<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    September 30, 1997
                                ---------------------------------------------

                                       OR

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

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

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

For Quarter Ended September 30, 1997               Commission File No. 0-21396
 

                             AFG Investment Trust A
-------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)
 

Delaware                                         04-3145953
-------------------------------                  -------------------
(State or other jurisdiction of                  (IRS Employer
incorporation or organization)                   Identification No.)


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

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

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

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

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS
 
    Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
 
    Yes          No
       -------      --------


<PAGE>
                             AFG Investment Trust A
 
                                   FORM 10-Q
 
                                     INDEX
 
<TABLE>
<CAPTION>
                                                                                              
                                                                                                      Page
                                                                                                    --------
<S>                                                                                                 <C>
PART I. FINANCIAL INFORMATION:
 
  Item 1. Financial Statements
 
    Statement of Financial Position 
       at September 30, 1997 and December 31, 1996........................................................3
 
    Statement of Operations 
       for the three and nine months ended September 30, 1997 and 1996....................................4
 
    Statement of Cash Flows 
       for the nine months ended September 30, 1997 and 1996..............................................5
 
    Notes to the Financial Statements..................................................................6-11


  Item 2. Management's Discussion and Analysis of Financial 
          Condition and Results of Operations.........................................................12-17
 
PART II. OTHER INFORMATION:

  Items 1-6..............................................................................................18


</TABLE>

                                     2


<PAGE>

                             AFG Investment Trust A
 
                         STATEMENT OF FINANCIAL POSITION
                    September 30, 1997 and December 31, 1996
 
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                                     September 30,  December 31,
                                                                                         1997           1996
                                                                                     -------------  -------------
<S>                                                                                  <C>            <C>
 
ASSETS

Cash and cash equivalents..........................................................   $ 2,812,273    $ 1,832,248
Restricted cash....................................................................     3,280,693             --
Rents receivable...................................................................       536,577        623,237
Accounts receivable--affiliate.....................................................       173,170         55,849
Note receivable--Banyan............................................................       462,353             --
Investment in Banyan...............................................................       314,541             --
Equipment at cost, net of accumulated depreciation of $11,723,782 
  and $11,280,817 at September 30, 1997 and December 31, 1996, respectively........     7,780,141     11,663,702
Organization costs, net of accumulated amortization of $5,000 
  and $4,667 at September 30, 1997 and December 31, 1996, respectively.............            --          333
                                                                                      -----------    -----------
 
    Total assets...................................................................   $15,359,748    $14,175,369
                                                                                      -----------    -----------
                                                                                      -----------    -----------
 
LIABILITIES AND PARTICIPANTS' CAPITAL
 
Notes payable......................................................................   $ 2,756,322    $ 4,249,311
Accrued interest...................................................................        34,990         62,360
Accrued liabilities................................................................        22,500         23,250
Accrued liabilities--affiliate.....................................................        44,577         38,293
Deferred rental income.............................................................        11,548         18,721
Cash distributions payable to participants.........................................       195,306        165,220
                                                                                      -----------    -----------
 
    Total liabilities..............................................................     3,065,243      4,557,155
                                                                                      -----------    -----------
                                                                                      -----------    -----------
 
Participants' capital (deficit):
 
  Managing Trustee.................................................................       (33,364)       (27,148)
  Special Beneficiary..............................................................      (280,902)      (231,225)
  Class A Beneficiary Interests (549,218 Interests; 
    initial purchase price of $25 each)............................................     8,630,426      9,876,587
  Class B Beneficiary Interests (826,072 Interests; 
    initial purchase price of $5 each).............................................     3,978,345             --
                                                                                      -----------    -----------
    Total participants' capital....................................................    12,294,505      9,618,214
                                                                                      -----------    -----------

    Total liabilities and participants' capital....................................   $15,359,748    $14,175,369
                                                                                      -----------    -----------
                                                                                     -------------  -------------
</TABLE>

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

                                       3
<PAGE>
                             AFG Investment Trust A

                            STATEMENT OF OPERATIONS
        for the three and nine months ended September 30, 1997 and 1996

                                  (Unaudited)

<TABLE>
<CAPTION>
                                                     Three Months                Nine Months
                                                 Ended September 30,         Ended September 30,
                                                ----------------------    -----------------------
                                                  1997         1996         1997          1996
                                                ---------    ---------    ---------     ---------
 
<S>                                             <C>          <C>           <C>           <C>
Income:
 
  Lease revenue...............................  $1,010,273    $1,204,560    $3,577,408    $3,632,314
 
  Interest income.............................      69,609        22,647       122,528        61,448
 
  Gain (loss) on sale/exchange of equipment...      48,274        (3,362)     (314,532)     (153,423)
                                                ----------    ----------    ----------    ----------
 
     Total income.............................   1,128,156     1,223,845     3,385,404     3,540,339
                                                ----------    ----------    ----------    ----------
 
Expenses:
 
  Depreciation and amortization...............     823,115       885,534     2,617,136     2,749,045
 
  Interest expense............................      48,066        84,429       158,653       301,126
 
  Equipment management fees--affiliate........      44,045        46,024       138,430       139,027
 
  Operating expenses--affiliate...............     130,518        30,102       229,778        87,639
                                                ----------    ----------    ----------    ----------
 
       Total expenses.........................   1,045,744     1,046,089     3,143,997     3,276,837
                                                 ----------    ----------    ----------    ----------
Net income....................................  $   82,412    $  177,756    $  241,407    $  263,502
                                                ----------    ----------    ----------    ----------
                                                ----------    ----------    ----------    ----------

Net income
  per Class A Beneficiary Interest............  $       --    $     0.29    $     0.26    $     0.44
                                                ----------    ----------    ----------    ----------
                                                ----------    ----------    ----------    ----------

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

Cash distributions declared
  per Class A Beneficiary Interest............  $     1.71    $     0.38    $     2.53    $     1.01
                                                ----------    ----------    ----------    ----------
                                                ----------    ----------    ----------    ----------
 
  per Class B Beneficiary Interest............  $     0.13    $       --    $     0.13    $       --
                                                ----------    ----------    ----------    ----------
                                                ----------    ----------    ----------    ----------
</TABLE>

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

                                       4
<PAGE>
                             AFG Investment Trust A

                            STATEMENT OF CASH FLOWS
             for the nine months ended September 30, 1997 and 1996

                                  (Unaudited)
 
<TABLE>
<CAPTION>
                                                                                             1997         1996
                                                                                         -----------   -----------
<S>                                                                                      <C>           <C>

Cash flows from (used in) operating activities:

Net income.............................................................................   $  241,407   $   263,502

Adjustments to reconcile net income to net cash from operating activities:
  Depreciation and amortization........................................................    2,617,136     2,749,045
  Loss on sale/exchange of equipment...................................................      314,532       153,423

Changes in assets and liabilities
  Decrease (increase) in:
    rents receivable...................................................................       86,660        40,011
    accounts receivable--affiliate.....................................................     (117,321)       26,739
  Increase (decrease) in:
    accrued interest...................................................................      (27,370)      (23,176)
    accrued liabilities................................................................         (750)       (3,185)
    accrued liabilities--affiliate.....................................................        6,284        12,073
    deferred rental income.............................................................       (7,173)         (869)
                                                                                          ----------   -----------
      Net cash from operating activities...............................................    3,113,405     3,217,563
                                                                                          ----------   -----------
Cash flows from (used in) investing activities:
  Investment in Banyan stock...........................................................     (314,541)           --
  Note receivable--Banyan..............................................................     (462,353)           --
  Purchase of equipment................................................................           --    (1,441,796)
  Proceeds from equipment sales........................................................      952,226     1,417,927
                                                                                         -----------   -----------
      Net cash from (used in) investing activities.....................................      175,332       (23,869)
                                                                                         -----------   -----------
Cash flows from (used in) financing activities:
  Proceeds from capital contributions..................................................    4,130,360            --
  Payment of offering costs............................................................      (41,304)           --
  Proceeds from notes payable..........................................................           --       997,888
  Principal payments--notes payable....................................................   (1,492,989)   (2,338,385)
  Distributions paid...................................................................   (1,624,086)     (571,912)
                                                                                         -----------   ----------- 
Net cash from (used in) financing activities...........................................      971,981    (1,912,409)
                                                                                         -----------   ------------
Net increase in cash and cash equivalents and restricted cash..........................    4,260,718     1,281,285

Cash and cash equivalents at beginning of period.......................................    1,832,248       455,262
                                                                                         -----------   -----------
Cash and cash equivalents and restricted cash at end of period.........................  $ 6,092,966   $ 1,736,547
                                                                                         -----------   -----------
                                                                                         -----------   -----------
Supplemental disclosure of cash flow information:
 Cash paid during the period for interest..............................................  $   186,023   $   324,302
                                                                                         -----------   -----------
                                                                                         -----------   -----------
</TABLE>

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

                                    5

<PAGE>
                             AFG Investment Trust A
 
                       Notes to the Financial Statements
                               September 30, 1997
 
                                  (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 1996 Annual Report. Except as disclosed herein, there
has been no material change to the information presented in the footnotes to the
1996 Annual Report.
 
    In the opinion of management, all adjustments (consisting of normal and
recurring adjustments) considered necessary to present fairly the financial
position at September 30, 1997 and December 31, 1996 and results of operations
for the three and nine month periods ended September 30, 1997 and 1996 have been
made and are reflected.
 
NOTE 2--CASH
 
    At September 30, 1997, the Trust had $5,985,000 invested in reverse
repurchase agreements secured by U.S. Treasury Bills or interests in U.S.
Government securities.
 
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.
Rents from Reno Air, Inc. ("Reno Air"), as provided for in the lease agreement
are adjusted monthly for changes in the London Inter-Bank Offered Rate
("LIBOR"). Future rents from Reno Air, included below, reflect the most recent
LIBOR effected rental payment. The leases are accounted for as operating leases
and are noncancellable. Rents received prior to their due dates are deferred.
Future minimum rents of $3,311,369 are due as follows:
 
For the year ending September 30, 1998..........  $2,117,491
                                  1999..........     522,031
                                  2000..........     257,249
                                  2001..........     189,023
                                  2002..........     179,149
                            Thereafter..........      46,426
                                                  ----------
                                 Total..........  $3,311,369
                                                  ----------
                                                  ----------


                                      6

<PAGE>
                             AFG Investment Trust A

                      Notes to the Financial Statements 

                                   (Continued)


NOTE 4--EQUIPMENT

    The following is a summary of equipment owned by the Trust at September 30,
1997. In the opinion of Equis Financial Group Limited Partnership ("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............................................              3-63     $  6,814,662
Materials handling..................................              0-36        3,378,952
Retail store fixtures...............................              0-18        2,992,236
Construction and mining.............................              0-63        1,945,484
Communications......................................                15        1,802,423
Computers and peripherals...........................              0-62        1,539,743
Research and test...................................                 0          459,282
Manufacturing.......................................                 9          442,590
Energy systems......................................                 3          108,975
Photocopying........................................               0-1           19,576
                                                                           ------------
                                                  Total equipment cost       19,503,923

                                              Accumulated depreciation      (11,723,782)
                                                                           ------------

                            Equipment, net of accumulated depreciation     $  7,780,141
                                                                           ------------
                                                                           ------------
</TABLE>

    At September 30, 1997, the Trust's equipment portfolio included equipment
having a proportionate original cost of $6,322,233, representing approximately
32% of total equipment cost.
 
    The summary above includes equipment held for sale or re-lease with a cost
and net book value of approximately $74,500 and $15,400, respectively, at
September 30, 1997. The Managing Trustee is actively seeking the sale or
re-lease of all equipment not on lease. In addition, the summary above also
includes equipment being leased on a month-to-month basis.
 
NOTE 5--INVESTMENT IN BANYAN
 
    On April 30, 1997, the vessel partnerships, in which the Trust and 
certain affiliated investment programs are limited partners and through which 
the Trust and the affiliated investment programs shared economic interests in 
three cargo vessels (the "Vessels") leased by KGJS/Gearbulk Holdings Limited 
(the "Lessee"), exchanged their ownership interests in the Vessels for 
aggregate consideration of $11,565,375, including 1,987,000 shares (at $1.50 
per share) of common stock in Banyan Strategic Land Fund II ("Banyan") and a 
purchase money note of $8,219,500 (the "Note"). Banyan is a Delaware 
corporation organized on April 14, 1987 and has its common stock listed on 
NASDAQ. Banyan, at the time of the exchange transaction, held certain real 
estate investments, the only one of which remained unsold at September 30, 
1997 being a 274 acre site near Malibu, California ("Rancho Malibu").
 
                                       7
<PAGE>
                         AFG Investment Trust A
 
                 Notes to the Financial Statements 

                               (Continued)
 
    The exchange was organized through an intermediary company (Equis Exchange
LLC, 99% owned by Banyan and 1% owned by EFG), which was established for the
sole purpose of facilitating the exchange. There were no fees paid to EFG by
Equis Exchange LLC or Banyan or by any other party that otherwise would not have
been paid to EFG had the Trust sold its beneficial interest in the Vessels
directly to the Lessee. The Lessee prepaid all of its remaining contracted
rental obligations and purchased the Vessels in two closings occurring on May 6,
1997 and May 12, 1997. The Note was repaid with $3,800,000 of cash and delivery
of a $4,419,500 note from Banyan (the "Banyan Note").
 
    As a result of the exchange transaction and its original 33% beneficial
ownership interest in Hato Arrow, one of the three Vessels, the Trust received
$433,036 in cash and is the beneficial owner of 209,694 shares of Banyan common
stock valued at $314,541 ($1.50 per share) and holds a beneficial interest in
the Banyan Note of $462,353. The Banyan Note will be amortized over three years
and bear an annual interest rate of 10%.
 
    Cash equal to the amount of the Banyan Note was placed in escrow for the
benefit of Banyan in a segregated account pending the outcome of certain
shareholder proposals. Specifically, as part of the exchange, Banyan agreed to
seek consent ("Consent") from its shareholders to: (1) amend its certificate of
incorporation and by-laws; (2) make additional amendments to restrict the
acquisition of its common stock in a way to protect Banyan's net operating loss
carry-forwards, and (3) engage EFG to provide administrative services to Banyan,
which services EFG will provide at cost. On October 21, 1997, such Consent was
obtained from Banyan's shareholders. The Consent also allowed for (i) the
election of a new Board of Directors nominated by EFG for terms of up to three
years and an increase in size of the Board to as many as nine members, provided
a majority of the Board shall consist of members independent of Banyan, EFG or
any affiliate; and (ii) an amendment extending Banyan's life to perpetual and
changing its name. Contemporaneously with the Consent being obtained, Banyan
declared a $0.20 per share distribution to be paid on all shares, including
those beneficially owned by the Trust. A distribution of $41,939 is scheduled to
be paid to the Trust on or before November 15, 1997.

    In connection with the Banyan transaction, Gary D. Engle, President and
Chief Executive Officer of EFG, joined the Board of Directors of Banyan and
James A. Coyne, Senior Vice President of EFG became Banyan's Chief Operating
Officer. The Managing Trustee believes that the underlying tangible assets of
Banyan, particularly the Rancho Malibu property, can be sold or developed on a
tax free basis due to Banyan's net operating loss carryforwards and can provide
an attractive economic return to the Trust.

NOTE 6--RELATED PARTY TRANSACTIONS

    All operating expenses incurred by the Trust are paid by EFG on behalf of 
the Trust and EFG is reimbursed at its actual cost for such expenditures. 
Fees and other costs incurred during the nine month periods ended September 
30, 1997 and 1996, which were paid or accrued by the Trust to EFG or its 
Affiliates, are as follows:

<TABLE>
<CAPTION>
                                                                    1997        1996
                                                                 ----------  ----------
<S>                                                              <C>         <C>

Reimbursement of offering costs................................   $ 41,304    $     --
Equipment acquisition fees.....................................         --      36,109
Equipment management fees......................................    138,430     139,027
Administrative charges.........................................     51,736      15,750
Reimbursable operating expenses
 due to third parties..........................................    178,042      71,889
                                                                  --------    --------
     Total.....................................................   $409,512    $262,775
                                                                  --------    --------
                                                                  --------    --------
</TABLE>

                                              8
<PAGE> 

                         AFG Investment Trust A
 
                 Notes to the Financial Statements 

                               (Continued)
 
    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
September 30, 1997, the Trust was owed $173,170 by EFG for such funds and the
interest thereon. These funds were remitted to the Trust in October 1997.
 
NOTE 7--NOTES PAYABLE
 
    Notes payable at September 30, 1997 consisted of installment notes of
$2,756,322 payable to banks and institutional lenders. The notes bear interest
rates ranging between 5.7% and 9.17%, except for one note which bears a
fluctuating interest rate based on LIBOR (5.66% at September 30, 1997) plus a
margin. All of the installment notes are non-recourse and are collateralized by
the equipment and assignment of the related lease payments. Generally, the
installment notes will be fully amortized by noncancellable rents. However, the
Trust has a balloon payment obligation at the expiration of the primary lease
term related to the Reno Aircraft of $282,421. The carrying amount of notes
payable approximates fair value at September 30, 1997.
 
    The annual maturities of the notes payable are as follows:
 
For the year ending September 30, 1998..........  $1,759,603
                                  1999..........     325,386
                                  2000..........     116,162
                                  2001..........     125,623
                                  2002..........     135,855
                            Thereafter..........     293,693
                                                  ----------
                                 Total..........  $2,756,322
                                                  ----------
                                                  ----------
 
NOTE 8--PROFIT AND LOSS ALLOCATION AND DISTRIBUTION OF DISTRIBUTABLE CASH
 
    Effective for the third quarter of 1997, the allocation of net income or
loss, for financial statement purposes, and distributions of distributable cash
are made to each Participant in accordance with the Trust Agreement, as Amended
(see Note 10).
 
NOTE 9--LEGAL PROCEEDINGS
 
    On July 27, 1995, EFG, on behalf of the Trust and other EFG-sponsored
investment programs, filed an action in the Commonwealth of Massachusetts
Superior Court Department of the Trial Court in and for the County of Suffolk,
for damages and declaratory relief against a lessee of the Trust, National Steel
Corporation ("National Steel"), under a certain Master Lease Agreement ("MLA")
for the lease of certain equipment. EFG is seeking the reimbursement by National
Steel of certain sales and/or use taxes paid to the State of Illinois and other
remedies provided by the MLA. On August 30, 1995, National Steel filed a Notice
of Removal which removed the case to the United States District Court, District
of Massachusetts. On September 7, 1995, National Steel filed its Answer to EFG's
Complaint along with Affirmative Defenses and Counterclaims, seeking declaratory
relief and specific performance and alleging, among other things, breach of
contract and breach of the implied covenant of good faith and fair dealing. EFG
filed its Answer to these counterclaims on September 29, 1995. Though the
parties have been discussing settlement with respect to this matter for some
time, to date, the negotiations have been unsuccessful. Notwithstanding these
discussions, EFG recently filed an Amended and Supplemental Complaint 

                                       9
<PAGE>

                        AFG Investment Trust A
 
                 Notes to the Financial Statements 

                               (Continued)


alleging a further default by National Steel under the MLA and EFG recently 
filed a request for Summary Judgment on all claims and counterclaims. The 
matter remains pending before the Court and is scheduled for a hearing on 
EFG's motion in December 1997. The Trust has not experienced any material 
losses as a result of this action.
 
    On June 24, 1997, four plaintiffs (the "Plaintiffs") owning limited 
partner units or beneficiary interests in eight investment programs sponsored 
by EFG filed a lawsuit, as a derivative action, on behalf of the Trust and 27 
other investment programs (collectively, the "Nominal Defendants") in the 
Superior Court of the Commonwealth of Massachusetts for the County of Suffolk 
against EFG and certain of EFG's affiliates, including the Managing Trustee 
of the Trust and four other wholly-owned subsidiaries of EFG which are the 
general partner or managing trustee of one or more of the investment 
programs, (collectively, the "Managing Defendants"), and certain other 
entities and individuals that have control of the Managing Defendants and the 
Nominal Defendants (the "Controlling Defendants"). The Plaintiffs assert 
claims of breach of fiduciary duty, breach of contract, unjust enrichment, 
and equitable relief and seek various remedies, including compensatory and 
punitive damages to be determined at trial.
 
    The Managing Trustee and EFG are in the early stages of evaluating the
nature and extent of the claims asserted in this lawsuit and cannot predict its
outcome with any degree of certainty. However, based upon all of the facts
presently being considered by management, the Managing Trustee and EFG do not
believe that any likely outcome will have a material adverse effect on the
Trust. The Managing Trustee, EFG and their affiliates intend to vigorously
defend against the lawsuit.
 
    On July 7, 1997, a lessee of the Trust, Montgomery Ward and Company, Inc.,
filed for protection under Chapter 11 of the Bankruptcy Code. The Trust has
filed an appearance of counsel in the Bankruptcy Court process. Equipment leased
to this lessee by the Trust had a cost and net book value of approximately
$1,800,000 and $570,000, respectively, at September 30, 1997. The Trust, through
counsel, has had preliminary discussions with the counsel to the lessee to
determine the intentions of the lessee regarding the lease. Due to the
preliminary nature of the discussions, at this time the Trust is unable to
determine the impact of this bankruptcy proceeding.
 
NOTE 10--ISSUANCE OF CLASS B INTERESTS
 
    On October 26, 1996, the Trust filed a Solicitation Statement with the
United States Securities and Exchange Commission (the "SEC") which subsequently
was sent to the Beneficiaries pursuant to Regulation 14A of Section 14 of the
Securities Exchange Act. The Solicitation Statement sought the consent of the
Beneficiaries to a proposed amendment (the "Amendment") to the Amended and
Restated Declaration of Trust (the "Trust Agreement") which would (i) amend the
provisions of the Trust Agreement governing the redemption of Beneficiary
Interests to permit the Trust to offer to redeem outstanding Beneficiary
Interests at such times, in such amounts, in such manner and at such prices as
the Managing Trustee might determine from time to time, in accordance with
applicable law; and (ii) add a provision to the Trust Agreement that would
permit the Trust to issue, at the discretion of the Managing Trustee and without
further consent or approval of the Beneficiaries, an additional class of
security with such designations, preferences and relative, participating,
optional or other special rights, powers and duties as the Managing Trustee
might affix. The funds obtained through the issuance of such a security would be
used by the Trust to (a) expand redemption opportunities for Beneficiaries
without using Trust funds which might otherwise be available for cash
distributions; and (b) make a special one-time cash distribution to the
Beneficiaries.
 
    Pursuant to the Trust Agreement, the adoption of the Amendment required the
consent of the Beneficiaries holding more than 50% in the aggregate of the
Beneficiary Interests held by all Beneficiaries. A majority of Beneficiary
Interests, representing 286,868 or 52.2% of all Beneficiary Interests, voted in
favor of the Amendment; 49,019 or 8.9% of all Beneficiary Interests voted
against the Amendment; and 16,104 or 2.9% of all Beneficiary 

                                      10
<PAGE>

                           AFG Investment Trust A
 
                    Notes to the Financial Statements 

                                  (Continued)

Interests abstained. Approximately 64% of all Beneficiary Interests 
participated in the vote. Accordingly, the Trust Agreement was amended.
 
    On February 12, 1997, the Trust filed a Registration Statement on Form S-1
with the SEC, which became effective June 10, 1997. The Registration Statement
covered the issuance and sale of a new class of beneficiary interests in the
Trust (the "Class B Interests"). The characteristics of the Class B Interests,
associated risk factors and other matters of importance to the Beneficiaries and
purchasers of the Class B Interests were set forth in a Prospectus sent to the
Beneficiaries. On July 17, 1997, the offering closed and on July 18, 1997 the
Trust issued 826,072 Class B Interests at $5.00 per interest, thereby generating
$4,130,360 in aggregate Class B capital contributions. Class A Beneficiaries
purchased 3,209 Class B Interests, generating $16,045 of such aggregate capital
contributions, and the Special Beneficiary, EFG, purchased 822,863 Class B
Interests, generating $4,114,315 of such aggregate capital contributions.
 
    Subsequently, EFG transferred its Class B Interests to a special-purpose
company, Equis II Corporation, a Delaware corporation. EFG also transferred its
ownership of AFG ASIT Corporation, the Managing Trustee of the Trust, to Equis
II Corporation. As a result, Equis II Corporation has voting control of the
Trust through its ownership of the majority of all of the Trust's outstanding
voting interests, as well as its ownership of AFG ASIT Corporation. Equis II
Corporation is controlled by EFG's President and Chief Executive Officer, Gary
D. Engle. Accordingly, control of the Managing Trustee did not change as a
result of the foregoing transactions.
 
    As described in the Prospectus for the offering of the Class B Interests,
the Managing Trustee used a portion of the net cash proceeds realized from the
offering of the Class B Interests to pay a one-time special cash distribution of
approximately $1.47 per Class A Beneficiary Interest to the Class A
Beneficiaries of the Trust. The Managing Trustee declared and paid this special
cash distribution, aggregating $808,363, to the Class A Beneficiaries on August
15, 1997.
 
NOTE 11--OFFER TO REDEEM CLASS A INTERESTS
 
    On August 7, 1997, the Trust commenced an offer to purchase up to 45% of the
outstanding Class A Beneficiary Interests of the Trust by filing a Form 13E-4,
Issuer Tender Offer Statement, with the SEC and distributing to the Class A
Beneficiaries information (the "Tender Documents") concerning the offer. On
October 10, 1997, the Trust used $620,011 of the net proceeds realized from the
offering of the Class B Interests to purchase 65,402 of the Class A Beneficiary
Interests tendered as a result of the offer.
 
                                       11
<PAGE>

                                AFG Investment Trust A

                                      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 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 ability of EFG to collect all rents due under the attendant 
lease agreements and successfully remarket the Trust's equipment upon the 
expiration of such leases. 

Three and nine months ended September 30, 1997 compared to the three and nine
months ended September 30, 1996: 

Overview

   As an equipment leasing trust, AFG Investment Trust A ("the Trust") was 
organized to acquire a diversified portfolio of capital equipment subject to 
lease agreements with third parties.  The Trust was designed to progress 
through three principal phases:  acquisitions, operations, and liquidation.  
During the operations phase, a period of approximately six years, all 
equipment in the Trust's portfolio will progress through various stages.  
Initially, all equipment will generate rental revenues under primary term 
lease agreements.  During the life of the Trust, these agreements will expire 
on an intermittent basis and equipment held pursuant to the related leases 
will be renewed, re-leased or sold, depending on prevailing market conditions 
and the assessment of such conditions by EFG to obtain the most advantageous 
economic benefit.  Over time, a greater portion of the Trust's original 
equipment portfolio will become available for remarketing and cash generated 
from operations and from sales or refinancings will begin to fluctuate. 
Ultimately, all equipment will be sold and the Trust will be dissolved.  The 
Trust's operations commenced in 1992.

Results of Operations

   For the three and nine months ended September 30, 1997, the Trust 
recognized lease revenue of $1,010,273 and $3,577,408, respectively, compared 
to $1,204,560 and $3,632,314 for the same periods in 1996.  The decrease in 
lease revenue from 1996 to 1997 resulted principally from primary lease term 
expirations and the sale of equipment.  Partially offsetting this decrease 
was the receipt in 1997 of prepaid contractual rental obligations of $432,604 
associated with the sale of its interest in a vessel (see discussion below).  
Over time, the level of lease revenue will continue to decline due to the 
expiration of the Trust's primary lease term agreements and the sale of 
equipment.  The Trust also earns interest income from temporary investments 
of rental receipts and equipment sales proceeds in short-term instruments.

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

   During the three months ended September 30, 1997, the Trust sold equipment 
having a net book value of $11,526 to existing lessees and third parties.  
These transactions resulted in a net gain, for financial statement purposes, 
of $48,274. During the nine months ended September 30, 1997, the Trust sold 
or exchanged equipment having a net book value of $1,266,758 to existing 
lessees and third parties.  These sales resulted in a 

                                       12

<PAGE>


                                AFG Investment Trust A

                                      FORM 10-Q

                             PART I.  FINANCIAL INFORMATION

net loss for financial statement purposes of $314,532.  The equipment 
transactions during the nine months ended September 30, 1997 included the 
Trust's interest in a vessel with an original cost and net book value of 
$2,399,580 and $1,185,726, respectively.  In connection with this 
transaction, the Trust realized proceeds of $777,326, which resulted in a net 
loss, for financial statement purposes, of $408,400.  In addition, as this 
vessel was disposed of prior to the expiration of the related lease term, the 
Trust received a prepayment of the remaining contracted rent due under the 
vessel's lease agreement, as described above.  See below for further 
discussion related to the vessel.

   On April 30, 1997, the vessel partnerships, in which the Trust and certain 
affiliated investment programs are limited partners and through which the 
Trust and the affiliated investment programs shared economic interests in 
three cargo vessels (the "Vessels") leased by KGJS/Gearbulk Holdings Limited 
(the "Lessee"), exchanged their ownership interests in the Vessels for 
aggregate consideration of $11,565,375, including 1,987,000 shares (at $1.50 
per share) of common stock in Banyan Strategic Land Fund II ("Banyan") and a 
purchase money note of $8,219,500 (the "Note").  Banyan is a Delaware 
corporation organized on April 14, 1987 and has its common stock listed on 
NASDAQ.  Banyan, at the time of the exchange transaction, held certain real 
estate investments, the only one of which remained unsold at September 30, 
1997 being a 274 acre site near Malibu, California ("Rancho Malibu").

   The exchange was organized through an intermediary company (Equis Exchange 
LLC, 99% owned by Banyan and 1% owned by EFG), which was established for the 
sole purpose of facilitating the exchange.  There were no fees paid to EFG by 
Equis Exchange LLC or Banyan or by any other party that otherwise would not 
have been paid to EFG had the Trust sold its beneficial interest in the 
Vessels directly to the Lessee.  The Lessee prepaid all of its remaining 
contracted rental obligations and purchased the Vessels in two closings 
occurring on May 6, 1997 and May 12, 1997.  The Note was repaid with 
$3,800,000 of cash and delivery of a $4,419,500 note from Banyan (the "Banyan 
Note").

   As a result of the exchange transaction and its original 33% beneficial 
ownership interest in Hato Arrow, one of the three Vessels, the Trust 
received $433,036 in cash and is the beneficial owner of 209,694 shares of 
Banyan common stock valued at $314,541 ($1.50 per share) and holds a 
beneficial interest in the Banyan Note of $462,353.  The Banyan Note will be 
amortized over three years and bear an annual interest rate of 10%.

   Cash equal to the amount of the Banyan Note was placed in escrow for the 
benefit of Banyan in a segregated account pending the outcome of certain 
shareholder proposals.  Specifically, as part of the exchange, Banyan agreed 
to seek consent ("Consent") from its shareholders to: (1) amend its 
certificate of incorporation and by-laws; (2) make additional amendments to 
restrict the acquisition of its common stock in a way to protect Banyan's net 
operating loss carry-forwards, and (3) engage EFG to provide administrative 
services to Banyan, which services EFG will provide at cost.  On October 21, 
1997, such Consent was obtained from Banyan's shareholders.  The Consent also 
allowed for (i) the election of a new Board of Directors nominated by EFG for 
terms of up to three years and an increase in size of the Board to as many as 
nine members, provided a majority of the Board shall consist of members 
independent of Banyan, EFG or any affiliate; and (ii) an amendment extending 
Banyan's life to perpetual and changing its name. Contemporaneously with the 
Consent being obtained, Banyan declared a $0.20 per share distribution to be 
paid on all shares, including those beneficially owned by the Trust.  A 
dividend of $41,939 is scheduled to be paid to the Trust on or before 
November 15, 1997.

      The Managing Trustee believes that the underlying tangible assets of 
Banyan, particularly the Rancho Malibu property, can be sold or developed on 
a tax free basis due to Banyan's net operating loss carryforwards and can 
provide an attractive economic return to the Trust.

   On February 5, 1996, the Trust concluded the sale of its interest in the 
United Aircraft to the lessee, United Air Lines, Inc., ("United"), as 
reported in Note 3 to the Trust's 1996 Annual Report.  The Trust recognized a 
net loss of 

                                         13

<PAGE>


                                AFG Investment Trust A

                                      FORM 10-Q

                             PART I.  FINANCIAL INFORMATION

$458,638 in connection with this transaction, of which $311,621 was 
recognized as Write-Down of Equipment in 1995.  The remainder of $147,017 was 
recognized as a loss on sale of equipment on the accompanying Statement of 
Operations for the nine months ended September 30, 1996.  In addition to 
lease rents, the Trust received net sale proceeds of $1,392,779 from United 
for the aircraft.  A portion of such sale proceeds was reinvested in other 
equipment in March 1996 through the acquisition of an 8.86% ownership 
interest in an aircraft (the "Reno Aircraft") at an aggregate cost to the 
Trust of $1,239,741.  To acquire its interest in the Reno Aircraft, the Trust 
obtained long-term financing of $997,888 from a third-party lender and 
utilized cash proceeds of $241,853 from the sale of the United Aircraft. 
During the three and nine months ended September 30, 1996, the Trust sold 
other equipment having a net book value of $10,997 and $31,554, respectively, 
to existing lessees and third parties.  These sales resulted in a net loss, 
for financial statement purposes, of $3,362 and $6,406, respectively.

   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.

   Depreciation and amortization expense was $823,115 and $2,617,136 for the 
three and nine months ended September 30, 1997, respectively, compared to 
$885,534 and $2,749,045 for the same periods in 1996.  For financial 
reporting purposes, to the extent that an asset is held on primary lease 
term, the Trust depreciates the difference between (i) the cost of the asset 
and (ii) the estimated residual value of the asset on a straight-line basis 
over such term.  For purposes of this policy, estimated residual values 
represent estimates of equipment values at the date of primary lease 
expiration.  To the extent that an asset is held beyond its primary lease 
term, the Trust continues to depreciate the remaining net book value of the 
asset on a straight-line basis over the asset's remaining economic life.

   Interest expense was $48,066 and $158,653 or 4.8% and 4.4% of lease 
revenue for the three and nine months ended September 30, 1997, respectively, 
compared to $84,429 and $301,126 or 7% and 8.3% of lease revenue for the same 
periods in 1996. Interest expense is expected to continue to decrease in 
amount as the principal balance of notes payable is reduced through the 
application of rent receipts to outstanding debt.

   Management fees were 4.4% and 3.9% of lease revenue for the three and nine 
months ended September 30, 1997 compared to 3.8% of lease revenue for each of 
the same periods in 1996.  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.



                                      14
<PAGE>


                                AFG Investment Trust A

                                      FORM 10-Q

                             PART I.  FINANCIAL INFORMATION

   Operating expenses consist principally of administrative charges, 
professional service costs, such as audit and legal fees, as well as 
printing, distribution and remarketing expenses.  Collectively, operating 
expenses represented 12.9% and 6.4% of lease revenue for the three and nine 
months ended September 30, 1997, respectively, compared to 2.5% and 2.4% of 
lease revenue for the same periods in 1996.  The increase in operating 
expenses from 1996 to 1997 was due primarily to costs incurred in connection 
with the Solicitation and Registration Statements described in Note 10 to the 
accompanying financial statements and  increases in administrative charges 
and professional service costs.  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.  

Liquidity and Capital Resources and Discussion of Cash Flows

   The Trust by its nature is a limited life entity which was established for 
specific purposes described in the preceding "Overview".  As an equipment 
leasing program, the Trust's principal operating activities derive from asset 
rental transactions.  Accordingly, the Trust's principal source of cash from 
operations is provided by the collection of periodic rents.  These cash 
inflows are used to satisfy debt service obligations associated with 
leveraged leases, and to pay management fees and operating costs.  Operating 
activities generated net cash inflows of $3,113,405 and $3,217,563 for the 
nine months ended September 30, 1997 and 1996, respectively.  Future renewal, 
re-lease and equipment sale activities will cause a gradual decline in the 
Trust's primary-term lease revenue and corresponding sources of operating 
cash.  Overall, expenses associated with rental activities, such as 
management fees, and net cash flow from operating activities will decline as 
the Trust experiences a higher frequency of remarketing events.

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

   Ultimately, the Trust will dispose of all assets under lease.  This will 
occur principally through sale transactions whereby each asset will be sold 
to the existing lessee or to a third party.  Generally, this will occur upon 
expiration of each asset's primary or renewal/re-lease term.  In certain 
instances, casualty or early termination events may result in the disposal of 
an asset.  Such circumstances are infrequent and usually result in the 
collection of stipulated cash settlements pursuant to terms and conditions 
contained in the underlying lease agreements.

   Cash expended for asset acquisitions and cash realized from asset disposal 
transactions are reported under investing activities on the accompanying 
Statement of Cash Flows.  During the nine months ended September 30, 1997, 
the Trust realized net cash proceeds of $952,226, including proceeds from the 
exchange transaction, compared to $1,417,927 for the same period in 1996.  
Future inflows of cash from asset disposals will vary in timing and amount 
and will be influenced by many factors including, but not limited to, the 
frequency and timing of lease expirations, the type of equipment being sold, 
its condition and age, and future market conditions.  During the nine months 
ended September 30, 1996, the Trust expended $1,441,796 to acquire equipment. 
 This amount reflects the acquisition of an ownership interest in a 
commercial jet aircraft at a cost of $1,239,741, pursuant to the reinvestment 
provisions of the Trust Agreement and an original equipment acquisition of 
$202,055.  There were no equipment acquisitions during the same period in 
1997.



                                              15

<PAGE>

                                AFG Investment Trust A

                                      FORM 10-Q

                             PART I.  FINANCIAL INFORMATION

   As a result of the exchange transaction (see Results of Operations) the 
Trust became the beneficial owner of 209,694 shares of Banyan common stock 
valued at $314,541 ($1.50 per share) and holds a beneficial interest in the 
Banyan Note of $462,353.  

   The Trust obtained long-term financing in connection with certain 
equipment leases.  The origination of such indebtedness and the subsequent 
repayments of principal are reported as components of financing activities.  
Cash inflows of $997,888 in 1996 resulted from leveraging a portion of the 
Trust's equipment portfolio with third-party lenders.  Each note payable is 
recourse only to the specific equipment financed and to the minimum rental 
payments contracted to be received during the debt amortization period (which 
period generally coincides with the lease rental term).  As rental payments 
are collected, a portion or all of the rental payment is used to repay the 
associated indebtedness.  In future periods, the amount of cash used to repay 
debt obligations will decline as the principal balance of notes payable is 
reduced through the collection and application of rents.  However, the Trust 
has a balloon payment obligation of $282,421 at the expiration of the primary 
lease term related to the Reno Aircraft.  In addition, the Managing Trustee 
expects to use a portion of the Trust's available cash to retire certain 
indebtedness.

   For financial reporting purposes, the Managing Trustee and the Special 
Beneficiary each have accumulated a capital deficit at September 30, 1997.  
This is the result of aggregate cash distributions to these Participants 
being in excess of their aggregate capital contributions ($1,000 each) and 
their respective allocations of financial statement net income or loss.  
Ultimately, the existence of a capital deficit for the Managing Trustee or 
the Special Beneficiary for financial reporting purposes is not indicative of 
any further capital obligations to the Trust by either the Managing Trustee 
or the Special Beneficiary.  For income tax purposes, income is allocated 
first to those Participants having negative tax capital account balances so 
as to eliminate any such balances.   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.  No such requirement 
exists with respect to the Special Beneficiary.   At December 31, 1996, the 
Managing Trustee had a positive tax capital account balance.

   At September 30, 1997, the Trust had aggregate future minimum lease 
payments of $3,311,369 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 (see Note 7 to the financial statements).  
Additional cash inflows will be realized from future remarketing activities, 
such as lease renewals and equipment sales, the timing and extent of which 
cannot be predicted with certainty. This is because the timing and extent of 
equipment sales is often dependent upon the needs and interests of the 
existing lessees.  Some lessees may choose to renew their lease contracts, 
while others may elect to return the equipment.  In the latter instances, the 
equipment could be re-leased to another lessee or sold to a third party.  
Accordingly, as the Trust matures and a greater level of its equipment assets 
become available for remarketing, the cash flows of the Trust will become 
less predictable.  In addition, the Trust will have cash outflows to satisfy 
interest on indebtedness and to pay management fees and operating expenses. 
Ultimately, the Trust is expected to meet its future disbursement obligations 
and to distribute any excess of cash inflows over cash outflows to the 
Participants in accordance with the Trust Agreement.  However, several 
factors, including month-to-month lease extensions, lessee defaults, 
equipment casualty events, and early lease terminations could alter the 
Trust's anticipated cash flows as described herein and in the accompanying 
financial statements and result in fluctuations to the Trust's periodic cash 
distribution payments.

   On February 12, 1997, the Trust filed a Registration Statement on Form S-1 
with the SEC, which became effective June 10, 1997.  The Registration 
Statement covered the issuance and sale of a new class of beneficiary 
interests in the Trust (the "Class B Interests").  The characteristics of the 
Class B Interests, associated risk factors and other matters of importance to 
the Beneficiaries and purchasers of the Class B Interests were set forth in a 
Prospectus sent to the Beneficiaries. On July 17, 1997, the offering closed 
and on July 18, 1997 the Trust issued 826,072 Class B Interests at $5.00 per 
interest, thereby generating $4,130,360 in aggregate Class B capital 


                                    16

<PAGE>
                                AFG Investment Trust A

                                      FORM 10-Q

                             PART I.  FINANCIAL INFORMATION

contributions.  Class A Beneficiaries purchased 3,209 Class B Interests, 
generating $16,045 of such aggregate capital contributions, and the Special 
Beneficiary, EFG, purchased 822,863 Class B Interests, generating $4,114,315 
of such aggregate capital contributions.  The Trust incurred costs in the 
amount of $41,304 in connection with this offering.  

   Subsequently, EFG transferred its Class B Interests to a special-purpose 
company, Equis II Corporation, a Delaware corporation.  EFG also transferred 
its ownership of AFG ASIT Corporation, the Managing Trustee of the Trust, to 
Equis II Corporation.  As a result, Equis II Corporation has voting control 
of the Trust through its ownership of the majority of all of the Trust's 
outstanding voting interests, as well as its ownership of AFG ASIT 
Corporation.  Equis II Corporation is controlled by EFG's President and Chief 
Executive Officer, Gary D. Engle. Accordingly, control of the Managing 
Trustee did not change as a result of the foregoing transactions.

   As described in the Prospectus for the offering of the Class B Interests, 
the Managing Trustee used a portion of the net cash proceeds realized from 
the offering of the Class B Interests to pay a one-time special cash 
distribution to the Class A Beneficiaries of the Trust.  The Managing Trustee 
declared and paid this special cash distribution of approximately $1.47 per 
Class A Beneficiary Interest, aggregating $808,363, to Class A Beneficiaries 
on August 15, 1997.

   On August 7, 1997, the Trust commenced an offer to purchase up to 45% of 
the outstanding Class A Beneficiary Interests of the Trust by filing a Form 
13E-4, Issuer Tender Offer Statement, with the SEC and distributing to the 
Class A Beneficiaries information (the "Tender Documents") concerning the 
offer.  On October 10, 1997, the Trust used $620,011 of the net proceeds 
realized from the offering of the Class B Interests to purchase 65,402 of the 
Class A Beneficiary Interests tendered as a result of the offer.

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

   It is the intention of the Managing Trustee to maintain a cash 
distribution level that is consistent with the operating cash flows of the 
Trust and to optimize the long-term value of the Trust.  A distribution level 
that is higher than the Trust's operating cash flows could compromise the 
Trust's working capital position, as well as its ability to refurbish or 
upgrade equipment in response to lessee requirements or other market 
circumstances.  Accordingly, in order to better align monthly cash 
distributions with the Trust's operating cash flows, the Managing Trustee 
reduced the level of monthly cash distributions from an annualized rate of 
$2.52 per Class A Beneficiary Interest (the rate established and paid from 
the Trust's inception through September 1995) to an annualized rate of $1.26 
per Class A Beneficiary Interest commencing in October 1995.  In October 
1996, the Managing Trustee increased the annualized distribution rate to 
$1.64 per Class A Beneficiary Interest and expects that the Trust will be 
able to sustain this distribution rate throughout 1997.  For the Class B 
Beneficiaries, the Managing Trustee established an annualized distribution of 
$0.66 per Class B Beneficiary Interest commencing in August 1997.  The 
Managing Trustee expects to maintain this distribution throughout 1997.  
Future distributions, with respect to Class B Interests, will be subordinate 
to certain distributions to Class A Interests.

   The nature of the Trust's principal cash flows gradually will shift from 
rental receipts to equipment sale proceeds as the Trust matures.  As this 
occurs, the Trust's cash flows will 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 
                                      17

<PAGE>

                                AFG Investment Trust A

                                      FORM 10-Q

                             PART I.  FINANCIAL INFORMATION

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 to 
maximize the residual value of the Trust's equipment and will consider these 
factors, in addition to the collection of contractual rents, the retirement 
of scheduled indebtedness and the Trust's future working capital and 
equipment requirements, in establishing future cash distribution rates.  
Ultimately, the Beneficiaries should expect that cash distribution rates will 
fluctuate over the long term as a result of future remarketing activities.

   Cash distributions to the Managing Trustee, the Special Beneficiary and 
the Beneficiaries are declared and generally paid within 45 days following 
the end of each calendar month.  The payment of such distributions is 
presented as a component of financing activities.  For the nine months ended 
September 30, 1997, the Trust declared total cash distributions of 
Distributable Cash From Operations and Distributable Cash From Sales and 
Refinancings of $1,654,172.  In accordance with the Trust Agreement, as 
Amended, the Beneficiaries were allocated 90.75% of these distributions, or 
$1,501,160 ($1,390,449 to Class A Beneficiaries, inclusive of the special 
cash distribution, and $110,711 to Class B Beneficiaries); the Special 
Beneficiary was allocated 8.25%, or $136,470; and the Managing Trustee was 
allocated 1%, or $16,542.








                                             18

<PAGE>

                                AFG Investment Trust A
                                           
                                      FORM 10-Q
                                           
                             PART II.  OTHER INFORMATION
                                           

                                           
   Item 1.              Legal Proceedings
                        Response:  

                        Refer to Note 9 to the financial statements herein.

   Item 2.              Changes in Securities
                        Response:  

                        On July 18, 1997, the Trust issued 826,072 Class B
                        Interests at $5.00 per interest, generating $4,130,360
                        in aggregate Class B capital contributions.  Class A
                        Beneficiaries purchased 3,209 Class B Interests,
                        generating $16,045 of such aggregate capital
                        contributions, and the Special Beneficiary, EFG,
                        purchased 822,863 Class B Interests, generating
                        $4,114,315 of such aggregate capital contributions. 
                        Subsequently, EFG transferred its Class B Interests to a
                        special-purpose company, Equis II Corporation. (See 
                        Note 10 to the accompanying financial statements.)
                             
                        The Trust Agreement grants limited voting rights to the
                        Class A Beneficiaries and Class B Beneficiaries. 
                        However, each Class A Beneficiary and Class B 
                        Beneficiary is entitled to cast one vote for each 
                        Interest owned by him or her.  Equis II Corporation has
                        voting control of the Trust through its ownership of its
                        Class B Interests.

                        Future cash distributions with respect to the Class B
                        Interests will be subordinate to certain distributions
                        with respect to the Class A Interests.


   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





                                     19

<PAGE>

                                    SIGNATURE PAGE
                                           


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

         
                                AFG Investment Trust A
                                           
                                           
                   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 Accounting Officer)


                 Date:   November 14, 1997
                         ----------------------------------------

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


                 Date:   November 14, 1997
                         -----------------------------------------



                                      20