<PAGE>

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

                                    FORM 10-Q


(Mark One)

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

For the quarterly period ended March 31, 2001
                               -------------------------------------------------

                                       OR

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

For the transition period from ______________________ to _______________________


                           Commission File 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.
Yes      No
   -----   -----
<PAGE>

                             AFG Investment Trust D

                                    FORM 10-Q

                                      INDEX




                                                                           Page
                                                                           ----
PART I.  FINANCIAL INFORMATION:

    Item 1.   Financial Statements

              Statement of Financial Position
              at March 31, 2001 and December 31, 2000                         3

              Statement of Operations
              for the three months ended March 31, 2001 and 2000              4

              Statement of Changes in Participants' Capital
              for the three months ended March 31, 2001                       5

              Statement of Cash Flows
              for the three months ended March 31, 2001 and 2000              6

              Notes to the Financial Statements                            7-12


    Item 2.   Management's Discussion and Analysis of Financial
              Condition and Results of Operations                         13-19


PART II.  OTHER INFORMATION:

              Items 1 - 6                                                    20

                                       2
<PAGE>

                             AFG Investment Trust D

                         STATEMENT OF FINANCIAL POSITION

                      March 31, 2001 and December 31, 2000

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                          March 31,               December 31,
                                                                            2001                      2000
                                                                       ---------------          ---------------
<S>                                                                    <C>                      <C>
Assets

Cash and cash equivalents                                               $   1,872,991           $   9,042,889
Rents receivable                                                              343,818                 852,726
Accounts receivable - affiliate                                               111,222                 347,531
Guarantee fee receivable                                                      206,135                 172,190
Interest receivable                                                            19,706                  11,797
Loan receivable - Kettle Valley                                                75,220                  75,220
Investment - affiliate                                                        596,313                 610,813
Interest in Kettle Valley                                                   4,138,139               4,212,280
Interest in EFG Kirkwood                                                    3,875,427               2,852,964
Interest in MILPI                                                           8,225,361                 432,000
Investment - other                                                            210,926                 211,426
Other assets, net of accumulated amortization of
  $47,663 and $37,450 at March 31, 2001 and
  December 31, 2000, respectively                                             485,983                 528,699
Equipment at cost, net of accumulated depreciation
  of $23,495,135 and $ 24,324,593 at March 31, 2001
  and December 31, 2000, respectively                                      36,748,055              38,090,343
                                                                        -------------           -------------

      Total assets                                                      $  56,909,296           $  57,440,878
                                                                        =============           =============

Liabilities and participants' capital

Notes payable                                                           $  25,579,884           $  26,763,237
Accrued interest                                                              625,648                 580,318
Accrued liabilities                                                           155,827                 262,139
Accrued liabilities - affiliates                                              381,976                  45,401
Deferred rental income                                                         38,701                  34,779
Other liabilities                                                           1,488,403               1,488,403
                                                                        -------------           -------------
     Total liabilities                                                     28,270,439              29,174,277
                                                                        -------------           -------------


Participants' capital:
   Managing Trustee                                                             3,723                       -
   Special Beneficiary                                                         30,711                       -
   Class A Beneficiary Interests (1,934,755 Interests;
     initial purchase price of $25 each)                                   30,153,921              29,881,923
   Class B Beneficiary Interests (3,142,083 Interests;
     initial purchase price of $5 each)                                        65,824                       -
   Treasury Interests (154,275 Class A Interests at Cost)                  (1,615,322)             (1,615,322)
                                                                        -------------           -------------
     Total participants' capital                                           28,638,857              28,266,601
                                                                        -------------           -------------

     Total liabilities and participants' capital                        $  56,909,296           $  57,440,878
                                                                        =============           =============
</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, 2001 and 2000

                                   (Unaudited)


<TABLE>
<CAPTION>


                                                               2001                2000
                                                          ----------------    ---------------
<S>                                                       <C>                 <C>
Income

Lease revenue                                                 $ 1,334,307        $ 2,055,692
Interest income                                                    73,777            135,002
Gain on sale of equipment                                         411,379            283,460
Gain on sale of investment securities                                   -             86,079
Other income                                                       39,691            272,556
                                                              -----------        -----------
       Total income                                             1,859,154          2,832,789
                                                              -----------        -----------

Expenses

Depreciation and amortization                                   1,350,393          1,513,060
Interest expense                                                  602,500            619,006
Management fees - affiliates                                       97,729            115,283
Operating expenses - affiliate                                    441,285            171,057
                                                              -----------        -----------
       Total expenses                                           2,491,907          2,418,406
                                                              -----------        -----------

Equity Interests

Equity loss from Kettle Valley                                    (58,091)                 -
Equity income from EFG Kirkwood                                 1,022,463                  -
Equity income from MILPI                                           40,637                  -
                                                              -----------        -----------
       Net income from equity interests                         1,005,009                  -
                                                              -----------        -----------

Net income                                                    $   372,256        $   414,383
                                                              ===========        ===========

Net income
   per Class A Beneficiary Interest                           $     0.14         $        --
                                                              ===========        ===========
   per Class B Beneficiary Interest                           $     0.02         $      0.07
                                                              ===========        ===========
Cash distributions declared
   per Class A Beneficiary Interest                           $       --         $        --
                                                              ===========        ===========
   per Class B Beneficiary Interest                           $       --         $        --
                                                              ===========        ===========
</TABLE>


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

                                       4
<PAGE>

                             AFG Investment Trust D

                  STATEMENT OF CHANGES IN PARTICIPANTS' CAPITAL

                    For the three months ended March 31, 2001

                                   (Unaudited)

<TABLE>
<CAPTION>

                                Managing     Special     Class A Beneficiaries    Class B Beneficiaries
                                Trustee    Beneficiary  -----------------------------------------------    Treasury
                                 Amount      Amount      Interests       Amount    Interests   Amount      Interests      Total
                               ---------   -----------  -----------  -----------   ---------  ---------   -----------   -----------
<S>                            <C>          <C>          <C>         <C>           <C>         <C>        <C>           <C>
Balance at December 31, 2000   $      -     $       -    1,934,755   $29,881,923   3,142,083   $      -   $(1,615,322)  $28,266,601
     Net income                   3,723        30,711            -       271,998           -     65,824             -       372,256
                               --------     ---------   ----------   -----------  ----------   --------   -----------   -----------
Balance at March 31, 2001      $  3,723     $  30,711    1,934,755   $30,153,921   3,142,083   $ 65,824   $(1,615,322)  $28,638,857
                               ========     =========   ==========   ===========  ==========   ========   ===========   ===========
</TABLE>


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

                                       5
<PAGE>

                             AFG Investment Trust D

                             STATEMENT OF CASH FLOWS

               For the three months ended March 31, 2001 and 2000

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                            2001                       2000
                                                                        ------------               ------------
<S>                                                                     <C>                        <C>
Cash flows provided by (used in) operating activities
Net income                                                              $    372,256               $    414,383
Adjustments to reconcile net income to net
 cash provided by operating activities:
  Depreciation and amortization                                            1,350,393                  1,513,060
  Accretion of bond discount                                                       -                     (2,495)
  Gain on sale of equipment                                                 (411,379)                  (283,460)
  Gain on sale of investment securities                                            -                    (86,079)
  Income from equity interests                                            (1,005,009)                         -
Changes in assets and liabilities:
  Rents receivable                                                           508,908                  1,187,976
  Accounts receivable - affiliate                                            236,309                  3,294,534
  Accounts receivable - other                                                      -                   (276,296)
  Guarantee fee receivable                                                   (33,945)                         -
  Interest receivable                                                         (7,909)                    12,500
  Other assets                                                                32,503                    (98,732)
  Accrued interest                                                            45,330                    145,479
  Accrued liabilities                                                       (106,312)                   (45,045)
  Accrued liabilities - affiliates                                            66,575                   (295,619)
  Deferred rental income                                                       3,922                   (248,559)
                                                                        ------------               ------------
     Net cash provided by operating activities                             1,051,642                  5,231,647
                                                                        ------------               ------------
Cash flows provided by (used in) investing activities
Proceeds from equipment sales                                                432,466                    348,275
Investment - affiliate                                                        14,500                     14,500
Investment - other                                                               500                          -
Interest in EFG Kirkwood                                                           -                   (192,865)
Interest in MILPI                                                         (7,485,653)                         -
Proceeds from sale of investment securities                                        -                    214,608
                                                                        ------------               ------------
     Net cash provided by (used in) investing activities                  (7,038,187)                   384,518
                                                                        ------------               ------------
Cash flows provided by (used in) financing activities
Proceeds from notes payable                                                        -                  6,091,738
Principal payments - notes payable                                        (1,183,353)                (1,641,227)
Distributions paid                                                                 -                (13,200,000)
                                                                        ------------               ------------
     Net cash used in financing activities                                (1,183,353)                (8,749,489)
                                                                        ------------               ------------
Net decrease in cash and cash equivalents                                 (7,169,898)                (3,133,324)
Cash and cash equivalents at beginning of period                           9,042,889                 11,335,028
                                                                        ------------               ------------
Cash and cash equivalents at end of period                              $  1,872,991               $  8,201,704
                                                                        ============               ============
Supplemental information
Cash paid during the period for interest                                $    557,170               $    473,527
                                                                        ============               ============
</TABLE>

See Note 7 to the financial statements regarding the Trust's acquisition of
interests in MILPI during the three months ended March 31, 2001.

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

                                       6
<PAGE>

                             AFG Investment Trust D

                        Notes to the Financial Statements

                                 March 31, 2001

                                   (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 2000 Annual Report. Except as disclosed herein, there
has been no material change to the information presented in the footnotes to the
2000 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, 2001 and December 31, 2000 and results of operations for
the three months ended March 31, 2001 and 2000 have been made and are reflected.

Certain amounts previously reported in the December 31, 2000 financial
statements have been reclassified to conform to the March 31, 2001 presentation.

NOTE 2 - CASH EQUIVALENTS AND INVESTMENT SECURITIES
---------------------------------------------------

The Trust considers all highly liquid investments with an original maturity of
three months or less to be cash equivalents. Investment securities consisted of
equity securities and debt securities that were classified as
available-for-sale. Available-for-sale securities were carried at fair value,
with unrealized gains and losses reported as a separate component of
participants' capital. The amortized cost of debt securities was adjusted for
amortization of premiums and accretion of discounts to maturity. Such
amortization and accretion are included in interest income on the accompanying
Statement of Operations.

At March 31, 2001, the Trust had $1,858,730 invested in federal agency discount
notes, repurchase agreements secured by U.S. Treasury Bills or interests in U.S.
Government securities, or other highly liquid overnight investments.


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 $10,799,293 are due as follows:

          For the year ending March 31, 2002         $    4,905,774
                                        2003              3,987,933
                                        2004              1,905,586
                                                     --------------

                                        Total        $   10,799,293
                                                     ==============

                                       7
<PAGE>

                             AFG Investment Trust D

                 Notes to the Financial Statements - (continued)

                                 March 31, 2001

                                  (Unaudited)



NOTE 4 - EQUIPMENT
------------------

The following is a summary of equipment owned by the Trust at March 31, 2001.
Remaining Lease Term (Months), as used below, represents the number of months
remaining from March 31, 2001 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.

<TABLE>
<CAPTION>

                                                               Remaining
                                                              Lease Term                       Equipment
         Equipment Type                                        (Months)                         at Cost
-----------------------------------                          -------------                  --------------
<S>                                                          <C>                            <C>
Aircraft                                                          15-33                     $   45,014,136
Locomotives                                                           0                          8,312,342
Materials handling                                                 0-26                          3,901,838
Construction and mining                                            0-15                          2,521,909
Research & test                                                       0                            338,749
Tractors and heavy duty trucks                                       28                            105,350
Computers and peripherals                                             0                             42,310
Communications                                                        0                              6,556
                                                                                            --------------
          Total equipment cost                                                                  60,243,190
          Accumulated depreciation                                                             (23,495,135)
                                                                                            --------------
          Equipment, net of accumulated depreciation                                        $   36,748,055
                                                                                            ==============
</TABLE>

At March 31, 2001, the Trust's equipment portfolio included equipment having a
proportionate original cost of $31,652,815, representing approximately 53% of
total equipment cost.

Certain of the equipment and related lease payment streams were used to secure
the term loans with third-party lenders. The preceding summary of equipment
includes leveraged equipment having an original cost of $45,014,136 and a net
book value of $32,773,068 at March 31, 2001 (see Note 9).

At March 31, 2001, the cost and net book value of equipment held for sale or
re-lease was $8,425,247 and $3,500,963, respectively. The AFG ASIT Corporation,
the managing trustee of the Trust ("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 5 - INTEREST 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 in Canada called Kettle
Valley. EFG Kettle Development LLC, upon receiving the Buyers' contributions for
their membership interests, 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 is zoned for 1,120 residential units in addition
to commercial space. To date, 95 residential units have been

                                       8
<PAGE>

                             AFG Investment Trust D

                 Notes to the Financial Statements - (continued)

                                 March 31, 2001

                                   (Unaudited)

constructed and 4 units are under construction, all of which have been sold. 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 $4,365,372, including a 1% acquisition fee of $43,222 paid to EFG. This
acquisition was funded with cash of $3,064,700 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 by
the Trust's interest in EFG/Kettle Development LLC. The Trust's cost basis in
this joint venture was approximately $642,000 greater than its equity interest
in the underlying net assets at December 31, 1999. This difference is being
amortized over a period of 10 years beginning January 1, 2000. The amount
amortized is included as an offset to Investment in Kettle Valley and was
$16,050 for each of the three months ended March 31, 2001 and 2000.

The Trust accounts for its interest in Kettle Valley using the equity method of
accounting. Under the equity method of accounting, the Trust's interest is (i)
increased (decreased) to reflect the Trust's share of income (loss) of the joint
venture and (ii) decreased to reflect any distributions the Trust received from
the joint venture. The Trust's interest was decreased by $58,091 during the
period ended March 31, 2001 reflecting its share of loss from Kettle Valley.

In addition, the seller purchased a residual sharing interest in a Boeing
767-300 aircraft owned by the Buyers and leased to 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 both
March 31, 2001 and December 31, 2000.

NOTE 6 - INTEREST IN EFG KIRKWOOD
---------------------------------

On May 1, 1999, the Trust and three affiliated trusts (collectively the
"Trusts") and Semele Group Inc. formed a joint venture, EFG Kirkwood LLC ("EFG
Kirkwood"), for the purpose of acquiring preferred and common stock interests in
Kirkwood Associates Inc. ("KAI"). The Trusts purchased Class A membership
interests in EFG Kirkwood and Semele purchased Class B membership interests in
EFG Kirkwood. Generally, the Class A interest holders are entitled to certain
preferred returns prior to distribution payments to the Class B interest holder.
The Trusts collectively own 100% of the Class A membership interests in EFG
Kirkwood and Semele owns 100% of the Class B membership interests. The Trusts'
interests in EFG Kirkwood constitute 50% of the voting securities of that entity
under the operating agreement for the LLC, which gives equal voting rights to
Class A and Class B membership interests. The Managing Trustee is the manager of
EFG Kirkwood.

On April 30, 2000, KAI's ownership interests in certain assets and substantially
all of its liabilities were transferred to Mountain Resort Holdings LLC
("Mountain Resort"). On May 1, 2000, EFG Kirkwood exchanged its interest in
KAI's common and preferred stock for corresponding pro-rata membership interests
in Mountain Resort. EFG Kirkwood holds approximately 37.9% of the membership
interests in Mountain Resort. Mountain Resort, through four wholly owned
subsidiaries, owns and operates the Kirkwood Mountain Resort, a ski resort
located in northern California, a public utility that services the local
community, and land that is held for residential and commercial development. The
Trust holds a 27.9% membership interest in EFG Kirkwood and correspondingly
holds 30% of EFG Kirkwood's Class A voting rights.

Subsequent to making its ownership interest in Mountain Resort, EFG Kirkwood
acquired 50% of the membership interests in Mountain Springs Resorts LLC
("Mountain Springs"). Mountain Springs, through a wholly owned subsidiary, owns
80% of the common stock and 100% of the Class B Preferred stock in an entity
that owns the Purgatory Ski resort in Durango, Colorado.

                                       9
<PAGE>

                             AFG Investment Trust D

                 Notes to the Financial Statements - (continued)

                                 March 31, 2001

                                   (Unaudited)


The Trust's ownership interest in EFG Kirkwood had an original cost of
$2,995,615; including a 1% acquisition fee ($29,660) paid to EFG. The Trust's
ownership interest in EFG Kirkwood is accounted for on the equity method and the
Trust recorded income of $1,022,463 for the quarter ended March 31, 2001
representing its pro-rata share of the net income of EFG Kirkwood.

NOTE 7 - INTEREST IN MILP
-------------------------

In December 2000, the Trust and three affiliated Trusts (collectively, the
"Trusts") formed MILPI Holdings, LLC ("MILPI"), which formed MILPI Acquisition
Corp. ("MILPI Acquisition"), a wholly owned subsidiary of MILPI. The Trusts
collectively paid $1.2 million for their membership interest in MILPI and MILPI
purchased the shares of MILPI Acquisition for an aggregate purchase price of
$1.2 million at December 31, 2000. MILPI Acquisition entered into a definitive
agreement (the "Agreement") with PLM International, Inc. ("PLM"), an equipment
leasing and asset management company, for the purpose of acquiring up to 100% of
the outstanding common stock of PLM, for an approximate purchase price of up to
$27 million. In connection with the acquisition, on December 29, 2000, MILPI
Acquisition commenced a tender offer to purchase any and all of PLM's
outstanding common stock.

Pursuant to the cash tender offer, MILPI Acquisition acquired 83% of the PLM
common stock in February 2001 for a total purchase price of approximately $21.7
million. Under the terms of the Agreement, with the approval of the holders of
50.1% of the outstanding common stock of PLM, MILPI Acquisition will merge into
PLM, with PLM being the surviving entity. PLM filed a proxy statement with the
Securities and Exchange Commission (the "SEC") on February 9, 2001 for a special
meeting of its shareholders to vote on the merger proposal. Because MILPI
Acquisition owns 83% of the PLM common stock, its vote alone would be sufficient
to assure the approval of the merger proposal at the special meeting and MILPI
has agreed to vote all of its shares in favor of the merger proposal. Once the
merger is approved, the Trusts would then jointly own 100% of the outstanding
common stock of PLM through their 100% interest in MILPI. However, completion of
the SEC staff's review of the proxy statement for approval of the merger is
dependent in part on the satisfactory resolution of the Trust's discussions with
the staff regarding its possible status as an inadvertent investment company. If
the merger is approved, the Trusts may be required to provide an additional $4.7
million to acquire the remaining 17% of PLM's outstanding common stock.

The Trust has a 36% membership interest in MILPI having an original cost of
$8,187,653. The cost of the Trust's interest in MILPI reflects MILPI
Acquisition's cost of acquiring the common stock of PLM, including the amount
paid for the shares tendered of $7,839,260, a 1% acquisition fee paid to a
wholly-owned subsidiary of Semele of $78,393 and capitalized transaction costs
of $270,000. The capitalized transaction costs will be reimbursed by the Trust
to MILPI and are included in Accrued Liabilities - Affiliates on the
accompanying Statement of Financial Position at March 31, 2001. The Trust's cost
basis in its interest in MILPI was approximately $246,000 greater than its
equity interest in the underlying net assets of MILPI at February 9, 2001 based
on the estimated fair value of the assets and liabilities of PLM. The Trusts are
obtaining additional information to refine the estimate of fair values. This
additional information may result in revisions to the estimated fair values.
This difference is being amortized over a period of 7 years beginning March 1,
2001. The amount amortized is included as an offset to Interest in MILPI and was
$2,929 for the quarter ended March 31, 2001.

Equis II Corporation has voting control of the Trusts and owns the Managing
Trustee of the Trusts. Semele owns Equis II Corporation. Mr. Engle and Mr. Coyne
who are a director and an officer of the Trust, respectively, are also officers
and directors of, and own significant stock in, Semele. Mr. Engle and Mr. Coyne
are officers and directors of MILPI Acquisition.

The Trust's ownership interest in MILPI is accounted for on the equity method
and the Trust recorded income of $40,637 for the three months ended March 31,
2001 representing its pro-rata share of the income of MILPI.

                                      10
<PAGE>

                             AFG Investment Trust D

                 Notes to the Financial Statements - (continued)

                                 March 31, 2001

                                   (Unaudited)

NOTE 8 - 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, 2001 and
2000, which were paid or accrued by the Trust to EFG or its Affiliates, are as
follows:

<TABLE>
<CAPTION>
                                                              2001                 2000
                                                        ---------------      ---------------
     <S>                                                <C>                  <C>
     Acquisition fees                                   $        78,393      $             --
     Management fees                                             97,729               115,283
     Administrative charges                                      41,265                74,336
     Reimbursable operating expenses
         due to third parties                                   400,020                96,721
                                                        ---------------      ----------------

                                     Total              $       617,407      $        286,340
                                                        ===============      ================
</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,
2001, the Trust was owed $111,222 by EFG for such funds and the interest
thereon. These funds were remitted to the Trust in April 2001.


NOTE 9 - NOTES PAYABLE
----------------------

Notes payable at March 31, 2001 consisted of installment notes of $25,579,884
payable to banks and institutional lenders. The notes bear interest rates
ranging between 6.92% and 9.176%, except for two notes, which bear fluctuating
interest rates based on LIBOR plus a margin. All of the installment notes are
non-recourse and are collateralized by the Trust's equipment and assignment of
the related lease payments, except for one note in the amount of $463,588, which
is collateralized by the Trust's ownership interests in EFG Kettle Valley
Development LLC (see Note 5). Generally, the equipment-related installments
notes will be fully amortized by noncancellable rents. However, the Trust has
balloon payment obligations of $15,806,720, $4,594,449 and $282,421 at the
expiration of the lease terms related to its interest in aircraft leased to SAS
in December 2003, Emery Worldwide in July 2002, and Reno Air, Inc, in January
2003, respectively.

Management believes that the carrying amount of the note payable approximates
fair value at March 31, 2001 based on its experience and understanding of the
market for instruments with similar terms.

The annual maturities of the note are as follows:

For the year ending March 31,           2002      $    2,416,436
                                        2003           6,588,954
                                        2004          16,574,494
                                                  --------------

                                       Total      $   25,579,884
                                                  ==============

                                      11
<PAGE>

                             AFG Investment Trust D

                 Notes to the Financial Statements - (continued)

                                 March 31, 2001

                                   (Unaudited)

NOTE 10 - GUARANTEE AGREEMENT
-----------------------------


On March 8, 2000, the Trust and three affiliated trusts (collectively, the
"Trusts") entered into a guarantee agreement whereby the Trusts, jointly and
severally, have guaranteed the payment obligations under a master lease
agreement between Echelon Commercial LLC, a newly-formed Delaware company that
is controlled by Gary D. Engle, President and Chief Executive Officer of EFG, as
lessee, and Heller Affordable Housing of Florida, Inc., and two other entities,
as lessor ("Heller"). The lease payments of Echelon Commercial LLC to Heller are
supported by lease payments to Echelon Commercial LLC from various sub-lessees
who are parties to commercial and residential lease agreements under the master
lease agreement. The guarantee of lease payments by the Trusts was capped at a
maximum of $34,500,000, excluding expenses that could result in the event that
Echelon Commercial LLC experiences a default under the terms of the master lease
agreement.

As a result of principal reductions on the average guarantee amount, an amended
and restated agreement was entered into in December 2000 that reduced the
guaranteed amount among the Trusts. At March 31, 2001, the Trust was responsible
for 46.34% of the current guaranteed amount of $7,000,000, or $3,243,800. In
consideration for its guarantee, the Trust will receive an annualized fee equal
to 4% of the average guarantee amount outstanding during each quarterly period.
Accrued but unpaid fees will accrue and compound interest quarterly at an
annualized interest rate of 7.5% until paid. The Trust will receive minimum
aggregate fees for its guarantee of not less than $463,400, excluding interest.
During the quarter ended March 31, 2001, the Trust recognized income of $39,691
related to the guarantee fee. During the quarter ended March 31, 2000, the Trust
received an upfront cash fee of $231,700 and recognized total income of $272,556
from such fee.The guarantee fee is reflected as Other Income on the accompanying
Statement of Operations.

NOTE 11 - CONTINGENCIES
-----------------------

The Investment Company Act of 1940 (the "Act") places restrictions on the
capital structure and business activities of companies registered thereunder.
The Trust has active business operations in the financial services industry,
primarily equipment leasing, and in the real estate industry through its
interest in EFG Kirkwood and Kettle Valley. The Trust does not intend to engage
in investment activities in a manner or to an extent that would require the
Trust to register as an investment company under the Act. However, it is
possible that the Trust may unintentionally engage in an activity or activities
that may be construed to fall within the scope of the Act. The Managing Trustee
is engaged in discussions with the staff of the Securities and Exchange
Commission regarding whether or not the Trust may be an inadvertent investment
company by virtue of its recent acquisition activities. The Managing Trustee has
consulted counsel and believes that the Trust is not an investment company. If
the Trust was determined to be an investment company, its business would be
adversely affected. The Act, among other things, prohibits an unregistered
investment company from offering securities for sale or engaging in any business
or interstate commerce. If necessary, the Trust intends to avoid being deemed an
investment company by disposing of or acquiring certain assets that it might not
otherwise dispose of or acquire.

NOTE 12 - OPERATING SEGMENTS
----------------------------

The Trust has two principal operating segments: 1) Equipment Leasing and 2) Real
Estate Ownership, Development & Management. The Equipment Leasing segment
includes the management of the Trust's equipment lease portfolio and the Trust's
investment in MILPI Holdings LLC ("MILPI"). MILPI owns MILPI Acquisition Corp.,
("MILPI Acquisition") which owns the majority interest in PLM International,
Inc., ("PLM") an equipment leasing and asset management company. The Real Estate
segment includes the ownership, management and development of commercial
properties, recreational properties, condominiums, interval ownership units,
townhomes, single family homes and land sales included in the Trust's ownership
interests in EFG Kirkwood and Kettle Valley.

The Trust's reportable segments offer different products or services and are
managed separately because each requires different operating strategies and
management expertise. There are no material intersegment sales or transfers.

Segment information for the quarters ended March 31, 2001 and 2000 is summarized
below.

<TABLE>
<CAPTION>

                                                   Quarters ended March 31,
                                       -------------------------------------------------
                                             2001                           2000
                                       ------------------             ------------------
<S>                                    <C>                            <C>
Total Income:
       Equipment Leasing                    $  1,899,791                   $ 2,832,789
       Real Estate                               964,372                             -
                                            ------------                   -----------
               Total                        $  2,864,163                   $ 2,832,789
                                            ============                   ===========
</TABLE>

<TABLE>
<S>                                         <C>                            <C>
Operating Expenses and Management Fees:
       Equipment Leasing                    $    507,374                   $   267,717
       Real Estate                                31,640                        18,623
                                            ------------                   -----------
               Total                        $    539,014                   $   286,340
                                            ============                   ===========

Interest Expense:
       Equipment Leasing                    $    594,576                   $   602,198
       Real Estate                                 7,924                        16,808
                                            ------------                   -----------
               Total                        $    602,500                   $   619,006
                                            ============                   ===========

Depreciation and Amortization Expense:
       Equipment Leasing                    $  1,334,343                   $ 1,497,010
       Real Estate                                16,050                        16,050
                                            ------------                   -----------
               Total                        $  1,350,393                   $ 1,513,060
                                            ============                   ===========

 Net Income                                 $    372,256                   $   414,383
                                            ============                   ===========
</TABLE>

Three months ended March 31, 2001 compared to the three months ended March 31,
------------------------------------------------------------------------------
2000:
-----

Results of Operations
---------------------

Equipment Leasing
-----------------

For the three months ended March 31, 2001, the Trust recognized lease revenue of
$1,334,307 compared to $2,055,692 for same period in 2000. The decrease in lease
revenue from 2000 to 2001 resulted primarily 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 future reinvestment; however, the extent of such
impact cannot be determined at this time. Future lease term expirations and
equipment sales will result in a reduction in the lease revenue recognized.

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 Equis Financial Group Limited Partnership, a Massachusetts limited
partnership, ("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, 2001 was $73,777 compared
to $135,002 for the same period in 2000. Interest income is typically generated
from the temporary investment of rental receipts and equipment sales proceeds in
short-term instruments. The amount of future interest income is expected to
fluctuate as a result of changing interest rates and the amount of cash
available for investment, among other factors.

During the three months ended March 31, 2001, the Trust sold equipment having a
net book value of $21,087 to existing lessees and third parties. These sales
resulted in a net gain, for financial statement purposes, of $411,379 compared
to a net gain of $283,460 on equipment having a net book value of $64,815 during
the same period in 2000.

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 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.

During the quarter ended March 31, 2000, the Trust sold investment securities
having a book value of $128,529, resulting in a gain, for financial statement
purposes, of $86,079.

On March 8, 2000, the Trust and three affiliated trusts entered into a guarantee
agreement whereby the trusts, jointly and severally, guaranteed the payment
obligations under a master lease agreement between Echelon Commercial LLC, as
lessee, and Heller Affordable Housing of Florida, Inc., and two other entities,
as lessor ("Heller"). (See Note 10 to the financial statements.) In
consideration for its guarantee, the Trust will receive an annualized fee equal
to 4% of the average guarantee amount outstanding during each quarterly period.
Accrued but unpaid fees will accrue and compound interest quarterly at an
annualized interest rate of 7.5% until paid. During the quarter ended March 31,
2001, the Trust recognized income of $39,691 related to the guarantee fee.
During the quarter ended March 31, 2000, the Trust received an upfront cash fee
of $231,700 and recognized total income of $272,556 from such fee. The guarantee
fee is reflected as Other Income on the accompanying Statement of Operations.

Depreciation expense was $1,321,201 and $1,490,201 for the three months ended
March 31, 2001 and 2000, 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. In addition, the Trust recorded amortization expense of $10,213 and $6,809
during the three months ended March 31, 2001 and 2000 in connection with
capitalized deferred financing costs.

Interest expense was $594,576 and $602,198 for the three months ended March 31,
2001 and 2000, respectively. Interest expense will decrease in the future as the
principal balance of notes payable is reduced through the application of rent
receipts to outstanding debt.

Management fees related to equipment leasing were $66,089 and $96,660 for the
three months ended March 31, 2001 and 2000, 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, subject to certain limitations.

Operating expenses were $441,285 and $171,057 during the three months ended
March 31, 2001 and 2000, respectively. In 2001, operating expenses included
approximately $40,000 for ongoing legal matters and approximately $104,000 for
remarketing costs related to the re-lease of an aircraft leased to Scandinavian
Airlines System. Operating expenses also included approximately $121,000 of
costs reimbursed to EFG as a result of the successful acquisition of the PLM
common stock by MILPI Acquisition, as discussed below. In conjunction with the
acquisition of the PLM common stock, EFG became entitled to recover certain out
of pocket expenses which it had previously incurred. Other operating expenses
consist primarily of administrative charges, professional service costs, such as
audit and legal fees, as well as printing, distribution and remarketing
expenses. 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.

During the quarter ended March 31, 2001, the Trust recorded income of $40,637
from its ownership interest in MILPI. This income represents the Trust's share
of the net income of MILPI recorded under the equity method of accounting. The
Trust recorded $2,929 of amortization expense for the three months ended March
31, 2001, which related to the goodwill recorded at the time of the acquisition
of the PLM common stock by MILPI Acquisition.
(See Note 7 to the financial statements.)


Real Estate
-----------

Management fees for non-equipment assets were $31,640 and $18,623 for the
quarters ended March 31, 2001 and 2000, respectively. Management fees for
non-equipment assets, excluding cash, are 1% of such assets under management.

Interest expense on a note payable related to the Trust's acquisition of its
interest in Kettle Valley was $7,924 and $16,808 for the quarters ended March
31, 2001 and 2000, respectively. Interest expense will decrease in the future as
payments reduce the outstanding principal balance of the note.

For the quarter ended March 31, 2001, the Trust recorded a loss of $58,091 from
its ownership interest in Kettle Valley. This loss represents the Trust's share
of the net loss of Kettle Valley recorded under the equity method of accounting.
In addition, the Trust recorded amortization expense of $16,050 during each of
the three months ended March 31, 2001 and 2000, in connection with its interest
in Kettle Valley. (See Note 5 to financial statements).

For the quarter ended March 31, 2001, the Trust recorded income of $1,022,463
from its ownership interest in EFG Kirkwood. This income represents the Trust's
share of the net income of EFG Kirkwood recorded under the equity method of
accounting. Due to the seasonal nature of EFG Kirkwood's operations, the
financial results for the quarter ended March 31, 2001 may not be indicative of
future periods. (See Note 6 to the financial statements).

                                      12
<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 collection of the Trust's contracted rents,
the realization of residual proceeds for the Trust's equipment, the performance
of the Trust's non-equipment assets, and future economic conditions.

The Investment Company Act of 1940 (the "Act") places restrictions on the
capital structure and business activities of companies registered thereunder.
The Trust has active business operations in the financial services industry,
primarily equipment leasing, and in the real estate industry through its
interest in EFG Kirkwood LLC ("EFG Kirkwood") and EFG Kettle Development LLC
("Kettle Valley"). The Trust does not intend to engage in investment activities
in a manner or to an extent that would require the Trust to register as an
investment company under the Act. However, it is possible that the Trust may
unintentionally engage in an activity or activities that may be construed to
fall within the scope of the Act. The Managing Trustee is engaged in discussions
with the staff of the Securities and Exchange Commission regarding whether or
not the Trust may be an inadvertent investment company by virtue of its recent
acquisition activities. The Managing Trustee has consulted counsel and believes
that the Trust is not an investment company. If the Trust was determined to be
an investment company, its business would be adversely affected. The Act, among
other things, prohibits an unregistered investment company from offering
securities for sale or engaging in any business or interstate commerce. If
necessary, the Trust intends to avoid being deemed an investment company by
disposing of or acquiring certain assets that it might not otherwise dispose of
or acquire.

Segment Reporting
-----------------

The Trust has two principal operating segments: 1) Equipment Leasing and 2) Real
Estate Ownership, Development & Management. The Equipment Leasing segment
includes the management of the Trust's equipment lease portfolio and the Trust's
investment in MILPI Holdings LLC ("MILPI"). MILPI owns MILPI Acquisition Corp.,
("MILPI Acquisition") which owns the majority interest in PLM International,
Inc., ("PLM") an equipment leasing and asset management company. The Real Estate
segment includes the ownership, management and development of commercial
properties, recreational properties, condominiums, interval ownership units,
townhomes, single family homes and land sales included in the Trust's ownership
interests in EFG Kirkwood and Kettle Valley.

The Trust's reportable segments offer different products or services and are
managed separately because each requires different operating strategies and
management expertise. There are no material intersegment sales or transfers.

Segment information for the quarters ended March 31, 2001 and 2000 is summarized
below.

<TABLE>
<CAPTION>

                                                   Quarters ended March 31,
                                       -------------------------------------------------
                                             2001                           2000
                                       ------------------             ------------------
<S>                                    <C>                            <C>
Total Income:
       Equipment Leasing                    $  1,899,791                   $ 2,832,789
       Real Estate                               964,372                             -
                                            ------------                   -----------
               Total                        $  2,864,163                   $ 2,832,789
                                            ============                   ===========
</TABLE>

                                      13
<PAGE>

<TABLE>
<S>                                         <C>                            <C>
Operating Expenses and Management Fees:
       Equipment Leasing                    $    507,374                   $   267,717
       Real Estate                                31,640                        18,623
                                            ------------                   -----------
               Total                        $    539,014                   $   286,340
                                            ============                   ===========

Interest Expense:
       Equipment Leasing                    $    594,576                   $   602,198
       Real Estate                                 7,924                        16,808
                                            ------------                   -----------
               Total                        $    602,500                   $   619,006
                                            ============                   ===========

Depreciation and Amortization Expense:
       Equipment Leasing                    $  1,334,343                   $ 1,497,010
       Real Estate                                16,050                        16,050
                                            ------------                   -----------
               Total                        $  1,350,393                   $ 1,513,060
                                            ============                   ===========

 Net Income                                 $    372,256                   $   414,383
                                            ============                   ===========
</TABLE>

Three months ended March 31, 2001 compared to the three months ended March 31,
------------------------------------------------------------------------------
2000:
-----

Results of Operations
---------------------

Equipment Leasing
-----------------

For the three months ended March 31, 2001, the Trust recognized lease revenue of
$1,334,307 compared to $2,055,692 for same period in 2000. The decrease in lease
revenue from 2000 to 2001 resulted primarily 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 future reinvestment; however, the extent of such
impact cannot be determined at this time. Future lease term expirations and
equipment sales will result in a reduction in the lease revenue recognized.

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 Equis Financial Group Limited Partnership, a Massachusetts limited
partnership, ("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, 2001 was $73,777 compared
to $135,002 for the same period in 2000. Interest income is typically generated
from the temporary investment of rental receipts and equipment sales proceeds in
short-term instruments. The amount of future interest income is expected to
fluctuate as a result of changing interest rates and the amount of cash
available for investment, among other factors.

During the three months ended March 31, 2001, the Trust sold equipment having a
net book value of $21,087 to existing lessees and third parties. These sales
resulted in a net gain, for financial statement purposes, of $411,379 compared
to a net gain of $283,460 on equipment having a net book value of $64,815 during
the same period in 2000.

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 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.

                                      14
<PAGE>

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.

During the quarter ended March 31, 2000, the Trust sold investment securities
having a book value of $128,529, resulting in a gain, for financial statement
purposes, of $86,079.

On March 8, 2000, the Trust and three affiliated trusts entered into a guarantee
agreement whereby the trusts, jointly and severally, guaranteed the payment
obligations under a master lease agreement between Echelon Commercial LLC, as
lessee, and Heller Affordable Housing of Florida, Inc., and two other entities,
as lessor ("Heller"). (See Note 10 to the financial statements.) In
consideration for its guarantee, the Trust will receive an annualized fee equal
to 4% of the average guarantee amount outstanding during each quarterly period.
Accrued but unpaid fees will accrue and compound interest quarterly at an
annualized interest rate of 7.5% until paid. During the quarter ended March 31,
2001, the Trust recognized income of $39,691 related to the guarantee fee.
During the quarter ended March 31, 2000, the Trust received an upfront cash fee
of $231,700 and recognized total income of $272,556 from such fee. The guarantee
fee is reflected as Other Income on the accompanying Statement of Operations.

Depreciation expense was $1,321,201 and $1,490,201 for the three months ended
March 31, 2001 and 2000, 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. In addition, the Trust recorded amortization expense of $10,213 and $6,809
during the three months ended March 31, 2001 and 2000 in connection with
capitalized deferred financing costs.

Interest expense was $594,576 and $602,198 for the three months ended March 31,
2001 and 2000, respectively. Interest expense will decrease in the future as the
principal balance of notes payable is reduced through the application of rent
receipts to outstanding debt.

Management fees related to equipment leasing were $66,089 and $96,660 for the
three months ended March 31, 2001 and 2000, 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, subject to certain limitations.

Operating expenses were $441,285 and $171,057 during the three months ended
March 31, 2001 and 2000, respectively. In 2001, operating expenses included
approximately $40,000 for ongoing legal matters and approximately $104,000 for
remarketing costs related to the re-lease of an aircraft leased to Scandinavian
Airlines System. Operating expenses also included approximately $121,000 of
costs reimbursed to EFG as a result of the successful acquisition of the PLM
common stock by MILPI Acquisition, as discussed below. In conjunction with the
acquisition of the PLM common stock, EFG became entitled to recover certain out
of pocket expenses which it had previously incurred. Other operating expenses
consist primarily of administrative charges, professional service costs, such as
audit and legal fees, as well as printing, distribution and remarketing
expenses. 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.

                                      15
<PAGE>

During the quarter ended March 31, 2001, the Trust recorded income of $40,637
from its ownership interest in MILPI. This income represents the Trust's share
of the net income of MILPI recorded under the equity method of accounting. The
Trust recorded $2,929 of amortization expense for the three months ended March
31, 2001, which related to the goodwill recorded at the time of the acquisition
of the PLM common stock by MILPI Acquisition.
(See Note 7 to the financial statements.)


Real Estate
-----------

Management fees for non-equipment assets were $31,640 and $18,623 for the
quarters ended March 31, 2001 and 2000, respectively. Management fees for
non-equipment assets, excluding cash, are 1% of such assets under management.

Interest expense on a note payable related to the Trust's acquisition of its
interest in Kettle Valley was $7,924 and $16,808 for the quarters ended March
31, 2001 and 2000, respectively. Interest expense will decrease in the future as
payments reduce the outstanding principal balance of the note.

For the quarter ended March 31, 2001, the Trust recorded a loss of $58,091 from
its ownership interest in Kettle Valley. This loss represents the Trust's share
of the net loss of Kettle Valley recorded under the equity method of accounting.
In addition, the Trust recorded amortization expense of $16,050 during each of
the three months ended March 31, 2001 and 2000, in connection with its interest
in Kettle Valley. (See Note 5 to financial statements).

For the quarter ended March 31, 2001, the Trust recorded income of $1,022,463
from its ownership interest in EFG Kirkwood. This income represents the Trust's
share of the net income of EFG Kirkwood recorded under the equity method of
accounting. Due to the seasonal nature of EFG Kirkwood's operations, the
financial results for the quarter ended March 31, 2001 may not be indicative of
future periods. (See Note 6 to the financial statements).

Liquidity and Capital Resources and Discussion of Cash Flows
------------------------------------------------------------

The Trust by its nature is a limited life entity. 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 $1,051,642
and $5,231,647 for the three months ended March 31, 2001 and 2000, respectively.
Future renewal, re-lease and equipment sale activities will cause a decline in
the Trust's lease revenue and corresponding sources of operating cash. Expenses
associated with rental activities, such as management fees, also will decline as
the Trust experiences a higher frequency of remarketing events. The amount of
future interest income is expected to fluctuate as a result of changing interest
rates and the level of cash available for investment, among other factors.

At lease inception, the Trust's equipment was 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 leases will be
maintained. The credit quality of an individual lease may deteriorate after the
lease is entered into. 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.

In December 2000, the Trust and three affiliated Trusts (collectively, the
"Trusts") formed MILPI, which formed MILPI Acquisition, a wholly owned
subsidiary of MILPI. The Trusts collectively paid $1.2 million for their
membership interest in MILPI and MILPI purchased the shares of MILPI Acquisition
for an aggregate purchase price of $1.2 million at December 31, 2000. MILPI
Acquisition entered into a definitive agreement (the "Agreement") with PLM, an
equipment leasing and asset management company, for the purpose of acquiring up
to 100% of the outstanding common stock of PLM, for an approximate purchase
price of up to $27 million. In

                                      16
<PAGE>

connection with the acquisition, on December 29, 2000, MILPI Acquisition
commenced a tender offer to purchase any and all of PLM's outstanding common
stock.

Pursuant to the cash tender offer, MILPI Acquisition acquired 83% of the PLM
common stock in February 2001 for a total purchase price of approximately $21.7
million. Under the terms of the Agreement, with the approval of the holders of
50.1% of the outstanding common stock of PLM, MILPI Acquisition will merge into
PLM, with PLM being the surviving entity. PLM filed a proxy statement with the
Securities and Exchange Commission (the "SEC") on February 9, 2001 for a special
meeting of its shareholders to vote on the merger proposal. Because MILPI
Acquisition owns 83% of the PLM common stock, its vote alone would be sufficient
to assure the approval of the merger proposal at the special meeting and MILPI
has agreed to vote all of its shares in favor of the merger proposal. Once the
merger is approved, the Trusts would then jointly own 100% of the outstanding
common stock of PLM through their 100% interest in MILPI. However, completion of
the SEC staff's review of the proxy statement for approval of the merger is
dependent in part on the satisfactory resolution of the Trust's discussions with
the staff regarding its possible status as an inadvertent investment company. If
the merger is approved, the Trusts may be required to provide an additional $4.7
million to acquire the remaining 17% of PLM's outstanding common stock.

The Trust has a 36% membership interest in MILPI having an original cost of
$8,187,653. The cost of the Trust's interest in MILPI reflects MILPI
Acquisition's cost of acquiring the common stock of PLM, including the amount
paid for the shares tendered of $7,839,260, a 1% acquisition fee paid to a
wholly-owned subsidiary of Semele of $78,393 and capitalized transaction costs
of $270,000. The capitalized transaction costs will be reimbursed by the Trust
to MILPI and are included in Accrued Liabilities - Affiliates on the
accompanying Statement of Financial Position at March 31, 2001. The Trust's cost
basis in its interest in MILPI was approximately $246,000 greater than its
equity interest in the underlying net assets of MILPI at February 9, 2001 based
on the estimated fair value of the assets and liabilities of PLM. The Trusts are
obtaining additional information to refine the estimate of fair values. This
additional information may result in revisions to the estimated fair values.
This difference is being amortized over a period of 7 years beginning March 1,
2001. The amount amortized is included as an offset to Interest in MILPI and was
$2,929 for the quarter ended March 31, 2001. The Trust's ownership interest in
MILPI is accounted for on the equity method, as described above.

Equis II Corporation has voting control of the Trusts and owns the Managing
Trustee of the Trusts. Semele owns Equis II Corporation. Mr. Engle and Mr. Coyne
who are a director and an officer of the Trust, respectively, are also officers
and directors of, and own significant stock in, Semele. Mr. Engle and Mr. Coyne
are officers and directors of MILPI Acquisition.

During the three months ended March 31, 2000, the Trust expended $192,865 for
its interest in EFG Kirkwood (see Note 6 to the financial statements). During
the three months ended March 31, 2001 and 2000, the Trust realized net cash
proceeds from equipment disposals of $432,466 and $348,275, respectively. Future
inflows of cash from equipment 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 also realized proceeds from the
sale of investment securities of $214,608 during the three months ended March
31, 2000.

At March 31, 2001, the Trust was due aggregate future minimum lease payments of
$10,799,293 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 $25,579,884 (see Note 9 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.

The Trust has a 49.4% ownership interest in Kettle Valley. Kettle Valley is a
joint venture among the Trust and an affiliated trust formed for the purpose of
acquiring a 49.9% indirect ownership interest in a Canadian real estate
development in Kelowna, British Columbia in Canada. AFG ASIT Corporation manages
Kettle Valley and the development is managed by a Canadian affiliate of EFG (See
Note 5 to the financial statements).

The Trust also has an ownership interest in EFG Kirkwood. EFG Kirkwood is a
joint venture among the Trust, certain affiliated Trusts and Semele Group Inc.
and is managed by AFG ASIT Corporation. EFG Kirkwood is a

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<PAGE>

member in two joint ventures, Mountain Resort Holdings LLC ("Mountain Resort")
and Mountain Springs Resort LLC ("Mountain Springs"). See Note 6 to the
financial statements.

Mountain Resort, through four wholly owned subsidiaries, owns and operates the
Kirkwood Mountain Resort, a ski resort located in northern California, a public
utility that services the local community, and land that is held for residential
and commercial development. Mountain Springs, through a wholly owned subsidiary,
owns a controlling interest in the Purgatory Ski resort in Durango, Colorado.

The risks generally associated with real estate include, without limitation, the
existence of senior financing or other liens on the properties, general or local
economic conditions, property values, the sale of properties, interest rates,
real estate taxes, other operating expenses, the supply and demand for
properties involved, zoning and environmental laws and regulations, and other
governmental rules.

The Trust's involvement in real estate development also introduces financial
risks, including the potential need to borrow funds to develop the real estate
projects. While the Trust's management presently does not foresee any unusual
risks in this regard, it is possible that factors beyond the control of the
Trust, its affiliates and joint venture partners, such as a tightening credit
environment, could limit or reduce its ability to secure adequate credit
facilities at a time when they might be needed in the future. Alternatively, the
Trust could establish joint ventures with other parties to share participation
in its development projects.

Ski resorts are subject to a number of risks, including weather-related risks.
The ski resort business is seasonal in nature and insufficient snow during the
winter season can adversely effect the profitability of a given resort. Many
operators of ski resorts have greater resources and experience in the industry
than the Trust, its affiliates and its joint venture partners.

The Trust obtained long-term financing in connection with certain equipment
leases. The repayments of principal related to such indebtedness are reported as
a component of financing activities on the accompanying Statement of Cash Flows.
At March 31, 2001, the Trust had debt obligations outstanding totaling
$25,579,884. These notes will be partially amortized by the remaining contracted
lease payments. However, the Trust has balloon payment obligations of
$15,806,720, $4,594,449 and $282,421 at the expiration of the lease terms
related to its interest in aircraft leased to Scandanavian Airlines System in
December 2003, Emery Worldwide in July 2002, and Reno Air, Inc, in January
2003, respectively.

The Managing Trustee evaluated and pursued a number of potential new
acquisitions, several of which the Managing Trustee concluded had market returns
that it believed were less than adequate given the potential risks. Most
transactions involved the equipment leasing, business finance and real estate
development industries. Although the Managing Trustee intends to continue to
evaluate additional new investments, it anticipates that the Trust will be able
to fund these new investments with cash on hand or other sources, such as the
proceeds from future asset sales or refinancing and new indebtedness. As a
result, the Trust declared a special cash distribution during the fourth quarter
of 1999 to the Trust Beneficiaries totaling $13,200,000 which was paid January
2000.

After the special distribution in January 2000, the Trust adopted a new
distribution policy and suspended the payment of regular monthly cash
distributions. Looking forward, the Managing Trustee presently does not expect
to reinstate cash distributions until expiration of the Trust's reinvestment
period in December 2002; however, the Managing Trustee periodically will review
and consider other one-time distributions. In addition to maintaining sale
proceeds for reinvestment, the Managing Trustee expects that the Trust will
retain cash from operations to fully retire its balloon debt obligations and for
the continued maintenance of the Trust's assets. The Managing Trustee believes
that this change in policy is in the best interests of the Trust over the long
term.

Historically, cash distributions to the Managing Trustee, the Special
Beneficiary and the Beneficiaries had been 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 on the accompanying
Statement of Cash Flows. No cash distributions were declared for either of the
three month periods ended March 31, 2001 or 2000. In any given year, it is
possible that Beneficiaries will be allocated taxable income in excess of
distributed cash. This discrepancy between tax obligations and cash
distributions may or may not continue in the future, and cash may or may not be
available for distribution to the Beneficiaries adequate to cover any tax
obligation. The Trust

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<PAGE>

Agreement requires that sufficient distributions be made to enable the
Beneficiaries to pay any state and federal income taxes arising from any sale or
refinancing transactions, subject to certain limitations.

Cash distributions when paid to the Participants generally 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, the residual value realized for each asset at its
disposal date, and the performance of the Trust's non-equipment assets. Future
market conditions, technological changes, the ability of EFG to manage and
remarket the equipment, and many other events and circumstances, could enhance
or detract from individual yields and the collective performance of the Trust's
equipment portfolio. The ability of the Managing Trustee and its affiliates to
develop and profitably manage its real estate assets and its interest in MILPI
will impact the Trust's overall performance.

In the future, the nature of the Trust's operations and principal cash flows
will continue to shift from rental receipts to equipment sale proceeds. 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, the collection of contractual rents, the retirement of scheduled
indebtedness, and the Trust's future working capital requirements, in
establishing the amount and timing of future cash distributions.

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, 2000, the Managing Trustee had a negative tax capital
account balance of $413,470. No such requirement exists with respect to the
Special Beneficiary.

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<PAGE>

                             AFG Investment Trust D

                                    FORM 10-Q

                           PART II. OTHER INFORMATION




Item 1.           Legal Proceedings
                  Response:  None

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

                  Form 8-KA dated April 23, 2001 to include the proforma
                  financial information required pursuant to Item 7 of Form 8-K
                  in connection with the acquisition of PLM International, Inc.
                  by MILPI Acquisition Corp., an indirect subsidiary of the
                  registrant.

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<PAGE>

                                 SIGNATURE PAGE


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.


                            AFG Investment Trust D


                By:    AFG ASIT Corporation, a Massachusetts
                       corporation and the Managing Trustee of
                       the Registrant.


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


                Date:  May 15, 2001
                       ----------------------------------------------

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