PUBLIC STORAGE PROPERTIES IV LTD, 10-K405, 2000-03-28

PUBLIC STORAGE PROPERTIES IV LTD
10-K405, 2000-03-28
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, 1999

[ ] 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. [X]

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's 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, 1999, 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 ANNUAL 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 was 94% in 1998 and 93% 1999. Annual realized rents per
occupied square foot increased 6% from $10.66 in 1998 to $11.30 in 1999.

<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 4,450 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.

<PAGE>

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
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, 1999
about properties owned by the Partnership:

<TABLE>
<CAPTION>
Net Rentable Number of Completion
Location Size of Parcel Area Space Date of Purchase Date
- ----------------------- -------------- ---------------- --------- ---------------- -----------
CALIFORNIA
<S> <C> <C> <C> <C> <C> <C>
Azusa 5.85 acres 105,000 sq. ft. 905 July 14, 1978 Nov. 1978

Concord 2.87 acres 52,000 sq. ft. 523 June 20, 1978 Jan. 1979

Oakland 1.97 acres 41,000 sq. ft. 368 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. 353 Aug. 23, 1978 Mar. 1979

Riverside 2.47 acres 45,000 sq. ft. 389 Jan. 2, 1979 May 1979

Sacramento
Howe Avenue 2.36 acres 41,000 sq. ft. 376 Dec. 14, 1978 Aug. 1979
.
Sacramento
West Capitol 3.38 acres 44,000 sq. ft. 442 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. 560 July 3, 1978 Dec. 1978

FLORIDA
Miami Airport
Expressway 1.70 acres 29,000 sq. ft. 269 Aug. 24, 1978 Jan. 1979

Miami (1)
Cutler Ridge 4.00 acres 46,000 sq. ft. 482 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 weighted average occupancy level for the mini-warehouse facilities
was 94% and 93% for 1998 and 1999, respectively.

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 1999.

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 (and their affiliates) 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, 1999, there were approximately 1,071 record holders of Units.

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 pay down its outstanding debt.

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

<PAGE>

ITEM 6. SELECTED FINANCIAL DATA

<TABLE>
<CAPTION>
For the Year Ended December 31, 1999 1998 1997 1996 1995
- ------------------------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Revenues $ 9,886,000 $ 9,234,000 $ 8,516,000 $ 7,774,000 $ 7,629,000

Depreciation and amortization 991,000 926,000 881,000 814,000 742,000

Interest expense 1,021,000 2,080,000 2,805,000 2,898,000 2,967,000

Gain on sale of real estate (2) - - - - 125,000

Net income 5,105,000 3,507,000 2,281,000 1,698,000 1,724,000

Limited partners' share 5,049,000 3,468,000 2,256,000 1,680,000 1,704,000

General partners' share 56,000 39,000 25,000 18,000 20,000

Limited partners' per unit data (1)
Net income $126.23 $86.70 $56.40 $42.00 $42.60

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

Cash and cash equivalents $ 249,000 $ 433,000 $ 1,911,000 $ 2,440,000 $ 967,000

Total Assets $ 18,643,000 $ 20,876,000 $ 23,818,000 $ 22,742,000 $ 18,367,000

Debt $ 14,050,000 $ 19,650,000 $ 25,405,000 $ 26,338,000 $ 27,178,000

</TABLE>

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

(2) 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.

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, 1999 COMPARED TO YEAR ENDED DECEMBER 31, 1998:

The Partnership's net income was $5,105,000 in 1999 compared to
$3,507,000 in 1998, representing an increase of $1,598,000. 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 1999 property net operating income (rental income less cost of
operations, management fees paid to an affiliate and depreciation expense) was
$5,609,000 in 1999 compared to $5,241,000 in 1998, representing an increase of
$368,000 or 7%. 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 $9,293,000 in 1999 compared to $8,811,000 in 1998,
representing an increase of $482,000 or 5%. The increase was primarily
attributable to an increase in rental rates at the Partnership's facilities. The
weighted average occupancy levels at the mini-warehouse facilities were 93% and
94% in 1999 and 1998, respectively. The annual realized rent per occupied square
foot was $11.30 in 1999 compared to $10.66 in 1998.

Other income decreased $79,000 in 1999 compared to 1998. This decrease
is primarily a result of payments which have reduced the principal balance on
the note payable to a commercial bank with cash reserves, which resulted in
lower cash balances and consequently less interest earned.

Dividend income from marketable securities of affiliate increased
$249,000 in 1999 compared to 1998. This increase is due to increased dividends
on the marketable securities of affiliate in 1999 compared to 1998.

Cost of operations (including management fees paid to an affiliate)
increased $49,000 or 2% to $2,693,000 in 1999 from $2,644,000 in 1998. This
increase was primarily attributable to increases in management fees and
advertising expenses.

Interest expense was $1,021,000 and $2,080,000 in 1999 and 1998,
respectively, representing a decrease of $1,059,000 or 51%. The decrease was
primarily a result of a lower average outstanding loan balance in 1999 compared
to 1998 and reduced interest rates on the Partnership's debt resulting from a
refinancing of the partnership's debt. See Liquidity and Capital Resources for a
discussion of the refinancing of the Partnership's indebtedness.

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
annual realized rent per occupied square foot increased from $9.93 in 1997 to
$10.66 in 1998.

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 in September 1998, which resulted in lower cash balances and
consequently less interest earned.

<PAGE>

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.

LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------

Cash flows from operating activities ($5,789,000 for the year ended
December 31, 1999) have been sufficient to meet all current obligations of the
Partnership. During 2000, the Partnership anticipates approximately $294,000 of
capital improvements compared to $373,000 in 1999 and $393,000 in 1998.

At December 31, 1999, the Partnership held 381,980 shares of common
stock (marketable securities) with a fair value totaling $8,666,000 (cost basis
of $6,091,000 at December 31, 1999) in Public Storage, Inc. (PSI). The
Partnership recognized $585,000 in dividends during 1999.

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% (7.10% at December 31,
1999) 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, 1999) 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, 1999, the unrealized gain
on the interest rate swap, if required to be liquidated, was approximately
$35,000.

<PAGE>

YEAR 2000 SYSTEM ISSUES
- -----------------------

The Year 2000 Issue arises because many computerized systems use two
digits rather than four to identify a year. Date sensitive systems may recognize
the Year 2000 as 1900 or some other date, resulting in errors when information
using Year 2000 dates is processed. In addition, similar problems may arise in
some systems which use certain dates in 1999 to represent something other than a
date. Although the change in date to the Year 2000 has occurred and no Year 2000
Issues have been identified, it is not possible to conclude that all aspects of
the Year 2000 Issue that may affect the entity, including those related to
customers, suppliers, or other third parties, have been fully resolved.

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 Partnership'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, 1999, the Partnership had
$14,050,000 of outstanding debt maturing in September, 2002. Also, the
Partnership has an interest rate swap in the notional amount of $11,500,000 as
of December 31, 1999, the interest swap expires in stages through September
2000.

As of December 31, 1999, the unrealized gain on the interest rate swap,
which would be deferred if liquidated prior to maturity, was approximately
$35,000.

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.

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.

<PAGE>

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
Marvin M. Lotz Senior Vice 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
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 66, 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 30 years. He is the father of B. Wayne Hughes,
Jr.

Harvey Lenkin, age 63, has been employed by PSI for 22 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).

Marvin M. Lotz, age 57, became a director of PSI in May 1999. He 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.

B. Wayne Hughes, Jr., age 40, became director of PSI in January 1998.
He has been employed by the Company since 1989 and has been a Vice President -
Acquisitions of PSI since 1992. Mr. Hughes, Jr. is involved in the coordination
and direction of PSI's acquisition and development activities. He is the son of
B. Wayne Hughes.

John Reyes, age 39, 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 61, 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 61, 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.

David Goldberg, age 50, 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.

<PAGE>

A. Timothy Scott, age 48, 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. Singelyn, age 38, 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 44, 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 60, 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 and a California Transportation Commissioner. 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 64, 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 AremisSoft Corporation, Balboa Capital
Corporation, Compensation Resource Group, Nicholas/Applegate Growth Equity Fund,
ReadyPac Produce, Inc., Royce Medical Company, topjobs.net plc and WorldxChange
Communications, Inc. He was a director of SPI from 1989 until June 1996.

William C. Baker, age 66, became a director of PSI in November 1991.
[From January 1999 until June 1999, Mr. Baker was President and Chief Executive
Officer of Los Angeles Turf Club, Incorporated, which operates the Santa Anita
Racetrack and is a 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 52, 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
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.
and Kennedy-Wilson, Inc.

<PAGE>

Uri P. Harkham, age 51, 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 47, 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 and a director of Duke Realty Investments, Inc. from 1993
until August 1999. From 1981 to 1993, Mr Staton was a principal owner 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 his own moving
company, Gateway 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.

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.

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:

Beneficial
Title of Class Name and Address of Beneficial Owners Ownership Percent of Class
- ---------------------------- ------------------------------------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Units of Limited Partnership Public Storage, Inc. 13,271 Units (1) 33.2%
Interest 701 Western Avenue
Glendale, California 91201

Units of Limited Partnership B. Wayne Hughes, 12,314 Units (2) 30.8%
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, and (ii) 306 Units which PSI has an option to
acquire from Tamara Hughes Gustavson, an adult daughter of Hughes.

(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 an option to acquire these 306 units, and (iii) 6,116 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% if the
equity) is owned by PSI, and as to which Units PS Orangeco, Inc. and
Hughes share voting and dispositive power.

<PAGE>

(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 12,027 Units, representing 30.1% of the Units (including the 5,892
Units owned by Hughes and the 6,116 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.

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 1999, the Partnership paid fees of $558,000
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 filed 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
1999.

<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 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.

10.3 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 28, 2000 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 Chief Executive March 28, 2000
- --------------------------- Officer of Public Storage, Inc. and General
B. Wayne Hughes Partner (principal executive offer)

/s/ Harvey Lenkin President and Director of March 28, 2000
- --------------------------- Public Storage, Inc.
Harvey Lenkin

/s/ Marvin M. Lotz Senior Vice President and Director March 28, 2000
- ---------------------------
Marvin M. Lotz

/s/ B. Wayne Hughes, Jr. Vice President and Director of March 28, 2000
- --------------------------- Public Storage, Inc.
B. Wayne Hughes, Jr.

/s/ John Reyes Senior Vice President and Chief Financial Officer March 28, 2000
- --------------------------- of Public Storage, Inc. (principal financial
John Reyes officer and principal accounting officer)

/s/ Robert J. Abernethy Director of Public Storage, Inc. March 28, 2000
- ---------------------------
Robert J. Abernethy

/s/ Dann V. Angeloff Director of Public Storage, Inc. March 28, 2000
- ---------------------------
Dann V. Angeloff

Director of Public Storage, Inc. March 28, 2000
- ---------------------------
William C. Baker

Director of Public Storage, Inc. March 28, 2000
- ---------------------------
Thomas J. Barrack, Jr.

/s/ Uri P. Harkham Director of Public Storage, Inc. March 28, 2000
- ---------------------------
Uri P. Harkham

/s/ Daniel C. Staton Director of Public Storage, Inc. March 28, 2000
- ---------------------------
Daniel C. Staton

</TABLE>
17

<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, 1999 and 1998 F-2

For the years ended December 31, 1999, 1998 and 1997:

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, 1999 and 1998, and the related statements of income,
partners' equity (deficit) and cash flows for each of the three years in the
period ended December 31, 1999. 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 auditing standards generally accepted
in the United States. 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, 1999 and 1998, and the results of its operations and its
cash flows for each of the three years in the period ended December 31, 1999, in
conformity with accounting principles generally accepted in the United States.
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 14, 2000
Los Angeles, California

F-1

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
BALANCE SHEETS
December 31, 1999 and 1998

<TABLE>
<CAPTION>
1999 1998
----------------- -----------------
ASSETS

<S> <C> <C>
Cash and cash equivalents $ 249,000 $ 433,000
Marketable securities of affiliate (cost of $6,091,000) 8,666,000 10,337,000
Rent and other receivables 389,000 136,000

Real estate facilities:
Building and equipment 16,797,000 16,424,000
Land 5,244,000 5,244,000
----------------- -----------------
22,041,000 21,668,000

Less accumulated depreciation (12,815,000) (11,824,000)
----------------- -----------------
9,226,000 9,844,000

Other assets 113,000 126,000
----------------- -----------------
Total assets $ 18,643,000 $ 20,876,000
================= =================

LIABILITIES AND PARTNERS' EQUITY

Accounts payable $ 177,000 $ 249,000
Deferred revenue 240,000 235,000
Note payable to commercial bank 14,050,000 19,650,000

Partners' equity (deficit):
Limited partners' equity (deficit), $500 per unit, 40,000 units
authorized, issued and outstanding 1,188,000 (2,599,000)
General partners' equity (deficit) 413,000 (905,000)
Other comprehensive income 2,575,000 4,246,000
----------------- -----------------
Total partners' equity 4,176,000 742,000
----------------- -----------------
Total liabilities and partners' equity $ 18,643,000 $ 20,876,000
================= =================
</TABLE>
See accompanying notes.
F-2

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
STATEMENTS OF INCOME
For the years ended December 31, 1999, 1998 and 1997

<TABLE>
<CAPTION>
1999 1998 1997
------------------ ------------------ ------------------
REVENUES:

<S> <C> <C> <C>
Rental income $ 9,293,000 $ 8,811,000 $ 8,086,000
Dividends from marketable securities
of affiliate 585,000 336,000 301,000
Other income 8,000 87,000 129,000
------------------ ------------------ ------------------
9,886,000 9,234,000 8,516,000
------------------ ------------------ ------------------
COSTS AND EXPENSES:

Cost of operations 2,135,000 2,115,000 1,989,000
Management fees paid to affiliate 558,000 529,000 485,000
Depreciation 991,000 926,000 881,000
Administrative 76,000 77,000 75,000
Interest expense 1,021,000 2,080,000 2,805,000
------------------ ------------------ ------------------
4,781,000 5,727,000 6,235,000
------------------ ------------------ ------------------

NET INCOME $ 5,105,000 $ 3,507,000 $ 2,281,000
================== ================== ==================

Limited partners' share of net income ($126.23
per unit in 1999, $86.70 per unit in 1998
and $56.40 per unit in 1997) $ 5,049,000 $ 3,468,000 $ 2,256,000

General partners' share of net income 56,000 39,000 25,000
------------------ ------------------ ------------------
$ 5,105,000 $ 3,507,000 $ 2,281,000
================== ================== ==================
</TABLE>
See accompanying notes.
F-3

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
For the years ended December 31, 1999, 1998 and 1997

<TABLE>
<CAPTION>
Other
Comprehensive Total Partners'
Limited Partners General Partners Income Equity (Deficit)
---------------- ---------------- ---------------- ----------------

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

Change in unrealized gain 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)

Change in gain 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

Change in unrealized gain on marketable
securities (1,671,000) (1,671,000)

Net income 5,049,000 56,000 - 5,105,000

Equity transfer (1,262,000) 1,262,000 - -
---------------- ---------------- ---------------- ----------------
Balance at December 31, 1999 $ 1,188,000 $ 413,000 $ 2,575,000 $ 4,176,000
================ ================ ================ ================
</TABLE>
See accompanying notes.
F-4

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
STATEMENTS OF CASH FLOWS
For the years ended December 31, 1999, 1998 and 1997

<TABLE>
<CAPTION>
1999 1998 1997
---------------- ---------------- ----------------
Cash flows from operating activities:

<S> <C> <C> <C>
Net income $ 5,105,000 $ 3,507,000 $ 2,281,000

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

Depreciation 991,000 926,000 881,000
(Increase) decrease in rent and other receivables (253,000) 30,000 (16,000)
Amortization of prepaid loan fees 13,000 69,000 92,000
Decrease (increase) in other assets - (51,000) 37,000
(Decrease) increase in accounts payable (72,000) 184,000 13,000
Increase in deferred revenue 5,000 5,000 6,000
---------------- ---------------- ----------------
Total adjustments 684,000 1,163,000 1,013,000
---------------- ---------------- ----------------
Net cash provided by operating activities 5,789,000 4,670,000 3,294,000
---------------- ---------------- ----------------

Cash flows from investing activities:

Purchase of marketable securities of affiliate - - (2,300,000)
Additions to real estate facilities (373,000) (393,000) (590,000)
---------------- ---------------- ----------------
Net cash used in investing activities (373,000) (393,000) (2,890,000)
---------------- ---------------- ----------------

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 (5,600,000) (1,350,000) -
Principal payments on mortgage note payable - (25,405,000) (933,000)
---------------- ---------------- ----------------
Net cash used in financing activities (5,600,000) (5,755,000) (933,000)
---------------- ---------------- ----------------

Net decrease in cash and cash equivalents (184,000) (1,478,000) (529,000)

Cash and cash equivalents at the beginning of the year 433,000 1,911,000 2,440,000
---------------- ---------------- ----------------

Cash and cash equivalents at the end of the year $ 249,000 $ 433,000 $ 1,911,000
================ ================ ================
</TABLE>
See accompanying notes.
F-5

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
STATEMENTS OF CASH FLOWS
For the years ended December 31, 1999, 1998 and 1997
(Continued)

<TABLE>
<CAPTION>
1999 1998 1997
---------------- ---------------- ----------------
Supplemental schedule of non-cash investing and financing activities:

<S> <C> <C> <C>
Decrease in fair value of marketable securities of
affiliate $ 1,671,000 $ 883,000 $ 291,000
================ ================ ================

Other comprehensive income $ (1,671,000) $ (883,000) $ (291,000)
================ ================ ================
</TABLE>
See accompanying notes.
F-6

<PAGE>

PUBLIC STORAGE PROPERTIES IV, LTD.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999

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 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.

Revenue Recognition:
--------------------

Property rents are recognized as earned.

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, 1999 and 1998 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, 1999 and 1998, the Partnership has
recorded the marketable securities at fair value, based upon the
closing quoted price of the securities at December 31, 1999 and 1998,
and has recorded a corresponding unrealized loss totaling $1,671,000,
$883,000, and $291,000 for the years ended December 31, 1999, 1998 and
1997, respectively, as a decrease to Partnership equity. The
Partnership recognized dividends of $585,000, $336,000 and $301,000 for
the years ended December 31, 1999, 1998 and 1997, 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 recharacterize unrealized gains or
losses in shareholders' equity as "other comprehensive income." Prior
year financial statements have been reclassified to conform to the
requirements of Statement 130.

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

Included in other assets are deferred financing costs of
$68,000 at December 31, 1997. Such balance has been 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 related to these deferred financing charges has been fully
amortized.

In 1998, the partnership incurred financing costs of $54,000
in connection with the note payable from a commercial bank. These costs
are being amortized over the life of the loan. As of December 31, 1999
other assets includes $37,000 relating to these financing costs.

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.

Segment 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 disclosures.

F-8

<PAGE>

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

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, 2000. 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.

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' EQUITY (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. 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).

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.

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 $5,408,000, $3,777,000 and
$2,550,000 for the years ended December 31, 1999, 1998 and 1997,
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. NOTES 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. provided for interest at the fixed rate
of 7.2% and matured June 30, 1999. The loan called for monthly payments
of interest only. Principal was payable at any time without penalty.

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% (7.10% at
December 31, 1999) 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, 1999) 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 swap or related debt. 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, 1999, the unrealized gain on the interest rate swap, which
would be deferred if liquidated prior to its maturity, was
approximately $35,000.

Interest paid during 1999, 1998 and 1997 was $938,000,
$1,911,000 and $2,713,000, respectively.

8. YEAR 2000 SYSTEM ISSUES

The Year 2000 Issue arises because many computerized systems
use two digits rather than four to identify a year. Date sensitive
systems may recognize the Year 2000 as 1900 or some other date,
resulting in errors when information using Year 2000 dates is
processed. In addition, similar problems may arise in some systems
which use certain dates in 1999 to represent something other than a
date. Although the change in date to the Year 2000 has occurred and no
Year 2000 Issues have been identified, it is not possible to conclude
that all aspects of the Year 2000 Issue that may affect the entity,
including those related to customers, suppliers, or other third
parties, have been fully resolved.

F-10

<PAGE>

Public Storage Properties IV, Ltd.
Schedule III - Real Estate and Accumulated Depreciation
For the year ended December 31, 1999

Initial Cost
---------------------------
Building, Costs
Land Imp Subsequent to
& construction
Description Encumbrances Land Equipment (Improvements)
- ----------------------------- ------------ ---------- ----------- --------------
CALIFORNIA
<S> <C> <C> <C> <C>
Concord - $349,000 $805,000 $220,000
Tustin - 517,000 844,000 269,000
Pasadena - 379,000 496,000 128,000
Azusa - 501,000 1,093,000 238,000
Redlands - 227,000 771,000 169,000
Riverside - 51,000 595,000 220,000
Oakland - 177,000 650,000 222,000
Richmond - 225,000 639,000 291,000
Santa Clara - 633,000 1,156,000 197,000
San Carlos - 396,000 902,000 154,000
Sacramento/Howe - 194,000 666,000 264,000
Sacramento/West Capitol - 100,000 719,000 288,000

FLORIDA
Miami/Airport Expressway - 186,000 442,000 225,000
Miami/Cutler Ridge - 525,000 901,000 193,000
Pembroke Park - 255,000 607,000 375,000
Ft. Lauderdale/I-95 &
23rd Ave. - 243,000 611,000 338,000
Ft. Lauderdale/I-95 & Sunrise - 286,000 690,000 419,000
------------ ---------- ----------- --------------
- $5,244,000 $12,587,000 $4,210,000
============ ========== =========== ==============
</TABLE>

<TABLE>
<CAPTION>
Gross Carrying Amount
at December 31, 1999
-----------------------------------------

Building,
Land Imp & Accumulated Date
Description Land Equipment Total Depreciation Completed
- ----------------------------- ---------- ----------- ----------- ------------ ---------
CALIFORNIA
<S> <C> <C> <C> <C> <C>
Concord $349,000 $1,025,000 $1,374,000 $754,000 01/79
Tustin 517,000 1,113,000 1,630,000 854,000 12/78
Pasadena 379,000 624,000 1,003,000 480,000 11/79
Azusa 501,000 1,331,000 1,832,000 1,042,000 11/78
Redlands 227,000 940,000 1,167,000 707,000 02/79
Riverside 51,000 815,000 866,000 628,000 05/79
Oakland 177,000 872,000 1,049,000 652,000 04/79
Richmond 225,000 930,000 1,155,000 668,000 03/79
Santa Clara 633,000 1,353,000 1,986,000 1,027,000 6 & 7/79
San Carlos 396,000 1,056,000 1,452,000 810,000 10/79
Sacramento/Howe 194,000 930,000 1,124,000 679,000 08/79
Sacramento/West Capitol 100,000 1,007,000 1,107,000 783,000 06/79

FLORIDA
Miami/Airport Expressway 186,000 667,000 853,000 527,000 01/79
Miami/Cutler Ridge 525,000 1,094,000 1,619,000 830,000 04/79
Pembroke Park 255,000 982,000 1,237,000 768,000 07/79
Ft. Lauderdale/I-95 &
23rd Ave. 243,000 949,000 1,192,000 737,000 07/79
Ft. Lauderdale/I-95 & Sunrise 286,000 1,109,000 1,395,000 869,000 10/79
---------- ----------- ----------- ------------
$5,244,000 $16,797,000 $22,041,000 $12,815,000
========== =========== =========== ============
</TABLE>
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, 1999

<TABLE>
<CAPTION>
1999 1998 1997
--------------- --------------- ---------------
Investment in Real Estate
<S> <C> <C> <C>
Balance at the beginning of the year $ 21,668,000 $ 21,275,000 $ 20,685,000

Additions through cash expenditures 373,000 393,000 590,000
--------------- --------------- ---------------
Balance at the end of the year $ 22,041,000 $ 21,668,000 $ 21,275,000
=============== =============== ===============

Accumulated Depreciation
Balance at the beginning of the year $ 11,824,000 $ 10,898,000 $ 10,017,000

Additions charged to costs and expenses 991,000 926,000 881,000
--------------- --------------- ---------------
$ 12,815,000 $ 11,824,000 $ 10,898,000
=============== =============== ===============
</TABLE>

(a) The aggregate depreciable cost of real estate (excluding land) for Federal
income tax purposes is $5,702,000 (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-31-1999
<PERIOD-START> Jan-01-1999
<PERIOD-END> Dec-31-1999
<EXCHANGE-RATE> 1
<CASH> 249,000
<SECURITIES> 8,666,000
<RECEIVABLES> 389,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 9,304,000
<PP&E> 22,041,000
<DEPRECIATION> (12,815,000)
<TOTAL-ASSETS> 18,643,000
<CURRENT-LIABILITIES> 417,000
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,176,000
<TOTAL-LIABILITY-AND-EQUITY> 18,643,000
<SALES> 0
<TOTAL-REVENUES> 9,886,000
<CGS> 0
<TOTAL-COSTS> 2,693,000
<OTHER-EXPENSES> 1,067,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,021,000
<INCOME-PRETAX> 5,105,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 5,105,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,105,000
<EPS-BASIC> 126.23
<EPS-DILUTED> 126.23

</TABLE>