PUBLIC STORAGE PROPERTIES IV LTD, 10-K, 1999-03-31

PUBLIC STORAGE PROPERTIES IV LTD
10-K, 1999-03-31
LESSORS OF REAL PROPERTY, NEC

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

FORM 10-K

[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 [Fee Required]

For the fiscal year ended December 31, 1998

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 [No Fee Required]

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

Commission File Number 0-8908
------

PUBLIC STORAGE PROPERTIES IV, LTD
------------------------------------------------------
(Exact name of registrant as specified in its charter)

California 95-3192402
- ----------------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)

701 Western Avenue
Glendale, California 91201
- ---------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (818) 244-8080
--------------

Securities registered pursuant to Section 12(b) of the Act:

NONE

Securities registered pursuant to Section 12(g) of the Act:

Units of Limited Partnership Interest
-------------------------------------
(Title of class)

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
--- ---

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K of any amendment to the
form 10-K. [ ]

DOCUMENTS INCORPORATED BY REFERENCE

NONE

<PAGE>

PART I
ITEM 1. BUSINESS.

Forward Looking Statements
- --------------------------

When used within this document, the words "expects," "believes,"
"anticipates," "should," "estimates," and similar expressions are intended to
identify "forward-looking statements" within the meaning of that term in Section
27A of the Securities Exchange Act of 1933, as amended, and in Section 21F of
the Securities Exchange Act of 1934, as amended. Such forward-looking statements
involve known and unknown risks, uncertainties, and other factors, which may
cause the actual results and performance of the Partnership to be materially
different from those expressed or implied in the forward looking statements.
Such factors include the impact of competition from new and existing real estate
facilities which could impact rents and occupancy levels at the real estate
facilities that the Partnership has an interest in; the Partnership's ability to
effectively compete in the markets that it does business in; the impact of the
regulatory environment as well as national, state, and local laws and
regulations including, without limitation, those governing Partnerships; and the
impact of general economic conditions upon rental rates and occupancy levels at
the real estate facilities that the Partnership has an interest in.

General
- -------

Public Storage Properties IV, Ltd., (the "Partnership") is a publicly
held limited partnership formed under the California Uniform Limited Partnership
Act in December 1977. The Partnership raised $20,000,000 in gross proceeds by
selling 40,000 units of limited partnership interest ("Units") in an interstate
offering, which commenced in May 1978 and was completed in November 1978.

In 1995, there were a series of mergers among Public Storage
Management, Inc. (which was the Partnership's mini-warehouse operator), Public
Storage, Inc. (which was one of the Partnership's general partners) ("old PSI")
and their affiliates (collectively, "PSMI"), culminating in the November 16,
1995 merger (the "PSMI Merger") of PSMI into Storage Equities, Inc., a real
estate investment trust ("REIT") organized as a California corporation. In the
PSMI Merger, Storage Equities, Inc. was renamed Public Storage, Inc. ("PSI") and
PSI acquired substantially all of PSMI's United States real estate operations
and became a co-general partner of the Partnership and the operator of the
Partnership's mini-warehouse properties.

The Partnership's general partners are PSI and B. Wayne Hughes
("Hughes") (collectively referred to as the "General Partners"). Hughes has been
a general partner of the Partnership since its inception. Hughes is chairman of
the board and chief executive officer of PSI, and Hughes and members of his
family (the "Hughes Family") are the major shareholders of PSI.

The Partnership is managed and its investment decisions are made by
Hughes and the executive officers and directors of PSI. The limited partners of
the Partnership have no right to participate in the operation or conduct of its
business and affairs.

The Partnership's objectives are to (i) maximize the potential for
appreciation in value of the Partnership's properties and (ii) generate
sufficient cash flow from operations to pay all expenses, including the payment
of interest to Noteholders. All of the properties were financed in September
1988.

The term of the Partnership is until all properties have been sold and
in any event, not later than December 31, 2038.

Investments in Facilities
- -------------------------

At December 31, 1998, the Partnership owned 17 properties in two
states.

The Partnership believes that its operating results have benefited from
favorable industry trends and conditions. Notably, the level of new
mini-warehouse construction has decreased since 1988 while consumer demand has
increased. In addition, in recent years consolidation has occurred in the
fragmented mini-warehouse industry.

<PAGE>

Mini-warehouses are designed to offer accessible storage space for
personal and business use at a relatively low cost. A user rents a fully
enclosed space which is for the user's exclusive use and to which only the user
has access on an unrestricted basis during business hours. On-site operation is
the responsibility of resident managers who are supervised by area managers.
Some mini-warehouses also include rentable uncovered parking areas for vehicle
storage. Leases for mini-warehouse space may be on a long-term or short-term
basis, although typically spaces are rented on a month-to-month basis. Rental
rates vary according to the location of the property and the size of the storage
space.

Users of space in mini-warehouses include both individuals and large
and small businesses. Individuals usually employ this space for storage of,
among other things, furniture, household appliances, personal belongings, motor
vehicles, boats, campers, motorcycles and other household goods. Businesses
normally employ this space for storage of excess inventory, business records,
seasonal goods, equipment and fixtures.

Mini-warehouses in which the Partnership has invested generally consist
of three to seven buildings containing an aggregate of between 350 to 750
storage spaces, most of which have between 25 and 400 square feet and an
interior height of approximately 8 to 12 feet.

The Partnership experiences minor seasonal fluctuations in the
occupancy levels of mini-warehouses with occupancies higher in the summer months
than in the winter months. The Partnership believes that these fluctuations
result in part from increased moving activity during the summer.

The Partnership's mini-warehouses are geographically diversified and
are generally located in heavily populated areas and close to concentrations of
apartment complexes, single family residences and commercial developments.
However, there may be circumstances in which it may be appropriate to own a
property in a less populated area, for example, in an area that is highly
visible from a major thoroughfare and close to, although not in, a heavily
populated area. Moreover, in certain population centers, land costs and zoning
restrictions may create a demand for space in nearby less populated areas.

As with most other types of real estate, the conversion of
mini-warehouses to alternative uses in connection with a sale or otherwise would
generally require substantial capital expenditures. However, the Partnership
does not intend to convert its mini-warehouses to other uses.

Operating Strategies
- --------------------

The Partnership's mini-warehouses are operated by PSI under the "Public
Storage" name, which the Partnership believes is the most recognized name in the
mini-warehouse industry. The major elements of the Partnership's operating
strategies are as follows:

* CAPITALIZE ON "PUBLIC STORAGE'S" NAME RECOGNITION. PSI, together with
its predecessor, has more than 20 years of operating experience in the
mini-warehouse business. PSI has informed the Partnership that it is
the largest mini-warehouse facility operator in the United States in
terms of both number of facilities and rentable space operated. PSI
believes that its marketing and advertising programs improve its
competitive position in the market. PSI's in-house Yellow Pages staff
designs and places advertisements in approximately 700 directories.
Commencing in early 1996, PSI began to experiment with a telephone
reservation system designed to provide added customer service.
Customers calling either PSI's toll-free telephone referral system,
(800) 44-STORE, or a mini-warehouse facility are directed to PSI's
reservation system where a trained representative discusses with the
customer space requirements, price and location preferences and also
informs the customer of other products and services provided by PSI.
The telephone reservation system supports rental activity at all of the
Partnership's properties. PSI's toll-free telephone referral system
services approximately 175,000 calls per month from potential customers
inquiring as to the nearest Public Storage mini-warehouse.

* MAINTAIN HIGH OCCUPANCY LEVELS AND INCREASE REALIZED RENTS. Subject to
market conditions, the Partnership generally seeks to achieve average
occupancy levels in excess of 90% and to eliminate promotions prior to
increasing rental rates. Average occupancy for the Partnership's
mini-warehouses has increased from 93% in 1997 to 94% 1998. Realized
monthly rents per occupied square foot increased from $.83 in 1997 to
$.89 in 1998. The Partnership has increased rental rates in many
markets where it has achieved high occupancy levels.

<PAGE>

* SYSTEMS AND CONTROLS. PSI has an organizational structure and a
property operation system, "CHAMP" (Computerized Help and Management
Program), which links its corporate office with each mini-warehouse.
This enables PSI to obtain daily information from each mini-warehouse
and to achieve efficiencies in operations and maintain control over its
space inventory, rental rates, promotional discounts and delinquencies.
Expense management is achieved through centralized payroll and accounts
payable systems and a comprehensive property tax appeals department and
PSI has an extensive internal audit program designed to ensure proper
handling of cash collections.

* PROFESSIONAL PROPERTY OPERATION. There are approximately 3,800 persons
who render services for the Public Storage system, primarily personnel
engaged in property operations, substantially all of whom are employed
by a clearing company that provides certain administrative and
cost-sharing services to PSI and others owners of properties operated
by PSI.

Property Operator
- -----------------

The Partnership's mini-warehouses are managed by PSI (as
successor-in-interest to PSMI) under a Management Agreement. PSI has informed
the Partnership that it is the largest mini-warehouse facility operator in the
United States in terms of both number of facilities and rentable space operated.

Under the supervision of the Partnership, PSI coordinates the operation
of the facilities, establishes rental policies and rates, directs marketing
activity and directs the purchase of equipment and supplies, maintenance
activity and the selection and engagement of all vendors, supplies and
independent contractors.

PSI engages, at the expense of the Partnership, employees for the
operation of the Partnership's facilities, including resident managers,
assistant managers, relief managers, and billing and maintenance personnel. Some
or all of these employees may be employed on a part-time basis and may also be
employed by other persons, partnerships, real estate investment trusts or other
entities owning facilities operated by PSI.

In the purchasing of services such as advertising (including broadcast
media advertising) and insurance, PSI attempts to achieve economies by combining
the resources of the various facilities that it operates. Facilities operated by
PSI have historically carried comprehensive insurance, including fire,
earthquake, liability and extended coverage.

PSI has developed systems for space inventory, accounting and handling
delinquent accounts, including a computerized network linking PSI operated
facilities. Each project manager is furnished with detailed operating procedures
and typically receives facilities management training from PSI. Form letters
covering a variety of circumstances are also supplied to the project managers. A
record of actions taken by the project managers when delinquencies occur is
maintained.

The Partnership's facilities are typically advertised via signage,
yellow pages, flyers and broadcast media advertising (television and radio) in
geographic areas in which many of the Partnership's facilities are located.
Broadcast media and other advertising costs are charged to the Partnership's
facilities located in geographic areas affected by the advertising. From time to
time, PSI adopts promotional programs, such as temporary rent reductions, in
selected areas or for individual facilities.

For as long as the Management Agreement is in effect, PSI has granted
the Partnership a non-exclusive license to use two PSI service marks and related
designs, including the "Public Storage" name, in conjunction with rental and
operation of facilities managed pursuant to the Management Agreement. Upon
termination of the Management Agreement, the Partnership would no longer have
the right to use the service marks and related designs except as described
below. The General Partners believe that the loss of the right to use the
service marks and related designs could have a material adverse effect on the
Partnership's business.

The Management Agreement between the Partnership and PSI provides that
the Management Agreement may be terminated without cause upon 60 days' written
notice by either party.

Competition
- -----------

Competition in the market areas in which the Partnership operates is
significant and affects the occupancy levels, rental rates and operating
expenses of certain of the Partnership's facilities. Competition may be
accelerated by any increase in availability of funds for investment in real
estate. Recent increases in plans for development of mini-warehouses is expected

<PAGE>

to further intensify competition among mini-warehouse operators in certain
market areas. In addition to competition from mini-warehouses operated by PSI,
there are three other national firms and numerous regional and local operators.
The Partnership believes that the significant operating and financial experience
of PSI, and the "Public Storage" name, should enable the Partnership to continue
to compete effectively with other entities.

Other Business Activities
- -------------------------

A corporation owned by the Hughes Family reinsures policies against
losses to goods stored by tenants in the Partnership's mini-warehouses. The
Partnership believes that the availability of insurance reduces the potential
liability of the Partnership to tenants for losses to their goods from theft or
destruction. This corporation receives the premiums and bears the risks
associated with the insurance.

A corporation, in which PSI has a 95% economic interest and the Hughes
Family has a 5% economic interest, sells locks, boxes and tape to tenants to be
used in securing their spaces and moving their goods. PSI believes that the
availability of locks, boxes and tape for sale promotes the rental of spaces.

Employees
- ---------

There are 54 persons who render services on behalf of the Partnership.
These persons include resident managers, assistant managers, relief managers,
district managers, and administrative personnel. Some employees may be employed
on a part-time basis and may be employed by other persons, Partnerships, REITs
or other entities owning facilities operated by PSI.

<PAGE>

ITEM 2. PROPERTIES.

The following table sets forth information as of December 31, 1998
about properties owned by the Partnership:

Net Number Date of Completion
Location Size of Parcel Rentable Area of Spaces Purchase Date
- -------------------- -------------- ---------------- --------- ------------- ------------
CALIFORNIA
- ----------
<S> <C> <C> <C> <C> <C>
Azusa 5.85 acres 105,000 sq. ft. 941 July 14, 1978 Nov. 1978

Concord 2.87 acres 52,000 sq. ft. 525 June 20, 1978 Jan. 1979

Oakland 1.97 acres 41,000 sq. ft. 370 Oct. 11, 1978 Apr. 1979

Pasadena 1.82 acres 37,000 sq. ft. 339 July 19, 1978 Nov. 1978

Redlands 3.44 acres 63,000 sq. ft. 580 Aug. 24, 1978 Feb. 1979

Richmond 1.82 acres 35,000 sq. ft. 352 Aug. 23, 1978 Mar. 1979

Riverside 2.47 acres 45,000 sq. ft. 393 Jan. 2, 1979 May 1979

Sacramento
Howe Avenue 2.36 acres 41,000 sq. ft. 386 Dec. 14, 1978 Aug. 1979
.
Sacramento
West Capitol 3.38 acres 44,000 sq. ft. 457 Jan. 5, 1979 June 1979

San Carlos 2.80 acres 51,000 sq. ft. 458 Jan. 30, 1979 Oct. 1979

Santa Clara 4.45 acres 75,000 sq. ft. 698 Dec. 22, 1978 June 1979 and
July 1981

Tustin 4.40 acres 67,000 sq. ft. 559 July 3, 1978 Dec. 1978

FLORIDA
- -------
Miami Airport
Expressway 1.70 acres 29,000 sq. ft. 274 Aug. 24, 1978 Jan. 1979

Miami (1)
Cutler Ridge 4.00 acres 46,000 sq. ft. 481 Sept. 6, 1978 Apr. 1979

Pembroke Park (2) 2.35 acres 49,000 sq. ft. 446 Sept. 1, 1978 July 1979

Ft. Lauderdale
I95 & 23rd Ave. 2.77 acres 45,000 sq. ft. 504 Nov. 9, 1978 Sept. 1979

Ft. Lauderdale
I95 & Sunrise 3.32 acres 56,000 sq. ft. 558 Dec. 4, 1979 Sept. 1979

</TABLE>

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

(1) On August 24, 1992, this property was damaged by Hurricane Andrew and, as a
result, the facility became idle as of this date. The facility has been
rebuilt and recommenced operations in October 1994.

(2) In 1995, the Partnership sold approximately 4,729 sq. ft. of this property
to the State of Florida under a condemnation proceeding.

<PAGE>

The properties are held subject to encumbrances which are described in
this report under Note 7 of the Notes to the Financial Statements included in
Item 14(a).

ITEM 3. LEGAL PROCEEDINGS.

No material legal proceeding is pending against the Partnership.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

No matters were submitted to a vote of security holders during the
fourth quarter of 1998.

PART II

ITEM 5. MARKET FOR THE PARTNERSHIP'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS.

The Partnership has no common stock.

The Units are not listed on any national securities exchange or quoted
on the NASDAQ System, and there is no established public trading market for the
Units. Secondary sales activity for the Units has been limited and sporadic. The
General Partners monitor transfers of the Units (a) because the admission of the
transferee as a substitute limited partner requires the consent of the General
Partners under the Partnership's Amended and Restated Certificate and Agreement
of Limited Partnership, (b) in order to ensure compliance with safe harbor
provisions to avoid treatment as a "publicly traded partnership" for tax
purposes, and (c) because the General Partners have purchased Units. However,
the General Partners do not have information regarding the prices at which all
secondary sale transactions in the Units have been effectuated. Various
organizations offer to purchase and sell limited partnership interests
(including securities of the type such as the Units) in secondary sales
transactions. Various publications such as The Stanger Report summarize and
report information (on a monthly, bimonthly or less frequent basis) regarding
secondary sales transactions in certain limited partnership interests (including
the Units), including the prices at which such secondary sales transactions are
effectuated.

Exclusive of the General Partners' interest in the Partnership, as of
December 31, 1998, there were approximately 1,106 record holders of Units.

In May 1997, B. Wayne Hughes ("Hughes") a general partner of the
Partnership, completed a cash tender offer, which commenced in March 1997,
pursuant to which Hughes acquired a total of 5,003 limited partnership units at
$447 per Unit.

Distributions to the general and limited partners of all cash available
for distribution have been made quarterly. Cash available for distribution is
generally funds from operations of the Partnership, without deduction for
depreciation, but after deducting funds to pay or establish reserves for all
other expenses (other than incentive distributions to the general partners) and
capital improvements, plus net proceeds from any sale or financing of the
Partnership's properties. In the third quarter of 1991, quarterly distributions
were discontinued to enable the Partnership to increase its reserves for
principal repayments that commenced in 1990 and will continue through 1998, at
which time the entire remaining principal balance will be payable.

Reference is made to Item 6 and 7 hereof for information on the amount
of such distributions.

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.

ITEM 6. SELECTED FINANCIAL DATA.

For the Year Ended December 31, 1998 1997 1996 1995 1994
- -------------------------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Revenues $ 9,234,000 $ 8,516,000 $ 7,774,000 $ 7,629,000 $ 7,085,000

Depreciation and amortization 926,000 881,000 814,000 742,000 692,000

Interest expense 2,080,000 2,805,000 2,898,000 2,967,000 3,071,000

Gain on sale of real estate - - - 125,000 -

Net income 3,507,000 2,281,000 1,698,000 1,724,000 1,208,000

Limited partners' share 3,468,000 2,256,000 1,680,000 1,704,000 1,195,000

General partners' share 39,000 25,000 18,000 20,000 13,000

Limited partners' per unit data (1)
Net income $86.70 $56.40 $42.00 $42.60 $29.88

As of December 31,
- --------------------------------

Cash and cash equivalents $ 433,000 $ 1,911,000 $ 2,440,000 $ 967,000 $ 551,000

Total Assets $ 20,876,000 $ 23,818,000 $ 22,742,000 $ 18,367,000 $ 16,505,000

Debt $ 19,650,000 $ 25,405,000 $ 26,338,000 $ 27,178,000 $ 28,086,000

</TABLE>

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

(1) Per unit data is based on the weighted average number of the limited
partnership units (40,000) outstanding during the period.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.

Forward Looking Statements
- --------------------------

<PAGE>

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

YEAR ENDED DECEMBER 31, 1998 COMPARED TO YEAR ENDED DECEMBER 31, 1997:

The Partnership's net income was $3,507,000 in 1998 compared to
$2,281,000 in 1997, representing an increase of $1,226,000. This increase is
primarily a result of increased operating results at the Partnership's real
estate facilities combined with a decrease in interest expense.

During 1998 property net operating income (rental income less cost of
operations, management fees paid to an affiliate and depreciation expense) was
$5,241,000 in 1998 compared to $4,731,000 in 1997, representing an increase of
$510,000 or 11%. This increase was primarily attributable to an increase in
rental income at the Partnership's mini-warehouse facilities partially offset by
an increase in cost of operations and depreciation expense.

Rental income was $8,811,000 in 1998 compared to $8,086,000 in 1997,
representing an increase of $725,000 or 9%. The increase was primarily
attributable to an increase in occupancy level and rental rates at the
Partnership's facilities. The weighted average occupancy levels at the
mini-warehouse facilities were 94% and 93% in 1998 and 1997, respectively. The
monthly realized rent per occupied square foot averaged $.89 in 1998 compared to
$.83 in 1997.

Other income decreased $42,000 in 1998 compared to 1997. This decrease
is primarily a result of the pay off of the mortgage note payable with cash
reserves, which resulted in lower cash balances and consequently less interest
earned.

Dividend income from marketable securities of affiliate increased
$35,000 in 1998 compared to 1997. This increase is primarily due to an increase
in the weighted average number of shares owned in 1998 compared to 1997.

Cost of operations (including management fees paid to an affiliate)
increased $170,000 or 7% to $2,644,000 in 1998 from $2,474,000 in 1997. This
increase was primarily attributable to increases in management fees,
advertising, property tax, and repairs and maintenance expenses.

Interest expense was $2,080,000 and $2,805,000 in 1998 and 1997,
respectively, representing a decrease of $725,000 or 26%. The decrease was
primarily a result of a lower average outstanding loan balance in 1998 compared
to 1997 and lower interest rates on the Partnership's indebtedness. See
Liquidity and Capital Resources for a discussion of the refinancing of the
Partnership's indebtedness.

YEAR ENDED DECEMBER 31, 1997 COMPARED TO YEAR ENDED DECEMBER 31, 1996:

The Partnership's net income was $2,281,000 in 1997 compared to
$1,698,000 in 1996, representing an increase of $583,000. This increase is
primarily a result of increased operating results at the Partnership's real
estate facilities combined with a decrease in interest expense.

During 1997 property net operating income (rental income less cost of
operations, management fees paid to an affiliate and depreciation expense) was
$4,731,000 in 1997 compared to $4,310,000 in 1996, representing an increase of
$421,000 or 10%. This increase was primarily attributable to an increase in
rental income at the Partnership's mini-warehouse facilities partially offset by
an increase in cost of operations and depreciation expense.

Rental income was $8,086,000 in 1997 compared to $7,423,000 in 1996,
representing an increase of $663,000 or 9%. The increase was primarily
attributable to an increase in occupancy level at the Partnership's facilities.
The weighted average occupancy levels at the mini-warehouse facilities were 93%
and 89% in 1997 and 1996, respectively. The monthly realized rent per occupied
square foot averaged $.83 in 1997 compared to $.79 in 1996.

Other income increased $40,000 in 1997 compared to 1996. This increase
is primarily due to an increase in invested cash balances.

Dividend income from marketable securities of affiliate increased
$39,000 in 1997 compared to 1996. This increase is primarily due to an increase
in the weighted average number of shares owned in 1997 compared to 1996.

<PAGE>

Cost of operations (including management fees paid to an affiliate)
increased $175,000 or 8% to $2,474,000 in 1997 from $2,299,000 in 1996. This
increase was primarily attributable to increases in management fees,
advertising, property tax, and repairs and maintenance expenses.

In 1995, the Partnership prepaid eight months of 1996 management fees
on its mini-warehouse operations discounted at the rate of 14% effective rate to
compensate for early payment. As a result, management fee expense for the twelve
months ended December 31, 1996 was $26,000 lower than it would have been without
the discounted fee structure.

Interest expense was $2,805,000 and $2,898,000 in 1997 and 1996,
respectively, representing a decrease of $93,000 or 3%. The decrease was
primarily a result of a lower average outstanding loan balance in 1997 compared
to 1996.

Liquidity and Capital Resources
- -------------------------------

Cash flows from operating activities ($4,670,000 for the year ended
December 31, 1998) have been sufficient to meet all current obligations of the
Partnership. During 1999, the Partnership anticipates approximately $351,000 of
capital improvements compared to $393,000 in 1998 and $590,000 in 1997.

At December 31, 1998, the Partnership held 381,980 shares of common
stock (marketable securities) with a fair value totaling $10,337,000 (cost basis
of $6,091,000 at December 31, 1998) in Public Storage, Inc. (PSI). The
Partnership recognized $336,000 in dividends during 1998.

In the third quarter of 1991, quarterly distributions were discontinued
to enable the Partnership to increase its funds available for debt principal
payments.

Distributions to the limited and general partners for the years
1978-1991 aggregated $62,032,000 including $29,360,000 distributed to the
partners in 1988 in connection with a financing of the properties.

During 1988, the Partnership financed all of its properties with a
$30,500,000 loan with fixed interest of 10.47 percent per annum. Net proceeds of
$29,360,000 were distributed to the partners in October 1988 and are included in
the 1988 distribution.

On July 1, 1998, the Partnership paid off the mortgage note payable
with cash reserves and with the proceeds of a $22,000,000 loan from Public
Storage, Inc., a general partner of the Partnership. The loan from Public
Storage, Inc. had a fixed interest rate of 7.2% and matured June 30, 1999. The
loan was liquidated through proceeds as described in the next paragraph. The
loan called for monthly payments of interest only. Principal was payable at any
time without penalty. Public Storage, Inc. also provided the Partnership with
options to extend the loan term through June 2003.

During September 1998, the Partnership borrowed $21,000,000 from a
commercial bank. The loan is unsecured and bears interest at the London
Interbank Offering Rate ("LIBOR") plus 0.60% to 1.20% (5.66% at December 31,
1998) depending on the Partnership's interest coverage ratio. The loan requires
monthly payments of interest and matures September 2002. Principal may be paid,
in whole or in part, at any time without penalty or premium. The loan proceeds
were used to pay off the Partnership's note to Public Storage, Inc.

The Partnership also entered into an interest rate swap agreement to
reduce the impact of changes in interest rates on a portion of its floating rate
debt. The agreement, which covers $11,500,000 of debt through March 2000 and
$7,500,000 from March 2000 through September 2000, effectively changes the
interest rate exposure from floating rate to a fixed rate of 5.22% plus 0.60% to
1.20% (5.82% as of December 31, 1998) based on the Partnership's interest
coverage ratio. Market gains and losses on the value of the swap are deferred
and included in income over the life of the contract. The Partnership records
the differences paid or received on the interest rate swap in interest expense
as payments are made or received. As of December 31, 1998, the unrealized loss
on the interest rate swap, if required to be liquidated, was approximately
$37,000.

<PAGE>

Year 2000 System Issues
- -----------------------

The Partnership utilizes PSI's information systems in connection with a
cost sharing and administrative services agreement. PSI has completed an
assessment of all of its hardware and software applications to identify
susceptibility to what is commonly referred to as the "Y2K Issue" whereby
certain computer programs have been written using two digits rather than four to
define the applicable year. Any of PSI's computer programs or hardware with the
Y2K Issue that have date-sensitive applications or embedded chips may recognize
a date using "00" as the year 1900 rather than the year 2000, resulting in
miscalculations or system failure causing disruptions of operations.

PSI has two phases in its process with respect to each of its systems;
i) assessment, whereby PSI evaluates whether the system is Y2K compliant and
identifies the plan of action with respect to remediating any Y2K issues
identified and ii) implementation, whereby PSI completes the plan of action
prepared in the assessment phase and verifies that Y2K compliance has been
achieved.

Many of PSI's critical applications, relative to the direct management
of properties, have recently been replaced and PSI believes they are already
Year 2000 compliant. PSI has an implementation in process on the remaining
critical applications, including its general ledger and related systems, that
are believed to have Y2K issues. PSI expects the implementation to be complete
by June 1999. Contingency plans have been developed for use in case PSI's
implementations are not completed on a timely basis. While PSI presently
believes that the impact of the Y2K Issue on its systems can be mitigated, if
PSI's plan for ensuring Year 2000 Compliance and the related contingency plans
were to fail, be insufficient, or not be implemented on a timely basis,
Partnership operations could be materially impacted.

Certain of PSI's other non-computer related systems that may be
impacted by the Y2K Issue, such as security systems, are currently being
evaluated, and PSI expects the evaluation to be complete by June 1999. PSI
expects the implementation of any required solutions to be complete in advance
of December 31, 1999. PSI has not fully evaluated the impact of lack of Year
2000 compliance on these systems, but has no reason to believe that lack of
compliance would materially impact the Partnership's operations.

The Partnership exchanges electronic data with certain outside vendors
in the banking and payroll processing areas. The Partnership has been advised by
these vendors that their systems are or will be Year 2000 compliant, but has
requested a Year 2000 compliance certification from these entities. The
Partnership is not aware of any other vendors, suppliers, or other external
agents with a Y2K Issue that would materially impact the Partnership's results
of operations, liquidity, or capital resources. However, the Partnership has no
means of ensuring that external agents will be Year 2000 compliant, and there
can be no assurance that the Partnersip has identified all such external agents.
The inability of external agents to complete their Year 2000 compliance process
in a timely fashion could materially impact the Partnership. The effect of
non-compliance by external agents is not determinable.

The cost of the PSI's Year 2000 compliance activities (which primarily
consists of the costs of new systems) to be allocated to the Partnership and the
Joint Venture is estimated at approximately $76,143. These costs are
capitalized. PSI's Year 2000 compliance efforts have not resulted in any
significant deferrals in other information system projects.

The costs of the projects and the date on which PSI and the Partnership
expect to achieve Year 2000 Compliance are based upon management's best
estimates, and were derived utilizing numerous assumptions of future events.
There can be no assurance that these estimates will be achieved, and actual
results could differ materially from those anticipated. There can be no
assurance that the Partnership or PSI has identified all potential Y2K Issues
either within the Partnership, at PSI, or at external agents. In addition, the
impact of the Y2K issue on governmental entities and utility providers and the
resultant impact on the Partnership, as well as disruptions in the general
economy, may be material but cannot be reasonably determined or quantified.

<PAGE>

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

The Partnership's interest expense is sensitive to changes in the
general level of U.S. interest rates. In this regard, changes in U.S. interest
rates affect the interest paid on the Partnerhip's debt. To mitigate the impact
of fluctuations in U.S. interest rates, the Partnership generally maintains its
debt as fixed rate in nature by borrowing on a long-term basis or entering into
interest swap transactions. As of December 31, 1998, the Partnership had
$19,650,000 of outstanding debt maturing on September, 2002. Also, the
Partnership has an interest rate swap in the notional amount of $19,000,000
through September, 2000.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The Partnership's financial statements are included elsewhere herein.
Reference is made to the Index to Financial Statements and Financial Statement
Schedule in Item 14(a).

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.

None.

<PAGE>

PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE PARTNERSHIP.

The Partnership has no directors or executive officers.

The Partnership's general partners are PSI and B. Wayne Hughes. PSI,
acting through its directors and executive officers, and Mr. Hughes manage and
make investment decisions for the Partnership.

The names of all directors and executive officers of PSI, the offices
held by each of them with PSI, and their ages and business experience during the
past five years are as follows:

Name Positions with PSI
- ----------------------- -------------------------------------------------
B. Wayne Hughes Chairman of the Board and Chief Executive Officer
Harvey Lenkin President and Director
B. Wayne Hughes, Jr. Vice President and Director
John Reyes Senior Vice President and Chief Financial Officer
Carl B. Phelps Senior Vice President
Obren B. Gerich Senior Vice President
Marvin M. Lotz Senior Vice President
David Goldberg Senior Vice President and General Counsel
A. Timothy Scott Senior Vice President and Tax Counsel
David P. Singelyn Vice President and Treasurer
Sarah Hass Vice President and Secretary
Robert J. Abernethy Director
Dann V. Angeloff Director
William C. Baker Director
Thomas J. Barrack Jr. Director
Uri P. Harkham Director
Daniel C. Staton Director

B. Wayne Hughes, age 65, a general partner of the Partnership, has been
a director of PSI since its organization in 1980 and was President and Co-Chief
Executive Officer from 1980 until November 1991 when he became Chairman of the
Board and sole Chief Executive Officer. Mr. Hughes has been active in the real
estate investment field for over 25 years. He is the father of B. Wayne Hughes,
Jr.

Harvey Lenkin, age 62, has been employed by PSI for 21 years and became
President and a director of PSI in November 1991. Mr. Lenkin has been a director
of PS Business Parks, Inc. ("PSBP"), an affiliated REIT, since March 16, 1998
and was President of PSBP (formerly Public Storage Properties XI, Inc.) from
1990 until March 16, 1998. He is a member of the Board of Governors of the
National Association of Real Estate Investment Trusts (NAREIT).

B. Wayne Hughes, Jr., age 39, became director of PSI in January 1998.
He has been a Vice President Acquisitions of PSI since 1992. He is the son of B.
Wayne Hughes.

John Reyes, age 38, a certified public accountant, joined PSI in 1990
and was Controller of PSI from 1992 until December 1996 when he became Chief
Financial Officer. He became a Vice President of PSI in November 1995 and a
Senior Vice President of PSI in December 1996. From 1983 to 1990, Mr. Reyes was
employed by Ernst & Young.

Carl B. Phelps, age 60, became a Senior Vice President of PSI in
January 1998 with overall responsibility for property acquisition and
development. From June 1991 until joining PSI, he was a partner in the law firm
of Andrews & Kurth, L.L.P., which performed legal services for PSI. From
December 1982 through May 1991, his professional corporation was a partner in
the law firm of Sachs & Phelps, then counsel to PSI.

Obren B. Gerich, age 60, a certified public accountant, has been a Vice
President of PSI since 1980 and became Senior Vice President of PSI in November
1995. He was Chief Financial Officer of PSI until November 1991.

<PAGE>

Marvin M. Lotz, age 56, has had overall responsibility for Public
Storage's mini-warehouse operations since 1988. He became a Senior Vice
President of PSI in November 1995. Mr. Lotz was an officer of PSI with
responsibility for property acquisitions from 1983 until 1988.

David Goldberg, age 49, joined PSI's legal staff in June 1991. He
became Senior Vice President and General Counsel of PSI in November 1995. From
December 1982 until May 1991, he was a partner in the law firm of Sachs &
Phelps, then counsel to PSI.

A. Timothy Scott, age 47, became a Senior Vice President and Tax
Counsel of PSI and Vice President and Tax Counsel of the Public Storage REITs in
November 1996. From June 1991 until joining PSI, Mr. Scott practiced tax law as
a shareholder of the law firm of Heller, Ehrman, White & McAuliffe, counsel to
PSI. Prior to June 1991, his professional corporation was a partner in the law
firm of Sachs & Phelps, then counsel to PSI.

David P. Singleyn, age 37, a certified public accountant, has been
employed by PSI since 1989 and became Vice President and Treasurer of PSI in
November 1995. From 1987 to 1989, Mr. Singelyn was Controller of Winchell's
Donut Houses, L.P.

Sarah Hass, age 43, became Secretary of PSI in February 1992. She
became a Vice President of PSI in November 1995. She joined PSI's legal
department in June 1991, rendering services on behalf of PSI. From 1987 until
May 1991, her professional corporation was a partner in the law firm of Sachs &
Phelps, then counsel to PSI, and from April 1986 until June 1987, she was
associated with that firm, practicing in the area of securities law. From
September 1979 until September 1985, Ms. Hass was associated with the law firm
of Rifkind & Sterling, Incorporated.

Robert J. Abernethy, age 59, has been President of American Standard
Development Company and of Self-Storage Management Company, which develop and
operate mini-warehouses, since 1976 and 1977, respectively. Mr. Abernethy has
been a director of PSI since its organization in 1980. He is a member of the
board of trustees of Johns Hopkins University and a director of Marathon
National Bank. Mr. Abernethy is a former member of the board of directors of the
Los Angeles County Metropolitan Transportation Authority and the Metropolitan
Water District of Southern California and a former Planning Commissioner and
Telecommunications Commissioner and former Vice-Chairman of the Economic
Development Commission of the City of Los Angeles.

Dann V. Angeloff, age 63, has been President of the Angeloff Company, a
corporate financial advisory firm, since 1976. The Angeloff Company has
rendered, and is expected to continue to render, financial advisory and
securities brokerage services for PSI. Mr. Angeloff is the general partner of a
limited partnership that owns a mini-warehouse operated by PSI and which secures
a note owned by PSI. Mr. Angeloff has been a director of PSI since its
organization in 1980. He is a director of Balboa Capital Corporation,
Compensation Resource Group, Nicholas/Applegate Growth Equity Fund,
Nicholas/Applegate Mutual Funds, ReadyPac Produce, Inc., Royce Medical Company,
SupraLife International and WorldxChange Communications, Inc. He was a director
of SPI from 1989 until June 1996.

William C. Baker, age 65, became a director of PSI in November 1991.
Since January 1999, Mr. Baker has been President and Chief Executive Officer of
Los Angeles Turf Club, Incorporated, which operates the Santa Anita Racetrack
and is wholly-owned subsidiary of Magna International Inc. Since August 1998, he
has been President of Meditrust Operating Company, a paired share real estate
investment trust. From November 1997 until December 1998, he was Chairman of the
Board and Chief Executive Officer of The Santa Anita Companies, Inc., a
wholly-owned subsidiary of Meditrust Operating Company which then operated the
Santa Anita Racetrack. From August 1996 until November 1997, he was Chairman of
the Board and Chief Executive Officer of Santa Anita Operating Company and
Chairman of the Board of Santa Anita Realty Enterprises, Inc., the companies
which were merged with Meditrust in November 1997. From April 1993 through May
1995, Mr. Baker was President of Red Robin International, Inc., an operator and
franchiser of casual dining restaurants in the United States and Canada. From
January 1992 through December 1995 he was Chairman and Chief Executive Officer
of Carolina Restaurant Enterprises, Inc., a franchisee of Red Robin
International, Inc. Since 1991, he has been Chairman of the Board of Coast
Newport Properties, a real estate brokerage company. From 1976 to 1988, he was a
principal shareholder and Chairman and Chief Executive Officer of Del Taco,
Inc., an operator and franchiser of fast food restaurants in California. Mr.
Baker is a director of Callaway Golf Company and Meditrust Operating Company.

Thomas J. Barrack, Jr., age 51, became a director of PSI in February
1998. Mr. Barrack has been the Chairman and Chief Executive Officer of Colony
Capital, Inc. since September, 1991. Colony Capital, Inc. is one of the largest
real estate investors in America, having acquired properties in the U.S., Europe
and Asia. Prior to founding Colony Capital, Inc., from 1987 to 1991, Mr. Barrack
was a principal with the Robert M. Bass Group, Inc., the principal investment
vehicle for Robert M. Bass of Fort Worth, Texas. From 1985 to 1987, Mr. Barrack

<PAGE>

was President of Oxford Ventures, Inc., a Canadian-based real estate development
company. From 1984 to 1985 he was a Senior Vice President at E. F. Hutton
Corporate Finance in New York. Mr. Barrack was appointed by President Ronald
Reagan as Deputy Under Secretary at the U.S. Department of the Interior from
1982 to 1983. Mr. Barrack currently is a director of Continental Airlines, Inc.,
Harvey's Acquisition Corp.and Kennedy-Wilson, Inc.

Uri P. Harkham, age 50, became a director of PSI in March 1993. Mr.
Harkham has been the President and Chief Executive Officer of the Jonathan
Martin Fashion Group, which specializes in designing, manufacturing and
marketing women's clothing, since its organization in 1976. Since 1978, Mr.
Harkham has been the Chairman of the Board of Harkham Properties, a real estate
firm specializing in buying and managing fashion warehouses in Los Angeles.

Daniel C. Staton, age 46, became a director of PSI on March 12, 1999 in
connection with the merger of Storage Trust Realty, a real estate investment
trust, with PSI. Mr. Staton was Chairman of the Board of Trustees of Storage
Trust Realty from February 1998 until March 12, 1999 and a Trustee of Storage
Trust Realty from November 1994 until March 12, 1999. He is President of Walnut
Capital Partners, an investment and venture capital company. Mr. Staton was the
Chief Operating Officer and Executive Vice President of Duke Realty Investments,
Inc. from 1993 to 1997. He has been a director of Duke Associates, the
predecessor of Duke Realty Investments, Inc. Prior to joining Duke Associates in
1981, he was a partner and general manager of he own moving company, Gate way
Van & Storage, Inc. in St. Louis, Missouri. From 1986 to 1988, Mr. Staton served
as president of the Greater Cincinnati Chapter of the National Association of
Industrial and Office Parks.

Pursuant to Articles 16 and 17 of the Partnership's Amended Certificate
and Agreement of Limited Partnership, a copy of which is included in the
Partnership's prospectus included in the Partnership's Registration Statement
File No. 2-60530, each of the General Partners continues to serve until (i)
death, insanity, insolvency, bankruptcy or dissolution, (ii) withdrawal with the
consent of the other general partner and a majority vote of the limited
partners, or (iii) removal by a majority vote of the limited partners.

Each director of PSI serves until he resigns or is removed from office
by the shareholders of PSI, and may resign or be removed from office at any time
with or without cause. Each officer of PSI serves until he resigns or is removed
by the board of directors of PSI. Any such officer may resign or be removed from
office at any time with or without cause.

There have been no events under any bankruptcy act, no criminal
proceedings, and no judgments or injunctions material to the evaluation of the
ability of any director or executive officer of PSI during the past five years.

SECTION 16 (A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Based on a review of the reports filed under Section 16(a) of the
Securities Exchange Act of 1934 with respect to the units that were submitted to
the Partnership, the Partnership believes that with respect to the fiscal year
ended December 31, 1998, B. Wayne Hughes, Jr. And Thomas J. Barrak, Jr., each of
whom is a director of PSI, a General Partner of the Partnership, each filed his
Initial Statement of Beneficial Ownership of Securities on Form 3 after its due
date.

ITEM 11. EXECUTIVE COMPENSATION.

The Partnership has no subsidiaries, directors or officers. See Item 13
for a description of certain transactions between the Partnership and its
General Partners and their affiliates.

<PAGE>

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

(a) At March 10, 1999, the following persons beneficially owned more
than 5% of the Units:

<TABLE>
<CAPTION>
Name and Address of
Title of Class Beneficial Owners Beneficial Ownership Percent of Class
- --------------------------- -------------------------- -------------------- ----------------

<S> <C> <C> <C>
Units of Limited Partnership Public Storage, Inc. 13,178 Units (1) 32.9%
Interest 701 Western Avenue
Glendale, California 91201

Units of Limited Partnership B. Wayne Hughes 11,900 Units (2) 29.8%
Interest Tamara Hughes Gustavson,
PS Orangeco, Inc.
701 Western Avenue
Glendale, California 91201
</TABLE>

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

(1) Includes (i) 12,965 Units owned by PSI as to which PSI has sole voting and
dispositive power, (ii) 158 Units which PSI has a currently exercisable
option to acquire from Tamara Hughes Gustavson, an adult daughter of Hughes
and (iii) 55 Units which PSI has an option to acquire from Tamara Hughes
Gustavson commencing April 1, 1999.

(2) Includes 5,892 Units owned by BWH Marina Corporation II, a corporation
wholly-owned by Hughes, as to which Hughes has sole voting and dispositive
power, (ii) 306 Units owned by Tamara Hughes Gustavson as to which Tamara
Hughes Gustavson has sole voting and dispositive power; PSI has a currently
exercisable option to acquire 158 of these Units and has an option to
acquire 55 of these Units commencing April 1, 1999, and (iii) 5,702 Units
owned by PS Orangeco, Inc., a corporation whose common stock (representing
5% of the equity) is owned by Hughes and members of his family and whose
non-voting preferred stock (representing 95% of the equity) is owned by
PSI, and as to which Units PS Orangeco, Inc. and Hughes share voting and
dispositive power.

(b) The Partnership has no officers and directors. The General Partners
contributed $202,000 to the original capital of the Partnership and as a result
participate in the distributions to the limited partners and in the
Partnership's profits and losses in the same proportion that the General
Partners' capital contribution bears to the total capital contribution.
Information regarding ownership of Units by PSI and Hughes, the General
Partners, is set forth under section (a) above. Dann V. Angeloff, a director of
PSI, beneficially owns 9 Units (0.02% of the Units). The directors and executive
officers of PSI (including Hughes), as a group (17 persons), beneficially own an
aggregate of 11,613 Units, representing 29.0% of the Units (including the 5,892
Units owned by Hughes and the 5,702 Units owned by PS Orangeco, Inc. as to which
Hughes shares voting and dispositive power set forth above).

(c) The Partnership knows of no contractual arrangements, the operation
of the terms of which may at a subsequent date result in a change in control of
the Partnership, except for articles 16, 17 and 21.1 of the Partnership's
Amended Certificate and Agreement of Limited Partnership (the "Partnership
Agreement"), a copy of which is included in the Partnership's prospectus
included in the Partnership's Registration Statement File No. 2-60530. Those
articles provide, in substance, that the limited partners shall have the right,
by majority vote, to remove a general partner and that a general partner may
designate a successor with the consent of the other general partner and a
majority of the limited partners.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

The Partnership Agreement provides that the General Partners will be
entitled to cash incentive distributions in an amount equal to (i) 8% of
distributions of cash flow from operations until the distributions to all
partners from all sources equal their capital contributions; thereafter, 25% of
distributions of cash flow from operations, and (ii) 25% of distributions from
net proceeds from sale and financing of the Partnership's properties remaining
after distribution to all partners of any portion thereof required to cause
distributions to partners from all sources to equal their capital contributions.
During 1986, the partners received cumulative distributions equal to their
capital contributions. The Partnership has not made any distributions since the
third quarter of 1991.

<PAGE>

The Partnership has a Management Agreement with PSI (as
successor-in-interest to PSMI). Under the Management Agreement, the Partnership
pays PSI a fee of 6% of the gross revenues of the mini-warehouse properties
operated for the Partnership. During 1998, the Partnership paid fees of $529,000
to PSI pursuant to the Management Agreement.

PART IV

ITEM 14. EXHIBITS. FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.

(a) List of Documents file as part of the Report.

1. Financial Statements. See Index to Financial
Statements and Financial Statement Schedule.

2. Financial Statement Schedules. See Index to Financial
Statements and Financial Statement Schedule.

3. Exhibits: See Exhibit Index contained below.

(b) Reports on Form 8-K: No reports on Form 8-K were filed during
the last quarter of fiscal 1996.

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.

EXHIBIT INDEX
(Item 14 (c))

3.1 Amended Certificate and Agreement of Limited Partnership. Previously
filed with the Securities and Exchange Commission as Exhibit A to the
Registrant's Prospectus included in Registration Statement No. 2-60530
and incorporated herein by references.

3.2 Thirty-fifth Amendment to Amended Certificate and Agreement of Limited
Partnership. Previously filed with the Securities and Exchange
Commission as an exhibit to the Registrant's Annual Report on Form 10-K
for the year ended December 31, 1993 and incorporated herein by
reference.

10.1 Second Amended and Restated Management Agreement dated November 16,
1995 between the Partnership and Public Storage, Inc. Previously filed
with the Securities and Exchange Commission as an exhibit to PS
Partners, Ltd.'s Annual Report on Form 10-K for the year ended December
31, 1996 and incorporated herein by reference.

10.2 Loan documents dated September 16, 1988 between the Registrant and The
Prudential Insurance Company of America. Previously filed with the
Securities and Exchange Commission as an exhibit to the Registrant's
Annual Report on Form 10-K for the year ended December 31, 1993 and
incorporated herein by reference.

10.3 Credit Agreement dated September 1, 1998 by and between Public Storage
Properties IV, Ltd. and Wells Fargo Bank, National Association.
Previously filed with the Securities and Exchange Commission as an
exhibit to the Partnership's Quarterly Report on Form 10-Q for the
quarter ended September 30, 1998 and incorporated herein by reference.

10.4 Interest Swap Agreement dated September 18, 1998 by and between Public
Storage Properties IV, Ltd. and Wells Fargo Bank, National Association.
Previously filed with the Securities and Exchange Commission as an
exhibit to the Partnership's Quarterly Report on Form 10-Q for the
quarter ended September 30, 1998 and incorporated herein by reference.

27 Financial Data Schedule. Filed herewith.

<PAGE>

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Partnership has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

PUBLIC STORAGE PROPERTIES IV, LTD.,
a California Limited Partnership

Dated: March 31, 1999 By: Public Storage, Inc., General Partner

By: /s/ B Wayne Hughes
--------------------------------------
B. Wayne Hughes, Chairman of the Board

By: /s/ B Wayne Hughes
--------------------------------------
B. Wayne Hughes, General Partner

Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Partnership in the capacities and on the dates indicated.

<TABLE>
<CAPTION>
Signature Capacity Date
- ------------------------ -------------------------------------- --------------
<S> <C> <C>
/s/ B Wayne Hughes Chairman of the Board and March 31, 1999
- ------------------------ Chief Executive Officer of
B. Wayne Hughes Public Storage, Inc. and General
Partner (principal executive offer)

/s/ Harvey Lenkin President and Director of March 31, 1999
- ------------------------ Public Storage, Inc.
Harvey Lenkin

/s/ B. Wayne Hughes, Jr. Vice President and Director of March 31, 1999
- ------------------------ Public Storage, Inc.
B. Wayne Hughes, Jr.

/s/ John Reyes Senior Vice President and Chief March 31, 1999
- ------------------------ Financial Officer of Public Storage, Inc.
John Reyes (principal financial officer and
principal accounting officer)

/s/ Robert J. Abernethy Director of Public Storage, Inc. March 31, 1999
- ------------------------
Robert J. Abernethy

/s/ Dann V. Angeloff Director of Public Storage, Inc. March 31, 1999
- ------------------------
Dann V. Angeloff

/s/ William C. Baker Director of Public Storage, Inc. March 31, 1999
- ------------------------
William C. Baker

Director of Public Storage, Inc.
- ------------------------
Thomas J. Barrack, Jr.

/s/ Uri P. Harkham Director of Public Storage, Inc. March 31, 1999
- ------------------------
Uri P. Harkham

Director of Public Storage, Inc.
- ------------------------
Daniel C. Staton

</TABLE>

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.

INDEX TO
FINANCIAL STATEMENTS
AND
FINANCIAL STATEMENT SCHEDULE
(Item 14 (a))

Page
References
----------

Report of Independent Auditors F-1

Financial Statements and Schedule:

Balance Sheets as of December 31, 1998 and 1997 F-2

For the years ended December 31, 1998, 1997 and 1996:

Statements of Income F-3

Statements of Partners' Equity (Deficit) F-4

Statements of Cash Flows F-5 - F-6

Notes to Financial Statements F-7 - F-10

Schedule:

III - Real Estate and Accumulated Depreciation F-11 - F-12

All other schedules have been omitted since the required information is
not present or not present in amounts sufficient to require submission of the
schedule, or because the information required is included in the financial
statements or the notes thereto.

<PAGE>

Report of Independent Auditors

The Partners
Public Storage Properties IV, Ltd.

We have audited the accompanying balance sheets of Public Storage Properties IV,
Ltd. as of December 31, 1998 and 1997, and the related statements of income,
partners' equity (deficit) and cash flows for each of the three years in the
period ended December 31, 1998. Our audits also included the schedule listed in
the index at item 14(a). These financial statements and schedule are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Public Storage Properties IV,
Ltd. at December 31, 1998 and 1997, and the results of its operations and its
cash flows for each of the three years in the period ended December 31, 1998, in
conformity with generally accepted accounting principles. Also, in our opinion,
the related financial statement schedule, when considered in relation to the
basic financial statements taken as a whole, presents fairly in all material
respects the information set forth therein.

ERNST & YOUNG LLP

February 26, 1999
Los Angeles, California

F-1

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
BALANCE SHEETS
December 31, 1998 and 1997

<TABLE>
<CAPTION>
1998 1997
------------------- -------------------
ASSETS
------

<S> <C> <C>
Cash and cash equivalents $ 433,000 $ 1,911,000
Marketable securities of affiliate (cost of $6,091,000) 10,337,000 11,220,000
Rent and other receivables 136,000 166,000

Real estate facilities:
Building and equipment 16,424,000 16,031,000
Land 5,244,000 5,244,000
------------------- -------------------
21,668,000 21,275,000

Less accumulated depreciation (11,824,000) (10,898,000)
------------------- -------------------
9,844,000 10,377,000

Other assets 126,000 144,000
------------------- -------------------

Total assets $ 20,876,000 $ 23,818,000
=================== ===================

LIABILITIES AND PARTNERS' EQUITY
--------------------------------

Accounts payable $ 249,000 $ 65,000
Deferred revenue 235,000 230,000
Mortgage note payable - 25,405,000
Note payable to commercial bank 19,650,000 -

Partners' equity (deficit):
Limited partners' deficit, $500 per unit, 40,000 units authorized,
issued and outstanding (2,599,000) (5,200,000)
General partners' deficit (905,000) (1,811,000)
Unrealized gain on marketable securities 4,246,000 5,129,000
------------------- -------------------

Total partners' equity (deficit) 742,000 (1,882,000)
------------------- -------------------

Total liabilities and partners' equity (deficit) $ 20,876,000 $ 23,818,000
=================== ===================

</TABLE>
See accompanying notes.
F-2

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
STATEMENTS OF INCOME
For the years ended December 31, 1998, 1997, and 1996

1998 1997 1996
------------------ ------------------ ------------------
REVENUES:

<S> <C> <C> <C>
Rental income $ 8,811,000 $ 8,086,000 $ 7,423,000
Dividends from marketable securities
of affiliate 336,000 301,000 262,000
Other income 87,000 129,000 89,000
------------------ ------------------ ------------------

9,234,000 8,516,000 7,774,000
------------------ ------------------ ------------------

COSTS AND EXPENSES:

Cost of operations 2,115,000 1,989,000 1,880,000
Management fees paid to affiliate 529,000 485,000 419,000
Depreciation 926,000 881,000 814,000
Administrative 77,000 75,000 65,000
Interest expense 2,080,000 2,805,000 2,898,000
------------------ ------------------ ------------------

5,727,000 6,235,000 6,076,000
------------------ ------------------ ------------------

NET INCOME $ 3,507,000 $ 2,281,000 $ 1,698,000
================== ================== ==================

Limited partners' share of net income ($86.70 per
unit in 1998, $56.40 per unit in 1997 and
$42.00 per unit in 1996) $ 3,468,000 $ 2,256,000 $ 1,680,000

General partners' share of net income 39,000 25,000 18,000
------------------ ------------------ ------------------

$ 3,507,000 $ 2,281,000 $ 1,698,000
================== ================== ==================

</TABLE>
See accompanying notes.
F-3

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
For the years ended December 31, 1998, 1997, and 1996

Other
Comprehensive Total Partners'
Limited Partners General Partners Income Equity(Deficit)
---------------- ---------------- ---------------- ----------------

<S> <C> <C> <C> <C>
Balance at December 31, 1995 $ (8,152,000) $ (2,838,000) $ 1,854,000 $ (9,136,000)

Unrealized gain on marketable securities - - 3,566,000 3,566,000

Net income 1,680,000 18,000 - 1,698,000

Equity transfer (420,000) 420,000 - -
---------------- ---------------- ---------------- ----------------

Balance at December 31, 1996 (6,892,000) (2,400,000) 5,420,000 (3,872,000)

Unrealized loss on marketable securities - - (291,000) (291,000)

Net income 2,256,000 25,000 - 2,281,000

Equity transfer (564,000) 564,000 - -
---------------- ---------------- ---------------- ----------------

Balance at December 31, 1997 (5,200,000) (1,811,000) 5,129,000 (1,882,000)

Unrealized loss on marketable securities - - (883,000) (883,000)

Net income 3,468,000 39,000 - 3,507,000

Equity transfer (867,000) 867,000 - -
---------------- ---------------- ---------------- ----------------

Balance at December 31, 1998 $ (2,599,000) $ (905,000) $ 4,246,000 $ 742,000
================ ================ ================ ================
</TABLE>
See accompanying notes.
F-4

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
STATEMENTS OF CASH FLOWS
For the years ended December 31, 1998, 1997, and 1996

<TABLE>
<CAPTION>
1998 1997 1996
---------------- ---------------- ----------------

Cash flows from operating activities:

<S> <C> <C> <C>
Net income $ 3,507,000 $ 2,281,000 $ 1,698,000

Adjustments to reconcile net income to cash
provided by operating activities:

Depreciation 926,000 881,000 814,000
Decrease (increase) in rent and other receivables 30,000 (16,000) (50,000)
Amortization of prepaid loan fees 69,000 92,000 92,000
(Increase) decrease in other assets (51,000) 37,000 (31,000)
Amortization of prepaid management fees - - 265,000
Increase (decrease) in accounts payable 184,000 13,000 (29,000)
Increase (decrease) in deferred revenue 5,000 6,000 (20,000)
---------------- ---------------- ----------------

Total adjustments 1,163,000 1,013,000 1,041,000
---------------- ---------------- ----------------

Net cash provided by operating activities 4,670,000 3,294,000 2,739,000
---------------- ---------------- ----------------

Cash flows from investing activities:

Purchase of marketable securities of affiliate - (2,300,000) -
Additions to real estate facilities (393,000) (590,000) (426,000)
---------------- ---------------- ----------------

Net cash used in investing activities (393,000) (2,890,000) (426,000)
---------------- ---------------- ----------------

Cash flows from financing activities:

Proceeds from note payable to general partner 22,000,000 - -
Principal payments on note payable to general partner (22,000,000) - -
Proceeds from note payable to commercial bank 21,000,000 - -
Principal payments on note payable to commercial bank (1,350,000) - -
Principal payments on mortgage note payable (25,405,000) (933,000) (840,000)
---------------- ---------------- ----------------

Net cash used in financing activities (5,755,000) (933,000) (840,000)
---------------- ---------------- ----------------

Net (decrease) increase in cash and cash equivalents (1,478,000) (529,000) 1,473,000

Cash and cash equivalents at the beginning of the year 1,911,000 2,440,000 967,000
---------------- ---------------- ----------------

Cash and cash equivalents at the end of the year $ 433,000 $ 1,911,000 $ 2,440,000
================ ================ ================
</TABLE>
See accompanying notes.
F-5

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
STATEMENTS OF CASH FLOWS
For the years ended December 31, 1998, 1997, and 1996
(Continued)

<TABLE>
<CAPTION>
1998 1997 1996
---------------- ---------------- ----------------

Supplemental schedule of non-cash investing and financing activities:

<S> <C> <C> <C>
Decrease (increase) in fair value of marketable
securities of affiliate $ 883,000 $291,000 $(3,566,000)
================ ================ ================

Unrealized ( loss) gain on marketable securities of
affiliate $(883,000) $(291,000) $3,566,000
================ ================ ================

</TABLE>
See accompanying notes.
F-6

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
NOTES TO FINANCIAL STATEMENTS
December 31, 1998

1. DESCRIPTION OF PARTNERSHIP

Public Storage Properties IV, Ltd. (the "Partnership") was
formed with the proceeds of a public offering. The general partners in
the Partnership are Public Storage, Inc. ("PSI") and B. Wayne Hughes
("Hughes"). The Partnership owns 17 mini-warehouse facilities located
in California and Florida.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PARTNERSHIP MATTERS

Mini-Warehouse Facilities:
--------------------------

Cost of land includes appraisal fees and legal fees related to
acquisition and closing costs. Buildings and equipment reflect costs
incurred to develop primarily mini-warehouse facilities which provide
self-service storage spaces for lease, usually on a month-to-month
basis, to the general public. The buildings and equipment are
depreciated on a straight-line basis over estimated useful lives of 25
and 5 years, respectively.

In 1995, the Partnership sold a portion of its Pembroke,
Florida property to the State of Florida under a condemnation
proceeding for $137,000. The Partnership recognized a gain of $125,000
on the sale. Proceeds from the sale were used to make an unscheduled
principal payment on the Partnership's mortgage note payable.

In 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed of" ("Statement 121"). Statement 121 requires impairment
losses to be recorded on long-lived assets used in operations when
indicators of impairment are present and the undiscounted cash flows
estimated to be generated by those assets are less than the assets'
carrying amount. Statement 121 also addresses the accounting for
long-lived assets that are expected to be disposed of. The Partnership
has not identified any assets which indicate an impairment in the
carrying value of the asset is present.

Allocation of Net Income:
-------------------------

The general partners' share of net income consists of amounts
attributable to their capital contribution and an additional percentage
of cash flow (as defined) which relates to the general partners' share
of cash distributions as set forth in the Partnership Agreement (Note
4). All remaining net income is allocated to the limited partners.

Per unit data is based on the weighted average number of the
limited partnership units (40,000) outstanding during the period.

Cash and Cash Equivalents:
--------------------------

For financial statement purposes, the Partnership considers
all highly liquid investments purchased with a maturity of three months
or less to be cash equivalents.

Marketable Securities:
----------------------

Marketable securities at December 31, 1998 and 1997 consist of
381,980 shares of common stock of PSI. The Partnership has designated
its portfolio of marketable securities as being available for sale.
Accordingly, at December 31, 1998 and 1997, the Partnership has
recorded the marketable securities at fair value, based upon the
closing quoted price of the securities at December 31, 1998 and 1997,
and has recorded a corresponding unrealized (loss) gain totaling
$(883,000), $(291,000), and $3,566,000 for the years ended December 31,
1998, 1997 and 1996, respectively, as a (decrease) increase to
Partnership equity. The Partnership recognized dividends of $336,000,
$301,000 and $262,000 for the years ended December 31, 1998, 1997 and
1996, respectively.

F-7

<PAGE>

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PARTNERSHIP MATTERS
(CONTINUED)

Comprehensive Income:
---------------------

As of January 1, 1998, the Company adopted Statement 130,
Reporting Comprehensive Income. Statement 130 establishes new rules for
the reporting and display of comprehensive income and its components;
however, the adoption of this Statement had no impact on the Company's
net income or shareholders' equity. Statement 130 requires unrealized
gains or losses on the Company's available-for-sale securities, which
prior to adoption were reported separately in shareholders' equity, to
be included in other comprehensive income. The primary impact of this
statement for the Company is to recharaterize unrealized gains or
losses in shareholders' equity as "other comprehensive income." Prior
year financial statments have been reclassified to conform to the
requirements of Statement 130.

Other Assets:
-------------

Included in other assets is deferred financing costs of
$68,000 at December 31, 1997. Such balance is being amortized as
interest expense using the straight-line method over the life of the
related mortgage note payable. As of December 31, 1998 the remaining
balance has been fully amortized.

Use of Estimates:
-----------------

The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes. Actual results could
differ from those estimates.

Environmental Cost:
-------------------

Substantially all of the Partnership's facilities were
acquired prior to the time that it was customary to conduct
environmental investigations in connection with property acquisitions.
During 1995, the Partnership completed environmental assessments of its
properties to evaluate the environmental condition of, and potential
environmental liabilities of such properties. These assessments were
performed by an independent environmental consulting firm. Based on the
assessments, the Partnership expensed $26,000 in 1995 for known
environmental remediation requirements. Although there can be no
assurance, the Partnership is not aware of any environmental
contamination of any of its property sites which individually or in the
aggregate would be material to the Partnership's overall business,
financial condition or results of operations.

Segement Reporting:
-------------------

Effective January 1, 1998, the Partnership adopted SFAS No.
131, "Disclosure about Segments of an Enterprise and Related
Information." SFAS No. 131 established standards for the way public
business enterprises report information about operating segments in
annual financial statements and requires that those enterprises report
selected information about operating segments in interim financial
reports. SFAS No. 131 also establishes standards for related
disclosures about products and services, geographic areas and major
customers. The Partnership only has one reportable segment as defined
within SFAS No. 131, therefore the adoption of SFAS No. 131 had no
effect on the Partnership's disclosure.

Derivatives:
------------

In June 1998, the Financial Accounting Standards Board issued
Statement No. 133, Accounting for Derivative Instruments and Hedging
Activities, which is required to be adopted in years beginning after
June 15, 1999. Management does not anticipate that the adoption of the
new Statement will have a significant effect on earnings or the
financial position of the Partnership.

F-8

<PAGE>

3. CASH DISTRIBUTIONS

The Partnership Agreement requires that cash available for
distribution (cash flow from all sources less cash necessary for any
obligations or capital improvement needs) be distributed at least
quarterly. Cash distributions have been suspended since the third
quarter of 1991 in order to build cash reserves for future debt service
payments.

4. PARTNERS' DEFICIT

The general partners have a 1.1% interest in the Partnership.
In addition, the general partners had an 8% interest in cash
distributions attributable to operations (exclusive of distributions
attributable to sale and financing proceeds) until the limited partners
recovered all of their investment. Thereafter, the general partners
have a 25% interest in all cash distributions (including sale and
financing proceeds). During 1986, the limited partners recovered all of
their initial investment. All subsequent distributions are being made
25.83% (including the 1.1% interest) to the general partners and 74.17%
to the limited partners.

Transfers of equity are made periodically to conform the
partners' equity accounts to the provisions of the Partnership
Agreement. These transactions have no effect on the results of
operations or distributions to partners. The financing of the
properties (Note 7) provided the Partnership with cash for a special
distribution without affecting the Partnership's taxable income. The
majority of the proceeds from the financing, approximately $29,360,000,
were distributed to the partners in October 1988 resulting in a deficit
in limited and general partners' equity accounts.

5. RELATED PARTY TRANSACTIONS

The Partnership has a Management Agreement with PSI (as
successor-in-interest to PSMI). Under the terms of the agreement, PSI
operates the mini-warehouse facilities for a fee equal to 6% of the
facilities' monthly gross revenue (as defined).

In November 1995, the Management Agreement was amended to
provide that upon demand from PSI or PSMI made prior to December 15,
1995, the Partnership agreed to prepay (within 15 days after such
demand) up to 12 months of management fees (based on the management
fees for the comparable period during the calendar year immediately
preceding such prepayment) discounted at the rate of 14% per year to
compensate for early payment. In December 1995, the Partnership
prepaid, to PSI, 8 months of 1996 management fees at a cost of
$265,000. The amount is included in other assets in the balance sheet
at December 31, 1995. The amount was amortized as management fees paid
to affiliate during 1996.

6. TAXES BASED ON INCOME

Taxes based on income are the responsibility of the individual
partners and, accordingly, the Partnership's financial statements do
not reflect a provision for such taxes.

Unaudited Taxable net income was $3,777,000, $2,550,000 and
$2,100,000 for the years ended December 31, 1998, 1997 and 1996,
respectively. The difference between taxable net income and net income
is primarily related to depreciation expense resulting from differences
in depreciation methods.

F-9

<PAGE>

7. MORTGAGE NOTE PAYABLE

During September 1988, the Partnership financed all of its
properties with a $30,500,000, ten-year nonrecourse mortgage note
secured by the Partnership's properties. The note provides for fixed
interest of 10.47 percent per annum. Loan payments for the first year
consisted of interest only. Thereafter, principal is being amortized
over a 20 year term with monthly payments of principal and interest of
$303,891. The note had a maturity date of October 1, 1998 on which date
the note required that all remaining principal and accrued and unpaid
interest be paid.

On July 1, 1998, the Partnership paid off the mortgage note
payable with cash reserves and with the proceeds of a $22,000,000 loan
from Public Storage, Inc., a general partner of the Partnership. The
loan from Public Storage, Inc. bears interest at the fixed rate of 7.2%
and matures June 30, 1999. The loan calls for monthly payments of
interest only. Principal may be paid at any time without penalty.
Public Storage, Inc. also provided the Partnership with options to
extend the loan term through June 2003.

During September 1998, the Partnership borrowed $21,000,000
from a commercial bank. The loan is unsecured and bears interest at the
London Interbank Offering Rate ("LIBOR") plus 0.60% to 1.20% (5.66% at
December 31, 1998) depending on the Partnership's interest coverage
ratio . The loan requires monthly payments of interest and matures
September 2002. Principal may be paid, in whole or in part, at any time
without penalty or premium. The loan proceeds were used to pay off the
Partnership's note to Public Storage, Inc.

Carrying value of the outstanding debt approximates its fair
value.

The Partnership has entered into an interest rate swap
agreement to reduce the impact of changes in interest rates on a
portion of its floating rate debt. The agreement, which covers
$11,500,000 of debt through March 2000 and $7,500,000 from March 2000
through September 2000, effectively changes the interest rate exposure
from floating rate to a fixed rate of 5.22% plus 0.60% to 1.20% (5.82%
as of December 31, 1998) based on the Partnership's interest coverage
ratio. Market gains and losses on the value of the swap are deferred
and included in income over the life of the contract. The Partnership
records the differences paid or received on the interest rate swap in
interest expense as payments are made or received. As of December 31,
1998, the unrealized loss on the interest rate swap, if required to be
liquidated, was approximately $37,000.

Interest paid on the note was $1,911,000, $2,713,000 and
$2,806,000 for the years ended December 31, 1998, 1997 and 1996,
respectively.

F-10

<PAGE>

Public Storage Properties IV, Ltd.
Schedule III - Real Estate and Accumulated Depreciation
For the year ended December 31, 1998
<TABLE>
<CAPTION>

Initial Cost
------------------------------ Costs
Building, Subsequent to
Land Imp & construction
Description Encumbrances Land Equipment (Improvements)
- --------------------------- -------------- ------------ -------------- -------------
Mini-warehouses:
CALIFORNIA
----------
<S> <C> <C> <C> <C>
Azusa - $501,000 $1,093,000 $192,000
Concord - 349,000 805,000 194,000
Oakland - 177,000 650,000 185,000
Pasadena - 379,000 496,000 124,000
Redlands - 227,000 771,000 154,000
Richmond - 225,000 639,000 259,000
Riverside - 51,000 595,000 212,000
Sacramento/Howe - 194,000 666,000 232,000
Sacramento/West Capitol - 100,000 719,000 277,000
San Carlos 396,000 902,000 127,000
Santa Clara 633,000 1,156,000 175,000
Tustin 517,000 844,000 223,000

FLORIDA
-------
Miami/Airport Expressway - 186,000 442,000 221,000
Miami/Cutler Ridge - 525,000 901,000 177,000
Pembroke Park (2) - 255,000 607,000 365,000
Ft. Lauderdale/I-95 & 23rd Ave. - 243,000 611,000 322,000
Ft. Lauderdale/I-95 & Sunrise - 286,000 690,000 398,000
-------------- ------------ -------------- -------------
$19,650,000(1) $5,244,000 $12,587,000 $3,837,000
============== ============ ============== =============
</TABLE>

<TABLE>
<CAPTION>
Gross Carrying Amount
at December 31, 1998
----------------------------------------
Building,
Land Imp & Accumulated Date
Description Land Equipment Total Depreciation Completed
- --------------------------- ---------- ----------- ----------- ----------- ---------
Mini-warehouses:
CALIFORNIA
----------
<S> <C> <C> <C> <C> <C>
Azusa $501,000 $1,285,000 $1,786,000 $971,000 11/78
Concord 349,000 999,000 1,348,000 703,000 01/79
Oakland 177,000 835,000 1,012,000 599,000 04/79
Pasadena 379,000 620,000 999,000 445,000 11/79
Redlands 227,000 925,000 1,152,000 655,000 02/79
Richmond 225,000 898,000 1,123,000 609,000 03/79
Riverside 51,000 807,000 858,000 573,000 05/79
Sacramento/Howe 194,000 898,000 1,092,000 613,000 08/79
Sacramento/West Capitol 100,000 996,000 1,096,000 728,000 06/79
San Carlos 396,000 1,029,000 1,425,000 758,000 10/79
6/79
Santa Clara 633,000 1,331,000 1,964,000 956,000 & 7/79
Tustin 517,000 1,067,000 1,584,000 787,000 12/78

FLORIDA
-------
Miami/Airport Expressway 186,000 663,000 849,000 482,000 01/79
Miami/Cutler Ridge 525,000 1,078,000 1,603,000 775,000 04/79
Pembroke Park (2) 255,000 972,000 1,227,000 693,000 07/79
Ft. Lauderdale/I-95 & 23rd Ave. 243,000 933,000 1,176,000 680,000
Ft. Lauderdale/I-95 & Sunrise 286,000 1,088,000 1,374,000 797,000 10/79
---------- ----------- ----------- -----------
$5,244,000 $16,424,000 $21,668,000 $11,824,000
========== =========== =========== ============
</TABLE>

(1) All 17 mini-warehouse locations are encumbered by a promissory note. The
$19,650,000 listed above is the principal balance remaining on the note at
12/31/98.

(2) In 1995, the Partnership sold approximately 4,729 sq. ft. of the facility
to the State of Florida under condemnation proceeding. The Partnership
adjusted land by $12,000 for the sale.

F-11

<PAGE>

Public Storage Properties IV, Ltd.
Schedule III - Real Estate and Accumulated Depreciation
(Continued)

Reconciliation of Real Estate and Accumulated Depreciation

Year Ended December 31, 1998

<TABLE>
<CAPTION>
1998 1997 1996
-------------- -------------- --------------
<S> <C> <C> <C>
Investment in Real estate
Balance at the beginning of the year $ 21,275,000 $ 20,685,000 $ 20,259,000

Additions through cash expenditures 393,000 590,000 426,000
-------------- -------------- --------------
Balance at the end of the year $ 21,668,000 $ 21,275,000 $ 20,685,000
============== ============== ==============

Accumulated Depreciation
Balance at the beginning of the year $ 10,898,000 $ 10,017,000 $ 9,203,000

Additions charged to costs and expenses 926,000 881,000 814,000
-------------- -------------- --------------
$ 11,824,000 $ 10,898,000 $ 10,017,000
============== ============== ==============
</TABLE>

(a) The aggregate depreciable cost of real estate (excluding land) for Federal
income tax purposes is $6,018,000 (unaudited).

F-12

<ARTICLE> 5
<CIK> 0000225775
<NAME> Public Storage Properties IV, Ltd.
<MULTIPLIER> 1
<CURRENCY> US

<S> <C>
<PERIOD-TYPE> 12-mos
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-01-1998
<PERIOD-END> Dec-31-1998
<EXCHANGE-RATE> 1
<CASH> 433,000
<SECURITIES> 10,337,000
<RECEIVABLES> 136,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 11,032,000
<PP&E> 21,668,000
<DEPRECIATION> (11,824,000)
<TOTAL-ASSETS> 20,876,000
<CURRENT-LIABILITIES> 484,000
<BONDS> 19,650,000
0
0
<COMMON> 0
<OTHER-SE> 742,000
<TOTAL-LIABILITY-AND-EQUITY> 20,876,000
<SALES> 0
<TOTAL-REVENUES> 9,234,000
<CGS> 0
<TOTAL-COSTS> 2,644,000
<OTHER-EXPENSES> 1,003,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,080,000
<INCOME-PRETAX> 3,507,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,507,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,507,000
<EPS-PRIMARY> 86.70
<EPS-DILUTED> 86.70

</TABLE>