391411

165375

-17590

-17393

1354291

1374018

1515973

1539029

106164

105523

310504

307689

11404

9963

55881

51374

9213

27639

28252

20617

19176

83520

79626

85547

86347

226984

228063

250

625

300

85818

86449

227672

228436

0.51

0.52

1.36

1.37

165375

-219

-1727

-152

695

666

-4024

3210

252353

262214

247399

250303

4954

11911

112034

123945

NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements and should therefore be read in conjunction with the financial statements and notes thereto contained in the annual report on Form 10-K for the year ended December 31, 2010 for Del Taco Income Properties IV (the Partnership or the Company). In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the Partnership’s financial position at September 30, 2011, the results of operations for the three and nine month periods ended September 30, 2011 and 2010 and cash flows for the nine month periods ended September 30, 2011 and 2010 have been included. Operating results for the three and nine months ended September 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011. Amounts related to disclosure of December 31, 2010 balances within these condensed financial statements were derived from the audited 2010 financial statements. Management has evaluated events subsequent to September 30, 2011 through the date that the accompanying condensed financial statements were filed with the Securities and Exchange Commission for transactions and other events which may require adjustment of and/or disclosure in such financial statements.

NOTE 2 – NET INCOME PER LIMITED PARTNERSHIP UNIT Net income per limited partnership unit is based on net income attributable to the limited partners (after 1% allocation to the general partner) using the weighted average number of units outstanding during the periods presented which amounted to 165,375 in 2011 and 2010. Pursuant to the partnership agreement, annual partnership income or loss is allocated one percent to Del Taco LLC, formerly known as Del Taco Inc., (Del Taco or the General Partner) and 99 percent to the limited partners. Partnership gains from any sale or refinancing will be allocated one percent to the General Partner and 99 percent to the limited partners until allocated gains and profits equal losses, distributions and syndication costs, and until each class of limited partners receive their priority return as defined in the partnership agreement. Additional gains will be allocated 12 percent to the General Partner and 88 percent to the limited partners.

NOTE 3 – LEASING ACTIVITIES The Partnership leases three properties for operation of restaurants to Del Taco on a triple net basis. One property has been subleased to a Del Taco franchisee. The leases are for terms of 32 years commencing with the completion of the restaurant facility located on each property and require monthly rentals equal to 12 percent of the gross sales of the restaurants. The leases expire in the years 2021 to 2022. Pursuant to the lease agreements, minimum rentals of $3,500 per month are due to the Partnership during the first six months of any non-operating period caused by an insured casualty loss. For the three months ended September 30, 2011, the two restaurants operated by Del Taco, for which the Partnership is the lessor, had combined, unaudited sales of $555,500 and unaudited net losses of $3,924 as compared to unaudited sales of $560,545 and unaudited net income of $9,066 for the corresponding period in 2010. Net income or loss of each restaurant includes charges for general and administrative expenses incurred in connection with supervision of restaurant operations and interest expense and the decrease in net income from the corresponding period of the prior year primarily relates to an increase in operating costs. For the three months ended September 30, 2011, the one restaurant operated by a Del Taco franchisee, for which the Partnership is the lessor, had unaudited sales of $329,198 as compared with $318,811 during the same period in 2010. For the nine months ended September 30, 2011, the two restaurants operated by Del Taco, for which the Partnership is the lessor, had combined, unaudited sales of $1,637,404 and unaudited net losses of $8,413 as compared to unaudited sales of $1,647,123 and unaudited net losses of $1,128 for the corresponding period in 2010. Net income or loss of each restaurant includes charges for general and administrative expenses incurred in connection with supervision of restaurant operations and interest expense and the increase in net losses from the corresponding period of the prior year primarily relates to an increase in operating costs. For the nine months ended September 30, 2011, the one restaurant operated by a Del Taco franchisee, for which the Partnership is the lessor, had unaudited sales of $950,130 as compared with $916,950 during the same period in 2010.

NOTE 4 – TRANSACTIONS WITH DEL TACO The receivable from Del Taco consists primarily of rent accrued for the month of September 2011. The September rent was collected in October 2011. Del Taco serves in the capacity of general partner in other partnerships which are engaged in the business of operating restaurants, and three other partnerships which were formed for the purpose of acquiring real property in California for construction of Mexican-American restaurants for lease under long-term agreements to Del Taco for operation under the Del Taco trade name. In addition, see Note 5 with respect to certain distributions to the General Partner.

NOTE 5 – DISTRIBUTIONS Total cash distributions declared and paid in January, April and August 2011 were $89,888, $76,696 and $80,815, respectively. On October 25, 2011, a distribution to the limited partners of $93,206, or approximately $0.56 per limited partnership unit, was declared. Such distribution was paid November 3, 2011. The General Partner also received a distribution of $941 with respect to its 1% partnership interest.

NOTE 6 – PAYABLE TO LIMITED PARTNERS Payable to limited partners represents a reclassification from cash for distribution checks made to limited partners that have remained outstanding for six months or longer.

NOTE 7 – CONCENTRATION OF RISK The three restaurants leased to Del Taco make up all of the income producing assets of the Partnership and contributed all of the Partnership’s rental revenues during the three and nine months ended September 30, 2011 and 2010. Therefore, the business of the Partnership is entirely dependent on the success of the Del Taco trade name restaurants that lease the properties. The Partnership maintains substantially all of its cash and cash equivalents at one major commercial bank. At September 30, 2011 and December 31, 2010, the Partnership had approximately $123,000 and $113,000, respectively, on deposit at one financial institution.

NOTE 8 – COMMUNICATION FROM CERTAIN LIMITED PARTNERS During the third quarter several limited partners communicated to the General Partner their desire to sell all of the properties and then dissolve the Partnership. Pursuant to the Partnership agreement, any decision to sell all of the properties and to dissolve the Partnership would require approval from a majority in interest of limited partners. The General Partner will consider what action is appropriate under the circumstances.