.


                    TEXTAINER FINANCIAL SERVICES CORPORATION
                        650 California Street, 16th Floor
                             San Francisco, CA 94108


May 14, 1998


Securities and Exchange Commission
Washington, DC  20549

Gentlemen:

Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,  we are
submitting  herewith for filing on behalf of Textainer Equipment Income Fund IV,
L.P.  (the  "Company")  the  Company's  Quarterly  Report  on Form  10-Q for the
quarterly period ended March 31, 1998.

This filing is being effected by direct  transmission to the Commission's  EDGAR
System.

Sincerely,


Nadine Forsman
Controller




<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                               Washington DC 20549



                                    FORM 10Q



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


                  For the quarterly period ended March 31, 1998


                         Commission file number 0-21228


                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
             (Exact name of Registrant as specified in its charter)


              California                                          94-3147432
     (State or other jurisdiction                               (IRS Employer
   of incorporation or organization)                         Identification No.)

   650 California Street, 16th Floor
          San Francisco, CA                                         94108
(Address of Principal Executive Offices)                          (ZIP Code)

                                 (415) 434-0551
              (Registrant's telephone number, including area code)


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 [ ]





<PAGE>



                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California Limited Partnership)

                      Quarterly Report on Form 10Q for the
                          Quarter Ended March 31, 1998

                                Table Of Contents

<TABLE>
<CAPTION>


                                                                                                               Page


Item 1.   Financial Statements

<S>       <C>                                                                                                <C>
          Balance Sheets - March 31, 1998 (unaudited) and December 31, 1997.................................    3


          Statements of Earnings for the three months
          ended March 31, 1998 and 1997 (unaudited).........................................................    4


          Statements of Partners' Capital for the three months
          ended March 31, 1998 and 1997 (unaudited).........................................................    5


          Statements of Cash Flows for the three months
          ended March 31, 1998 and 1997 (unaudited).........................................................    6


          Notes to Financial Statements (unaudited).........................................................    8


Item 2.   Management's Discussion and Analysis of Financial Condition
          and Results of Operations.........................................................................   12




</TABLE>
<PAGE>


                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California Limited Partnership)

                                 Balance Sheets

                      March 31, 1998 and December 31, 1997
                             (Amounts in thousands)

<TABLE>
<CAPTION>
                                                                                1998                    1997
                                                                          -----------------       -----------------
                                                                            (unaudited)
<S>                                                                      <C>                      <C>
Assets
Container rental equipment, net of accumulated
   depreciation of $37,689 (1997:  $36,080)                                       $ 87,766                $ 90,205
Cash                                                                                   880                     664
Accounts receivable, net of allowance for doubtful
   accounts of $804 (1997:  $1,433) (note 8)                                         4,560                   5,020
Due from affiliates, net (note 6)                                                      550                       -
Prepaid expenses                                                                       200                     195
                                                                          -----------------       -----------------

                                                                                  $ 93,956                $ 96,084
                                                                          =================       =================

Liabilities and Partners' Capital
Liabilities:
   Accounts payable                                                                  $ 588                   $ 478
   Accrued liabilities                                                                  94                      88
   Accrued recovery costs (note 2)                                                      57                     139
   Accrued damage protection plan costs (note 3)                                       408                     405
   Warranty claims (note 4)                                                            522                     537
   Due to affiliates, net (note 6)                                                       -                     791
   Deferred quarterly distribution                                                     194                     202
                                                                          -----------------       -----------------

      Total liabilities                                                              1,863                   2,640
                                                                          -----------------       -----------------

Partners' capital:
   General partners                                                                      -                       -
   Limited partners                                                                 92,093                  93,444
                                                                          -----------------       -----------------

      Total partners' capital                                                       92,093                  93,444
                                                                          -----------------       -----------------


                                                                                  $ 93,956                $ 96,084
                                                                          =================       =================

See accompanying notes to financial statements


</TABLE>
<PAGE>


                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California Limited Partnership)

                             Statements of Earnings

               For the three months ended March 31, 1998 and 1997
           (Amounts in thousands except for unit and per unit amounts)
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                      1998                1997
                                                                  --------------     ---------------
<S>                                                              <C>                 <C>    
Rental income                                                        $    5,743          $    5,173
                                                                  --------------     ---------------

Costs and expenses:
   Direct container expenses                                              1,380                 992
   Bad debt expense                                                          14                   5
   Depreciation and amortization                                          1,874               1,874
   Professional fees                                                          7                   8
   Management fees to affiliates (note 6)                                   487                 495
   General and administrative costs to affiliates (note 6)                  351                 359
   Other general and administrative costs                                    57                  56
                                                                  --------------     ---------------

                                                                          4,170               3,789
                                                                  --------------     ---------------

   Income from operations                                                 1,573               1,384
                                                                  --------------     ---------------

Other income:
   Interest income, net                                                       5                  24
   Gain on sale of containers (note 9)                                      233                  61
                                                                  --------------     ---------------

                                                                            238                  85
                                                                  --------------     ---------------

   Net earnings                                                      $    1,811          $    1,469
                                                                  ==============     ===============

Allocation of net earnings (note 6):
   General partners                                                        $ 33          $       34
   Limited partners                                                       1,778               1,435
                                                                  --------------     ---------------

                                                                     $    1,811          $    1,469
                                                                  ==============     ===============
Limited partners' per unit share
   of net earnings                                                   $     0.26          $     0.21
                                                                  ==============     ===============

Limited partners' per unit share
   of distributions                                                  $     0.46          $     0.48
                                                                  ==============     ===============

Weighted average number of limited
   partnership units outstanding                                      6,827,168           6,827,168
                                                                  ==============     ===============

See accompanying notes to financial statements


</TABLE>
<PAGE>


                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California Limited Partnership)

                         Statements of Partners' Capital

               For the three months ended March 31, 1998 and 1997
                             (Amounts in thousands)
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                                      Partners' Capital
                                                                   --------------------------------------------------------
                                                                      General             Limited               Total
                                                                   ---------------     ---------------     ----------------
<S>                                                                 <C>                 <C>                  <C>      
Balances at January 1, 1997                                                $    -           $ 100,906            $ 100,906

Distributions                                                                 (34)             (3,243)              (3,277)

Redemptions (note 10)                                                           -                (104)                (104)

Net earnings                                                                   34               1,435                1,469
                                                                   ---------------     ---------------     ----------------

Balances at March 31, 1997                                                 $    -            $ 98,994             $ 98,994
                                                                   ===============     ===============     ================

Balances at January 1, 1998                                                $    -            $ 93,444             $ 93,444

Distributions                                                                 (33)             (3,129)              (3,162)

Net earnings                                                                   33               1,778                1,811
                                                                   ---------------     ---------------     ----------------

Balances at March 31, 1998                                                 $    -            $ 92,093             $ 92,093
                                                                   ===============     ===============     ================


See accompanying notes to financial statements


</TABLE>
<PAGE>


                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California Limited Partnership)

                            Statements of Cash Flows

               For the three months ended March 31, 1998 and 1997
                             (Amounts in thousands)
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                                         1998              1997
                                                                                    ----------------  ----------------
<S>                                                                                 <C>                <C>
Cash flows from operating activities:
   Net earnings                                                                           $   1,811        $    1,469
   Adjustments to reconcile net earnings to
      net cash provided by operating activities:
        Depreciation                                                                          1,874             1,862
        Decrease in allowance for doubtful accounts, excluding
            write off (note 8)                                                                  (68)              (47)
         Amortization of organization costs                                                       -                12
         Gain on sale of containers (note 9)                                                   (233)              (61)
         Changes in assets and liabilities:
            Decrease in accounts receivable, excluding write off (note 8)                       531               176
            Increase in due from affiliates, net                                               (474)           (1,155)
            (Increase) decrease in prepaid expenses                                              (5)               12
            Increase (decrease) in accounts payable and accrued liabilities                     116               (13)
            (Decrease) increase in accrued recovery costs                                       (82)               11
            Increase (decrease) in accrued damage protection plan costs                           3               (94)
            Decrease in warranty claims                                                         (15)              (16)
                                                                                    ----------------  ----------------


               Net cash provided by operating activities                                      3,458             2,156
                                                                                    ----------------  ----------------

Cash flows from investing activities:
   Proceeds from sale of containers                                                             773               326
   Container purchases                                                                          (18)           (1,099)
                                                                                    ----------------  ----------------

              Net cash provided by (used in) investing activities                               755              (773)
                                                                                    ----------------  ----------------

Cash flows from financing activities:
    Repayment of  borrowings from affiliates                                                   (826)                -
    Redemptions of limited partnership units                                                      -              (104)
    Distributions to partners                                                                (3,171)           (3,285)
                                                                                    ----------------  ----------------

               Net cash used in financing activities                                         (3,997)           (3,389)
                                                                                    ----------------  ----------------

Net increase (decrease) in cash                                                                 216            (2,006)

Cash at beginning of period                                                                     664             2,694
                                                                                    ----------------  ----------------

Cash at end of period                                                                     $     880        $      688
                                                                                    ================  ================

Interest paid during the period                                                           $      16        $        -
                                                                                    ================  ================


See accompanying notes to financial statements


</TABLE>
<PAGE>


                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California Limited Partnership)


                       Statements Of Cash Flows--Continued

               For the three months ended March 31, 1998 and 1997
                             (Amounts in thousands)
                                   (unaudited)

Supplemental Disclosures:

Supplemental schedule of non-cash investing and financing activities:

The following table summarizes the amounts of container purchases, distributions
to partners  and  proceeds  from sale of  containers  which had not been paid or
received  as of March  31,  1998 and  1997,  and  December  31,  1997 and  1996,
resulting in  differences  in amounts  recorded and amounts of cash disbursed or
received by the  Partnership,  as shown in the  Statements of Cash Flows for the
three-month periods ended March 31, 1998 and 1997.
<TABLE>
<CAPTION>

                                                                 Mar. 31       Dec. 31        Mar. 31         Dec. 31
                                                                   1998           1997           1997            1996
                                                            ------------    -----------    -----------    ------------
<S>                                                         <C>             <C>             <C>           <C>
Container purchases included in:
     Due to affiliates..............................          $       1       $      2        $    31       $       5
     Container purchases payable....................                  -              -            195             361

Distributions to partners included in:
     Due to affiliates..............................                 10             11             11              18
     Deferred quarterly distribution................                194            202            198             199

Proceeds from sale of containers included in:
     Due from affiliates............................                325            286            406             361

The following table summarizes the amounts of container purchases, distributions
to partners and proceeds from sale of containers recorded by the Partnership and
the amounts  paid or received as shown in the  Statements  of Cash Flows for the
three-month periods ended March 31, 1998 and 1997.

                                                                                              1998               1997
                                                                                              ----               ----

Container purchases recorded......................................................        $     17         $     959
Container purchases paid..........................................................              18             1,099

Distributions to partners declared................................................           3,162             3,277
Distributions to partners paid....................................................           3,171             3,285

Proceeds from sale of containers recorded.........................................             812               371
Proceeds from sale of containers received.........................................             773               326


See accompanying notes to financial statements




</TABLE>
<PAGE>


                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California Limited Partnership)

                          Notes To Financial Statements

                                 March 31, 1998
           (Amounts in thousands except for unit and per unit amounts)
                                   (unaudited)

Note 1.   General

      Textainer  Equipment Income Fund IV, L.P. (the Partnership),  a California
      Limited  Partnership  with a maximum life of 20 years, was formed in 1991.
      The  Partnership  owns  and  leases  a fleet of  intermodal  marine  cargo
      containers which are leased to international shipping lines.

      The accompanying  interim comparative  financial  statements have not been
      audited by an independent  public  accountant.  However,  all  adjustments
      (which  were only  normal and  recurring  adjustments)  which are,  in the
      opinion of management,  necessary to fairly present the financial position
      of the  Partnership  as of March 31, 1998 and December  31, 1997,  and the
      results of its operations, changes in partners' capital and cash flows for
      the three-month periods ended March 31, 1998 and 1997, have been made.

      The financial  information  presented herein should be read in conjunction
      with  the  audited  financial  statements  and  other  accompanying  Notes
      included in the Partnership's  annual audited  financial  statements as of
      December 31, 1997 in the Annual Report filed on Form 10K.

      Certain   estimates  and  assumptions  were  made  by  the   Partnership's
      management that affect the reported  amounts of assets and liabilities and
      disclosures  of  contingent  assets  and  liabilities  at the  date of the
      financial  statements  and the  reported  amounts of revenue and  expenses
      during the  reporting  period.  Actual  results  could  differ  from those
      estimates.

      Certain  reclassifications,  not affecting net earnings, have been made to
      prior  year  amounts  in order to conform  with 1998  financial  statement
      presentation.

Note 2.   Recovery Costs

      The  Partnership  accrues an estimate  for  recovery  costs as a result of
      defaults under its leases that it expects to incur, which are in excess of
      estimated insurance proceeds. At March 31, 1998 and December 31, 1997, the
      amounts accrued were $57 and $139, respectively.

Note 3.   Damage Protection Plan

      The  Partnership  offers a Damage  Protection Plan (DPP) to lessees of its
      containers.  Under  the terms of DPP,  the  Partnership  earns  additional
      revenues  on a daily  basis  and,  in return,  has agreed to bear  certain
      repair costs.  It is the  Partnership's  policy to recognize  revenue when
      earned  and to  provide a reserve  sufficient  to cover the  Partnership's
      obligation for estimated repair costs. DPP expenses are included in direct
      container  expenses on the Statements of Earnings and the related  reserve
      at March 31, 1998 and December 31, 1997, was $408 and $405, respectively.

Note 4.   Warranty Claims

      During 1997 and 1995, the Partnership  settled warranty claims against two
      equipment manufacturers relating to certain containers. The Partnership is
      amortizing the settlement amount over the remaining  estimated useful life
      of these  containers  (ten years),  reducing  maintenance and repair costs
      over that time. At March 31, 1998 and December 31, 1997,  the  unamortized
      portion of the settlement amount was $522 and $537, respectively.

Note 5.   Acquisition of Containers

      During  the  three-month  periods  ended  March  31,  1998 and  1997,  the
      Partnership   purchased   containers   with  a  cost  of  $17  and   $959,
      respectively.

Note 6.   Transactions with Affiliates

      Textainer  Financial  Services  Corporation  (TFS) is the managing general
      partner of the Partnership.  TFS is a wholly-owned subsidiary of Textainer
      Capital Corporation (TCC).  Textainer  Equipment  Management Limited (TEM)
      and  Textainer   Limited  (TL)  are  associate  general  partners  of  the
      Partnership.  The  managing  general  partner  and the  associate  general
      partners are collectively referred to as the General Partners. The General
      Partners  also  act in  this  capacity  for  other  limited  partnerships.
      Textainer  Acquisition  Services  Limited  (TAS)  is an  affiliate  of the
      General  Partners which performs  services  relative to the acquisition of
      containers  outside the United States on behalf of the  Partnership.  TCC,
      TEM, TL and TAS are  subsidiaries  of  Textainer  Group  Holdings  Limited
      (TGH).  The  General  Partners  manage  and  control  the  affairs  of the
      Partnership.

      In accordance with the Partnership  Agreement,  and subject to the special
      allocations  described  therein,  net  earnings or losses and  partnership
      distributions  are generally  allocated 1% to the General Partners and 99%
      to the limited partners with the exception of gross income,  as defined in
      the  Partnership  Agreement.  Gross  income is  allocated  to the  General
      Partners  to the extent that their  partners'  capital  accounts  deficits
      exceed the portion of syndication and offering costs allocated to them. On
      termination of the  Partnership,  the General  Partners shall be allocated
      gross income equal to their allocations of syndication and offering costs.

      As part of the operation of the Partnership,  the Partnership is to pay to
      the General  Partners or TAS an incentive  management  fee, an acquisition
      fee, an equipment  management fee and an equipment  liquidation fee. These
      fees  are  for  various   services   provided  in   connection   with  the
      administration and management of the Partnership. The Partnership incurred
      $129 and $137 of incentive  management fees during the three-month periods
      ended March 31, 1998 and 1997,  respectively.  The Partnership capitalized
      equipment acquisition fees totaling $1 and $54 as a component of container
      rental equipment costs during the three-month periods ended March 31, 1998
      and 1997, respectively. No equipment liquidation fees were incurred during
      either period.

      The container  fleet of the  Partnership is managed by TEM. In its role as
      manager, TEM has authority to  acquire,  hold,  manage,  lease,  sell  and
      dispose of the Partnership's containers.  TEM holds, for payment of direct
      operating  expenses,  a reserve of  cash  that  has  been  collected  from
      container leasing operations; such cash is included in the amount due from
      affiliates,  net at March  31, 1998 and due to affiliates, net at December
      31, 1997.

      Subject to certain reductions, TEM receives a monthly equipment management
      fee equal to 7% of gross revenues  attributable to operating leases and 2%
      of  gross  revenues  attributable  to full  payout  net  leases.  For both
      three-month  periods  ended  March 31, 1998 and 1997,  these fees  totaled
      $358. The  Partnership's  container  fleet is leased by TEM to third party
      lessees on  operating  master  leases,  spot leases and term  leases.  The
      majority of the container  fleet is leased under  operating  master leases
      with limited terms and no purchase option.

      Certain  indirect  general  and  administrative  costs  such as  salaries,
      employee  benefits,   taxes  and  insurance  are  incurred  in  performing
      administrative  services  necessary to the  operation of the  Partnership.
      These  costs  are  incurred  and paid by TFS and TEM.  Total  general  and
      administrative  costs allocated to the Partnership  were $351 and $359 for
      the three-month  periods ended March 31, 1998 and 1997,  respectively,  of
      which $168 and $184 were for salaries.

      TEM allocates these general and administrative costs based on the ratio of
      the  Partnership's  interest in managed  containers to the total container
      fleet managed by TEM during the period. TFS allocates these costs based on
      the ratio of the Partnership's  containers to the total container fleet of
      all limited  partnerships managed by TFS. General and administrative costs
      allocated to the Partnership by TEM were $319 and $316 for the three-month
      periods ended March 31, 1998 and 1997, respectively. TFS allocated $32 and
      $43 of general and administrative costs to the Partnership during the same
      periods.

      The General  Partners or TAS may acquire  containers in their own name and
      hold  title on a  temporary  basis for the  purpose  of  facilitating  the
      acquisition of such containers for the  Partnership.  These containers may
      then be resold to the Partnership on an all-cash basis at a price equal to
      the actual cost, as defined in the Partnership Agreement. In addition, the
      General  Partners  or TAS  are  entitled  to an  acquisition  fee  for any
      containers resold to the Partnership.

      At March 31, 1998 and December 31, 1997, due from (to) affiliates,  net is
      comprised of:

                                                           1998            1997
                                                           ----            ----
      Due from affiliates:
        Due from TEM..................................    $ 626          $  120
                                                           ----            ----

      Due to affiliates:
        Due to TFS....................................       51              55
        Due to TAS....................................        1               2
        Due to TCC....................................       20              20
        Due to TL.....................................        4             834
                                                           ----            ----
                                                             76             911
                                                           ----            ----

      Due from (to) affiliates, net                       $ 550           $(791)
                                                           ====            ====

      Included in the  amounts  due to TL at December  31, 1997 is $826 in loans
      used to facilitate container purchases.  This loan was repaid on March 31,
      1998.  There were no borrowings from affiliates at  March 31,  1998.   All
      other amounts  receivable from and payable  to  affiliates  were  incurred
      in the  ordinary  course  of  business  between  the  Partnership  and its
      affiliates and represent timing  differences in the accrual and payment of
      expenses and fees described  above or in the accrual and remittance of net
      rental revenues from TEM.

      It is the policy of the  Partnership  and the  General  Partners to charge
      interest on amounts due to the General  Partners which are outstanding for
      more than one  month,  to the  extent  such  balances  relate to loans for
      container  purchases.  Interest is charged at a rate not greater  than the
      General  Partners'  or  affiliates'  own cost of  funds.  The  Partnership
      incurred  $13 of interest  expense on amounts due to the General  Partners
      for the  three-month  period ended March 31,  1998.  There was no interest
      expense incurred on intercompany balances for the three-month period ended
      March 31, 1997.

Note 7.   Rentals Under Operating Leases

      The following are the future  minimum rent  receivables  under  cancelable
      long-term  operating  leases at March 31,  1998.  Although  the leases are
      generally  cancelable  at  the  end of  each  twelve-month  period  with a
      penalty,  the  following  schedule  assumes  that the  leases  will not be
      terminated.

             Year ending March 31:

             1999.............................................         $    727
             2000.............................................               79
             2001.............................................               16
             2002.............................................                7
             2003.............................................                2
                                                                      ---------

             Total minimum future rentals receivable..........          $   831
                                                                        =======

Note 8.   Accounts Receivable Write-Off

      During the  three-month  period  ending  March 31, 1998,  the  Partnership
      wrote-off $561 of delinquent  receivables  from two lessees  against which
      reserves were recorded in 1994 and 1995.

Note 9.   Insurance Proceeds

      In February 1998, the Partnership wrote-off 24 containers held by a lessee
      that were deemed  unrecoverable.  These containers had a net book value of
      $175  for  which  the  Partnership  received  insurance  proceeds  of $197
      resulting in a gain of $22.

Note 10.   Redemptions

      The following  redemption  offerings were  consummated by the  Partnership
      during the three-month period ended March 31, 1997:
<TABLE>
<CAPTION>

                                                           Units                 Average
                                                          Redeemed           Redemption Price            Amount Paid
<S>                                                      <C>                 <C>                        <C>
            Balance at December 31, 1996....               10,715                 $15.49                   $  166

            Quarter ended:
                  March 31, 1997............                8,020                 $13.03                      104
                                                          -------                                            ----
            


            Partnership to date.............               18,735                 $14.43                   $  270
                                                           ======                                            ====
            

      There were no redemptions  during the  three-month  period ended March 31,
      1998. The redemption price is fixed by formula.



</TABLE>
<PAGE>




ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

           (Amounts in thousands except for unit and per unit amounts)

The Financial Statements contain information which will assist in evaluating the
financial  condition of the Partnership for the three-month  periods ended March
31, 1998 and 1997. Please refer to the Financial Statements and Notes thereto in
connection with the following discussion.

Liquidity and Capital Resources

From April 30,  1992 until  April 30,  1994,  the  Partnership  offered  limited
partnership  interests  to the  public.  The  Partnership  received  its minimum
subscription  amount  of  $5,000  on June 11,  1992 and on  April  30,  1994 the
Partnership had received a total subscription amount of $136,918.

From time to time,  the  Partnership  redeems units from limited  partners for a
specified   redemption  value  which  is  set  by  formula.  Up  to  2%  of  the
Partnership's outstanding units may be redeemed each year, although the 2% limit
may be exceeded at the managing general  partner's  discretion.  All redemptions
are subject to the managing  general  partner's  good faith  determination  that
payment for the redeemed units will not (i) cause the Partnership to be taxed as
a  corporation,  (ii) impair the capital or  operations of the  Partnership,  or
(iii) impair the ability of the Partnership to pay  distributions  in accordance
with its  distribution  policy.  During the  three-month  period ended March 31,
1998, the Partnership did not redeem any units.

The Partnership  invests working capital and cash flow from operations  prior to
its  distribution  to  the  partners  in  short-term,  liquid  investments.  The
Partnership's  cash is  affected  by  cash  provided  by or  used in  operating,
investing and financing  activities.  These  activities  are discussed in detail
below.

During the  three-month  period ended March 31, 1998, the  Partnership  declared
cash  distributions to limited  partners  pertaining to the period from December
1997  through  February  1998,  in the  amount of  $3,129.  These  distributions
represent a return of 9.5% on original capital (measured on an annualized basis)
on each unit for the month of December 1997 and 9% on original capital (measured
on an  annualized  basis) on each unit for January 1998 and February  1998. On a
cash basis, all of these  distributions  were from operations.  On a GAAP basis,
$1,351 of these  distributions  was a return of capital and the balance was from
net earnings.

Net cash provided by operating  activities  for the  three-month  periods ending
March 31, 1998 and 1997,  was $3,458 and $2,156,  respectively.  The increase of
$1,302, or 60%, is primarily attributable to an increase in due from affiliates,
net and a decrease  in accounts  receivable,  excluding  write-off,  of $474 and
$531,  respectively.  The fluctuation in due from affiliates,  net resulted from
timing  differences in the payment of expenses and fees and or in the remittance
of  net  rental  revenues.  Accounts  receivable  decreased  primarily  due to a
decrease in the average collection period of accounts receivable.

For the three-month period ending March 31, 1998, net cash provided by investing
activities  (the purchase and sale of  containers)  was $755,  compared with net
cash used in  investing  activities  of $773 for the same  period  in 1997.  The
difference of $1,528 is primarily due to the Partnership  having  purchased more
containers  during  the  three-month  period  ended  March 31,  1997 than in the
comparable  period in 1998. The General Partners believe that these  differences
reflect normal  fluctuations in container sales and purchases.  However,  recent
container  purchases  (reinvestment) are currently lower than anticipated due to
the adverse  effect of market  conditions on cash  available  for  reinvestment.
Market  conditions are discussed more fully below under "Results of Operations".
Consistent   with  its   investment   objectives   and  the  General   Partners'
determination  that containers can be profitably sold or bought at any time, the
Partnership  intends to reinvest all or a  significant  amount of proceeds  from
future  container  sales  in  additional   containers.   The  Partnership  sells
containers  at the  end of  their  estimated  useful  life  however,  additional
containers purchased may not equal the number containers sold.

At March 31, 1998, the Partnership had no commitments to purchase containers.

During 1997 the  Partnership  borrowed  $826 from a General  Partner to purchase
containers.  It is the policy of the  Partnership  and the  General  Partners to
charge  interest on borrowings from  affiliates  arising from the  Partnership's
acquisition  of  containers  which  are  outstanding  for more  than one  month.
Interest is charged to the  Partnership  at a rate not greater  than the General
Partners' own cost of funds.  The  Partnership  paid $16 of interest  during the
three month period ended March 31,  1998.  The interest  rate in effect at March
31, 1998 was 8.5%. The  Partnership  repaid the loan on March 31, 1998 with cash
provided by operations and proceeds from the sale of containers.

Results of Operations

The  Partnership's  income from operations,  which primarily  consists of rental
income, container depreciation,  direct container expenses, management fees, and
reimbursement of administrative expenses was directly related to the size of the
container fleet during the three-month periods ended March 31, 1998 and 1997, as
well as certain other factors discussed below. The following is a summary of the
size of the container fleet (in units) available for lease during those periods:

                                                1998              1997
                                                ----              ----

        Opening container fleet........       36,409            35,931
        Closing container fleet........       35,972            36,079
        Average container fleet........       36,191            36,005

Rental income and direct container  expenses are also affected by utilization of
the  container  fleet  which was 81% and 77% on average  during the  three-month
periods ended March 31, 1998 and 1997, respectively.  In addition, rental income
is affected by daily rental rates and leasing incentives.

The  following is a comparative  analysis of the results of  operations  for the
three-month periods ended March 31, 1998 and 1997.

The  Partnership's  income from  operations for the  three-month  periods ending
March 31, 1998 and 1997 was $1,573 and $1,384, respectively, on rental income of
$5,743 and $5,173, respectively.  The increase in rental income of $570, or 11%,
from the  three-month  period ended March 31, 1997 to the  comparable  period in
1998 was primarily  attributable to the increase in other rental income which is
discussed  below.  Income from container  rentals,  the major component of total
revenue, increased $40, or 1%, from the three-month period ending March 31, 1997
to the same period in 1998.  This  increase was primarily due to the increase in
the average  container  fleet available for lease of 1%, the increase in average
utilization of 5%, and the decrease in average lease  incentives of 17%,  offset
by the decrease in average rental rates of 6%.

Container  utilization  and rental rates declined during 1996 and 1997 primarily
due to decreased  demand for leased  containers and increased  competition.  The
decrease in demand for leased  containers  resulted from changes in the business
of shipping line customers consisting  primarily of (i) over-capacity  resulting
from the 1995 and 1996 additions of new, larger ships to the existing  container
ship fleet at a rate in excess of the growth rate in containerized  cargo trade;
(ii) shipping  line  alliances and other  operational  consolidations  that have
allowed  shipping  lines to operate with fewer  containers;  and (iii)  shipping
lines  reducing  their ratio of leased  versus owned  containers  by  purchasing
containers.  This decreased demand,  along with the entry of new leasing company
competitors  offering low container rental rates to shipping lines,  resulted in
downward  pressure on rental rates,  and also caused leasing  companies to offer
higher leasing  incentives and other discounts to shipping  lines.  Rental rates
were also  adversely  affected by a drop in the purchase price of new containers
which resulted in additional downward pressure on rental rates.

Utilization  increased  during the second and third  quarters  of 1997 and began
declining  again during the fourth quarter of 1997 and into the first quarter of
1998.  Despite  these  declines,  utilization  for the first quarter of 1998 was
greater than the average  first  quarter 1997  utilization  and greater than the
average  utilization  for  the  year  ended  December  31,  1997.  Rental  rates
stabilized during the later half of the first quarter of 1998 and, overall, were
comparable to fourth  quarter 1997 rental rates.  Leasing  incentives  reached a
high during  mid-1997,  began declining  during the second half of 1997 and have
stabilized  during the first quarter of 1998. The improvement in utilization and
the  stabilization  in rental rates and leasing  incentives are primarily due to
increased demand in Asia. The weakening of many Asian  currencies  resulted in a
significant increase in exports which has created a strong demand for containers
in Asia. The General Partners believe that market conditions have stabilized and
may be slowly improving; however, for the near term, the General Partners do not
foresee any material changes in existing market conditions and caution that both
utilization  and lease  rates  could  decline  again,  adversely  affecting  the
Partnership's operating results.

Substantially  all of the  Partnership's  rental income was  generated  from the
leasing of the Partnership's containers under short-term operating leases.

The  balance of other  rental  income  consists  of other  lease-related  items,
primarily  income from charges to lessees for picking up containers from surplus
locations  less  credits  granted to lessees  for leasing  containers  from less
desirable  locations  (location  income),  income  for  handling  and  returning
containers  and income  from  charges to lessees  for a Damage  Protection  Plan
(DPP).  For the  three-months  ended  March 31,  1998,  the total of these other
rental income items was $949, an increase of $530 from the equivalent  period in
1997. The primary  component of this increase was an increase in location income
of $458.  Location  income  increased  primarily due to the inclusion of certain
credits  received during 1997 and 1998 which had previously been applied against
repositioning expense and also due to an increase in the average drop-off charge
per  container  and a decrease in credits given to lessees to pick up containers
from certain locations.

Direct  container  expenses  increased $388, or 39%, for the three-month  period
ending March 31, 1998 compared to the equivalent period in 1997. The increase in
direct  container  expenses was primarily due to increases in costs incurred for
repositioning and DPP expenses of $340 and $134, offset by a decrease in storage
expense of $153.  Repositioning  expense increased due to the removal of certain
credits from repositioning  costs to other rental income as discussed above, and
due to a greater number of containers being  transported from surplus  locations
to demand locations. DPP expense increased due to a greater number of containers
requiring repair,  offset by a lower average repair cost per container.  Storage
expense  decreased  as a result of the increase in  utilization  from 77% to 81%
from the three-month period ended March 31, 1997 to the same period in 1998.

Bad debt  expense for the  three-month  periods  ending  March 31, 1997 and 1998
increased from $5 to $14, respectively,  primarily due to the increase in rental
income.

The  increase  in  depreciation  expense  of $12 or 1% between  the  three-month
periods  ending March 31, 1997 and 1998 was directly  related to the 1% increase
in average fleet size.

Management fees to affiliates  decreased $8, or 2%, from the three-month  period
ended March 31, 1997 to the comparable  period in 1998.  This decrease  resulted
from a decrease in incentive  management fees.  Incentive management fees, which
are  based   primarily  on  the   Partnership's   limited  and  general  partner
distributions,  decreased $8, or 6%, due to the decrease in the limited  partner
distribution rate from 9.5% to 9% in January 1998.

General and  administrative  costs to  affiliates  decreased $8, or 2%, from the
three-month  period  ending  March 31,  1997 to the  comparable  period in 1998,
primarily due to a decrease in overhead costs allocated by TFS.

Other income  increased  $153, or 180%,  primarily due to an increase in gain on
sale of containers of $172 between the three-month periods ending March 31, 1997
and 1998. Gain on sale of containers increased primarily due to the write-off of
containers  held by a lessee  that  were  deemed  unrecoverable  for  which  the
Partnership  received insurance proceeds for these containers in excess of their
net book value.

For the three months  ending  March 31, 1998 and 1997,  net earnings per limited
partnership  unit  increased from $0.21 to $0.26,  respectively,  reflecting the
increase in net earnings allocated to limited partners from $1,435 to $1,778 for
the same periods.

Many computer systems may experience difficulty processing dates beyond the year
1999 and, as such, some computer  hardware and software will need to be modified
prior to the year 2000 to remain  functional.  Certain of the  Partnership's and
General  Partner's core internal systems that have recently been implemented are
year 2000  compliant.  The remaining  core internal  systems are scheduled to be
revised  to be year  2000  compliant  by the end of 1998.  Based on its  initial
evaluation,  the  Partnership  and the General  Partners do not believe that the
cost of remedial  actions relating to these systems will have a material adverse
effect on the  Partnership's  results of  operations  and  financial  condition.
Additionally,  the  Partnership  and the General  Partners are also completing a
preliminary  assessment  of year 2000  issues not  related to its core  systems,
including issues surrounding systems that interface with external third parties.

Although  substantially  all of the  Partnership's  income  from  operations  is
derived from assets employed in foreign operations, virtually all of this income
is  denominated  in United  States  dollars.  The  Partnership's  customers  are
international  shipping  lines  which  transport  goods on  international  trade
routes.  The  domicile  of the lessee is not  indicative  of where the lessee is
transporting  the  containers.  The  Partnership's  business risk in its foreign
operations lies with the  creditworthiness of the lessees, and the Partnership's
ability to keep the containers under lease,  rather than the geographic location
of the  containers or the domicile of the lessees.  The containers are generally
operated on the international high seas rather than on domestic  waterways.  The
containers are subject to the risk of war or other political, economic or social
occurrence  where  the  containers  are used,  which  may  result in the loss of
containers,  which,  in turn,  may have a material  impact on the  Partnership's
results of operations  and  financial  condition.  The General  Partners are not
aware of any  conditions  as of March 31, 1998 which would result in such a risk
materializing.

Other risks of the Partnership's  leasing  operations include  competition,  the
cost of  repositioning  containers  after  they come  off-lease,  the risk of an
uninsured  loss,  increases in maintenance  expenses or other costs of operating
the  containers,  and the effect of world trade,  industry trends and/or general
business and economic cycles on the Partnership's operations. See "Risk Factors"
in the Partnership's Prospectus, as supplemented,  for additional information on
risks of Partnership's business.



<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.


                                     TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                                     (A California Limited Partnership)

                                     By Textainer Financial Services Corporation
                                     The Managing General Partner



                                     By _______________________________
                                        John R. Rhodes
                                        Executive Vice President


Date:  May 14, 1998

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of Textainer  Financial
Services  Corporation,  the Managing  General Partner of the Registrant,  in the
capacities and on the dates indicated:

<TABLE>
<CAPTION>

Signature                                Title                                          Date



<S>                                      <C>                                           <C>
________________________                 Executive Vice President,                      May 14, 1998
John R. Rhodes                           (Principal Financial and
                                         Accounting Officer) and
                                         Secretary


________________________                 President (Principal Executive                 May 14, 1998
Philip K. Brewer                         Officer)

</TABLE>
<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.


                                     TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                                     (A California Limited Partnership)

                                     By Textainer Financial Services Corporation
                                     The Managing General Partner



                                     By /s/John R. Rhodes
                                        _______________________________
                                        John R. Rhodes
                                        Executive Vice President


Date:  May 14, 1998


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of Textainer  Financial
Services  Corporation,  the Managing  General Partner of the Registrant,  in the
capacities and on the dates indicated:

<TABLE>
<CAPTION>

Signature                                   Title                                             Date



<S>                                      <C>                                           <C>
/s/John R. Rhodes                        Executive Vice President,                      May 14, 1998
_______________________________          (Principal Financial and
John R. Rhodes                           Accounting Officer) and
                                         Secretary

/s/Philip K. Brewer                      President (Principal Executive                 May 14, 1998
_______________________________          Officer)
Philip K. Brewer                         


</TABLE>