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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q

|      |                                                   |                                
|----- | ------------------------------------------------- | -------------------------------
|[ X ] | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
|      |                                                   | SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended               June 30, 2003

OR

|       |                                                    |                                
|------ | -------------------------------------------------- | -------------------------------
|[    ] | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
|       |                                                    | SECURITIES EXCHANGE ACT OF 1934

For the transition period from  to

Commission file number: 333-9371

CAPTEC FRANCHISE CAPITAL PARTNERS L.P. IV
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)

38-3304096
(IRS Employer Identification Number)

24 Frank Lloyd Wright Drive, Lobby L, 4th FloorP.O. Box 544, Ann Arbor, Michigan 48106-0544
(Address of principal executive offices, including zip code)

(734) 994-5505
(Issuers telephone number)

Not Applicable
(Former name, former address and former fiscal year, if changed since last year)

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 such shorter period that the registrant
was required to file such reports), and (2) has been subject to filing
requirements for the past 90 days. Yes  X No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court: Not applicable

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuers classes of common equity, as of the latest
practicable date: Not applicable





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TABLE OF CONTENTS



|                                                                                              |                                                                                    |  |  |  |  |  |  | 
|--------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|PART I FINANCIAL INFORMATION                                                                 
|Item 1. Financial Statements                                                                 
|                                                                                              | Balance Sheets, June 30, 2003 and December 31, 2002                               
|                                                                                              | Statements of Operations for the three and six months ended June 30, 2003 and 2002
|                                                                                              | Statement of Changes in Partners Capital for the six months ended June 30, 2003  
|                                                                                              | Statement of Cash Flows for the six months ended June 30, 2003 and 2002           
|                                                                                              | Notes to Financial Statements                                                     
|Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|Item 3. Quantitative and Qualitative Disclosures about Market Risk                           
|Item 4. Controls and Procedures                                                              
|PART II OTHER INFORMATION                                                                    
|                                                                                              | Other Information                                                                 
|SIGNATURES                                                                                   
|EX-31 Certifcation Pursuant to Section 302                                                   
|EX-32 Certification Pursuant to Section 906                                                  



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CAPTEC FRANCHISE CAPITAL PARTNERS L.P. IV

Index to Form 10-Q

|           |  |                                                              |         | 
|---------- |  | ------------------------------------------------------------ | ------- | 
|Item No.   |  |                                                              | Page    | 
|           |  |                                                              |         | 
|PART I     |  | FINANCIAL INFORMATION                                        |         | 
|           |  |                                                              |         | 
|Item 1.    |  | Financial Statements:                                        |         | 
|           |  |                                                              |         | 
|           |  | Balance Sheets, June 30, 2003 and December 31, 2002          | 3       | 
|           |  |                                                              |         | 
|           |  | Statements of Operations for the three and six months        |         | 
|           |  | ended June 30, 2003 and 2002                                 | 4       | 
|           |  |                                                              |         | 
|           |  | Statement of Changes in Partners Capital for the six months |         | 
|           |  | ended June 30, 2003                                          | 5       | 
|           |  |                                                              |         | 
|           |  | Statement of Cash Flows for the six months                   |         | 
|           |  | ended June 30, 2003 and 2002                                 | 6       | 
|           |  |                                                              |         | 
|           |  | Notes to Financial Statements                                | 7 - 9   | 
|           |  |                                                              |         | 
|Item 2.    |  | Managements Discussion and Analysis of Financial Condition  |         | 
|           |  | and Results of Operations                                    | 9 - 11  | 
|           |  |                                                              |         | 
|Item 3.    |  | Quantitative and Qualitative Disclosures about Market Risk   | 11      | 
|           |  |                                                              |         | 
|Item 4.    |  | Controls and Procedures                                      | 12      | 
|           |  |                                                              |         | 
|PART II    |  | OTHER INFORMATION                                            |         | 
|           |  | Other Information                                            | 12 - 13 | 
|SIGNATURES |  | 14                                                           |        

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CAPTEC FRANCHISE CAPITAL PARTNERS L.P. IV
PART I  FINANCIAL INFORMATION




ITEM 1. FINANCIAL STATEMENTS




Captec Franchise Capital Partners L.P. IV
Balance Sheets

|                                   |                                       |                                         |                                   |            |            |   |            |              |            |  | 
|---------------------------------- | ------------------------------------- | --------------------------------------- | --------------------------------- | ---------- | ---------- | - | ---------- | ------------ | ---------- |  | 
|                                   |                                       |                                         |                                   |            | June 30,   |   |            | December 31, |           
|Assets                             |                                       | 2003                                    |                                   |            | 2002       |  
|                                   |                                       |                                         |                                   |            |            |   |            |              |           
|                                   |                                       | (Unaudited)                             |                                   |            |            |  
|Cash and cash equivalents          |                                       | $                                       | 727,970                           |            |            | $ | 1,132,891  |             
|Restricted cash                    |                                       |                                         | 233,505                           |            |            |   | 234,178    |             
|Investment in leases:              |                                       |                                         |                                   |            |            |   |            |             
|                                   | Operating leases, net                 |                                         |                                   | 29,815,131 |            |   |            | 28,910,393   |           
|                                   | Financing leases, net                 |                                         |                                   | 2,049,936  |            |   |            | 2,591,336    |           
|                                   | Impaired financing leases, net        |                                         |                                   | 15,000     |            |   |            | 15,000       |           
|Accounts receivable                |                                       |                                         | 230,716                           |            |            |   | 90,785     |             
|Unbilled rent, net                 |                                       |                                         | 1,337,392                         |            |            |   | 1,261,886  |             
|Deferred financing costs, net      |                                       |                                         | 347,471                           |            |            |   | 375,711    |             
|                                   |                                       |                                         |                                   |            |            |  
|                                   |                                       | Total assets                            |                                   | $          | 34,757,121 |   |            | $            | 34,612,180 | 
|                                   |                                       |                                         |                                   |            |            |  
|                                   |                                       |                                         | Liabilities and Partners Capital |            |            |   |            |              |            |  | 
|Liabilities:                       |                                       |                                         |                                   |            |            |   |            |             
|                                   | Notes payable                         |                                         | $                                 | 15,133,541 |            |   | $          | 14,374,899   |           
|                                   | Accounts payable and accrued expenses |                                         |                                   | 218,840    |            |   |            | 157,241      |           
|                                   | Due to related parties                |                                         |                                   | 29,431     |            |   |            | 19,938       |           
|                                   |                                       |                                         |                                   |            |            |  
|                                   |                                       | Total liabilities                       |                                   |            | 15,381,812 |   |            |              | 14,552,078 | 
|                                   |                                       |                                         |                                   |            |            |  
|Partners capital:                 |                                       |                                         |                                   |            |            |   |            |             
|Limited partners capital accounts |                                       |                                         | 19,398,104                        |            |            |   | 20,091,845 |             
|General partners capital account  |                                       |                                         | (22,795                           | )          |            |   | (31,743    | )           
|                                   |                                       |                                         |                                   |            |            |  
|                                   |                                       | Total partners capital                 |                                   |            | 19,375,309 |   |            |              | 20,060,102 | 
|                                   |                                       |                                         |                                   |            |            |  
|                                   |                                       | Total liabilities and partners capital |                                   | $          | 34,757,121 |   |            | $            | 34,612,180 | 
|                                   |                                       |                                         |                                   |            |            |  

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Captec Franchise Capital Partners L.P. IV
Statements of Operations
(Unaudited)

|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |           |           |   |         |           |           | 
|---------------------------------------------- | -------------------------- | ---------------------------------- | ------- | ------------------ | ------- | - | ---------------- | ------- | ------- | ---- | ------- | --------- | --------- | - | ------- | --------- | --------- | 
|                                               |                            |                                    |         | Three months ended |         |   | Six months ended |        
|                                               |                            |                                    |         | June 30,           |         |   | June 30,         |        
|                                               |                            |                                    |         |                    |         |   |                  |        
|                                               |                            |                                    |         | 2003               |         |   | 2002             |         |         | 2003 |         |           | 2002      |  
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |           |           |  
|Operating revenue:                             |                            |                                    |         |                    |         |   |                  |         |         |      |         |           |           |   |         |          
|                                               | Rental income              |                                    | $       | 874,554            |         |   | $                | 840,954 |         |      | $       | 1,715,508 |           |   | $       | 1,681,908 |          
|                                               | Finance income             |                                    |         | 52,180             |         |   |                  | 78,448  |         |      |         | 110,463   |           |   |         | 172,385   |          
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          
|                                               |                            | Total operating revenue            |         |                    | 926,734 |   |                  |         | 919,402 |      |         |           | 1,825,971 |   |         |           | 1,854,293 | 
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          
|Operating costs and expenses:                  |                            |                                    |         |                    |         |   |                  |         |         |      |         |           |           |   |         |          
|                                               | Interest expense           |                                    |         | 323,371            |         |   |                  | 316,428 |         |      |         | 635,133   |           |   |         | 638,657   |          
|                                               | Depreciation               |                                    |         | 128,019            |         |   |                  | 122,243 |         |      |         | 250,262   |           |   |         | 245,490   |          
|                                               | General and administrative |                                    |         | 32,421             |         |   |                  | 58,560  |         |      |         | 66,232    |           |   |         | 86,191    |          
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          
|                                               |                            | Total operating costs and expenses |         |                    | 483,811 |   |                  |         | 497,231 |      |         |           | 951,627   |   |         |           | 970,338   | 
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          
|                                               |                            | Income from operations             |         |                    | 442,923 |   |                  |         | 422,171 |      |         |           | 874,344   |   |         |           | 883,955   | 
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          
|Other income                                   |                            |                                    |         |                    |         |   |                  |         |         |      |         |           |           |   |         |          
|                                               | Interest and other income  |                                    |         | 275                |         |   |                  | 990     |         |      |         | 302       |           |   |         | 990       |          
|                                               | Gain on sale of equipment  |                                    |         | 20,083             |         |   |                  |        |         |      |         | 20,116    |           |   |         |          |          
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          
|                                               |                            | Total other income                 |         |                    | 20,358  |   |                  |         | 990     |      |         |           | 20,418    |   |         |           | 990       | 
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          
|Net income                                     |                            |                                    | 463,281 |                    |         |   | 423,161          |         |         |      | 894,762 |           |           |   | 884,945 |          
|Net income allocable to general partner        |                            |                                    | 4,633   |                    |         |   | 4,232            |         |         |      | 8,948   |           |           |   | 8,849   |          
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          
|Net income allocable to limited partners       |                            | $                                  | 458,648 |                    |         | $ | 418,929          |         |         | $    | 885,814 |           |           | $ | 876,096 |          
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          
|Net income per limited partnership unit        |                            | $                                  | 15.69   |                    |         | $ | 14.26            |         |         | $    | 30.25   |           |           | $ | 29.82   |          
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          
|Weighted average number of limited partnership |                            |                                    |         |                    |         |   |                  |         |         |      |         |           |           |   |         |          
|                                               | units outstanding          |                                    |         | 29,232             |         |   |                  | 29,371  |         |      |         | 29,286    |           |   |         | 29,381    |          
|                                               |                            |                                    |         |                    |         |   |                  |         |         |      |         |          

The accompanying notes are an integral part of the financial statements.

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Captec Franchise Capital Partners L.P. IV
Statement of Changes in Partners Capital
for the six months ended June 30, 2003
(Unaudited)

|                                                      |  |           |        |   |           |   |            |           |  |   |           |   |  |   |            |  
|----------------------------------------------------- |  | --------- | ------ | - | --------- | - | ---------- | --------- |  | - | --------- | - |  | - | ---------- | -
|                                                      |  | Limited   |        |   | Limited   |   |            | General   |  |   | Total     |  
|                                                      |  | Partners' |        |   | Partners' |   |            | Partner's |  |   | Partners' |  
|                                                      |  | Units     |        |   | Accounts  |   |            | Account   |  |   | Capital   |  
|                                                      |  |           |        |   |           |   |            |           |  |   |           |  
|Balance, December 31, 2002                            |  |           | 29,341 |   |           | $ | 20,091,845 |           |  | $ | (31,743   | ) |  | $ | 20,060,102 |  
|Distributions  ($51.22 per limited partnership unit) |  |           |       |   |           |   | (1,500,000 | )         |  |   |          |   |  |   | (1,500,000 | )
|Repurchase of limited partnership units               |  |           | (109   | ) |           |   | (79,555    | )         |  |   |          |   |  |   | (79,555    | )
|Net income                                            |  |           |       |   |           |   | 885,814    |           |  |   | 8,948     |   |  |   | 894,762    |  
|                                                      |  |           |        |   |           |   |            |           |  |   |           |  
|Balance, June 30, 2003                                |  |           | 29,232 |   |           | $ | 19,398,104 |           |  | $ | (22,795   | ) |  | $ | 19,375,309 |  
|                                                      |  |           |        |   |           |   |            |           |  |   |           |  

The accompanying notes are an integral part of the financial statements.

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Captec Franchise Capital Partners L.P. IV
Statement of Cash Flows
for the six months ended June 30, 2003 and 2002
(Unaudited)

|                                                    |                                                 |                                                              |           |            |          |   |            |            |          |  
|--------------------------------------------------- | ----------------------------------------------- | ------------------------------------------------------------ | --------- | ---------- | -------- | - | ---------- | ---------- | -------- | -
|                                                    |                                                 |                                                              |           | 2003       |          |   | 2002       |           
|                                                    |                                                 |                                                              |           |            |          |   |            |           
|Cash flows from operating activities:               |                                                 |                                                              |           |            |          |   |            |           
|                                                    | Net Income                                      |                                                              | $         | 894,762    |          |   | $          | 884,945    |         
|                                                    | Adjustments to net income:                      |                                                              |           |            |          |   |            |            |         
|                                                    |                                                 | Depreciation                                                 |           |            | 250,262  |   |            |            | 245,490  |  
|                                                    |                                                 | Amortization of debt issuance costs                          |           |            | 40,516   |   |            |            | 39,903   |  
|                                                    |                                                 | Gain on sale of equipment                                    |           |            | (20,116  | ) |            |            |         |  
|                                                    |                                                 | Increase in unbilled rent                                    |           |            | (75,506  | ) |            |            | (116,186 | )
|                                                    |                                                 | Increase in accounts receivable                              |           |            | (139,931 | ) |            |            | (6,195   | )
|                                                    |                                                 | Increase (decrease) in accounts payable and accrued expenses |           |            | 61,598   |   |            |            | (30,585  | )
|                                                    |                                                 | Decrease (increase) in restricted cash                       |           |            | 673      |   |            |            | (60,272  | )
|                                                    |                                                 | Decrease in due from related parties                         |           |            |         |   |            |            | 3,630    |  
|                                                    |                                                 | Increase (decrease) in due to related parties                |           |            | 9,493    |   |            |            | (68,071  | )
|                                                    |                                                 |                                                              |           |            |          |  
|Net cash provided by operating activities           |                                                 |                                                              | 1,021,751 |            |          |   | 892,659    |           
|                                                    |                                                 |                                                              |           |            |          |  
|Cash flows from investing activities:               |                                                 |                                                              |           |            |          |   |            |           
|                                                    | Purchase of property subject to operating lease |                                                              |           | (1,155,000 | )        |   |            |           |         
|                                                    | Proceeds from sale of equipment                 |                                                              |           | 88,368     |          |   |            | 21,211     |         
|                                                    | Principal payments on financing leases          |                                                              |           | 473,149    |          |   |            | 628,943    |         
|                                                    |                                                 |                                                              |           |            |          |  
|Net cash (used in) provided by investing activities |                                                 |                                                              | (593,483  | )          |          |   | 650,154    |           
|                                                    |                                                 |                                                              |           |            |          |  
|Cash flows from financing activities:               |                                                 |                                                              |           |            |          |   |            |           
|                                                    | Proceeds from issuance of notes payable         |                                                              |           | 920,000    |          |   |            |           |         
|                                                    | Debt issuance costs                             |                                                              |           | (12,276    | )        |   |            |           |         
|                                                    | Repayments of notes payable                     |                                                              |           | (161,358   | )        |   |            | (169,022   | )       
|                                                    | Repurchase of limited partnership units         |                                                              |           | (79,555    | )        |   |            | (15,829    | )       
|                                                    | Distributions to limited partners               |                                                              |           | (1,500,000 | )        |   |            | (1,550,004 | )       
|                                                    | Distributions to general partner                |                                                              |           |           |          |   |            |           |         
|                                                    |                                                 |                                                              |           |            |          |  
|Net cash used in financing activities               |                                                 |                                                              | (833,189  | )          |          |   | (1,734,855 | )         
|                                                    |                                                 |                                                              |           |            |          |  
|Net decrease in cash and cash equivalents           |                                                 |                                                              | (404,921  | )          |          |   | (192,042   | )         
|Cash and cash equivalents, beginning of period      |                                                 |                                                              | 1,132,891 |            |          |   | 1,257,402  |           
|                                                    |                                                 |                                                              |           |            |          |  
|Cash and cash equivalents, end of period            |                                                 | $                                                            | 727,970   |            |          | $ | 1,065,360  |           
|                                                    |                                                 |                                                              |           |            |          |  

The accompanying notes are an integral part of the financial statements.

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CAPTEC FRANCHISE CAPITAL PARTNERS L.P. IV
NOTES TO FINANCIAL STATEMENTS

1.  THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING PRINCIPLES:

Captec Franchise Capital Partners L.P. IV (the Partnership), a Delaware
limited partnership, was organized on July 23, 1996 for the purpose of
acquiring income-producing commercial real properties and equipment leased on a
triple net or double net basis, primarily to operators of national and
regional chain franchised fast food and family style restaurants, as well as
other national and regional retail chains.

The initial general partners of the Partnership were Captec Franchise Capital
Corporation IV (the Corporation), a wholly-owned subsidiary of Captec
Financial Group, Inc. (Captec), an affiliate, and Patrick L. Beach, the
Chairman of the Board of Directors, President and Chief Executive Officer of
the Corporation and Captec. In August 1998, Captec Net Lease Realty, Inc.
(Captec Net Lease), an affiliate, acquired the General Partnership interest
of the Partnership. In December 2001, Captec Net Lease merged with and into
Commercial Net Lease Realty, Inc. (Commercial Net Lease). In connection with
the merger, Commercial Net Lease agreed to sell and assign its General
Partnership interest in the Partnership to GP4 Asset Acquisition, LLC (GP4
Asset Acquisition), which is wholly-owned by Mr. Beach and is an affiliate of
Captec. The limited partners have consented to the transfer of the General
Partnership interest. In accordance with the terms of an agreement with
Commercial Net Lease, immediately upon the closing of the merger and until such
time as the consent of the Partnerships secured lender is obtained, GP4 Asset
Acquisition has assumed all of the General Partners obligations and
liabilities under the terms of the Partnership Agreement.

The Partnership commenced a public offering (the Offering) of up to 30,000
limited partnership units (the Units), priced at $1,000 per Unit, registered
under the Securities Act of 1933, as amended, by means of a Registration
Statement filed on Form S-11 which was declared effective by the Securities and
Exchange Commission on December 23, 1996. The Partnership accepted
subscriptions for the minimum number of Units on March 5, 1997 and immediately
commenced operations. The Offering reached final funding in December 1998
having received subscriptions for the entire 30,000 Units. Since 1999, 768
Units have been repurchased by the Partnership pursuant to the terms of the
Repurchase Plan set forth in the Partnerships December 23, 1996 prospectus
with respect to the Offering. At June 30, 2003, the Partnership had 29,232
Units issued and outstanding.

The principal investment objectives of the Partnership are: (i) preservation
and protection of capital; (ii) distribution of cash flow generated by the
Partnerships leases; (iii) capital appreciation of Partnership properties;
(iv) generation of increased income and protection against inflation through
escalation of base rents or participation in gross revenues of tenants of
Partnership properties; and (v) deferred taxation of cash distributions to the
limited partners.

Allocation of profits, losses and cash distributions from operations and cash
distributions from sale or refinancing are made pursuant to the terms of the
Partnership Agreement. Profits and losses from operations are allocated among
the limited partners based upon the number of Units owned.

Net income per limited partnership interest is calculated using the weighted
average number of limited partnership Units outstanding during the period and
the limited partners allocable share of the net income.

Distributions per limited partnership Unit is calculated using the actual
distributions disbursed during the period to the weighted average number of
limited partnership Units during the period. Actual individual limited partner
distributions realized may vary from this calculation as a result of a variety
of factors including: (i) actual distributions are computed based on quarterly
operating results and outstanding limited partnership Units, which are
disbursed in the subsequent quarter; (ii) certain limited partners have elected
to receive monthly distribution versus quarterly distributions which creates
timing differences between comparative calculations, and (iii) the calculation
ignores the timing of repurchases.

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The balance sheet of the Partnership as of June 30, 2003, the statements of
operations and cash flows for the periods ending June 30, 2003 and June 30,
2002 and the statements of changes in partners capital for the period ending
June 30, 2003 have not been audited. In the opinion of Management, these
unaudited financial statements contain all adjustments necessary to present
fairly the financial position and results of operations and cash flows of the
Partnership for the periods then ended. Results of operations for the interim
periods are not necessarily indicative of results for the full year. These
unaudited financial statements should be read in conjunction with the financial
statements and notes thereto included in the Partnerships annual report on
Form 10-K for the year ended December 31, 2002 filed with the United States
Securities and Exchange Commission on March 31, 2003.

2.   LAND AND BUILDING SUBJECT TO OPERATING LEASES:

The net investment in operating leases as of June 30, 2003 and December 31,
2002 is composed of the following:

|                              |  |           |            |   |               |   |            |  
|----------------------------- |  | --------- | ---------- | - | ------------- | - | ---------- | -
|                              |  | June 2003 |            |   | December 2002 |  
|                              |  |           |            |   |               |  
|Land                          |  | $         | 11,428,200 |   |               | $ | 11,197,200 |  
|Building and improvements     |  |           | 20,473,580 |   |               |   | 19,549,580 |  
|                              |  |           |            |   |               |  
|                              |  |           | 31,901,780 |   |               |   | 30,746,780 |  
|Less accumulated depreciation |  |           | (2,086,649 | ) |               |   | (1,836,387 | )
|                              |  |           |            |   |               |  
|Total                         |  | $         | 29,815,131 |   |               | $ | 28,910,393 |  
|                              |  |           |            |   |               |  

3.   NET INVESTMENT IN FINANCING LEASES:

The net investment in financing leases as of June 30, 2003 and December 31,
2002 is composed of the following:

|                                      |  |           |            |   |               |   |            |  
|------------------------------------- |  | --------- | ---------- | - | ------------- | - | ---------- | -
|                                      |  | June 2003 |            |   | December 2002 |  
|                                      |  |           |            |   |               |  
|Minimum lease payments to be received |  | $         | 2,983,457  |   |               | $ | 3,567,069  |  
|Estimated residual value              |  |           | 115,201    |   |               |   | 183,485    |  
|                                      |  |           |            |   |               |  
|Gross investment in financing leases  |  |           | 3,098,658  |   |               |   | 3,750,554  |  
|Less unearned income                  |  |           | (1,042,830 | ) |               |   | (1,147,432 | )
|Less direct origination costs         |  |           | (5,892     | ) |               |   | (11,786    | )
|                                      |  |           |            |   |               |  
|Net investment in financing leases    |  | $         | 2,049,936  |   |               | $ | 2,591,336  |  
|                                      |  |           |            |   |               |  

4.   NOTES PAYABLE:

In December 1998, the Partnership entered into a $6.4 million term note. The
note has a ten-year term, is collateralized by certain properties subject to
operating leases, and bears interest at a rate of 8.13% per annum.

In March 1999, the Partnership entered into an additional $3.3 million term
note. The note has a ten-year term, is collateralized by certain properties
subject to operating leases, and bears interest at a rate of 8.5% per annum.

In October 2000, the Partnership assumed a $3.75 million term note in
connection with the acquisition of a property. The note has a ten-year term and
bears interest at a rate of 8.35% per annum.

In November 2001, the Partnership entered into an additional $1.5 million term
note. The note has a two-year term, is collateralized by certain properties
subject to operating leases, and bears interest at a rate of prime plus 2% per
annum. The General Partner intends to refinance the loan upon maturity.

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In April 2003, the Partnership entered into two term notes for $862,500 and
$57,500 in connection with the acquisition of a property from an affiliate. The
notes each have a five-year term and bear interest at a rate of 6.25% and 4.75
per annum, respectively.

Aggregate debt issuance costs of $634,710 were incurred in connection with the
issuance of the notes, and are being amortized to interest expense over the
term of the notes using the straight-line method.




ITEM 2.          MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
                         CONDITION
AND RESULTS OF OPERATIONS

When used in this discussion, words such as intends, anticipates,
expects, will, could, estimate, and similar expressions are intended to
identify forward-looking statements. Such statements are subject to certain
risks and uncertainties, which could cause actual results to differ materially
from those described herein. Such risks and uncertainties, some of which are
beyond the Partnerships control, include, but are not limited to, the
following: (i) the possibility that tenants and lessees may default in making
rent payments, (ii) the risk of fire or other casualty interrupting cash flow
from a property, (iii) the inability to enter into leases at the assumed rental
rates, (iv) unexpected expenses, and (v) the inability to sell properties at
anticipated prices and/or times.

As a result of these and other factors, the Partnership may experience material
fluctuations in future operating results on a quarterly or annual basis, which
could materially and adversely affect its business, financial condition and
operating results. Any statements contained in this report or any documents
incorporated herein by reference that are not statements of historical fact may
be deemed to be forward-looking statements. These statements by their nature
involve substantial risks and uncertainties, some of which are beyond the
Partnerships control, and actual results may differ materially depending on a
variety of important factors, many of which are also beyond the Partnerships
control. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this report. The Partnership
disclaims, except as may be required by law, any obligations to update or
release revisions to these forward-looking statements to reflect events or
circumstances after the date of this report or to reflect the occurrence of
unanticipated events.

RESULTS OF OPERATIONS

Three Months Ended June 30, 2003.During the three months ended June 30,
2003, total operating revenue increased 0.8% to approximately $927,000, as
compared to approximately $919,000 for the three months ended June 30, 2002.
In comparison to the same quarter in 2002, income for the three months ended
June 30, 2003 included an increase in rental income of approximately $34,000
due to the acquisition of a Taco Bell property in April 2003, partially offset
by a decrease in earned income from financing leases of approximately $26,000
due to the amortization of principal balances, and the termination of two
equipment leases, and the disposition of an equipment lease in April 2003.

Operating expenses decreased 2.7% to approximately $484,000 for the three
months ended June 30, 2003, as compared to approximately $497,000 for the three
months ended June 30, 2002. The decrease in operating expenses is primarily due
to a decrease in general and administrative expenses as a result of reduced
professional fees, partially offset by an increase in depreciation expense due
to the acquisition of the Taco Bell property in April 2003 and an increase in
interest expense due to the issuance of additional debt in connection with the
purchase of that property.

Other income for the three months ended June 30, 2003 was approximately 20,000
due to the disposition of an equipment lease in April 2003 for net cash
proceeds of approximately $88,000, resulting in a gain of approximately
$20,000.

As a result of the foregoing, the Partnerships net income increased 9.5% to
$463,000 for the three months ended June 30, 2003, as compared to $423,000 for
the three months ended June 30, 2002.

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The Partnership announced second quarter distributions of $660,000, of which
$574,654 was distributed to its limited partners on July 15, 2003 and the
remaining $85,346 of which will be distributed to limited partners who have
elected to receive distributions on a monthly basis.

Six Months Ended June 30, 2003.During the six months ended June 30, 2003,
total operating revenue decreased 1.5% to approximately $1,826,000, as compared
to approximately $1,854,000 for the six months ended June 30, 2002. Rental
revenue from operating leases for the six months ended June 30, 2003 increased
2.0% to approximately $1,716,000 as compared to approximately $1,682,000 for
the six months ended June 30, 2002, due to the purchase of the Taco Bell
property in April 2003. Earned income from financing leases for the six months
ended June 30, 2003 decreased 35.9% to approximately $110,000, as compared to
approximately $172,000 for the six months ended June 30, 2002 due to the
amortization of principal balances, and the termination of two equipment
leases, and the disposition of an equipment lease in April 2003.

Operating expenses decreased 1.9% to approximately $952,000 for the six months
ended June 30, 2003 as compared to approximately $970,000 for six months ended
June 30, 2002. The decrease in operating expenses is primarily due to a
decrease in general and administrative expenses as a result of reduced
professional fees.

Other income for the six months ended June 30, 2003 was approximately $20,000
due to the disposition of an equipment lease in April 2003 for net cash
proceeds of approximately $88,000, resulting in a gain of approximately
$20,000.

As a result of the foregoing, the Partnerships net income increased 1.1% to
approximately $895,000 for the six months ended June 30, 2003 as compared to
approximately $885,000 for the six months ended June 30, 2002.

LIQUIDITY AND CAPITAL COMMITMENTS

In December 1996, the Partnership commenced its Offering of up to 30,000 Units.
The Offering reached final funding in December 1998 with subscriptions for the
entire 30,000 Units. Net proceeds after Offering expenses were approximately
$26.1 million.

In December 1998, the Partnership entered into a $6.4 million term note. The
Partnership entered into an additional $3.3 million term note in March 1999.
Proceeds from the notes were used to acquire additional properties. The notes
have a ten-year term, are collateralized by certain properties subject to
operating leases, and bear interest at a rate of 8.13% and 8.5% per annum,
respectively.

The Partnership purchased one net leased real estate property in October 2000
and assumed a $3.75 million term note in connection with the acquisition. The
note has a ten-year term and bears interest at a rate of 8.35% per annum.

In November 2001, the Partnership entered into an additional $1.5 million term
note. The note has a two-year term, is collateralized by certain properties
subject to operating leases and bears interest at a rate of prime plus 2% per
annum. Proceeds from this note were used to repay approximately $700,000 of
short-term borrowings and to provide working capital intended to be used to
fund Unit repurchases and potential property acquisitions. The General Partner
intends to refinance the loan upon maturity.

In April 2003, the Partnership entered into two term notes for $862,500 and
$57,500. The notes each have a five-year term and bear interest at a rate of
6.25% and 4.75% per annum, respectively. Proceeds from these notes were used to
purchase a property for approximately $1.2 million from an affiliate.

Debt issuance costs of approximately $635,000 incurred in connection with the
issuance of the notes are being amortized into interest expense over the life
of the notes using the straight-line method.

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In April 2003 the Partnership acquired a property located in Harrison,
Ohio subject to an existing lease with a Taco Bell franchisee. The property
was purchased from an affiliate for a price of $1,150,000, which the
Partnership funded with $230,000 of cash and $920,000 of proceeds from two term
notes issued in connection with the purchase. The lease is an absolute net
lease that expires in September 2019. Under the terms of the lease, annual
rent is presently $115,000 and will increase 10.4% in September 2004 and every
five years thereafter.

As of June 30, 2003, the Partnership had a portfolio of 22 properties located
in 11 states, with a cost basis of $33.0 million, 14 performing equipment
leases, with an original investment of $4.7 million, and one repossessed
equipment package related to a defaulted equipment contract. The remaining net
investment in the Partnerships leased equipment is $799,000, net of $3.8
million of aggregate principal collections on financing leases during the life
of those investments. Inclusive of the above amount, the Partnership has
received approximately $6.5 million of aggregate principal collections on its
financing leases during the life of those investments. As of June 30, 2003,
the Partnership occupying those properties has two properties for which rental
payments have been delinquent for approximately 240 days. The tenant
experienced financial difficulties that resulted in the stores recent closure.
The Partnership is actively seeking to re-tenant the property as well as
pursuing rights and remedies under the leases to collect all the amounts owed.
The General Partner does not have sufficient evidence at this time to believe
impairment exists.

The Partnership semi-annually considers written requests to repurchase Units
pursuant to the terms of the Repurchase Plan set forth in the Partnerships
December 23, 1996 prospectus with respect to the Offering. Since
1999, 768 Units
have been repurchased by the Partnership. At June 30, 2003, the Partnership had
29,232 Units issued and outstanding. The Partnership expects to fund any future
Unit repurchases out of working capital reserves and Net Sale or Refinancing
Proceeds, but may also fund such repurchases out of Cash Flow. The Partnership
is not obligated to accept Unit repurchase requests if the Partnership does not
have the liquidity to fund such requests and/or if the Partnership does not
have sufficient Cash Flow to distribute the 10% Current Preferred Return.

The Partnership expects that only limited amounts of liquid assets will be
required for existing properties since its property and equipment leases
require tenants and lessees to pay all taxes and assessments, maintenance and
repairs and insurance premiums, including casualty insurance, thereby
minimizing the Partnerships operating expenses and capital requirements. The
General Partner expects that the cash flow to be generated by the Partnerships
properties and equipment will provide adequate liquidity and capital resources
to pay operating expenses and provide distributions to Limited Partners.




ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Credit risk relates to investment in leases and accounts receivable balances
and results from the possibility that a lessee will default on its contractual
obligation to the Partnership. Both the ability of the lessees to pay rent on
a timely basis and the amount of the rent (which is the Partnerships principal
source of income) are affected by general economic conditions. A default by a
lessee or other premature termination of a lease agreement will interrupt
rental payments and Partnership cash flows would be temporarily impacted. In
such an instance, the General Partner expects that it would find a substitute
lessee. However, there can be no assurances that the property or equipment
could be leased on comparable or acceptable terms. The Partnership monitors
this risk by performing ongoing credit evaluations of lessees and maintains
allowances for potential credit losses.

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ITEM 4.   CONTROLS AND PROCEDURES

Mr. Beach, acting in his capacity as the principal executive officer of GP4
Asset Acquisition, is ultimately responsible for the disclosure controls and
procedures of the Partnership. Disclosure controls and procedures are
established and maintained by the Partnership to ensure the information
required to be disclosed by the Partnership in the reports that it files or
submits pursuant to the Securities Exchange Act of 1934, as amended (the
Act), is recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the United States Securities and Exchange
Commission. Mr. Beach has evaluated the effectiveness of the Partnerships
disclosure controls and procedures as of the end of the period covered by this
report, and has determined that the Partnerships disclosure controls and
procedures effectively communicate the information required to be disclosed by
the Partnership in the report it files or submits under the Act in a manner
that allows timely decisions regarding such disclosure.

There have been no significant changes in the Partnerships internal controls
or in other factors that could significantly affect these controls subsequent
to the evaluation date, including, but not limited to, any corrective actions
with regard to significant deficiencies and material weaknesses.







PART II  OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS.On November 19, 2002, the Partnership was named as
one of the defendants in a personal injury and liability suit relating to an
allegedly unsafe walkway at a property. The General Partner and Partnership
have denied any wrongdoing and intend to vigorously contest the matter. The
Partnership has insurance, which would cover any amounts, less retention, that
may ultimately be paid.



|ITEM 2. |  | CHANGES IN SECURITIES.  None.                                
|------- |  | -------------------------------------------------------------
|       
|ITEM 3. |  | DEFAULTS UPON SENIOR SECURITIES.    None.                    
|       
|ITEM 4. |  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.    None.
|       
|ITEM 5. |  | OTHER INFORMATION.    None                                   
|       
|ITEM 6. |  | EXHIBITS AND REPORTS ON FORM 8-K.                            



| |                                                                             
| | ----------------------------------------------------------------------------
| | (a) The following exhibits are included herein or incorporated by
reference:

| |        |  |  |  |                                                                                                                                                                                                                         | 
| | ------ |  |  |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
| | Number |  |  |  | Exhibit                                                                                                                                                                                                                 | 
| | 4      |  |  |  | Amended Agreement of Limited Partnership of Registrant.
(Incorporated by reference to the corresponding exhibit in the
Registrants Form 10-K for the year ended December 31, 1998)                                     | 
| |        |  |  |  |                                                                                                                                                                                                                         | 
| | 10.1   |  |  |  | Promissory Note dated November 28, 1998 between Registrant
and National Realty Funding L.C. (Incorporated by reference to the
corresponding exhibit in the Registrants Form 10-K for the year
ended December 31, 1998) | 
| |        |  |  |  |                                                                                                                                                                                                                         | 
| | 10.2   |  |  |  | Promissory Note dated March 31, 1999 between Registrant and
National Realty Funding L.C. (Incorporated by reference to the
corresponding exhibit in the Registrants Form 10-Q for the quarter
ended March 31, 1999)    | 

12



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| |    |  |  |  |                                                                                                                        | 
| | -- |  |  |  | ---------------------------------------------------------------------------------------------------------------------- | 
| | 31 |  |  |  | Certification Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002                                                | 
| |    |  |  |  |                                                                                                                        | 
| | 32 |  |  |  | Certification Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 



| |                         
| | ------------------------
| | (b) Reports on Form 8-K:



| |                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | During the six months ended June 30, 2003, the Partnership filed a
Current Report on Form 8-K dated April 30, 2003 reporting the Partnership
2002 operating results.

13



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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.

| |  |       |  |                                          
| |  | ----- |  | -----------------------------------------
| |  | By:   |  | Captec Franchise Capital Partners L.P. IV
| |  |       |  | GP4 Asset Acquisition, LLC               
| |  |       |  | Its Manager                              
| |  |       |  |                                          
| |  | By:   |  | /s/ Patrick L. Beach                     
| |  |       |  | Patrick L. Beach                         
| |  |       |  | President                                
| |  |       |  |                                          
| |  | Date: |  | August 14, 2003                          

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EXHIBIT INDEX

| |  |  |        |  |  |                                                                                                                                                                                                                        
| |  |  | ------ |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | Number |  |  | Exhibit                                                                                                                                                                                                                
| |  |  | 4      |  |  | Amended Agreement of Limited Partnership of Registrant.
(Incorporated by reference to the corresponding exhibit in the
Registrants Form 10-K for the year ended December 31, 1998)                                    
| |  |  |        |  |  |                                                                                                                                                                                                                        
| |  |  | 10.1   |  |  | Promissory Note dated November 28, 1998 between Registrant
and National Realty Funding L.C. (Incorporated by reference to the
corresponding exhibit in the Registrants Form 10-K for the year
ended December 31, 1998)
| |  |  |        |  |  |                                                                                                                                                                                                                        
| |  |  | 10.2   |  |  | Promissory Note dated March 31, 1999 between Registrant and
National Realty Funding L.C. (Incorporated by reference to the
corresponding exhibit in the Registrants Form 10-Q for the quarter
ended March 31, 1999)   
| |  |  |        |  |  |                                                                                                                                                                                                                        
| |  |  | 31     |  |  | Certification Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002                                                                                                                                                
| |  |  |        |  |  |                                                                                                                                                                                                                        
| |  |  | 32     |  |  | Certification Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002