<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-Q/A
                                 AMENDMENT NO. 1

(Mark One)

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

For the quarterly period ended         SEPTEMBER 30, 1996

                                       or

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

For the transition period from                       to

Commission file number                       0-11982

        CORPORATE PROPERTY ASSOCIATES 4, A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                               <C>
                      CALIFORNIA                                                13-3126150
(State or other jurisdiction of incorporation or organization)    (I.R.S. Employer Identification No.)

50 ROCKEFELLER PLAZA, NEW YORK, NEW YORK                                        10020
(Address of principal executive offices)                                      (Zip Code)
</TABLE>

                                 (212) 492-1100
              (Registrant's telephone number, including area code)


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


   Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.

                                                                  [X] Yes [ ] No

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

   Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

                                                                  [ ] Yes [ ] No
<PAGE>   2
                        CORPORATE PROPERTY ASSOCIATES 4,
                        a California limited partnership






                                      INDEX



                                                                  Page No.
                                                                  --------
 PART I

 Item 1. - Financial Information*

          Balance Sheets, December 31, 1995 and
          September 30, 1996                                          2

          Statements of Income for the three and nine
          months ended September 30, 1995 and 1996                    3

          Statements of Cash Flows for the nine
          months ended September 30, 1995 and 1996                    4

          Notes to Financial Statements                              5-7


 Item 2. - Management's Discussion of Operations                     8-9



 PART II

 Signatures                                                          10






*The summarized financial information contained herein is unaudited; however in
the opinion of management, all adjustments necessary for a fair presentation of
such financial information have been included.


                                      -1-
<PAGE>   3
                        CORPORATE PROPERTY ASSOCIATES 4,
                        a California limited partnership


                                     PART I

                         Item 1. - FINANCIAL INFORMATION

                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                 December 31,        September 30,
                                                    1995                1996
                                                    (Note)            (Unaudited)
                                                 ------------        -------------
<S>                                              <C>                 <C>
      ASSETS:

Land and buildings, net of
   accumulated depreciation of
   $13,362,508 at December 31, 1995 and
   $13,275,158 at September 30, 1996             $21,472,233          $13,789,803
Net investment in direct
   financing leases                               18,224,428           18,201,771
Cash and cash equivalents                          7,579,071            8,696,252
Other assets                                       1,232,343            1,304,477
Investment in operating partnership                                     3,989,719
                                                 -----------          -----------
        Total assets                             $48,508,075          $45,982,022
                                                 ===========          ===========
      LIABILITIES:

Mortgage notes payable                           $19,486,882          $15,414,075
Accrued interest payable                             136,087              112,310
Accounts payable and accrued expenses                435,977              268,922
Accounts payable to affiliates                        87,461              100,567
                                                 -----------          -----------
        Total liabilities                         20,146,407           15,895,874
                                                 -----------          -----------
      PARTNERS' CAPITAL:

General Partners                                      62,061              169,549

Limited Partners (85,568 and 85,528
Limited Partnership Units issued and
outstanding at December 31, 1995
and September 30, 1996)                           28,299,607           29,916,599
                                                 -----------          -----------
        Total partners' capital                   28,361,668           30,086,148
                                                 -----------          -----------
        Total liabilities and
          partners' capital                      $48,508,075          $45,982,022
                                                 ===========          ===========
</TABLE>

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


Note: The balance sheet at December 31, 1995 has been derived from the audited
      financial statements at that date.


                                      -2-
<PAGE>   4
                        CORPORATE PROPERTY ASSOCIATES 4,
                        a California limited partnership


                        STATEMENTS OF INCOME (UNAUDITED)


<TABLE>
<CAPTION>
                                                 Three Months Ended                      Nine Months Ended
                                     September 30, 1995    September 30, 1996  September 30, 1995  September 30, 1996
                                     ------------------    ------------------  ------------------  ------------------
<S>                                  <C>                   <C>                 <C>                 <C>
Revenues:
  Rental income from
   operating leases                      $   812,362           $1,663,793          $2,432,852          $3,886,777
  Interest from direct
   financing leases                          828,723              827,493           3,534,494           2,483,448
  Other interest 
   income                                    103,049              102,223             154,573             292,589
  Other income                                                     94,345              44,764              94,345
                                         -----------           ----------          ----------          ----------
                                           1,744,134            2,687,854           6,166,683           6,757,159
                                         -----------           ----------          ----------          ----------
Expenses:
  Interest on mortgages                      453,836              362,151           1,654,203           1,226,562
  Depreciation                               288,827              216,201             869,978             709,015
  General and administrative                 103,781              100,090             347,767             351,066
  Property expense                            59,868              109,467             232,864             310,802
  Amortization                                25,768               20,067              88,068              71,601
                                         -----------           ----------          ----------          ----------
                                             932,080              807,976           3,192,880           2,669,046
                                         -----------           ----------          ----------          ----------
   Income before income from
   equity investment and gain
   on sale of real estate                    812,054            1,879,878           2,973,803           4,088,113

Earnings from hotel
  operations                                 309,270               60,789           1,075,559             867,934

Income from equity
  Investment                                                      122,586                                 122,586
                                         -----------           ----------          ----------          ----------
   Income before gain
   on sale of real estate                  1,211,324            2,063,253           4,049,362           5,078,633

Gain on sale of real estate                 (167,774)                               3,330,098
                                         -----------           ----------          ----------          ----------
     Net income                          $   953,550           $2,063,253          $7,379,460          $5,078,633
                                         ===========           ==========          ==========          ==========
Net income allocated
  to General Partners                    $    65,601           $  123,795          $  771,830          $  304,718
                                         ===========           ==========          ==========          ==========
Net income allocated
  to Limited Partners                    $   887,949           $1,939,458          $6,607,630          $4,773,915
                                         ===========           ==========          ==========          ==========
Net income per weighted average
  Unit (85,568 weighted average
  Limited Partnership Units)             $     10.38           $    22.66          $    77.22          $    55.79
                                         ===========           ==========          ==========          ==========
</TABLE>

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


                                      -3-
<PAGE>   5
                        CORPORATE PROPERTY ASSOCIATES 4,
                        a California limited partnership


                      STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                 Nine Months Ended
                                                                    September 30,
                                                            ----------------------------
                                                                1995             1996
                                                            ------------     -----------
<S>                                                         <C>              <C>
Cash flows from operating activities:
  Net income                                                $  7,379,460     $ 5,078,633
  Adjustments to reconcile net income to net
    cash provided by operating activities:
    Depreciation and amortization                                958,046         780,616
    Scheduled rents in excess of (less than) income
     on direct financing leases and straight-line
     adjustments on operating leases                               7,305        (592,671)
    Income from equity investment                                               (122,586)
    Gain on sale of real estate                               (3,330,098)
    Net change in operating assets and liabilities              (534,760)        218,537
                                                            ------------     -----------
     Net cash provided by operating activities                 4,479,953       5,362,529
                                                            ------------     -----------
Cash flows from investing activities:
  Proceeds from sale of real estate                           15,200,000
  Additional capitalized costs                                  (210,918)         (8,182)
  Purchase of interest in operating partnership and
    related costs                                                               (198,970)
                                                              ------------     ----------
     Net cash provided by (used in) investing activities      14,989,082        (207,152)
                                                              ------------     ----------
Cash flows from financing activities:
  Distributions to partners                                   (7,996,488)     (3,334,153)
  Purchase of limited partnership units                                          (20,000)
  Payments on mortgage principal                                (932,667)       (684,043)
  Prepayment of mortgage payable                              (5,722,508)
                                                            ------------     -----------
     Net cash used in financing activities                   (14,651,663)     (4,038,196)
                                                            ------------     -----------
       Net increase in cash and cash equivalents               4,817,372       1,117,181
    Cash and cash equivalents, beginning of period             2,509,451       7,579,071
                                                            ------------     -----------
       Cash and cash equivalents, end of period             $  7,326,823     $ 8,696,252
                                                            ============     ===========
</TABLE>

Supplemental disclosure of noncash investing and financing activities:

In July 1996, the Partnership exchanged its interest in a hotel property and
related assets and liabilities for 427,008 units in the operating partnership of
a publicly-traded real estate investment trust. The assets and liabilities
transferred are as follows:

<TABLE>
<S>                                                         <C>              <C>
     Real estate, net of accumulated depreciation                            $  6,981,597
     Mortgage note payable                                                     (3,388,764)
     Other assets and liabilities transferred, net                                 75,330
                                                                             ------------
                                                                             $  3,668,163
                                                                             ============
Supplemental disclosure of cash flows information:

         Interest paid                                      $  1,710,263     $ 1,250,339
                                                            ============     ===========
</TABLE>

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


                                      -4-
<PAGE>   6
                        CORPORATE PROPERTY ASSOCIATES 4,
                        a California limited partnership



                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)


Note 1.  Basis of Presentation:

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included. For
further information, refer to the financial statements and footnotes thereto
included in the Partnership's Annual Report on Form 10-K for the year ended
December 31, 1995.


Note 2.  Distributions to Partners:

Distributions declared and paid to partners during the nine months ended
September 30, 1996 are summarized as follows:

<TABLE>
<CAPTION>
Quarter Ended        General Partners    Limited Partners    Per Limited Partner Unit
-------------        ----------------    ----------------    ------------------------
<S>                  <C>                 <C>                 <C>
December 31, 1995        $65,633            $1,043,930                $12.20
                         =======            ==========                ======
March 31, 1996           $65,745            $1,045,641                $12.22
                         =======            ==========                ======
June 30, 1996            $65,852            $1,047,352                $12.24
                         =======            ==========                ======
</TABLE>

A distribution of $12.27 per Limited Partner Unit for the quarter ended
September 30, 1996 was declared and paid in October 1996.

Note 3.  Transactions with Related Parties:

For the three-month and nine-month periods ended September 30, 1995, the
Partnership incurred management fees of $19,642 and $73,136, respectively, and
general and administrative expense reimbursements of $28,450 and $71,180,
respectively. For the three-month and nine-month periods ended September 30,
1996, the Partnership incurred management fees of $61,869 and $142,942,
respectively, and general and administrative expense reimbursements of $18,500
and $97,831, respectively.

The Partnership, in conjunction with certain affiliates, is a participant in a
cost sharing agreement for the purpose of renting and occupying office space.
Under the agreement, the Partnership pays its proportionate share of rent and
other costs of occupancy. Net expenses incurred for the nine months ended
September 30, 1995 and 1996 were $101,250 and $55,205, respectively.


                                      -5-
<PAGE>   7
                        CORPORATE PROPERTY ASSOCIATES 4,
                        a California limited partnership



             NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)


Note 4.  Industry Segment Information:

The Partnership's operations consist of the investment in and the leasing of
industrial and commercial real estate. For the nine-month periods ended
September 30, 1995 and 1996, the Partnership earned its total lease revenues
(rental income plus interest income from financing leases) from the following
lease obligors:

<TABLE>
<CAPTION>
                                        1995       %             1996       %
                                        ----      ---            ----      ---
<S>                                 <C>           <C>        <C>           <C>
Hughes Markets, Inc.                $1,072,065     18%       $2,511,143     39%
Simplicity Manufacturing, Inc.       1,497,533     25         1,497,533     24
Brodart Co.                            989,451     17           985,916     15
Continental Casualty Company           565,652      9           569,886      9
Family Dollar Stores, Inc.             410,400      7           416,400      7
Petrocon Engineering, Inc.             276,201      4           280,813      4
Winn-Dixie Stores, Inc.                108,534      2           108,534      2
Genesco, Inc.                        1,047,510     18
                                    ----------    ---        ----------    ---
                                    $5,967,346    100%       $6,370,225    100%
                                    ==========    ===        ==========    ===
</TABLE>

Note 5.  Hotel Property in Kenner, Louisiana:

The Partnership and Corporate Property Associates 8 ("CPA(R):8"), an affiliate,
purchased a hotel property in Kenner, Louisiana, in June 1988 as
tenants-in-common with 46.383% and 53.617% interests, respectively. The
Partnership and CPA(R):8 assumed operating control of the hotel in 1992 after
evicting the lessee due to its financial difficulties. On July 30, 1996, the
Partnership and CPA(R):8 completed a transaction with American General
Hospitality Operating Partnership L.P. (the "Operating Partnership"), the
operating partnership of a newly-formed real estate investment trust, American
General Hospitality, Inc. ("AGH") in which the Partnership and CPA(R):8 received
920,672 limited partnership units (of which the Partnership's share was 427,008
units) in exchange for the hotel property and its operations, a cash
contribution of $388,331 (of which the Partnership's share was $180,120) and the
Operating Partnership's assumption of the Partnership's and CPA(R):8's mortgage
loan obligation collateralized by the hotel property (of which the Partnership's
share was $3,388,764).

The exchange of the hotel property for limited partnership units will initially
be treated as a nonmonetary exchange for tax and financial reporting purposes.
After one year, the Partnership will have the right to convert its equity
interest in the operating partnership to shares of common stock in AGH, which
recently completed an initial public offering, with such shares registered with
the Securities and Exchange Commission. The Partnership's carrying value for the
limited partnership units of $3,867,133 is based on the historical basis of
assets transferred, net of liabilities assumed by the Operating Partnership
($3,668,163); cash contributed ($180,120) and costs incurred to complete the
exchange ($18,850). The Partnership's interest in the limited partnership is
being accounted for under the equity method.

Operating results of the hotel for the nine-month period ended September 30,
1995 and the period from January 1996 through July 30, 1996, the date of the
exchange, are summarized as follows:

<TABLE>
<CAPTION>
                                       1995                     1996
                                   -----------              -----------
<S>                                <C>                      <C>
Revenues                           $ 2,867,234              $ 2,311,907
Fees paid to hotel management
   company                             (95,033)                 (83,061)
Other operating expenses            (1,696,642)              (1,360,912)
                                   -----------              -----------
Hotel operating income             $ 1,075,559              $   867,934
                                   ===========              ===========
</TABLE>


                                      -6-
<PAGE>   8
                        CORPORATE PROPERTY ASSOCIATES 4,
                        a California limited partnership



             NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)


Note 6.  Subsequent Event:

On November 6, 1996, the Partnership made a prepayment of $4,500,000 on the loan
on properties in Salisbury, North Carolina currently leased to Family Dollar
Stores, Inc., College Station, Texas leased to Continental Casualty Company and
Leeds, Alabama leased to Winn-Dixie Stores, Inc. which is collateralized by
deeds of trust on the properties and assignments on the related leases. The
loan, which had a balance of $6,998,000 at September 30, 1996, provides for a
floating interest rate at the London Interbank Offered Rate plus 3% (currently
8.625%). The loan matures on June 30, 1998, at which time a balloon payment will
be due.


                                      -7-
<PAGE>   9
                        CORPORATE PROPERTY ASSOCIATES 4,
                        a California limited partnership

                 Item 2. - MANAGEMENT'S DISCUSSION OF OPERATIONS



Results of Operations:

    Excluding the effect of a gain on sale of real estate in 1995, income for
the three-month and nine-month periods ended September 30, 1996 increased by
$941,000 and $1,029,000, respectively, as compared with the same periods ended
September 30, 1995. The increases in income, as adjusted, were due to an
increase in lease revenues and a decrease in interest expense. The increase in
lease revenues was solely attributable to the May 1996 lease extension agreement
with Hughes Markets, Inc. ("Hughes"). Under the two-year extension agreement,
annual rent has been increased by $1,843,000 with a lump sum rental payment of
approximately $2,910,000 due at the end of term; for financial reporting
purposes, the lump sum payment is being recognized as rental revenue on a
straight-line basis over the extension term. As of September 30, 1996, $768,000
of the increase in rental revenue recognized on the Hughes lease was due to the
increase in scheduled monthly rent since the commencement of the extension term,
$64,000 from a rent increase that went into effect in the fourth quarter of 1995
and $607,000 due to the straight-line accounting of the lump sum rental payment.
The increase from the Hughes lease offset the effect for the comparable
nine-month periods of rentals earned in 1995 from Genesco, Inc. ("Genesco")
which lease was terminated when the Genesco property was sold in June 1995. The
Partnership realized equity income of $123,000 from the new investment in
American General Hospitality Operating Partnership L.P. (the "Operating
Partnership"). The Partnership acquired this investment on July 30, 1996 when it
exchanged an interest in its hotel property in Kenner, Louisiana (and related
assets and liabilities including the transfer of a mortgage loan obligation on
the property) for limited partnership units in the Operating Partnership. The
decrease in interest expense was due to the transfer of the debt obligation on
the hotel property to the Operating Partnership, the continuing principal
amortization on other mortgage debt and, for the nine-month period, the
satisfaction of the mortgage debt on the Genesco property at the time such
property was sold.

    As a result of the transaction with the Operating Partnership, the
Partnership expects to realize cash flow approximately $700,000 per year from
distributions. Although the Partnership's income will decrease as income from
the hotel operation exceeded projected income from the Operating Partnership
investment, Management believes that the Partnership would have had to continue
to invest significant resources to periodically fund the capital improvements
needed to remain competitive in operating the hotel. For instance, the
Partnership realized cash flow after debt service from the hotel in 1995 of
$1,024,000; however, the Partnership funded improvements in excess of $750,000
in 1994. Management hopes that the exchange will eliminate the uncertainty and
fluctuation in cash flow relating to operating a single hotel as the Operating
Partnership owns a diversified portfolio of hotel properties. The Partnership
has an option after July 30, 1997 to exchange its limited partnership units for
shares of American General Hospitality, Inc. ("AGH"), a publicly traded real
estate investment trust, which holds the majority interest in the Operating
Partnership.


Financial Condition:

    There has been no material change in the Partnership's financial condition
since December 31, 1995. Cash flow from operations of $5,363,000 was sufficient
to pay scheduled mortgage principal installments of $684,000 and distributions
to partners of $3,334,000. The increase in cash balances is primarily due to the
benefit realized from the increased rent from Hughes.


                                      -8-
<PAGE>   10
                        CORPORATE PROPERTY ASSOCIATES 4,
                        a California limited partnership

                 Item 2. - MANAGEMENT'S DISCUSSION OF OPERATIONS







    On November 6, 1996, the Partnership made a prepayment of $4,500,000 on a
loan collateralized by Partnership properties leased to Winn-Dixie Stores, Inc.,
Family Dollar Stores, Inc. and Continental Casualty Company. Such loan, which
had a balance of $6,998,000 at September 30, 1996, is scheduled to mature in
June 1998 and provides for a floating interest rate at the London Inter-Bank
Offerred Rate plus 3% per annum. Management believes that it is prudent to
reduce cash balances to pay off debt which incurred higher rates of interest
than can be earned by investing cash in money market instruments. Based on the
current interest rate of the loan, the prepayment is expected to reduce annual
debt service by approximately $375,000.

    As a real estate investment trust, AGH has an obligation to distribute 95%
of its taxable income in order to retain its special Federal income tax status.
Since AGH owns a majority of the Operating Partnership limited partnership
units, the Operating Partnership has a fiduciary obligation to use its best
efforts for AGH to receive distributions which can be passed through to AGH
shareholders in order to meet the tax distribution objective. Accordingly, with
the exchange, the Partnership should achieve less fluctuation in cash flow and
has eliminated the need for allocating funds for capital improvements. Further,
with the option to exchange Operating Partnership units for AGH shares, the
Partnership will have the opportunity to sell its interests at a readily
determinable market value.

    The General Partners are currently investigating ways to provide liquidity
to limited partners on a tax-effective basis.


                                      -9-
<PAGE>   11
                        CORPORATE PROPERTY ASSOCIATES 4,
                        a California limited partnership


                                     PART II




                                   SIGNATURES





      Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                  CORPORATE PROPERTY ASSOCIATES 4,
                                  a California limited partnership



                                  By:  CAREY CORPORATE PROPERTY, INC.




         04/10/97                 By:      /s/ Claude Fernandez
       ------------                       ----------------------------
           Date                           Claude Fernandez
                                          Executive Vice President and
                                          Chief Administrative Officer
                                          (Principal Financial Officer)





         04/10/97                 By:      /s/ Michael D. Roberts
       ------------                       ----------------------------
           Date                           Michael D. Roberts
                                          First Vice President and Controller
                                          (Principal Accounting Officer)


                                      -10-