<PAGE>

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

                                    FORM 10-Q


(Mark One)

[XX]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
       EXCHANGE ACT OF 1934

For the quarterly period ended   MARCH 31, 1999                              
                                 --------------------------------------------

                                       OR

/ /    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
       EXCHANGE ACT OF 1934

For the transition period from                   to  
                              -----------------     -------------------------

                              -----------------

For Quarter Ended March 31, 1999                 Commission File No.  0-25648


                              AFG INVESTMENT TRUST D
-----------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

Delaware                                           04-3157233
----------------------------------------           --------------------------
(State or other jurisdiction of                    (IRS Employer
 incorporation or organization)                     Identification No.)

88 Broad Street, Boston, MA                        02110
----------------------------------------           --------------------------
(Address of principal executive offices)           (Zip Code)

Registrant's telephone number, including area code     (617) 854-5800
                                                   --------------------------

-----------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes  X   No 
                                             -----    -----

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

     Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court 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      No
                                                     -----    -----


<PAGE>




                             AFG Investment Trust D

                                    FORM 10-Q

                                      INDEX



<TABLE>
<CAPTION>
                                                                    Page
                                                                    ----
<S>                                                                 <C>

PART I.  FINANCIAL INFORMATION:

    Item 1.   Financial Statements

      Statement of Financial Position
        at March 31, 1999 and December 31, 1998 .................     3

      Statement of Operations
        for the three months ended March 31, 1999 and 1998 ......     4

      Statement of Cash Flows
        for the three months ended March 31, 1999 and 1998 ......     5

      Notes to the Financial Statements .........................  6-10


    Item 2.   Management's Discussion and Analysis of Financial
              Condition and Results of Operations ............... 11-15


PART II.  OTHER INFORMATION:

    Items 1 - 6 ................................................    16
</TABLE>


                                      2
<PAGE>



                             AFG Investment Trust D

                         STATEMENT OF FINANCIAL POSITION
                      March 31, 1999 and December 31, 1998

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                     March 31,          December 31,
                                                                                       1999                 1998      
                                                                                 ------------------   -----------------
<S>                                                                              <C>                  <C>
    
ASSETS

Cash and cash equivalents ...............................................        $       8,459,348   $       9,100,016
Restricted cash .........................................................                5,110,315           5,110,315
Rents receivable ........................................................                1,140,305           2,322,608
Accounts receivable - affiliate .........................................                1,080,055             448,039
Loan receivable - Kettle Valley .........................................                   49,396                  --
Investment - affiliate ..................................................                  694,188             699,626
Investment in Kettle Valley .............................................                4,365,372                  --
Equipment at cost, net of accumulated depreciation
   of $42,121,229 and $45,307,297 at March 31, 1999
   and December 31, 1998, respectively ..................................               58,291,474          60,837,372
                                                                                 -----------------   -----------------

         Total assets ...................................................        $      79,190,453   $      78,517,976
                                                                                 -----------------   -----------------
                                                                                 -----------------   -----------------



LIABILITIES AND PARTICIPANTS' CAPITAL

Notes payable ..........................................................         $      34,413,429   $      35,030,985
Accrued interest .......................................................                   155,738             332,001
Accrued liabilities ....................................................                   328,100             321,500
Accrued liabilities - affiliate ........................................                    85,697              69,248
Deferred rental income .................................................                   403,142             408,652
Other liabilities ......................................................                 1,488,403                  --
Cash distributions payable to participants .............................                   417,939             417,939
                                                                                 -----------------   -----------------

         Total liabilities .............................................                37,292,448          36,580,325
                                                                                 -----------------   -----------------

Participants' capital (deficit):
   Managing Trustee ....................................................                    12,105              12,140
   Special Beneficiary .................................................                    99,865             100,157
   Class A Beneficiary Interests (1,934,755 Interests;
     initial purchase price of $25 each) ...............................                35,203,404          35,230,782
   Class B Beneficiary Interests (3,142,083  Interests;
     initial purchase price of $5 each) ................................                 8,197,953           8,209,894
   Treasury Interests (154,275 Class A Interests at Cost) ..............                (1,615,322)         (1,615,322)
                                                                                 -----------------   -----------------

         Total participants' capital ...................................                41,898,005          41,937,651
                                                                                 -----------------   -----------------

         Total liabilities and participants' capital ...................         $      79,190,453   $      78,517,976
                                                                                 -----------------   -----------------
                                                                                 -----------------   -----------------

</TABLE>
                   The accompanying notes are an integral part
                         of these financial statements.


                                       3


<PAGE>


                             AFG Investment Trust D

                             STATEMENT OF OPERATIONS
               for the three months ended March 31, 1999 and 1998

                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                      1999                    1998
                                                                                ----------------        ----------------
<S>                                                                             <C>                     <C>
Income:

    Lease revenue .................................................             $     3,895,355         $     4,977,782

    Interest income ...............................................                     152,439                 217,980

    Gain (loss) on sale of equipment ..............................                      93,717                 (41,390)

    Other income ..................................................                     261,116                      --
                                                                                ---------------         ---------------

      Total income ................................................                   4,402,627               5,154,372
                                                                                ---------------         ---------------


Expenses:

    Depreciation and amortization .................................                   2,204,259               3,287,507

    Interest expense ..............................................                     698,796                 932,420

    Equipment management fees
      - affiliate .................................................                     195,932                 234,552

    Operating expenses - affiliate ................................                      89,470                  93,999
                                                                                ---------------         ---------------

      Total expenses ..............................................                   3,188,457               4,548,478
                                                                                ---------------         ---------------


Net income ........................................................             $     1,214,170         $       605,894
                                                                                ---------------         ---------------
                                                                                ---------------         ---------------


Net income
    per Class A Beneficiary Interest ..............................             $         0.40          $            --
                                                                                ---------------         ---------------
                                                                                ---------------         ---------------

    per Class B Beneficiary Interest ..............................             $         0.11          $            --
                                                                                ---------------         ---------------
                                                                                ---------------         ---------------

Cash distributions declared
    per Class A Beneficiary Interest ..............................             $         0.41          $         0.41
                                                                                ---------------         ---------------
                                                                                ---------------         ---------------

    per Class B Beneficiary Interest ..............................             $         0.11          $         0.16
                                                                                ---------------         ---------------
                                                                                ---------------         ---------------
</TABLE>

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



                                     4
<PAGE>


                                                            
                             AFG Investment Trust D

                             STATEMENT OF CASH FLOWS
               for the three months ended March 31, 1999 and 1998

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                           1999                  1998
                                                                                     ---------------      ----------------
<S>                                                                                  <C>                  <C>

Cash flows from (used in) operating activities:
Net income ...............................................................           $     1,214,170       $       605,894

Adjustments to reconcile net income to 
   net cash from operating activities:
         Depreciation and amortization ...................................                 2,204,259             3,287,507
         (Gain) loss on sale of equipment ................................                   (93,717)               41,390

Changes in assets and liabilities 
   Decrease (increase) in:
         cash held in escrow .............................................                        --               (18,638)
         rents receivable ................................................                 1,182,303               349,931
         accounts receivable - affiliate .................................                  (632,016)               89,002
         loan receivable - Kettle Valley .................................                   (49,396)                   --
    Increase (decrease) in:
         accrued interest ................................................                  (176,263)              (60,778)
         accrued liabilities .............................................                     6,600                 9,163
         accrued liabilities - affiliate .................................                    16,449               (28,051)
         deferred rental income ..........................................                    (5,510)              137,785
                                                                                     ---------------       ---------------

            Net cash from operating activities ...........................                 3,666,879             4,413,205
                                                                                     ---------------       ---------------

Cash flows from (used in) investing activities:
    Investment in Kettle Valley ..........................................                (3,064,700)                   --
    Other liabilities ....................................................                 1,488,403                    --
    Investment  - affiliate ..............................................                     5,438                    --
    Purchase of equipment ................................................                        --               (87,748)
    Proceeds from equipment sales ........................................                   435,356                24,240
                                                                                     ---------------       ---------------

            Net cash used in  investing activities .......................                (1,135,503)              (63,508)
                                                                                     ---------------       ---------------

Cash flows used in financing activities:
    Principal payments -  notes payable ..................................                (1,918,228)           (2,279,707)
    Distributions paid ...................................................                (1,253,816)           (1,441,316)
                                                                                     ---------------       ---------------

            Net cash used in financing activities ........................                (3,172,044)           (3,721,023)
                                                                                     ---------------       ---------------

Net (decrease) increase in cash and cash equivalents .....................                  (640,668)              628,674

Cash and cash equivalents at beginning of period .........................                 9,100,016             4,218,502
                                                                                     ---------------       ---------------

Cash and cash equivalents at end of period ...............................           $     8,459,348       $     4,847,176
                                                                                     ---------------       ---------------
                                                                                     ---------------       ---------------


Supplemental disclosure of cash flow information:
    Cash paid during the period for interest .............................           $       875,059       $       993,198
                                                                                     ---------------       ---------------
                                                                                     ---------------       ---------------

Supplemental disclosure of non-cash activity: See Note 4 to the financial
    statements.

</TABLE>
                   The accompanying notes are an integral part
                         of these financial statements.



                                         5
<PAGE>





                             AFG Investment Trust D

                        Notes to the Financial Statements
                                 March 31, 1999

                                   (Unaudited)


NOTE 1 - BASIS OF PRESENTATION

     The financial statements presented herein are prepared in conformity with
generally accepted accounting principles and the instructions for preparing Form
10-Q under Rule 10-01 of Regulation S-X of the Securities and Exchange
Commission and are unaudited. As such, these financial statements do not include
all information and footnote disclosures required under generally accepted
accounting principles for complete financial statements and, accordingly, the
accompanying financial statements should be read in conjunction with the
footnotes presented in the 1998 Annual Report. Except as disclosed herein, there
has been no material change to the information presented in the footnotes to the
1998 Annual Report.

     In the opinion of management, all adjustments (consisting of normal and
recurring adjustments) considered necessary to present fairly the financial
position at March 31, 1999 and December 31, 1998 and results of operations for
the three months ended March 31, 1999 and 1998 have been made and are reflected.


NOTE 2 - CASH

     At March 31, 1999, the Trust had $10,903,608 invested in federal agency
discount notes and reverse repurchase agreements secured by U.S. Treasury Bills
or interests in U.S. Government securities. Such cash includes $5,110,315 which
is classified as Restricted Cash and represents the net proceeds realized from
the offering of the Class B Interests less ( i ) the portion thereof used to pay
a special distribution to the Class A Beneficiaries and to redeem Class A
Interests and ( ii ) the portion used to pay a capital distribution to the Class
B Beneficiaries. The remainder is expected to be used according to terms
negotiated in conjunction with settling the Class Action Lawsuit described in
Note 9.


NOTE 3 - REVENUE RECOGNITION

     Rents are payable to the Trust monthly, quarterly or semi-annually and no
significant amounts are calculated on factors other than the passage of time.
The leases are accounted for as operating leases and are noncancellable. Rents
received prior to their due dates are deferred. In certain instances, the Trust
may enter primary-term, renewal or re-lease agreements which expire beyond the
Trust's anticipated dissolution date. This circumstance is not expected to
prevent the orderly wind-up of the Trust's business activities as the Managing
Trustee and the Advisor would seek to sell the then-remaining equipment assets
either to the lessee or to a third party, taking into consideration the amount
of future noncancellable rental payments associated with the attendant lease
agreements. Future minimum rents of $23,542,852 are due as follows:

<TABLE>

<S>                                             <C>
    For the year ending March 31, 2000           $      12,577,775
                                  2001                   6,411,971
                                  2002                   3,184,964
                                  2003                   1,367,272
                                  2004                         870
                                                ------------------
                                             
                                  Total          $      23,542,852
                                                ------------------
                                                ------------------

</TABLE>



                                    6

<PAGE>


                             AFG Investment Trust D
                        Notes to the Financial Statements

                                   (Continued)




NOTE 4 - INVESTMENT IN KETTLE VALLEY

     On March 1, 1999, the Trust and an affiliated trust (collectively, the
"Buyers") formed EFG/Kettle Development LLC, a Delaware limited liability
company, for the purpose of acquiring a 49.9% indirect ownership interest (the
"Interest") in a real estate development in Kelowna, British Columbia called
Kettle Valley. EFG/Kettle Development LLC, upon receiving the Buyers' equity
investment, purchased the Interest from a special purpose company ("SPC") whose
subsidiaries own a 99.9% limited partnership interest in Kettle Valley
Development Limited Partnership ("KVD LP"). The SPC and its subsidiaries were
established by the seller, in part, for income tax purposes and have no business
interests other than the development of Kettle Valley. KVD LP is a Canadian
Partnership that owns the property, consisting of approximately 280 acres of
land. The project, which is in the early stages of being marketed to home
buyers, is zoned for 1,000 residential units in addition to commercial space
that, currently, is being constructed. The seller is an unaffiliated third-party
company and has retained the remaining 50.1% ownership interest in the SPC. A
newly organized Canadian affiliate of EFG replaced the original general partner
of KVD LP on March 1, 1999.

     The Trust's ownership share in EFG/Kettle Development LLC is 49.396% and
had a cost of $4,322,150, which was funded with cash of $3,021,478 and a
non-recourse note for $1,300,672. The note bears interest at an annualized rate
of 7.5% and will be fully amortized over 34 months commencing April 1, 1999. The
note is secured only by the Trust's stock interests in the SPC. In addition, the
seller purchased a residual sharing interest in a Boeing 767-300 owned by the
Buyers and leased to Scandinavian Airlines System ("SAS"). The seller paid
$3,013,206 to the Buyers ($1,488,403, or 49.396% to the Trust) for the residual
interest, which is subordinate to certain preferred payments to be made to the
Buyers in connection with the aircraft. Payment of the residual interest is due
only to the extent that the Trust receives net residual proceeds from the
aircraft. The residual interest is non-recourse to the Buyers and is reflected
as Other Liabilities on the accompanying Statement of Financial Position at
March 31, 1999. Investment in Kettle Valley at March 31, 1999 represents actual
cost paid by the Trust plus a 1% acquisition fee. See Note 8 for discussion of
amendment to the Trust Agreement to permit the investment in assets other than
leased equipment.


NOTE 5 - EQUIPMENT

     The following is a summary of equipment owned by the Trust at March 31,
1999. Remaining Lease Term (Months), as used below, represents the number of
months remaining from March 31, 1999 under contracted lease terms and is
presented as a range when more than one lease agreement is contained in the
stated equipment category. A Remaining Lease Term equal to zero reflects
equipment either held for sale or re-lease or being leased on a month-to-month
basis. In the opinion of EFG, the acquisition cost of the equipment did not
exceed its fair market value.




                                    7



<PAGE>

                             AFG Investment Trust D
                        Notes to the Financial Statements

                                   (Continued)



<TABLE>
<CAPTION>
                                                               Remaining
                                                              Lease Term                       Equipment
         Equipment Type                                        (Months)                         at Cost   
-----------------------------------                          -------------                  --------------
<S>                                                          <C>                            <C>
Aircraft                                                           7-45                     $   52,946,296
Vessels                                                              42                         13,875,360
Locomotives                                                          15                         10,684,643
Construction and mining                                            0-39                          5,904,498
Materials handling                                                 0-50                          5,198,011
Manufacturing                                                       0-9                          3,849,469
Miscellaneous                                                      0-20                          3,564,568
Computers and peripherals                                          0-16                          3,255,073
Tractors & heavy duty trucks                                          0                            545,117
Research & test                                                    3-12                            501,012
Motor vehicles                                                        0                             38,499
Photocopying                                                          0                             31,913
Retail store fixtures                                                 9                             11,712
Communications                                                        0                              6,532
                                                                                            --------------

                                                   Total equipment cost                        100,412,703

                                               Accumulated depreciation                        (42,121,229)
                                                                                            --------------

                             Equipment, net of accumulated depreciation                     $   58,291,474
                                                                                            --------------
                                                                                            --------------
</TABLE>

     At March 31, 1999, the Trust's equipment portfolio included equipment
having a proportionate original cost of $43,058,987, representing approximately
43% of total equipment cost.

     At March 31, 1999, the cost and net book value of equipment held for sale
or re-lease was approximately $474,000 and $61,000, respectively. The Managing
Trustee is actively seeking the sale or re-lease of all equipment not on lease.
In addition, the summary above includes equipment being leased on a
month-to-month basis.


NOTE 6 - RELATED PARTY TRANSACTIONS

     All operating expenses incurred by the Trust are paid by EFG on behalf of
the Trust and EFG is reimbursed at its actual cost for such expenditures. Fees
and other costs incurred during the three month periods ended March 31, 1999 and
1998, which were paid or accrued by the Trust to EFG or its Affiliates, are as
follows:

<TABLE>
<CAPTION>
                                                              1999                 1998     
                                                        ---------------      ----------------
<S>                                                     <C>                  <C>
     Equipment acquisition fees                         $            --      $          2,556
     Equipment management fees                                  195,932               234,552
     Administrative charges                                      20,046                20,046
     Reimbursable operating expenses
         due to third parties                                    69,424                73,953
                                                        ---------------      ----------------

                                     Total              $       285,402      $        331,107
                                                        ---------------      ----------------
                                                        ---------------      ----------------
</TABLE>

     All rents and proceeds from the sale of equipment are paid directly to
either EFG or to a lender. EFG temporarily deposits collected funds in a
separate interest-bearing escrow account prior to remittance to the Trust. At
March 31, 1999, the Trust was owed $1,080,055 by EFG for such funds and the
interest thereon. These funds were remitted to the Trust in April 1999.



                                 8

<PAGE>

                             AFG Investment Trust D
                        Notes to the Financial Statements

                                   (Continued)

NOTE 7 - NOTES PAYABLE

     Notes payable at March 31, 1999 consisted of installment notes of
$34,413,429 payable to banks and institutional lenders. The notes bear interest
rates ranging between 6.92% and 13.75%, except for one note which bears a
fluctuating interest rate based on LIBOR (4.94% at March 31, 1999) plus a
margin. All of the installment notes are non-recourse and are collateralized by
the equipment and assignment of the related lease payments, except for one note
which is collateralized by certain stock interests (see Note 4). Generally, the
installment notes will be fully amortized by noncancellable rents. However, the
Trust has balloon payment obligations of $19,980,682, $1,400,074 and $282,421 at
the expiration of the lease terms related to an aircraft leased to SAS, certain
rail equipment and its interest in an aircraft leased to Reno Air, Inc.,
respectively. The carrying amount of notes payable approximates fair value at
March 31, 1999.

    The annual maturities of the notes payable are as follows:

<TABLE>
<S>                                  <C>                    <C>
    For the year ending March 31,      2000                  $    6,755,586
                                       2001                      24,479,929
                                       2002                       2,153,220
                                       2003                       1,024,694
                                                             --------------

                                      Total                  $   34,413,429
                                                             --------------
                                                             --------------
</TABLE>

NOTE 8 - SOLICITATION STATEMENT

     On May 5, 1998, the Trust filed a definitive Solicitation Statement with
the United States Securities and Exchange Commission in connection with the
solicitation by the Trust of the consent of the Beneficiaries to a proposed
amendment (the "Amendment") to the Second Amended and Restated Declaration of
Trust (the "Trust Agreement"). The Solicitation Statement and Consent of
Beneficiary were mailed to all of the Beneficiaries of the Trust on May 6, 1998.
The Beneficiaries were requested to use the Consent of Beneficiary to vote on
seven proposals and return their votes on or before June 5, 1998. Equis II
Corporation, which has voting control of the Trust, agreed to vote all of its
Class B Interests in the same manner in which the majority of the Class A
Interests were actually voted. Accordingly, the Amendment would be adopted or
rejected based upon the voting results of the majority of Class A Interests that
were actually voted (including 44,084 Class A Interests owned by affiliates of
EFG), regardless of how few Class A Interests were actually voted.

     The results of the voting reflected that a majority of Class A Interests
voted in favor of each of the proposals. Therefore, the Trust Agreement was
amended to (i) broaden the Trust's stated investment policies and objectives and
permit the Trust to invest in assets other than leased equipment; (ii) modify
the Trust's financing provisions to eliminate any cap on the amount of aggregate
Trust indebtedness and permit the Trust to use cross-collateralized and other
recourse debt structures; (iii) extend the Trust's reinvestment period, which
originally expired on February 6, 1999, until December 31, 2002; (iv) reduce
acquisition fees paid to EFG in connection with reinvestment assets acquired
after the Amendment date from a maximum of 3% to 1% and management fees earned
in connection with such assets from a maximum of 5% to 2%; and (v) institute a
management fee of 1% annually of the fair market value (or, if unattainable, the
cost) of non-equipment assets.

     In addition, subject to attaining a settlement in the Class Action Lawsuit
described in Note 9 herein, the Trust Agreement will be modified in the
following principal respects: (i) the Trust will pay a Special Cash Distribution
to the Class A Beneficiaries of record as of September 1, 1997, or to their
successors or assigns, totaling $1,572,405 (or approximately $0.75 per Class A
Beneficiary Interest) using a portion of the Class B capital contributions that
otherwise would be distributed as a Class B Capital Distribution to Equis II
Corporation, the parent company of the Managing Trustee and an affiliate of EFG;
(ii) Equis II Corporation will be required to reduce its prospective Class B
Capital Distributions by $3,537,910 and treat such amount as a long-term equity
investment in the Trust and (iii) certain voting restrictions will be placed
upon the Class B Interests owned by Equis II Corporation.


                                     9

<PAGE>

                             AFG Investment Trust D
                        Notes to the Financial Statements

                                   (Continued)


NOTE 9 - LEGAL PROCEEDINGS

     On or about January 15, 1998, certain plaintiffs (the "Plaintiffs") filed a
class and derivative action, captioned LEONARD ROSENBLUM, ET AL. V. EQUIS
FINANCIAL GROUP LIMITED PARTNERSHIP, ET AL., in the United States District Court
for the Southern District of Florida (the "Court") on behalf of a proposed class
of investors in 28 equipment leasing programs sponsored by EFG, including the
Trust (collectively, the "Nominal Defendants"), against EFG and a number of its
affiliates, including the Managing Trustee, as defendants (collectively, the
"Defendants"). Certain of the Plaintiffs, on or about June 24, 1997, had filed
an earlier derivative action, captioned LEONARD ROSENBLUM, ET AL. V. EQUIS
FINANCIAL GROUP LIMITED PARTNERSHIP, ET AL., in the Superior Court of the
Commonwealth of Massachusetts on behalf of the Nominal Defendants against the
Defendants. Both actions are referred to herein collectively as the "Class
Action Lawsuit."

     The Plaintiffs have asserted, among other things, claims against the
Defendants on behalf of the Nominal Defendants for violations of the Securities
Exchange Act of 1934, common law fraud, breach of contract, breach of fiduciary
duty, and violations of the partnership or trust agreements that govern each of
the Nominal Defendants. The Defendants have denied, and continue to deny, that
any of them have committed or threatened to commit any violations of law or
breached any fiduciary duties to the Plaintiffs or the Nominal Defendants.

     On July 16, 1998, counsel for the Defendants and the Plaintiffs executed a
Stipulation of Settlement setting forth terms pursuant to which a settlement of
the Class Action Lawsuit is intended to be achieved and which, among other
things, is expected to reduce the burdens and expenses attendant to continuing
litigation. The Stipulation of Settlement was based upon and superseded a
Memorandum of Understanding between the parties dated March 9, 1998 which
outlined the terms of a possible settlement. The Stipulation of Settlement was
filed with the Court on July 23, 1998 and was preliminarily approved by the
Court on August 20, 1998 when the Court issued its "Order Preliminarily
Approving Settlement, Conditionally Certifying Settlement Class and Providing
for Notice of, and Hearing on, the Proposed Settlement."

     On March 15, 1999, counsel for the Plaintiffs and the Defendants entered
into an amended Stipulation of Settlement (the "Amended Stipulation") which was
filed with the Court on March 15, 1999. The Amended Stipulation was
preliminarily approved by the Court by its "Modified Order Preliminarily
Approving Settlement, Conditionally Certifying Settlement Class and Providing
For Notice of, and Hearing On, the Proposed Settlement" dated March 22, 1999.
The Amended Stipulation, among other things, divides the Class Action Lawsuit
into two separate sub-classes that can be settled individually. This revision is
expected to expedite the settlement of the Trust's claims by the middle of 1999.
The second sub-class, which does not include the Trust, is expected to remain
pending for a longer period.

     On April 5, 1999, the Trust mailed a notice to all Class A and Class B
Beneficiaries describing, among other things, the Class Action Lawsuit and the
proposed settlement terms for the Trust. In addition, the notice advises the
Beneficiaries that the Court will conduct a fairness hearing on May 21, 1999 and
describes the rights of the Beneficiaries and the procedures they should follow
if they wish to object to the settlement.

     Assuming the proposed settlement of the claims of the sub-class that
includes the Trust is effected according to present terms, the Trust's share of
legal fees and expenses related to the Class Action Lawsuit is estimated to be
approximately $290,000, all of which was accrued and expensed by the Trust in
1998. There can be no assurance that settlement of the claims of the sub-class
that includes the Trust will receive final Court approval and be effected.
However, the Managing Trustee and its affiliates, in consultation with counsel,
concur that there is a reasonable basis to believe that a final settlement of
the claims of the sub-class that includes the Trust will be achieved. In the
absence of a final settlement approved by the Court, the Defendants intend to
defend vigorously against the claims asserted in the Class Action Lawsuit.
Neither the Managing Trustee nor its affiliates can predict with any degree of
certainty the cost of continuing litigation to the Trust or the ultimate
outcome.



                                         10

<PAGE>




                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION



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

     Certain statements in this quarterly report of AFG Investment Trust D (the
"Trust") that are not historical fact constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 and
are subject to a variety of risks and uncertainties. There are a number of
important factors that could cause actual results to differ materially from
those expressed in any forward-looking statements made herein. These factors
include, but are not limited to, the outcome of the Class Action Lawsuit
described in Note 9 to the accompanying financial statements, the collection all
rents due under the Trust's lease agreements and remarketing of the Trust's
equipment.


YEAR 2000 ISSUE

     The Year 2000 Issue generally refers to the capacity of computer
programming logic to correctly identify the calendar year. Many companies
utilize computer programs or hardware with date sensitive software or embedded
chips that could interpret dates ending in "00" as the year 1900 rather than the
year 2000. In certain cases, such errors could result in system failures or
miscalculations that disrupt the operations of the affected businesses. The
Trust uses information systems provided by Equis Financial Group Limited
Partnership (formerly American Finance Group) ("EFG") and has no information
systems of its own. EFG has adopted a plan to address the Year 2000 Issue that
consists of four phases: assessment, remediation, testing, and implementation
and has elected to utilize principally internal resources to perform all phases.
EFG has completed substantially all of its Year 2000 project at an aggregate
cost of less than $50,000 and at a di minimus cost to the Trust. All costs
incurred in connection with EFG's Year 2000 project have been expensed as
incurred.

     EFG's primary information software was coded by IBM at the point of
original design to use a four digit field to identify calendar year. All of the
Trust's lease billings, cash receipts and equipment remarketing processes are
performed using this proprietary software. In addition, EFG has gathered
information about the Year 2000 readiness of significant vendors and third party
servicers and continues to monitor developments in this area. All of EFG's
peripheral computer technologies, such as its network operating system and
third-party software applications, including payroll, depreciation processing,
and electronic banking, have been evaluated for potential programming changes
and have required only minor modifications to function properly with respect to
dates in the year 2000 and thereafter. EFG understands that each of its and the
Trust's significant vendors and third-party servicers are in the process, or
have completed the process, of making their systems Year 2000 compliant.
Substantially all parties queried have indicated that their systems are Year
2000 compliant.

     Presently, EFG is not aware of any outside customer with a Year 2000 Issue
that would have a material effect on the Trust's results of operations,
liquidity, or financial position. The Trust's equipment leases were structured
as triple net leases, meaning that the lessees are responsible for, among other
things, (i) maintaining and servicing all equipment during the lease term, (ii)
ensuring that all equipment functions properly and is returned in good
condition, normal wear and tear excepted, and (iii) insuring the assets against
casualty and other events of loss. Non-compliance with lease terms on the part
of a lessee, including failure to address Year 2000 Issues could result in lost
revenues and impairment of residual values of the Trust's equipment assets under
a worst-case scenario.

     EFG believes that its Year 2000 compliance plan will be effective in
resolving all material Year 2000 risks in a timely manner and that the Year 2000
Issue will not pose significant operational problems with respect to its
computer systems or result in a system failure or disruption of its or the
Trust's business operations. However, EFG has no means of ensuring that all
customers, vendors and third-party servicers will conform ultimately to Year
2000 standards. The effect of this risk to the Trust is not determinable.




                                     11
<PAGE>

                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION


OVERVIEW

     As an equipment leasing trust, the Trust was organized to acquire a
diversified portfolio of capital equipment subject to lease agreements with
third parties. The Trust was designed to progress through three principal
phases: acquisitions, operations, and liquidation. During the operations phase,
a period of approximately six years, all equipment in the Trust's portfolio will
progress through various stages. Initially, all equipment will generate rental
revenues under primary term lease agreements. During the life of the Trust,
these agreements will expire on an intermittent basis and equipment held
pursuant to the related leases will be renewed, re-leased or sold, depending on
prevailing market conditions and the assessment of such conditions by EFG to
obtain the most advantageous economic benefit. Over time, a greater portion of
the Trust's original equipment portfolio will become available for remarketing
and cash generated from operations and from sales or refinancings will
fluctuate. Presently, the Trust is a Nominal Defendant in a Class Action
Lawsuit, the resolution of which remains pending. See Note 9 to the accompanying
financial statements. The Trust's operations commenced in 1992 and pursuant to
the Trust Agreement, the Trust is scheduled to be dissolved by December 31,
2006.


THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THE THREE MONTHS ENDED MARCH 31,
1998:

RESULTS OF OPERATIONS

     For the three months ended March 31, 1999, the Trust recognized lease
revenue of $3,895,355 compared to $4,977,782 for same period in 1998. The
decrease in lease revenue from 1998 to 1999 resulted principally from lease term
expirations and the sale of equipment. The level of lease revenue to be
recognized by the Trust in the future may be impacted by the amendment to the
Trust Agreement described in Note 8 to the accompanying financial statements;
however, the extent of such impact cannot be determined at this time.

     The Trust's equipment portfolio includes certain assets in which the Trust
holds a proportionate ownership interest. In such cases, the remaining interests
are owned by EFG or an affiliated equipment leasing program sponsored by EFG.
Proportionate equipment ownership enables the Trust to further diversify its
equipment portfolio by participating in the ownership of selected assets,
thereby reducing the general levels of risk which could result from a
concentration in any single equipment type, industry or lessee. The Trust and
each affiliate individually report, in proportion to their respective ownership
interests, their respective shares of assets, liabilities, revenues, and
expenses associated with the equipment.

     Interest income for the three months ended March 31, 1999 was $152,439
compared to $217,980 for the same period in 1998. Generally, interest income is
generated from the temporary investment of rental receipts and equipment sale
proceeds in short-term instruments. Interest income in 1999 and 1998 includes
interest earned on proceeds resulting from the issuance of Class B Interests.
Future interest income will fluctuate in relation to prevailing interest rates,
the collection of lease revenue and the proceeds from equipment sales.

     The Trust received $261,116 in 1999 as a breakage fee from a third-party
seller in connection with a transaction for new investments that was canceled by
the seller in the first quarter of 1999. This amount is reflected as Other
Income on the accompanying Statement of Operations for the three months ended
March 31, 1999.

     During the three months ended March 31, 1999, the Trust sold equipment
having a net book value of $341,639 to existing lessees and third parties. These
sales resulted in a net gain, for financial statement purposes, of $93,717
compared to a net loss of $41,390 on equipment having a net book value of
$65,630 during the same period in 1998.

     It cannot be determined whether future sales of equipment will result in a
net gain or a net loss to the Trust, as such transactions will be dependent upon
the condition and type of equipment being sold and its marketability



                                       12

<PAGE>

                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION


at the time of sale. In addition, the amount of gain or loss reported for 
financial statement purposes is partly a function of the amount of 
accumulated depreciation associated with the equipment being sold.

     The ultimate realization of residual value for any type of equipment is
dependent upon many factors, including EFG's ability to sell and re-lease
equipment. Changing market conditions, industry trends, technological advances,
and many other events can converge to enhance or detract from asset values at
any given time. EFG attempts to monitor these changes in order to identify
opportunities which may be advantageous to the Trust and which will maximize
total cash returns for each asset.

     The total economic value realized upon final disposition of each asset is
comprised of all primary lease term revenue generated from that asset, together
with its residual value. The latter consists of cash proceeds realized upon the
asset's sale in addition to all other cash receipts obtained from renting the
asset on a re-lease, renewal or month-to-month basis. The Trust classifies such
residual rental payments as lease revenue. Consequently, the amount of gain or
loss reported in the financial statements is not necessarily indicative of the
total residual value the Trust achieved from leasing the equipment.

     Depreciation and amortization expense was $2,204,259 and $3,287,507 for 
the three months ended March 31, 1999 and 1998, respectively. For financial 
reporting purposes, to the extent that an asset is held on primary lease 
term, the Trust depreciates the difference between (i) the cost of the asset 
and (ii) the estimated residual value of the asset on a straight-line basis 
over such term. For purposes of this policy, estimated residual values 
represent estimates of equipment values at the date of primary lease 
expiration. To the extent that an asset is held beyond its primary lease 
term, the Trust continues to depreciate the remaining net book value of the 
asset on a straight-line basis over the asset's remaining economic life.

     Interest expense was $698,796 or 17.9% of lease revenue in 1999 and
$932,420 or 18.7% of lease revenue in 1998. Interest expense in the near-term
may increase due to the financing of any newly acquired assets. Thereafter,
interest expense will decline in amount and as a percentage of lease revenue as
the principal balance of notes payable is reduced through the application of
rent receipts to outstanding indebtedness.

     Management fees were 5% and 4.7% of lease revenue during the three months
ended March 31, 1999 and 1998, respectively. Management fees are based on 5% of
gross lease revenue generated by operating leases and 2% of gross lease revenue
generated by full payout leases. Management fees also include a 1% management
fee on non-equipment assets. See Notes 4 and 8 to the accompanying financial
statements.

     Operating expenses consist principally of administrative charges,
professional service costs, such as audit and legal fees, as well as printing,
distribution and remarketing expenses. Collectively, operating expenses were
$89,470 and $93,999 during the three months ended March 31, 1999 and 1998,
respectively. The amount of future operating expenses cannot be predicted with
certainty; however, such expenses are usually higher during the acquisition and
liquidation phases of a trust. Other fluctuations typically occur in relation to
the volume and timing of remarketing activities.


LIQUIDITY AND CAPITAL RESOURCES AND DISCUSSION OF CASH FLOWS

     The Trust by its nature is a limited life entity. As an equipment leasing
program, the Trust's principal operating activities derive from asset rental
transactions. Accordingly, the Trust's principal source of cash from operations
is provided by the collection of periodic rents. These cash inflows are used to
satisfy debt service obligations associated with leveraged leases, and to pay
management fees and operating costs. Operating activities generated net cash
inflows of $3,666,879 and $4,413,205 for the three months ended March 31, 1999
and 1998, respectively. Future renewal, re-lease and equipment sale activities
will cause a decline in the Trust's primary-term lease revenue and corresponding
sources of operating cash. Overall, expenses associated with

                                      13

<PAGE>
                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION


rental activities, such as management fees, and net cash flow from operating 
activities will also decline as the Trust experiences a higher frequency of 
remarketing events.

     The Trust's equipment is leased by a number of creditworthy,
investment-grade companies and, to date, the Trust has not experienced any
material collection problems and has not considered it necessary to provide an
allowance for doubtful accounts. Notwithstanding a positive collection history,
there is no assurance that all future contracted rents will be collected or that
the credit quality of the Trust's lessees will be maintained. Collection risk
could increase in the future, particularly as the Trust remarkets its equipment
and enters re-lease agreements with different lessees. The Managing Trustee will
continue to evaluate and monitor the Trust's experience in collecting accounts
receivable to determine whether a future allowance for doubtful accounts may
become appropriate.

     Cash expended for asset acquisitions and cash realized from asset disposal
transactions are reported under investing activities on the accompanying
Statement of Cash Flows. During the three months ended March 31, 1999, the Trust
expended $3,064,700 to acquire its investment in Kettle Valley. In connection
with the investment, the Trust was paid $1,488,403 for a residual interest in an
aircraft in which the Trust owns an interest (see Note 4 for discussion of this
transaction). During the three months ended March 31, 1998, the Trust expended
$87,748 to acquire equipment. Cash realized from asset disposal transactions is
reported under investing activities on the accompanying Statement of Cash Flows.
During the three months ended March 31, 1999, the Trust realized net cash
proceeds of $435,356 compared to $24,240 for the same period in 1998. Future
inflows of cash from asset disposals will vary in timing and amount and will be
influenced by many factors including, but not limited to, the frequency and
timing of lease expirations, the type of equipment being sold, its condition and
age, and future market conditions.

     The Trust obtained long-term financing in connection with certain equipment
leases. The origination of such indebtedness and the subsequent repayments of
principal are reported as components of financing activities. Generally, each
note payable is recourse only to the specific equipment financed and to the
minimum rental payments contracted to be received during the debt amortization
period (which period generally coincides with the lease rental term). As rental
payments are collected, a portion or all of the rental payment is used to repay
the associated indebtedness. During 1999, the Trust leveraged $1,300,672 of its
investment in Kettle Valley that will be amortized over 34 months (see Note 4).
In the near-term, the amount of cash used to repay debt obligations may increase
due to the financing of other newly acquired assets. Thereafter, the amount of
cash used to repay debt obligations will decline. In addition, the Trust has
balloon payment obligations of $19,980,682, $1,400,074 and $282,421 at the
expiration of the lease terms related to the SAS Aircraft, certain rail
equipment and the Reno Aircraft, respectively.

     In accordance with the Trust Agreement, upon the dissolution of the Trust,
the Managing Trustee will be required to contribute to the Trust an amount equal
to any negative balance which may exist in the Managing Trustee's tax capital
account. At December 31, 1998, the Managing Trustee had a negative tax capital
account balance of $303,603.

     At March 31, 1999, the Trust was due aggregate future minimum lease
payments of $23,542,852 from contractual lease agreements (see Note 3 to the
financial statements), a portion of which will be used to amortize the principal
balance of notes payable of $34,413,429 (see Note 7 to the financial
statements). Additional cash inflows will be realized from future remarketing
activities, such as lease renewals and equipment sales, the timing and extent of
which cannot be predicted with certainty. This is because the timing and extent
of equipment sales is often dependent upon the needs and interests of the
existing lessees. Some lessees may choose to renew their lease contracts, while
others may elect to return the equipment. In the latter instances, the equipment
could be re-leased to another lessee or sold to a third party. Accordingly, as
the Trust matures and a greater level of its equipment assets becomes available
for remarketing, the cash flows of the Trust will become less predictable. In
addition, the Trust will have cash needs to satisfy interest on indebtedness and
to pay management fees and operating expenses. Ultimately, the Trust is expected
to meet its future disbursement obligations and to distribute




                                        14


<PAGE>


                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION

any excess of cash inflows over cash outflows to the Participants in 
accordance with the Trust Agreement. However, several factors, including 
month-to-month lease extensions, lessee defaults, equipment casualty events, 
and early lease terminations could alter the Trust's anticipated cash flows 
as described herein and in the accompanying financial statements and result 
in fluctuations to the Trust's periodic cash distribution payments.

     Cash distributions paid to the Participants consist of both a return of and
a return on capital. Cash distributions do not represent and are not indicative
of yield on investment. Actual yield on investment cannot be determined with any
certainty until conclusion of the Trust and will be dependent upon the
collection of all future contracted rents, the generation of renewal and/or
re-lease rents, and the residual value realized for each asset at its disposal
date. Future market conditions, technological changes, the ability of EFG to
manage and remarket the assets, and many other events and circumstances, could
enhance or detract from individual asset yields and the collective performance
of the Trust's equipment portfolio.

     It is the intention of the Managing Trustee to maintain a cash distribution
level that is consistent with the operating cash flows of the Trust and to
optimize the long-term value of the Trust. A distribution level that is higher
than the Trust's operating cash flows could compromise the Trust's working
capital position, as well as its ability to refurbish or upgrade equipment in
response to lessee requirements or other market circumstances. Class A
distributions have been maintained at an annualized rate of $1.64 per Class A
Interest since October 1996. Class B distributions were set at an annualized
distribution rate of $0.66 per Class B Interest commencing July 18, 1997 and
decreased to an annualized distribution rate of $0.44 per Class B Interest in
August 1998 following the Class B Capital Distribution paid at that time. Future
distributions with respect to Class B Interests will be subordinate to certain
distributions with respect to Class A Interests.

     Cash distributions to the Managing Trustee, the Special Beneficiary and the
Beneficiaries are declared and generally paid within 45 days following the end
of each calendar month. The payment of such distributions is presented as a
component of financing activities. For the three months ended March 31, 1999,
the Trust declared total cash distributions of $1,253,816. Of the total
distributions, the Beneficiaries were allocated $1,137,838 ($792,283 for Class A
Beneficiaries and $345,555 for Class B Beneficiaries); the Special Beneficiary
was allocated $103,440, and the Managing Trustee was allocated $12,538.

     The nature of the Trust's operations and principal cash flows gradually
will shift from rental receipts to equipment sale proceeds as the Trust matures
and change as a result of new investments not consisting of equipment
acquisitions. As this occurs, the Trust's cash flows resulting from equipment
investments may become more volatile in that certain of the Trust's equipment
leases will be renewed and certain of its assets will be sold. In some cases,
the Trust may be required to expend funds to refurbish or otherwise improve the
equipment being remarketed in order to make it more desirable to a potential
lessee or purchaser. The Trust's Advisor, EFG, and the Managing Trustee will
attempt to monitor and manage these events in order to maximize the residual
value of the Trust's equipment and will consider these factors, in addition to
new investment activities and the collection of contractual rents, the
retirement of scheduled indebtedness, and the Trust's future working capital
requirements, in establishing future cash distribution rates.


                                     15
<PAGE>








                             AFG Investment Trust D

                                    FORM 10-Q

                           PART II. OTHER INFORMATION


<TABLE>
<S>                                   <C>
        Item 1. .................      Legal Proceedings
                                       Response:

                                       Refer to Note 9 to the financial statements herein.

        Item 2. .................      Changes in Securities
                                       Response:  None

        Item 3. .................      Defaults upon Senior Securities
                                       Response:  None

        Item 4. .................      Submission of Matters to a Vote of Security Holders
                                       Response:  None

        Item 5. .................      Other Information
                                       Response:  None

        Item 6(a). ..............      Exhibits
                                       Response:  None

        Item 6(b). ..............      Reports on Form 8-K
                                       Response:  None

</TABLE>




                                          16
<PAGE>







                                 SIGNATURE PAGE


     Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below on behalf of the registrant and in the capacity and
on the date indicated.



                                AFG Investment Trust D
<TABLE>
<S>                      <C>
                By:      AFG ASIT Corporation, a Massachusetts
                         corporation and the Managing Trustee of
                         the Registrant.


                By:      /s/ Michael J. Butterfield
                         -----------------------------------------
                         Michael J. Butterfield
                         Treasurer AFG ASIT Corporation
                         (Duly Authorized Officer and
                         Principal Accounting Officer)


                Date:    May 13, 1999
                         -----------------------------------------


                By:      /s/ Gary M. Romano
                         -----------------------------------------
                         Gary M. Romano
                         Clerk of AFG ASIT Corporation
                         (Duly Authorized Officer and
                         Principal Financial Officer)


                Date:    May 13, 1999
                         ------------------------------------------

</TABLE>



                                     17