<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549
                                  ------------
                                   FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

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

For Quarter Ended June 30, 1999                  Commission File Number 0-15429


                    NEW ENGLAND LIFE PENSION PROPERTIES IV;
                       A REAL ESTATE LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)



     Massachusetts                                   04-2893298
(State or other jurisdiction of          (I.R.S. Employer Identification No.)
incorporation or organization)

     225 Franklin Street, 25th Fl.
     Boston, Massachusetts                              02110
(Address of principal executive offices)             (Zip Code)

              Registrant's telephone number, including area code:
                                 (617) 261-9000



----------------------------------------------------------------------------
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 twelve (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
<PAGE>

                    NEW ENGLAND LIFE PENSION PROPERTIES IV;
                       A REAL ESTATE LIMITED PARTNERSHIP

                                   FORM 10-Q

                        FOR QUARTER ENDED JUNE 30, 1999

                                     PART I

                             FINANCIAL INFORMATION
                            -----------------------
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP

BALANCE SHEETS

<TABLE>
<CAPTION>
                                    June 30, 1999      December 31, 1998
                                     (Unaudited)         (Audited)
                                    -------------      -----------------
<S>                                 <C>                <C>

ASSETS

Real estate investments:
   Joint ventures                     $15,626,635         $15,666,643
   Property, net                                -           9,106,457
   Property held for disposition        8,903,583                   -
   Other assets                            15,440                   -
                                      -----------         -----------
                                       24,545,658          24,773,100

Cash and cash equivalents               6,027,260           5,932,931
                                      -----------         -----------
                                      $30,572,918         $30,706,031
                                      ===========         ===========


LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                      $   107,787         $   145,103
Accrued management fee                     28,803              32,314
Deferred management and
   disposition fees                     4,287,003           4,229,398
                                      -----------         -----------
Total liabilities                       4,423,593           4,406,815
                                      -----------         -----------

Partners' capital (deficit):
   Limited partners ($422
     per unit; 120,000 units
     authorized, 94,997 units
     issued and outstanding)           26,193,538          26,341,929
   General partners                       (44,213)            (42,713)
                                      -----------         -----------
Total partners' capital (deficit)      26,149,325          26,299,216
                                      -----------         -----------

                                      $30,572,918         $30,706,031
                                      ===========         ===========
</TABLE>

          (See accompanying notes to unaudited financial statements)
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP

STATEMENTS OF OPERATIONS
(Unaudited)

<TABLE>
<CAPTION>
                                  Three Months Ended   Six Months Ended   Three Months Ended   Six Months Ended
                                    June 30, 1999       June 30, 1999        June 30, 1998      June 30, 1998
                                    -------------       -------------        -------------      -------------
<S>                               <C>                  <C>                <C>                  <C>
INVESTMENT ACTIVITY

Property rentals                        $ 500,816          $1,026,922            $ 834,263         $1,652,565
Property operating expenses              (289,681)           (552,567)            (328,450)          (702,231)
Depreciation and amortization                   -             (83,830)            (155,403)          (308,811)
                                        ---------          ----------            ---------         ----------
                                          211,135             390,525              350,410            641,523

Joint venture earnings                    443,249             819,686              422,650            726,629
Amortization                               (1,327)             (2,654)              (1,327)            (2,654)
                                        ---------          ----------            ---------         ----------

  Total real estate operations            653,057           1,207,557              771,733          1,365,498

Interest on cash equivalents
  and short term investments               71,194             140,309               87,637            174,749
                                        ---------          ----------            ---------         ----------
  Total investment activity               724,251           1,347,866              859,370          1,540,247
                                        ---------          ----------            ---------         ----------

Portfolio Expenses

Management fee                             57,605             115,211               68,425            136,849
General and administrative                 86,483             146,624               83,090            171,223
                                        ---------          ----------            ---------         ----------
                                          144,088             261,835              151,515            308,072
                                        ---------          ----------            ---------         ----------


Net Income                              $ 580,163          $1,086,031            $ 707,855         $1,232,175
                                        =========          ==========            =========         ==========
</TABLE>
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP



Net income per limited
   partnership unit               $  6.05    $ 11.32    $  7.38    $ 12.84
                                  =======    =======    =======    =======

Cash distributions per
   limited partnership unit       $  6.07    $ 12.88    $  7.21    $ 15.61
                                  =======    =======    =======    =======

Number of limited partnership
   units outstanding during
   the period                      94,997     94,997     94,997     94,997
                                  =======    =======    =======    =======


          (See accompanying notes to unaudited financial statements)
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP


STATEMENT OF PARTNERS' CAPITAL (DEFICIT)
(Unaudited)

<TABLE>
<CAPTION>
                      Three Months Ended            Six Months Ended           Three Months Ended            Six Months Ended
                        June 30, 1999                June 30, 1999               June 30, 1998                June 30, 1998
                     --------------------           ----------------           ------------------            ----------------

                   General        Limited        General       Limited       General      Limited        General        Limited
                   Partners       Partners       Partners      Partners      Partners     Partners       Partners       Partners
                  ----------    ------------    -----------  ------------  -----------  -------------   ----------    -------------
<S>               <C>           <C>             <C>          <C>           <C>          <C>             <C>           <C>
Balance at
beginning of
period             $ (44,189)    $26,195,808     $ (42,713)   $26,341,929   $ (70,145)   $ 33,315,991    $ (67,328)    $ 33,594,888


Cash
distributions         (5,825)       (576,632)      (12,360)    (1,223,562)     (6,918)       (684,928)     (14,978)      (1,482,902)


Net income             5,801         574,362        10,860      1,075,171       7,079         700,776       12,322        1,219,853
                  ----------    ------------    -----------  ------------  -----------  -------------   ----------    -------------

Balance at
end of period      $ (44,213)    $26,193,538     $ (44,213)   $26,193,538   $ (69,984)   $ 33,331,839    $ (69,984)    $ 33,331,839
                  ==========    ============    ===========  ============  ===========  =============   ==========    =============
</TABLE>


         (See accompanying notes to unaudited financial statements)
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP

SUMMARIZED STATEMENTS OF CASH FLOWS
(Unaudited)


                                               Six Months Ended June 30,
                                              -------------------------
                                                  1999         1998
                                              -----------   -----------


Net cash provided by operating
   activities                                 $ 1,330,251   $ 1,501,792
                                              -----------   -----------

Cash flows from (used in) investing activities:
   Investment in property                               -       (47,339)
   Decrease in short-term
      investments, net                                  -     2,838,711
   Loan repayment by joint venture partner              -       136,437
                                              -----------   -----------
         Net cash provided by
         investing activities                           -     2,927,809
                                              -----------   -----------

Cash flows from financing activity:
   Distributions to partners                   (1,235,922)   (1,497,880)
                                              -----------   -----------

         Net increase in
         cash and cash equivalents                 94,329     2,931,721
Cash and cash equivalents:
   Beginning of period                          5,932,931     4,017,473
                                              -----------   -----------

   End of period                              $ 6,027,260   $ 6,949,194
                                              ===========   ===========


          (See accompanying notes to unaudited financial statements)
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP

NOTES TO UNAUDITED FINANCIAL STATEMENTS (Unaudited)

     In the opinion of management, the accompanying unaudited financial
statements contain all adjustments necessary to present fairly the Partnership's
financial position as of June 30, 1999 and December 31, 1998 and the results of
its operations, its cash flows and partners' capital (deficit) for the three and
six months ended June 30, 1999 and 1998.  These adjustments are of a normal
recurring nature.

     See notes to unaudited financial statements included in the Partnership's
1998 Annual Report on Form 10-K for additional information relating to the
Partnership's financial statements.

NOTE 1 - ORGANIZATION AND BUSINESS
----------------------------------

     New England Life Pension Properties IV; A Real Estate Limited Partnership
(the "Partnership") is a Massachusetts limited partnership organized for the
purpose of investing primarily in newly constructed and existing income
producing real properties.  It primarily serves as an investment for qualified
pension and profit sharing plans and other organizations intended to be exempt
from federal income tax.  The Partnership commenced operations in May, 1986 and
acquired the three real estate investments it currently owns prior to the end of
1987.  It intends to dispose of the investments within eight to twelve years of
their acquisition, and then liquidate; however, the managing general partner
could extend the investment period if it is considered to be in the best
interest of the limited partners.  The Partnership has engaged AEW Real Estate
Advisors, Inc. (the "Advisor") to provide asset management advisory services.

NOTE 2 - REAL ESTATE JOINT VENTURES
-----------------------------------

          The following summarized financial information is presented in the
aggregate for the Partnership's two joint ventures.

                            Assets and Liabilities
                            ----------------------

<TABLE>
<CAPTION>
                                       June 30, 1999      December 31, 1998
                                       -------------      -----------------
<S>                                    <C>                <C>
Assets

     Real property, at cost less
         accumulated depreciation
         of $2,930,994 and
         $2,743,676, respectively      $19,898,843        $19,830,637
     Other                                 651,409            888,075
                                       -----------        -----------
                                        20,550,252         20,718,712

Liabilities                                194,090            339,188
                                       -----------        -----------

Net Assets                             $20,356,162        $20,379,524
                                       ===========        ===========
</TABLE>
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP

                                   Results of Operations

<TABLE>
<CAPTION>
                                         Six Months ended June 30,
                                         -------------------------
                                             1999         1998
                                             ----         ----
<S>                                      <C>           <C>
Revenue
     Rental income                        $1,569,247   $1,418,150
     Other income                             13,331        8,815
                                          ----------   ----------
                                           1,582,578    1,426,965
                                          ----------   ----------
Expenses
     Operating expenses                      356,622      320,829
     Depreciation and amortization           187,318      187,318
                                          ----------   ----------
                                             543,940      508,147
                                          ----------   ----------

Net income                                $1,038,638   $  918,818
                                          ==========   ==========
</TABLE>

     Liabilities and expenses exclude amounts owed and attributable to the
Partnership and (with respect to one joint venture) its affiliate on behalf of
their various financing arrangements with the joint ventures.

NOTE 3 - PROPERTY
-----------------

     Effective April 1, 1996, the Reflections joint venture was restructured,
whereby the Partnership's venture partner became an indirect limited partner.
Accordingly, the investment has been accounted for as a wholly-owned property
since that date.  The carrying value of the joint venture investment at
conversion was allocated to land, building and improvements and other net
operating assets.

     In connection with the ownership restructuring, the Partnership agreed to
release an affiliate of the venture partner from its guarantee upon payment to
the Partnership of $650,000. The Partnership received $250,000 at the time the
agreement was executed.  During the third quarter of 1996, the Partnership
received an additional $263,563.  The final payment of $136,437 was received
during the first quarter of 1998.  The first payment was accounted for as a
reduction of previously accrued investment income.  The second and third
payments were accounted for as a reduction of the Partnership's investment in
the property.

     In mid June 1999, a Purchase and Sale agreement was executed by the owning
partnership to sell the Reflections investment.  Although there can be no
assurance that this sale will occur, it is expected to be concluded during the
third quarter of 1999. This investment has been classified as Property Held for
Disposition at June 30, 1999.
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP


     The following is a summary of the Partnership's wholly-owned investment:

<TABLE>
<CAPTION>

                                         June 30, 1999     December 31, 1998
                                         -------------     ------------------
<S>                                      <C>               <C>
     Land                                $           -       $    1,538,883
     Buildings and improvements
       and other capitalized costs                   -            8,383,001
     Accumulated depreciation and
       amortization                                  -             (932,007)
       Net operating liabilities                     -              116,580
       Property, held for disposition        8,903,583                    -
                                         -------------       --------------
                                         $   8,903,583       $    9,106,457
                                         =============       ==============
</TABLE>


NOTE 4 - SUBSEQUENT EVENT
-------------------------

     Distributions of cash from operations relating to the quarter ended June
30, 1999 were made on July 29, 1999 in the aggregate amount of $582,456 ($6.07
per limited partnership unit).
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP

Management's Discussion and Analysis of Financial Condition and Results of
--------------------------------------------------------------------------
Operations
----------

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

     The Partnership completed its offering of units of limited partnership
interest in December, 1986.  A total of 94,997 units were sold.  The Partnership
received proceeds of $85,677,259, net of selling commissions and other offering
costs, which have been invested in real estate, used to pay related acquisition
costs, or retained as working capital reserves.  The Partnership made nine real
estate investments.  Six investments have been sold: one each in 1988, 1993,
1994, 1996, 1997 and 1998.  As a result of the sales, capital of
$54,908,266($578 per limited partnership unit) has been returned to the limited
partners through June 30, 1999.

     At June 30, 1999, the Partnership had $6,027,260 in cash and cash
equivalents, of which $582,456 was used for cash distributions to partners on
July 29, 1999; the remainder will primarily be used for working capital
reserves. The source of future liquidity and cash distributions to partners will
be cash generated by the Partnership's real estate and invested cash and cash
equivalents. Distributions of cash from operations for the first and second
quarters of 1999 were made at the annualized rate of 5.75% on the adjusted
capital contribution of $422 per limited partnership unit. Distributions of cash
from operations relating to the first and second quarters of 1998 were made at
the annualized rate of 5.5% on the adjusted capital contribution of $524 per
limited partnership unit.

     The carrying value of real estate investments in the financial statements
is at depreciated cost, or if the investment's carrying value is determined not
to be recoverable through expected undiscounted future cash flows, the carrying
value is reduced to the estimated fair market value.  The fair market value of
such investments is further reduced by the estimated cost of sale for properties
held for sale.  Carrying value may be greater or less than current appraised
value.  At June 30, 1999, appraised values exceeded the related carrying values
by an aggregate of approximately $5,400,000.  The current appraised value of
real estate investments has been estimated by the managing general partner and
is generally based on a combination of traditional appraisal approaches
performed by the Advisor and independent appraisers.  Because of the
subjectivity inherent in the valuation process, the estimated current appraised
value may differ significantly from that which could be realized if the real
estate were actually offered for sale in the marketplace.

Year 2000 Readiness Disclosure
------------------------------

     The Year 2000 Issue is a result of computer programs being written using
two digits rather than four to define the applicable year.  Computer programs
that have date-sensitive software may recognize a date using "00" as the year
1900 rather than the year 2000.  This could result in a system failure or
miscalculations causing disruptions of operations, including, among other
things, a temporary inability to process transactions or engage in normal
business operations.
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP

     The Partnership relies on AEW Capital Management L.P. ("AEW Capital
Management"), the parent of AEW Real Estate Advisors, Inc., to generate
financial information and to provide other services, which are dependent on the
use of computers.  The Partnership has obtained assurances from AEW Capital
Management that:

     .   AEW Capital Management has developed a Year 2000 Plan (the "Plan")
         consisting of five phases: inventory, assessment, testing,
         remediation/repair and certification.

     .   As of September 30, 1998, AEW Capital Management had completed the
         inventory and assessment phases of this Plan and had commenced the
         testing and remediation/repair of internal systems.

     .   AEW Capital Management concluded the internal testing,
         remediation/repair and certifications of its Plan in June 1999.

     The Partnership also relies on joint venture partners and/or property
managers to supply financial and other data with respect to its real properties.
The Partnership is in the process of surveying these third party providers and
assessing their compliance with Year 2000 requirements.  To date, the
Partnership is not aware of any problems that would materially impact its
results of operations, liquidity or capital resources.  However, the Partnership
has not yet obtained written assurances that these providers would be Year 2000
compliant.

     The Partnership is developing a contingency plan in the event of a
particular provider or system not being Year 2000 compliant. The inability of
one of these providers to complete its Year 2000 resolution process could
materially impact the Partnership.  In addition, the Partnership is also subject
to external forces that might generally affect industry and commerce, such as
utility or transportation company Year 2000 compliance failures and related
service interruptions. Given the nature of its operations, the Partnership will
not incur any costs associated with Year 2000 compliance.  All such costs are
borne by AEW Capital Management and the property managers.

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

     At June 30, 1999, two of the investments in the portfolio are structured as
joint ventures with a real estate development/management firm, one of which is
with an affiliate of the Partnership. The Reflections Apartments is a wholly-
owned property.  Metro Business Center, which was sold in September 1998, was a
wholly-owned property.

Operating Factors

     Columbia Gateway Corporate Park was 100% occupied at June 30, 1999 and June
30, 1998.

     Occupancy at Reflections Apartments ended the second quarter of 1999 at
94%, which is consistent with the quarter ended June 30, 1998.

     Metro Business Center was sold on September 23, 1998 and the Partnership
recognized a gain of $3,706,950.  At the time of sale the property was 100%
leased.
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES IV;
A REAL ESTATE LIMITED PARTNERSHIP

     Occupancy at 270 Technology Center was 100% at June 30, 1999 and June 30,
1998.

Investment Activity

     Interest on cash equivalents and short-term investments for the three and
six months ended June 30, 1999, was $71,194 and $140,309, respectively, compared
to $87,637 and $174,749 for the same periods in 1998. The decreases of
approximately $16,000 and $ 34,000 for the comparative three and six month
periods are primarily due to lower average investment balances in 1999 as a
result of the sale of Metro Business Park in September 1998.

     For the three and six months ended June 30, 1999, operating results from
real estate operations were $653,057 and $1,207,557, respectively, compared to
$771,733 and $1,365,498 for the comparable periods in 1998.  The decreases of
$118,676 and $157,941 for the comparative three and six month periods are
primarily due to the sale of Metro Business Center in September, 1998. This is
partially offset by increases in operating performance by Columbia Gateway and
270 Technology Center due to fewer rent concessions in 1999 and higher
occupancy, respectively.

     Operating cash flow decreased $171,541 between the six months ended June
30, 1998 and June 30, 1999, which is consistent with the decrease in operating
activity discussed above.

Portfolio Expenses

     The Partnership management fee is 9% of distributable cash flow from
operations after any increase or decrease in working capital reserves as
determined by the managing general partner.  General and administrative expenses
primarily consist of real estate appraisal, printing, legal, accounting and
investor servicing fees.

     For the three and six months ended June 30, 1999, management fees were
$57,605 and $115,211, respectively, compared to $68,425 and $136,849 for the
comparable periods in 1998.  The decreases in management fees for the respective
three and six month periods are due to lower operational cash distributions as a
result of the sale of Metro Business Center in September 1998.

     General and administrative expenses for the three and six months ended June
30, 1999 were $86,483 and $146,624, respectively, compared to $83,090 and
$171,223 for the same periods in 1998.  The increase of approximately $3,300 or
4% for the three month periods is primarily due to an increase in accounting
fees, in the second quarter of 1999, associated with the 1998 audit of Metro
Business Center, which was sold in September 1998. For the respective six month
periods, expenses decreased approximately $25,000 or 14% due primarily to
decreases in legal, printing and investor servicing fees.
<PAGE>

                    NEW ENGLAND LIFE PENSION PROPERTIES IV;
                       A REAL ESTATE LIMITED PARTNERSHIP

                                   FORM 10-Q

                        FOR QUARTER ENDED JUNE 30, 1999

                                    PART II

                               OTHER INFORMATION
                              -------------------



     Item 6. Exhibits and Reports on Form 8-K

                  a.    Exhibits:   None.

                  b.    Reports on Form 8-K:  No Current Reports on
                        Form 8-K were filed during the quarter ended
                        June 30, 1999.
<PAGE>

                                  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.


                              NEW ENGLAND LIFE PENSION PROPERTIES IV;
                              A REAL ESTATE LIMITED PARTNERSHIP
                              (Registrant)



August 11, 1999
                              /s/ Alison Husid Cutler
                              -------------------------------
                                Alison Husid Cutler
                                President, Chief Executive Officer
                                and Director of the Managing General Partner,
                                Fourth Copley Corp.



August 11, 1999
                              /s/ Karin J. Lagerlund
                              --------------------------------
                                Karin J. Lagerlund
                                Principal Financial and Accounting
                                Officer of Managing General Partner,
                                Fourth Copley Corp.