SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K

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

       For the fiscal year ended December 31, 2007.

or

[ ]    Transition  Report  Pursuant to Section 13 or 15(d) of the  Securities
       Exchange Act of 1934

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

                         Commission File Number: 0-8908

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

               California                                95-3192402
----------------------------------------           ----------------------
     (State or other jurisdiction of                  (I.R.S. Employer
     incorporation or organization)                Identification Number)
701 Western Avenue, Glendale, California                 91201-2349
----------------------------------------           ----------------------
(Address of principal executive offices)                 (Zip Code)

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


Securities registered pursuant to Section 12(b) of the Act:   NONE

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

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

Indicate by check mark ifthe  registrant  is a well-known  seasoned  issuer,  as
defined in Rule 405 of the Securities Act. Yes [ ] No [ X]

Indicate  by  check  mark if the  registrant  is not  required  to file  reports
pursuant to Section 13 or Section 15(d) of the Exchange Act.

                                 Yes [ ] No [X]

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

                                 Yes [X] No [ ]

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

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

                                  Yes [ ]No [X]

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated filer, a non-accelerated  filer or a smaller reporting company.  See
the definitions of "large accelerated  filer",  "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

  Large Accelerated Filer [ ] Accelerated Filer [ ] Non-accelerated Filer [X]
                          Smaller Reporting Company[ ]

The aggregate  market value of the voting and  non-voting  common equity held by
non-affiliates of the Registrant as of June 30, 2007:

Limited Partner Units, $500.00 Par Value - $26,443,000 (computed on the basis of
$1,750.00  per unit  which was the  highest  reported  sale  price  prior to the
quarter ended June 30, 2007).

                                       1
<PAGE>


The number of units outstanding of the registrant's  classes of common equity as
of March 25, 2008:

Units of Limited Partnership Interest, $500.00 Par Value - 40,000 units

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      NONE

                                       2
<PAGE>

                                     PART I

ITEM 1.  Business
         --------

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

         This Annual  Report on Form 10-K  contains  forward-looking  statements
within the  meaning of the  federal  securities  laws.  All  statements  in this
document,   other  than  statements  of  historical  fact,  are  forward-looking
statements  which  may  be  identified  by  the  use  of  the  words  "expects,"
"believes,"  "anticipates,"  "plans," "would,"  "should," "may," "estimates" and
similar expressions.  These forward-looking statements involve known and unknown
risks and  uncertainties,  which may cause Public Storage  Properties IV, Ltd.'s
(the  "Partnership")  actual results and performance to be materially  different
from those expressed or implied in the forward-looking  statements. As a result,
you should not rely on any  forward-looking  statements in this report, or which
management  may make orally or in writing from time to time, as  predictions  of
future events nor guarantees of future performance.  We caution you not to place
undue reliance on  forward-looking  statements,  which speak only as the date of
this  report  or as of  the  dates  indicated  in  the  statements.  All  of our
forward-looking  statements,  including  those in this report,  are qualified in
their entirely by this statement. We expressly disclaim any obligation to update
publicly or otherwise revise any forward-looking statements, whether as a result
of new  information,  new estimates,  or other factors,  events or circumstances
after  the  date of this  document,  except  where  expressly  required  by law.
Accordingly,   you  should  use  caution  in  relying  on  past  forward-looking
statements to anticipate future results.

         Factors and risks that may impact our future  results  and  performance
include,  but are not limited to, those described in Item 1A, "Risk Factors" and
in our other filings with the Securities and Exchange Commission. ("SEC"). These
risks include, among others, the following:

         o  general  risks  associated  with the ownership and operation of real
            estate  including  changes  in  demand,   potential   liability  for
            environmental contamination, adverse changes in tax, real estate and
            zoning laws and regulations, and the impact of natural disasters;

         o  risks  associated  with  downturns  in the  local  economies  in the
            markets in which we operate;

         o  the impact of  competition  from new and existing  self-storage  and
            commercial facilities and other storage alternatives;

         o  the impact of the regulatory environment as well as national, state,
            and local laws and regulations;

         o  disruptions or shutdowns of our automated processes and systems; and

         o  economic uncertainty due to the impact of war or terrorism.

         The risks  included  here are not  exhaustive as it is not possible for
management  to predict all  possible  risk factors that may exist or emerge from
time to time.  Investors should refer to our quarterly  reports on Form 10-Q for
future periods and current reports on Form 8-K and other  information filed from
time to time with the SEC Commission for additional information.

General
-------

         The Partnership is a publicly held limited partnership formed under the
California  Uniform  Limited  Partnership  Act in December 1977. The Partnership
raised  $20,000,000  in gross  proceeds  by  selling  40,000  units  of  limited
partnership interest ("Units") in an interstate offering, which commenced in May
1978 and completed in November 1978. The Partnership was formed to engage in the
business of developing  and operating  self-storage  facilities for personal and
business use.

         The  Partnership  has reported  annually to the Securities and Exchange
Commission ("SEC") on Form 10-K which includes financial statements certified by
its  independent  registered  public  accounting  firm. The Partnership has also
reported  quarterly  to the SEC on Form 10-Q and  includes  unaudited  financial
statements  with  such  filings.   The  Partnership  expects  to  continue  such
reporting.  On an annual  basis,  the  Partnership  mails the audited  financial
statements and related notes thereto, to all limited partners.

                                       3
<PAGE>

         The public may read and copy any materials this Partnership  files with
the  SEC  at  the  SEC's  Public  Reference  Room  at 450  Fifth  Street,  N.W.,
Washington,  D.C. 20549.  The public may obtain  information on the operation of
the Public Reference Room by calling the SEC at 1-800-732-0330.  The partnership
does not maintain a website.  However,  the SEC  maintains an Internet site that
contains  reports,  proxy and  information  statements,  and  other  information
regarding issuers, including the Partnership,  that file electronically with the
SEC at http://www.sec.gov.

         In  1995,   there  were  a  series  of  mergers  among  Public  Storage
Management, Inc. (which was the Partnership's self-storage facilities operator),
Public Storage (which was one of the  Partnership's  general partners) and their
affiliates (collectively,  "PSMI"),  culminating in the November 16, 1995 merger
(the  "PSMI  Merger")  of  PSMI  into  Storage  Equities,  Inc.,  a real  estate
investment  trust ("REIT")  organized as a California  corporation.  In the PSMI
Merger,  Storage  Equities,  Inc. was renamed Public Storage,  Inc. and acquired
substantially  all of PSMI's United States  ("U.S.") real estate  operations and
became  a  co-general  partner  of  the  Partnership  and  the  operator  of the
Partnership's  self-storage facilities.  Effective June 1, 2007, Public Storage,
Inc.  was  reorganized  into  Public  Storage  ("PS"),  a Maryland  real  estate
investment trust.

         The  Partnership's   general  partners  are  PS  and  B.  Wayne  Hughes
("Hughes") (collectively referred to as the "General Partners"). Hughes has been
a general partner of the Partnership since its inception.  Hughes is chairman of
the board of PS, and was its chief executive  officer through  November 7, 2002.
Hughes and members of his family (the "Hughes Family") own  approximately  25.3%
of the outstanding common shares of PS.

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

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

Investment Objectives and Policies
----------------------------------

         The  Partnership's  objectives are to (i) preserve and protect invested
capital,   (ii)  maximize  the  potential  for  appreciation  in  value  of  its
investments, and (iii) provide for cash distributions from operations.

         Following are the Partnership's  investment practices and policies. The
partnership  does not anticipate  any new  investments,  other than  maintenance
capital  expenditures,  and  does not  anticipate  liquidating  the real  estate
investments  it now holds.  While a vote of the limited  partners  is  generally
required to change the Partnership's  investment policies,  the general partners
hold a majority of the limited  partnership  units, and as a result, the General
Partners could change these policies through their vote.

         o  Our investments consist of 17 self-storage facilities.  All of these
            investments are in real estate or real estate entities  holding real
            estate located in the U.S. See "Self-storage  Facilities" and Item 2
            "Properties" for further information.

         o  There is no limitation on the amount or percentage of assets,  which
            can be invested in any specific person.

         The Partnership does not anticipate issuing senior  securities,  making
loans to other  persons,  investing in the  securities  of other issuers for the
purpose of exercising  control,  underwriting  the  securities of other issuers,
engaging  in the  purchase  and  sale of  investments  (with  the  exception  of
distributing  its holdings of Public Storage  securities to unitholders as noted
above),  offering  securities  in exchange  for  property,  or  repurchasing  or
otherwise reacquiring its outstanding  securities.  The Partnership may consider
borrowing  money  with the  intent of using the  proceeds  for  distribution  to
partners.

Self-storage Facilities
-----------------------

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

                                       4
<PAGE>

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

         Self-storage facilities in which the Partnership has invested generally
consist  of  three  to  seven  buildings  containing  an  aggregate  of  between
approximately  265 to 985 storage spaces,  most of which have between 25 and 400
square feet and an interior height of approximately 8 to 12 feet.

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

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

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

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

         The Partnership's  self-storage facilities are operated by PS under the
"Public  Storage"  brand  name,  which  the  Partnership  believes  is the  most
recognized  name  in  the  self-storage  industry.  The  major  elements  of the
Partnership's operating strategies are as follows:

         o  Capitalize on recognition of the "Public  Storage" name. PS has more
            than 20 years of operating experience in the self-storage  business.
            PS has informed the Partnership that it is the largest  self-storage
            facility  operator in the U.S. in terms of both number of facilities
            and rentable  space  operated.  PS believes  that its  marketing and
            advertising programs improve its competitive position in the market.
            The PS in-house yellow pages staff designs and places advertisements
            in  directories  in  virtually  all  markets  in which it  operates.
            Customers calling either the PS toll-free telephone referral system,
            (800)  44-STORE,  or a self-storage  facility are directed to the PS
            reservation system where a trained representative discusses with the
            customer space requirements, price and location preferences and also
            informs the customer of other products and services  provided by PS.
            The telephone  reservation system supports rental activity at all of
            the U.S.  facilities  operated by PS. PS also provides customers the
            opportunity  to  review  space  availability  and make  reservations
            online through the PS website, www.publicstorage.com.

         o  Maintain high occupancy  levels and increase  annual realized rents.
            Subject to market  conditions,  the  Partnership  generally seeks to
            maximize  revenues  through  high  average  occupancy  levels and to
            eliminate  promotions  prior to  increasing  rental  rates.  Average
            occupancy for the Partnership's  self-storage facilities was 89% and
            91% in 2007  and  2006,  respectively.  Annual  realized  rents  per
            occupied  square  foot  increased  from  $15.37 in 2006 to $15.56 in
            2007.  These amounts exclude the property  operated  pursuant to the
            management and performance  agreement with Public Storage Pickup and
            Delivery,  LP  ("PSPUD"),  a  subsidiary  of PS.  See  Note 5 to the
            Partnership's financial statements for additional information.

         o  Systems  and  controls.  PS has an  organizational  structure  and a
            property operation system which links its corporate office with each
            of its  self-storage  facilities.  This  enables PS to obtain  daily
            information  from  each  facility  and to  achieve  efficiencies  in
            operations  and maintain  control over its space  inventory,  rental
            rates,  promotional  discounts  and  delinquencies,  and to identify
            changing market  conditions and operating  trends as well as analyze
            customer   data,  and  quickly   change   properties'   pricing  and
            promotional  mix  on  an  automated  basis.  Expense  management  is
            achieved  through  centralized  payroll and accounts payable systems
            and a comprehensive property tax appeals department.  PS also has an
            extensive  internal audit program designed to ensure proper handling
            of cash collections.

                                       5

<PAGE>

         o  Professional  property  operation.  There  are  approximately  5,200
            persons who render  services  for the Public  Storage  system in the
            U.S.,   primarily   personnel   engaged  in   property   operations,
            substantially  all of whom are  employed by a clearing  company that
            provides certain  administrative and cost-sharing services to PS and
            other owners of properties operated by PS.

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

         The  Partnership's  self-storage  facilities  are  managed  by  PS  (as
successor to PSMI) pursuant to a Management Agreement.

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

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

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

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

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

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

         The Management  Agreement  between the Partnership and PS provides that
the  Management  Agreement may be terminated  without cause upon 60 days written
notice by the Partnership or six months notice by PS.

         One of the Partnership's real estate facilities is operated pursuant to
a management and performance agreement (the "Performance Agreement") with Public
Storage Pickup and Delivery, LP ("PSPUD"), a subsidiary of PS. See Item 13 below
for more information.

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

         Local market conditions play a significant role in how competition will
affect the  Partnership's  operations.  Competition from other  self-storage and
other storage alternatives in the market areas in which the Partnership operates
is  significant  and affects the  occupancy  levels,  rental rates and operating
expenses  of  certain  of  the   Partnership's   facilities.   Any  increase  in
availability of funds for investment in real estate may accelerate  competition.
Further development of self-storage  facilities may intensify  competition among
self-storage  facilities in the market areas in which the Partnership  operates.
In addition to competition from  self-storage  facilities  operated by PS, there
are other publicly traded REITs and numerous  regional and local operators.  The
Partnership believes that the significant  operating and financial experience of
PS,  and  the  "Public  Storage"  brand  name  recognition   should  enable  the
Partnership to continue to compete effectively with other entities.

                                       6
<PAGE>

Other Business Activities

         A corporation that reinsures policies against losses to goods stored by
tenants  in PS'  storage  facilities  was  purchased  by PS from Mr.  Hughes and
members of his family (the "Hughes  Family") on December  31,  2001.  We believe
that the  availability of insurance  reduces our potential  liability to tenants
for losses to their goods from theft or destruction.  This corporation  receives
the  premiums  and  bears  the  risks  associated  with  the  reinsurance.   The
Partnership receives an access fee from this corporation in return for providing
tenant  listings.  This fee is based on the number of spaces the Partnership has
to rent.

         A  subsidiary  of PS sells  locks and  boxes  and  rents  trucks to the
general  public and tenants to be used in securing their spaces and moving their
goods.  The  subsidiary  receives  the  revenues  and  bears  the  cost  of  the
activities. We believe that the availability of locks and boxes for sale and the
rental of trucks promote the rental of self-storage spaces.

Federal Income Tax
------------------

         Public  Storage  Properties  IV, Ltd. is treated as a  partnership  for
Federal income tax purposes with the taxable  income of the entity  allocated to
each partner in accordance with the Partnership agreement.

Employees
---------

         The Partnership has no direct  employees.  There are  approximately  82
persons who render services on behalf of the Partnership.  These persons include
resident  managers,  assistant  managers,  relief managers,  area managers,  and
administrative  and maintenance  personnel.  Some employees may be employed on a
part-time  basis and may be employed by other  persons,  Partnerships,  REITs or
other entities owning facilities operated by PS.

ITEM 1A. Risk Factors
         ------------

         In addition to the other information in our Annual Report on Form 10-K,
you should consider the risks described below that we believe may be material to
investors in evaluating the Partnership.  This section contains  forward-looking
statements,  and in  considering  these  statements,  you  should  refer  to the
qualifications  and  limitations  on our  forward-looking  statements  that  are
described in FORWARD LOOKING STATEMENTS at the beginning of Item 1.

         THE GENERAL PARTNERS CONTROL THE PARTNERSHIP AS A GROUP.

         Public Storage is general partner and beneficially  owns  approximately
29.2% of our  outstanding  limited  partnership  units.  In  addition,  B. Wayne
Hughes,  General Partner of the  Partnership,  and Chairman of PS and members of
his family beneficially own 33.7% of the Limited Partnership units. As a result,
the General  Partners,  as a group,  control matters  submitted to a vote of our
unitholders,  including  amending our organizational  documents,  dissolving the
Partnership and approving other such transactions.

         SINCE OUR BUSINESS CONSISTS  PRIMARILY OF OPERATING REAL ESTATE, WE ARE
SUBJECT TO REAL ESTATE OPERATING RISKS.

         The value of our  investments  may be reduced by general  risks of real
estate  ownership.  Since we derive  substantially  all of our income  from real
estate  operations,  we  are  subject  to  the  general  risks  of  owning  real
estate-related assets, including:

         o  lack of demand for rental spaces or units in a locale;

         o  changes in general economic or local conditions;

         o  natural disasters, such as earthquakes;

         o  potential terrorist attacks;

         o  changes in supply of or demand for similar or  competing  facilities
            in an area;

         o  the impact of environmental protection laws;

         o  changes in interest  rates and  availability  of permanent  mortgage
            funds which may render the sale or financing of a property difficult
            or unattractive;

         o  increases in insurance premiums,  property tax assessments and other
            operating and maintenance expenses;

                                       7
<PAGE>

         o  adverse changes in tax, real estate and zoning laws and regulations;
            and

         o  tenant and employment-related claims.

         There is significant competition among self-storage facilities and from
other storage alternatives.  All of our properties are self-storage  facilities,
which generated substantially all of our revenue for the year ended December 31,
2007.  Local market  conditions will play a significant  part in how competition
will affect us.  Competition in the market areas in which many of our properties
are located from other self-storage facilities and other storage alternatives is
significant  and has affected the occupancy  levels,  rental rates and operating
expenses of our properties. Any increase in availability of funds for investment
in real estate may accelerate  competition.  Further development of self-storage
facilities may intensify competition among operators of self-storage  facilities
in the market areas in which we operate.

         We may incur  significant  environmental  costs and liabilities.  As an
owner and operator of real properties,  under various  federal,  state and local
environmental  laws,  we are  required  to clean up spills or other  releases of
hazardous or toxic substances on or from our properties.  Certain  environmental
laws impose liability  whether or not the owner knew of, or was responsible for,
the presence of the hazardous or toxic substances.  In some cases, liability may
not be limited to the value of the property.  The presence of these  substances,
or the failure to properly remediate any resulting  contamination,  whether from
environmental  or microbial  issues,  also may  adversely  affect the owner's or
operator's ability to sell, lease or operate its property or to borrow using its
property as collateral.

         We  have  conducted  preliminary   environmental   assessments  on  the
Partnership's  properties  to  evaluate  the  environmental  condition  of,  and
potential  environmental  liabilities  associated  with, our  properties.  These
assessments generally consist of an investigation of environmental conditions at
the property (not including soil or groundwater  sampling or analysis),  as well
as a review of available  information  regarding the site and publicly available
data  regarding  conditions at other sites in the vicinity.  In connection  with
these  property  assessments,  we have  become  aware that prior  operations  or
activities at some facilities or from nearby locations have or may have resulted
in contamination to the soil or groundwater at these facilities. In this regard,
some of our facilities are or may be the subject of federal or state environment
investigations  or remedial  actions.  Although we cannot provide any assurance,
based on the  preliminary  environmental  assessments,  we believe we have funds
available to cover any liability from  environmental  contamination or potential
contamination  and we are not aware of any  environmental  contamination  of our
facilities  material to our overall business,  financial condition or results of
operation.

         There has been an increasing  number of claims and  litigation  against
owners and  managers of rental  properties  relating  to moisture  infiltration,
which can result in mold or other property  damage.  When we receive a complaint
concerning  moisture  infiltration,  condensation or mold problems and/or become
aware that an air quality concern exists,  we implement  corrective  measures in
accordance  with  guidelines and protocols we have developed with the assistance
of outside  experts.  We seek to work  proactively  with our  tenants to resolve
moisture  infiltration  and  mold-related  issues,  subject  to our  contractual
limitations on liability for such claims.  However,  we can provide no assurance
that material legal claims  relating to moisture  infiltration  and the presence
of, or exposure to, mold will not arise in the future.

         Property   taxes  can  increase  and  cause  a  decline  in  yields  on
investments.  Each of our  properties is subject to real property  taxes.  These
real property  taxes may increase in the future as property tax rates change and
as our properties are assessed or reassessed by tax authorities.  Such increases
could adversely impact our profitability.

         We must comply with the Americans  with  Disabilities  Act and fire and
safety  regulations,   which  can  require  significant  expenditures.  All  our
properties must comply with the Americans with Disabilities Act and with related
regulations  (the  "ADA").  The ADA has  separate  compliance  requirements  for
"public accommodations" and "commercial facilities," but generally requires that
buildings be made  accessible to persons with  disabilities.  Various state laws
impose similar  requirements.  A failure to comply with the ADA or similar state
laws could result in government  imposed fines on us and the award of damages to
individuals affected by the failure. In addition, we must operate our properties
in compliance with numerous local fire and safety  regulations,  building codes,
and other land use regulations.  Compliance with these  requirements can require
us to spend  substantial  amounts of money,  which would  reduce cash  otherwise
available  for  distribution  to  shareholders.  Failure  to comply  with  these
requirements could also affect the marketability of our real estate facilities.

         We incur liability from tenant and employment-related claims. From time
to time we must resolve tenant claims and employment-related claims by corporate
level and field personnel.

                                       8

<PAGE>

         PUBLIC   STORAGE'S   ACQUISITION   OF  SHURGARD   OR  OTHER   POTENTIAL
ACQUISITIONS  OR  DEVELOPMENT  OF  PROPERTIES  MAY  SUBJECT THE  PARTNERSHIP  TO
ADDITIONAL RISKS.

         In August 2006,  Public Storage  completed the  acquisition of Shurgard
Storage Centers, Inc.  ("Shurgard"),  a publicly held REIT that had interests in
approximately 646 self-storage  facilities located in the United States ("U.S.")
and Europe and acquires and develops other real estate facilities as part of its
ongoing  operations.  Such  acquisitions,  including the Shurgard merger, do not
change  the  financial  interests  of  the  Partnership.  However,  because  the
self-storage  facilities of the  Partnership  and Public  Storage are managed by
Public  Storage,  together  with the  newly  acquired  self-storage  facilities,
individual  Partnership  properties  may  experience  a  decrease  in  move-ins,
reductions  to  rental  rates,  increases  to  promotional  discounts,  or other
negative  impacts  to  revenues  in  the  short  and/or  long  term  due  to the
competitive   impact  of  Public  Storage   management  of  the  newly  acquired
facilities,  particularly with respect to those facilities that are close to the
Partnership's facilities.

         TERRORIST  ATTACKS AND THE POSSIBILITY OF WIDER ARMED CONFLICT MAY HAVE
AN ADVERSE  IMPACT ON OUR BUSINESS AND OPERATING  RESULTS AND COULD DECREASE THE
VALUE OF OUR ASSETS.

         Terrorist attacks and other acts of violence or war, such as those that
took place on September 11, 2001,  could have a material  adverse  impact on our
business and operating results. There can be no assurance that there will not be
further  terrorist  attacks  against the U.S. or its  businesses  or  interests.
Attacks or armed  conflicts  that directly  impact one or more of our properties
could  significantly  affect our ability to operate those properties and thereby
impair our operating  results.  Further,  we may not have insurance coverage for
losses caused by a terrorist attack. Such insurance may not be available,  or if
it is available and we decide to obtain such  terrorist  coverage,  the cost for
the  insurance  may be  significant  in  relationship  to the risk  overall.  In
addition,  the  adverse  effects  that such  violent  acts and threats of future
attacks could have on the U.S.  economy could similarly have a material  adverse
effect on our business and results of  operations.  Finally,  further  terrorist
acts could  cause the U.S.  to enter into a wider  armed  conflict,  which could
further impact our business and operating results.

         DEVELOPMENTS  IN CALIFORNIA  MAY HAVE AN ADVERSE IMPACT ON OUR BUSINESS
AND OPERATING RESULTS AND COULD DECREASE THE VALUE OF OUR ASSETS.

         Twelve of the  Partnership's  properties  are  located  in  California.
California is facing budgetary problems. Action that may be taken in response to
these problems,  such as an increase in property taxes on commercial properties,
could adversely impact our business and results of operations.  In addition, the
Partnership  could be  adversely  impacted  by efforts  to  reenact  legislation
mandating medical  insurance for employees of California  businesses and members
of their families.

         INCREASES  IN  INTEREST  RATES MAY  ADVERSELY  AFFECT  THE PRICE OF OUR
PARTNERSHIP UNITS.

         One of the factors that  influences the market price of our partnership
units is the annual  rate of  distributions  that we pay on the  securities,  as
compared with interest  rates. An increase in interest rates may lead purchasers
of partnership  units to demand higher annual  distribution  rates,  which could
adversely affect the market price of our partnership units.

         WE HAVE BECOME INCREASINGLY DEPENDENT UPON AUTOMATED PROCESSES AND THE
INTERNET AND ARE FACED WITH SECURITY SYSTEM RISKS.

         We have become  increasingly  centralized  and dependent upon automated
information technology processes.  As a result, we could be severely impacted by
a catastrophic occurrence,  such as a natural disaster or a terrorist attack. In
addition,  a portion of our business operations are conducted over the Internet,
increasing the risk of viruses that could cause system  failures and disruptions
of operations.  Experienced  computer  programmers  may be able to penetrate our
network security and misappropriate our confidential information,  create system
disruptions or cause shutdowns.

         OUR OWNERSHIP INTEREST IN STOR-RE MAY LOSE VALUE OR BECOME A LIABILITY.

         The  Partnership  has a  1.7%  ownership  interest  in  STOR-Re  Mutual
Insurance  Corporation  ("STOR-Re"),  which was formed in 1994 as an association
captive  insurance  company,  and is controlled by PS. STOR-Re  provided limited
property and liability insurance coverage to the Partnership, PS, and affiliates
of PS for losses  occurring  prior to April 1, 2004.  Liabilities for losses and
loss  adjustment  expenses  include an amount  determined  from loss reports and
individual cases and an amount, based on recommendations from an outside actuary
that is a member of the American  Academy of  Actuaries,  using a frequency  and

                                       9
<PAGE>

severity method, for losses incurred but not reported. Determining the liability
for unpaid losses and loss adjustment  expense is based upon estimates and while
we believe that the amount is adequate, the ultimate loss may be in excess of or
less than the amounts provided,  which may result in a reduction in the value of
the  Partnership's  investment or could result in future  payments to STOR-Re if
its reserves were  determined to be  inadequate.  Financial data with respect to
STOR-Re is included in Note 5 to the  Partnership's  December 31, 2006 financial
statements.

ITEM 1B. Unresolved Staff Comments
         -------------------------

         Not applicable.

ITEM 2.  Properties
         ----------

         The  following  table sets forth  information  as of December  31, 2007
about properties owned by the Partnership:
<TABLE>
<CAPTION>

                                                                                                             Completion
         Location             Size of Parcel    Net Rentable Area   Number of Spaces    Date of Purchase        Date
-----------------------       --------------    -----------------   ----------------    ----------------  ----------------
<S>                             <C>              <C>                      <C>           <C>                  <C>
o        California
Azusa                           5.85 acres       102,000 sq. ft.          980           July 14, 1978        Nov. 1978
Concord                         2.87 acres        52,000 sq. ft.          522           June 20, 1978        Jan. 1979
Oakland                         1.97 acres        41,000 sq. ft.          368           Oct. 11, 1978        Apr. 1979
Pasadena                        1.82 acres        37,000 sq. ft.          340           July 19, 1978        Nov. 1978
Redlands                        3.44 acres        63,000 sq. ft.          580           Aug. 24, 1978        Feb. 1979
Richmond                        1.82 acres        35,000 sq. ft.          350           Aug. 23, 1978        Mar. 1979
Riverside                       2.47 acres        45,000 sq. ft.          389           Jan. 2, 1979         May 1979
Sacramento
   Howe Avenue                  2.36 acres        41,000 sq. ft.          376           Dec. 14, 1978        Aug. 1979
Sacramento
   West Capitol                 3.38 acres        44,000 sq. ft.          457           Jan. 5, 1979         June 1979
San Carlos                      2.80 acres        51,000 sq. ft.          458           Jan. 30, 1979        Oct. 1979
Santa Clara                     4.45 acres        75,000 sq. ft.          691           Dec. 22, 1978      June 1979 and
                                                                                                             July 1981
Tustin                          4.40 acres        67,000 sq. ft.          560           July 3, 1978         Dec. 1978

o        Florida
Miami Airport
   Expressway                   1.70 acres        29,000 sq. ft.          269           Aug. 24, 1978        Jan. 1979
Miami
   Cutler Ridge                 2.30 acres        46,000 sq. ft.          483           Sept. 6, 1978        Apr. 1979
Pembroke Park                   2.35 acres        49,000 sq. ft.          446           Sept. 1, 1978        July 1979
Ft. Lauderdale
   I95 & 23rd Ave.              2.77 acres        45,000 sq. ft.          503           Nov. 9, 1978        Sept. 1979
Ft. Lauderdale
   I95 & Sunrise                3.32 acres        56,000 sq. ft.          558           Dec. 4, 1979        Sept. 1979

</TABLE>

         The weighted average  occupancy level for the  self-storage  facilities
was 89% and 91% for 2007 and 2006, respectively.

         The  Partnership  does not have any  agreements to buy or sell any real
estate.  The  Partnership  does not anticipate any new  investments,  other than
maintenance capital expenditures,  and does not anticipate  liquidating the real
estate investments it now holds.

         As of December 31, 2007,  none of the  properties  were  encumbered  by
mortgage debt.

                                       10

<PAGE>

ITEM 3.  Legal Proceedings
         -----------------

         Serrao v. Public  Storage,  Inc.  (filed April 2003) (Superior Court of
         -----------------------------------------------------------------------
         California - Orange County)
         ---------------------------

         The  plaintiff  in this  case  filed a suit  against  PS on behalf of a
putative  class of renters  who  rented  self-storage  units from PS.  Plaintiff
alleges that PS misrepresented the size of its storage units, has brought claims
under  California  statutory  and common law  relating to  consumer  protection,
fraud,  unfair  competition,  and  negligent  misrepresentation,  and is seeking
monetary  damages,  restitution,  and  declaratory  and  injunctive  relief.  On
November  26,  2007,  the Court  entered an order  dismissing  the matter in its
entirety without any liability to PS.

         Brinkley v. Public Storage,  Inc. (filed April 2005) (Superior Court of
         -----------------------------------------------------------------------
         California - Los Angeles County)
         --------------------------------

         The  plaintiff  sued PS on behalf of a  purported  class of  California
non-exempt  employees based on various California wage and hour laws and seeking
monetary  damages  and  injunctive  relief.  In May  2006,  a motion  for  class
certification  was filed seeking to certify five  subclasses.  Plaintiff  sought
certification  for alleged  meal  period  violations,  rest  period  violations,
failure to pay for travel time,  failure to pay for mileage  reimbursement,  and
for wage  statement  violations.  In October 2006, the Court declined to certify
three out of the five subclasses.  The Court did,  however,  certify  subclasses
based on alleged meal period and wage  statement  violations.  Subsequently,  PS
filed a motion  for  summary  judgment  seeking  to  dismiss  the  matter in its
entirety.  On June 22, 2007, the Court granted PS' summary judgment motion as to
the causes of action  relating to the subclasses  certified and dismissed  those
claims.  The only  surviving  claims are those  relating to the named  plaintiff
only.  The  plaintiff  has filed an appeal to the Court's  June 22, 2007 summary
judgment  ruling.  An appeal to the  Court's  June 22, 2007 order  granting  PS'
summary judgment motion is currently pending.

         Other Items
         -----------

         PS and the Partnership are a party to various claims,  complaints,  and
other legal  actions that have arisen in the normal course of business from time
to time,  that are not described  above. We believe that it is unlikely that the
outcome of these other pending legal proceedings including employment and tenant
claims,  in the  aggregate,  will  have  a  material  adverse  effect  upon  the
operations or financial position of the Partnership.

ITEM 4.  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------

         No matters  were  submitted  to a vote of security  holders  during the
fourth quarter of the fiscal year ended December 31, 2007.


                                       11

<PAGE>

                                     PART II

ITEM 5.  Market for the  Registrant's  Common  Equity,  Related  Stockholder
         -------------------------------------------------------------------
         Matters and Issuer Purchases of Equity Securities
         -------------------------------------------------

         The Partnership has no common stock.

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

         Exclusive of the General Partners'  interest in the Partnership,  as of
December 31, 2007, there were approximately 961 unitholders of record.

         Distributions to the general and limited partners of all cash available
for   distribution   (as  defined)  are  made  quarterly.   Cash  available  for
distribution  is  generally  net cash  provided by  operating  activities,  less
deductions to pay,  establish or revise  reserves for all other expenses  (other
than incentive  distributions to the general partner) and capital  improvements,
plus net proceeds from any sale or financing of the Partnership's properties.

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

ITEM 6.  Selected Financial Data
         -----------------------
<TABLE>
<CAPTION>

For the Year Ended December 31,              2007              2006             2005              2004              2003
------------------------------------    ---------------   ---------------   ---------------  ---------------   ---------------
<S>                                     <C>               <C>               <C>              <C>               <C>
Revenues                                $   12,885,000    $   12,819,000    $   12,271,000   $   12,210,000    $   11,672,000
Depreciation and amortization                  421,000           383,000           356,000          565,000           942,000
Casualty gain                                        -            31,000            38,000                -                 -
Gain on disposition of marketable
     securities (1)                                  -           134,000        15,633,000                -                 -
Net income                                   8,809,000         8,862,000        24,190,000        8,233,000         7,537,000
Limited partners' share                      6,054,000         6,613,000        16,458,000        6,284,000         5,648,000
General partners' share                      2,755,000         2,249,000         7,732,000        1,949,000         1,889,000
Limited partners' per unit data (2)
     Net income                               $151.35           $165.33           $411.45          $157.10           $141.20
     Cash distributions                       $200.00           $162.00           $158.68          $140.00           $136.00

As of December 31,
------------------------------------
Cash and cash equivalents               $      787,000    $    2,525,000    $    2,571,000   $    2,595,000    $    1,587,000
Total assets                            $    7,752,000    $    9,725,000    $    9,721,000   $   31,000,000    $   25,526,000

</TABLE>


(1)    Increases  reflected  in the  amounts  presented  for 2005 as compared to
       other periods,  are due to the  distribution of marketable  securities in
       affiliate.  See  Note 2 to the  Partnership's  financial  statements  for
       additional information.

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

                                       12

<PAGE>

ITEM 7.  Management's  Discussion  and Analysis of Financial  Condition  and
         -------------------------------------------------------------------
         Results of Operations
         ---------------------

         The following  discussion  and analysis  should be read in  conjunction
with the Partnership's financial statements and notes thereto.

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

         This Annual  Report on Form 10-K  contains  forward-looking  statements
within the  meaning of the  federal  securities  laws.  All  statements  in this
document,   other  than  statements  of  historical  fact,  are  forward-looking
statements  which  may  be  identified  by  the  use  of  the  words  "expects,"
"believes,"  "anticipates,"  "plans," "would,"  "should," "may," "estimates" and
similar expressions.  These forward-looking statements involve known and unknown
risks and  uncertainties,  which may cause Public Storage  Properties IV, Ltd.'s
(the  "Partnership")  actual results and performance to be materially  different
from those expressed or implied in the forward-looking  statements. As a result,
you should not rely on any  forward-looking  statements in this report, or which
management  may make orally or in writing from time to time, as  predictions  of
future events nor guarantees of future performance.  We caution you not to place
undue reliance on  forward-looking  statements,  which speak only as the date of
this  report  or as of  the  dates  indicated  in  the  statements.  All  of our
forward-looking  statements,  including  those in this report,  are qualified in
their entirely by this statement. We expressly disclaim any obligation to update
publicly or otherwise revise any forward-looking statements, whether as a result
of new  information,  new estimates,  or other factors,  events or circumstances
after  the  date of this  document,  except  where  expressly  required  by law.
Accordingly,   you  should  use  caution  in  relying  on  past  forward-looking
statements to anticipate future results.

         Factors and risks that may impact our future  results  and  performance
include,  but are not limited to, those described in Item 1A, "Risk Factors" and
in our other filings with the Securities and Exchange Commission. ("SEC"). These
risks include, among others, the following:

         o  general  risks  associated  with the ownership and operation of real
            estate  including  changes  in  demand,   potential   liability  for
            environmental contamination, adverse changes in tax, real estate and
            zoning laws and regulations, and the impact of natural disasters;

         o  risks  associated  with  downturns  in the  local  economies  in the
            markets in which we operate;

         o  the impact of  competition  from new and existing  self-storage  and
            commercial facilities and other storage alternatives;

         o  the impact of the regulatory environment as well as national, state,
            and local laws and regulations;

         o  disruptions or shutdowns of our automated processes and systems; and

         o  economic uncertainty due to the impact of war or terrorism.

         The risks  included  here are not  exhaustive as it is not possible for
management  to predict all  possible  risk factors that may exist or emerge from
time to time.  Investors should refer to our quarterly  reports on Form 10-Q for
future periods and current reports on Form 8-K and other  information filed from
time to time with the SEC Commission for additional information.

Overview
--------

         The  self-storage   industry  is  highly  fragmented  and  is  composed
predominantly  of numerous  local and  regional  operators.  Competition  in the
markets in which we  operate  is  significant  and has  increased  over the past
several years due to  additional  development  of  self-storage  facilities.  We
believe  that the  increase  in  competition  has had a  negative  impact to the
Partnership's  occupancy  levels and rental rates in many markets.  However,  we
believe that the  Partnership's  affiliation with Public Storage ("PS") provides
several  distinguishing  characteristics  that enable the Partnership to compete
effectively with other owners and operators.

         PS is the largest owner and operator of self-storage  facilities in the
United States ("U.S.").  All of the PS facilities in the U.S. are operated under
the "Public  Storage"  brand name,  which we believe is the most  recognized and
established name in the self-storage industry.  Market concentration establishes
PS as one of the  dominant  providers of  self-storage  space in most markets in

                                       13
<PAGE>

which PS  operates  and enables PS to use a variety of  promotional  activities,
such as television  advertising as well as targeted  discounting  and referrals,
which are generally not  economically  viable to most competitors of PS, as well
as more substantial, well-placed yellow page advertisements than can many of its
competitors.

         We will  continue  to focus our  growth  strategies  on  improving  the
operating performance of our existing self-storage  properties primarily through
increases in revenues  achieved  through the  telephone  reservation  center and
associated  marketing  efforts.  We expect future  increases in rental income to
come  primarily  from  increases  in  realized  rent rather  than  increases  in
occupancy, although there can be no assurance.

Critical Accounting Policies
----------------------------

         IMPAIRMENT OF REAL ESTATE

         Substantially  all of our assets consist of real estate. On a quarterly
basis, we evaluate our real estate for impairment. The evaluation of real estate
for impairment  requires  determining  whether  indicators of impairment  exist,
which is a subjective process.  When any indicators of impairment are found, the
evaluation then entails  projections of future operating cash flows,  which also
involves significant judgment. We identified no such impairments at December 31,
2007.  However,  future events, or facts and circumstances that currently exist,
that we have not yet  identified,  could cause us to conclude in the future that
our real estate is impaired. Any resulting impairment loss could have a material
adverse impact on our financial condition and results of operations.

         Estimated Useful Lives of Long-Lived Assets

         Substantially  all of our  assets  consist of  depreciable,  long-lived
assets. We record  depreciation  expense with respect to these assets based upon
their estimated  useful lives. Any change in the estimated useful lives of those
assets,  caused by functional or economic  obsolescence or other factors,  could
have a  material  adverse  impact  on our  financial  condition  or  results  of
operations.

         ACCRUALS FOR CONTINGENCIES

         We are exposed to business  and legal  liability  risks with respect to
events  that have  occurred,  but in  accordance  with U.S.  generally  accepted
accounting  principles,  we have  not  accrued  for such  potential  liabilities
because the loss is either not  probable or not  estimable or because we are not
aware of the event.  Future  events and the result of pending  litigation  could
result in such potential  losses  becoming  probable and estimable,  which could
have a  material,  adverse  impact on our  financial  condition  or  results  of
operations. Some of these potential losses, which we are aware of, are described
in Notes 5 and 8 to the Partnership's financial statements.

         ACCRUALS FOR OPERATING EXPENSES

         We accrue for property tax expense and other  operating  expenses based
upon estimates and historical trends and current and anticipated local and state
government  rules  and  regulations.  If these  estimates  and  assumptions  are
incorrect,  our expenses  could be misstated.  Cost of  operations,  general and
administrative   expense,  as  well  as  television,   yellow  page,  and  other
advertising expenditures are expensed as incurred.

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

         YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006:

         The  Partnership's  net  income  was  $8,809,000  in 2007  compared  to
$8,862,000 in 2006,  representing  a decrease of $53,000.  Net income  decreased
primarily due to a gain on disposition of marketable  securities of an affiliate
in 2006 totaling $134,000 (described below).

         Property net operating  income  (rental income less cost of operations,
management fees paid to an affiliate and depreciation expense) was $7,300,000 in
2007 compared to $7,335,000 in 2006,  representing  a decrease of $35,000.  This
decrease is attributable to a slight decrease in rental revenues and an increase
in depreciation expense.

         Rental income was  $11,271,000 in 2007 compared to $11,294,000 in 2006,
representing   a  decrease  of  $23,000.   The  decrease  in  rental  income  is
attributable primarily to a decrease in the weighted average occupancy levels at

                                       14
<PAGE>

the  self-storage  facilities from 91% in 2006 to 89% in 2007. This decrease was
mostly offset by an increase in the annualized realized rent per occupied square
foot to $15.56 in 2007  compared to $15.37 in 2006.  These  amounts  exclude the
property  operated  pursuant to the  management and  performance  agreement with
Public Storage Pickup and Delivery, LP ("PSPUD"), a subsidiary of PS. See Note 5
to the Partnership's financial statements for additional information.

         Dividend  income was $10,000 in 2006.  During 2006,  we sold all of our
remaining  Public  Storage  common shares on the open market.  Accordingly,  the
Partnership had no dividend income in 2007.

         Other  income  was  $340,000  in 2007  compared  to  $277,000  in 2006,
representing  an increase of $63,000 or 22.7%.  This increase is attributable to
increased access fee revenues.

         Revenues  from  Affiliate  under the  Performance  Agreement  increased
$49,000 or 4.0% to $1,274,000 in 2007 from $1,225,000 in 2006. See Note 5 to our
December 31, 2007 financial  statements for further  discussion of the nature of
these reserves.

         Cost of  operations  (including  management  fees paid to an affiliate)
decreased  $26,000 to $3,550,000 in 2007 from  $3,576,000 in 2006. This decrease
is attributable  primarily to reductions in repairs and maintenance  expense and
recruiting  costs,  mostly  offset by increases  in  advertising  and  promotion
expense and property tax expense.

         Depreciation expense was $421,000 in 2007 compared to $383,000 in 2006,
an increase of $38,000 or 9.9%. Administrative expense was $105,000 and $163,000
in 2007 and 2006, respectively, representing a decrease of $58,000 or 35.6%. The
decrease from 2006 to 2007 is primarily  attributable  to certain costs incurred
during  2006 and not in  2007,  including  $25,000  in  additional  expenditures
related to hurricanes  which occurred in 2005 and $14,000 for the termination of
a contract..

         YEAR ENDED DECEMBER 31, 2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005:

         The  Partnership's  net  income  was  $8,862,000  in 2006  compared  to
$24,190,000  in  2005,  representing  a  decrease  of  $15,328,000.  Net  income
decreased primarily due to a gain on disposition of marketable  securities of an
affiliate in 2005 totaling $15,633,000 and due to related dividends not received
in 2006 (described below).

         Property net operating  income  (rental income less cost of operations,
management fees paid to an affiliate and depreciation expense) was $7,335,000 in
2006  compared to $7,092,000  in 2005,  representing  an increase of $243,000 or
3.4%. This increase is attributable to an increase in rental revenues, partially
offset by an increase to cost of operations,  at the Partnership's  self-storage
facilities.

         Rental income was  $11,294,000 in 2006 compared to $10,726,000 in 2005,
representing  an  increase of $568,000  or 5.3%.  The  increase is  attributable
primarily to an increase in realized rent per occupied  square foot occupancy at
the Partnership's self-storage facilities. The weighted average occupancy levels
at the  self-storage  facilities  were 91% in 2006 and 2005. The annual realized
rent per  occupied  square  foot was $15.37 in 2006  compared to $14.47 in 2005.
These  amounts  exclude the property  operated  pursuant to the  management  and
performance  agreement  with PSPUD.  See Note 5 to the  Partnership's  financial
statements for additional information.

         On March 31,  2005,  we  distributed  substantially  all of our  Public
Storage common shares on a pro-rata basis to unitholders of record as of January
1, 2005. Accordingly,  during the first quarter of 2005, we recognized a gain on
disposition totaling $15,633,000,  which represents the excess of the fair value
(based upon a value of $56.94 per share for the Public  Storage common shares on
March 31, 2005) over the historical cost. The Partnership's dividend income with
respect to those securities that were distributed to unitholders ceased on April
1, 2005.  Dividend  income from marketable  securities of affiliate  declined to
$23,000 in 2006 from  $203,000 in 2005.  During the fourth  quarter of 2006,  we
sold all of our remaining  Public  Storage  common shares on the open market and
recorded  a  gain  of  $134,000.  See  Note  2 to  the  Partnership's  financial
statements for additional information.

         Revenues  from  Affiliate  under the  Performance  Agreement  increased
$108,000 or 9.7% to  $1,225,000 in 2006 from  $1,117,000 in 2005.  These amounts
include the net income before depreciation of the facility that has self-storage
and containerized storage operations.

                                       15
<PAGE>

         Cost of  operations  (including  management  fees paid to an affiliate)
increased  $298,000 or 9.1% to $3,576,000 in 2006 from  $3,278,000 in 2005. This
increase is  attributable  primarily to increases in advertising and promotions,
repairs and maintenance, property taxes, utilities and management fees expenses.

         Depreciation expense was $383,000 in 2006 compared to $356,000 in 2005,
an increase of $27,000 or 7.6%. Administrative expense was $163,000 and $118,000
in 2006 and 2005,  respectively,  representing an increase of $45,000, or 38.1%.
This increase is primarily  attributable to a cost of $14,000 for termination of
a  contract  as  well as  $25,000  in  additional  expenditures  related  to the
hurricanes in 2005.

         During 2005, a casualty gain  pertaining to the Hurricanes  Katrina and
Wilma,  in the amount of $38,000 was recorded.  In 2006, an additional  casualty
gain of $31,000 was recorded  pertaining to these hurricanes.  See Note 2 to the
Partnership's financials statements for additional information on our accounting
for casualty losses.

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

         Cash  generated  from  operations  of  $9,347,000  for the  year  ended
December 31, 2007 has been  sufficient  to meet all current  obligations  of the
Partnership. Capital improvements totaled $311,000 in 2007, compared to $722,000
in 2006 and $322,000 in 2005. Capital  improvements are budgeted at $429,000 for
2008.

         The Partnership does not anticipate issuing senior  securities,  making
loans to other  persons,  investing in the  securities  of other issuers for the
purpose of exercising  control,  underwriting  the  securities of other issuers,
engaging  in the  purchase  and  sale of  investments,  offering  securities  in
exchange for property,  or repurchasing or otherwise reacquiring its outstanding
securities.  The  Partnership  may consider  borrowing  money with the intent of
using the proceeds for distribution.

         DISTRIBUTIONS

         The Partnership Agreement requires that cash available for distribution
(cash flow from all sources less cash  necessary for any  obligations or capital
improvement  needs) be distributed at least quarterly.  We paid distributions to
the limited and general  partners  totaling  $8,000,000  ($200.00  per unit) and
$2,247,000,  respectively, for the year ended December 31, 2007. During 2007, we
have  paid  more  in  distributions  than  what  was  generated  from  operating
activities  less  capital  expenditures.  This was done to  reduce  excess  cash
reserves.  Future  distribution  rates  will be  adjusted  to  levels  which are
supported  by  operating  cash flow  after  capital  improvements  and any other
necessary  obligations.  As a result, we expect distributions in 2008 to be less
than the amounts paid during 2007.

ITEM 7A. Quantitative and Qualitative Disclosures about Market Risk
         ----------------------------------------------------------

         As of December 31, 2007, the Partnership had no outstanding debt.

ITEM 8.  Financial Statements and Supplementary Data
         -------------------------------------------

         The Partnership's  financial  statements are included elsewhere herein.
Reference is made to the Index to Financial  Statements and Financial  Statement
Schedule in Item 15(a).

                                       16

<PAGE>

ITEM 9.  Changes in and  Disagreements  with  Accountants  on Accounting  and
         --------------------------------------------------------------------
         Financial Disclosure
         --------------------

         Not applicable.

ITEM 9A. Controls and Procedures
         -----------------------

CONCLUSION REGARDING THE EFFECTIVENESS OF DISCLOSURE CONTROLS AND PROCEDURES

         Public Storage  maintains  disclosure  controls and procedures that are
designed to ensure that  information  required  to be  disclosed  in reports the
Partnership  files and submits  under the  Securities  Exchange Act of 1934,  as
amended, ("Exchange Act") is recorded, processed, summarized and reported within
the time  periods  specified in  accordance  with SEC  guidelines  and that such
information is communicated to the  Partnership's  management,  including Public
Storage's Chief Executive Officer and Chief Financial  Officer,  to allow timely
decisions  regarding required  disclosure based on the definition of "disclosure
controls and  procedures" in Rules  13a-15(e) and 15d-15(e) of the Exchange Act.
In designing and evaluating the disclosure  controls and procedures,  management
recognized  that any controls and  procedures,  no matter how well  designed and
operated, can provide only reasonable assurance of achieving the desired control
objectives  and  management  necessarily  was  required to apply its judgment in
evaluating the cost-benefit  relationship of possible controls and procedures in
reaching that level of reasonable assurance.

         As of December  31, 2007,  Public  Storage  carried out an  evaluation,
under  the  supervision  and  with  the   participation  of  the   Partnership's
management,  including  Public  Storage's  Chief  Executive  Officer  and  Chief
Financial  Officer,  of the  effectiveness  of the design and  operation  of the
Partnership's  disclosure  controls and  procedures  (as such term is defined in
Rules  13a-15(e) and 15d-15(e) of the Exchange  Act.  Based on that  evaluation,
Public Storage's Chief Executive  Officer and Chief Financial  Officer concluded
that the Partnership's  disclosure  controls and procedures were effective as of
December 31, 2007.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

         Our management is responsible for establishing and maintaining adequate
internal  control  over  financial  reporting,  as such term is defined in Rules
13a-15(f) and 15d-15(f) of the Exchange Act. Under the  supervision and with the
participation  of our  management,  including  Public  Storage's Chief Executive
Officer  and  Chief  Financial  Officer,  we  conducted  an  evaluation  of  the
effectiveness  of our internal  control over  financial  reporting  based on the
framework in Internal  Control-Integrated  Framework  issued by the Committee on
Sponsoring  Organizations  of the Treadway  Commission.  Based on our evaluation
under the framework in Internal  Control-Integrated  Framework,  our  management
concluded that our internal control over financial reporting was effective as of
December 31, 2007.

         This  annual   report   does  not  include  an  audit   report  of  the
Partnership's  registered public accounting firm regarding internal control over
financial  reporting.  Management's  report  was not  subject  to  audit  by the
Partnership's  registered  public accounting firm pursuant to temporary rules of
the SEC that permit the Partnership to provide only management's  report in this
annual report.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

         There have not been any changes in our internal  control over financial
reporting (as such term is defined in Rules  13a-15(f)  and 15d-15(f)  under the
Exchange  Act)  during  the  quarter  to which  this  report  relates  that have
materially affected, or are reasonable likely to materially affect, our internal
control over financial reporting.


ITEM 9B. Other Information
         -----------------

         Not applicable.

                                       17

<PAGE>

                                    PART III

ITEM 10. Directors, Executive Officers and Corporate Governance
         ------------------------------------------------------

         The Partnership has no directors or executive officers.

         The  Partnership's  General  Partners are PS and B. Wayne  Hughes.  PS,
acting  through its trustees and executive  officers,  and Mr. Hughes manage and
make investment decisions for the Partnership.  The self-storage  facilities are
managed by PS pursuant to a Management Agreement.

         Pursuant to the  Partnership's  Amended  Certificate  and  Agreement of
Limited Partnership (the "Partnership  Agreement"),  a copy of which is included
in the  Partnership's  prospectus  included  in the  Partnership's  Registration
Statement,  each of the  General  Partners  continues  to serve until (i) death,
insanity,  insolvency,  bankruptcy  or  dissolution,  (ii)  withdrawal  with the
consent  of the  other  general  partner  and a  majority  vote  of the  limited
partners, or (iii) removal by a majority vote of the limited partners.

         The names of all  trustees  and  executive  officers of PS, the offices
held by each of them with PS, and their ages and business  experience during the
past five years are as follows:
<TABLE>
<CAPTION>

      Name                                   Positions with PS
--------------------         ------------------------------------------------------------
<S>                          <C>
B. Wayne Hughes              Chairman of the Board
                             Chief Executive Officer, Vice Chairman of the Board and
Ronald L. Havner, Jr.          President
John Reyes                   Senior Vice President and Chief Financial Officer
John S. Baumann              Senior Vice President and Chief Legal Officer
John E. Graul                Senior Vice President and President, Self-storage Operations
Candace N. Krol              Senior Vice President of Human Resources
David F. Doll                Senior Vice President and President, Real Estate Group
Harvey Lenkin                Trustee
B. Wayne Hughes, Jr.         Trustee
Dann V. Angeloff             Trustee
William C. Baker             Trustee
John T. Evans                Trustee
Uri P. Harkham               Trustee
Gary E. Pruitt               Trustee
Daniel C. Staton             Trustee
</TABLE>

         The  following  is a  biographical  summary  of the  current  executive
officers of PS:

         Ronald  L.  Havner,  Jr.,  age 50,  has been the  Vice-Chairman,  Chief
Executive  Officer  and a director of Public  Storage  since  November  2002 and
President  since July 1, 2005.  Mr.  Havner has been  Chairman of the  Company's
affiliate,  PS  Business  Parks,  Inc.  (PSB),  since  March  1998 and was Chief
Executive  Officer of PSB from March 1998 until August 2003.  Mr.  Havner joined
Public  Storage in 1986.  He is also a member of the Board of Governors  and the
Executive  Committee  of the  National  Association  of Real  Estate  Investment
Trusts,  Inc.  (NAREIT) and a director of GF Acquisition  Corp. and Union BanCal
Corporation.

         John Reyes, age 47, a certified public  accountant,  joined the Company
in 1990 and was  Controller of the Company from 1992 until December 1996 when he
became Chief  Financial  Officer.  He became a Vice  President of the Company in
November 1995 and a Senior Vice President of the Company in December 1996.  From
1983 to 1990, Mr. Reyes was employed by Ernst & Young.

         John S. Baumann,  age 47, became Senior Vice  President and Chief Legal
Officer of the Company in June 2003.  From 1998 to 2002,  Mr. Baumann was Senior
Vice  President  and General  Counsel of Syncor  International  Corporation,  an
international  high technology health care services company.  From 1995 to 1998,
he was Associate General Counsel of KPMG LLP, an international  accounting,  tax
and consulting firm.

                                       18
<PAGE>

         John E. Graul,  age 56,  became Senior Vice  President  and  President,
Self-Storage  Operations,  in February 2004, with overall responsibility for the
Company's national  operations.  From 1982 until joining the Company,  Mr. Graul
was employed by  McDonald's  Corporation  where he served in various  management
positions,  most recently as Vice President and General Manager - Pacific Sierra
Region.

         David F. Doll, age 49, became Senior Vice President and President, Real
Estate Group,  in February 2005, with  responsibility  for Company's real estate
activities,  including property acquisitions,  developments, and repackagings as
well as facilities maintenance.  Before joining the Company, Mr. Doll was Senior
Executive  Vice  President of  Development  for Westfield  Corporation,  a major
international  owner and operator of shopping malls, where he was employed since
1995.

         Candace  N.  Krol,  age 46,  became  Senior  Vice  President  of  Human
Resources in September 2005.  From 1985 until joining the Company,  Ms. Krol was
employed by Parsons  Corporation,  a global  engineering and construction  firm,
where  she  served  in  various  management  positions,  most  recently  as Vice
President  of Human  Resources  for the  Infrastructure  and  Technology  global
business unit.

         The following is a biographical summary of the current outside Trustees
of PS:

         B. WAYNE HUGHES, age 74, has been a member of the Board of PS since its
organization  in 1980. Mr. Hughes was President and Co-Chief  Executive  Officer
from 1980  until  November  1991 when he became  Chairman  of the Board and sole
Chief  Executive  Officer.  Mr.  Hughes  retired as Chief  Executive  Officer in
November  2002 and remains  Chairman  of the Board.  Mr.  Hughes is  currently a
private  investor  and operates a horse farm in  Kentucky.  Mr.  Hughes has been
active in the real estate  investment  field for over 30 years. He is the father
of B. Wayne Hughes, Jr., a member of the PS' Board.

         DANN  V.  ANGELOFF,  age  72,  Chairman  of  the   Nominating/Corporate
Governance  Committee  and a member of the  Compensation  Committee,  has been a
trustee of the Board of PS since its organization in 1980. Mr. Angeloff has been
President of the Angeloff Company,  a corporate  financial  advisory firm, since
1976. Mr.  Angeloff is currently the general partner and owner of a 20% interest
in a limited partnership that in 1974 purchased a self-storage facility operated
by the  Company.  He is a director of  Bjurman,  Barry  Fund,  Inc.,  Electronic
Recyclers  International,  Nicholas/Applegate Fund, Retirement Capital Group and
SoftBrands, Inc.

         WILLIAM  C.  BAKER,  age  74,  a  member  of  the  Nominating/Corporate
Governance  Committee,  joined the PS' Board in  November  1991.  Mr.  Baker was
Chairman and Chief  Executive  Officer of Callaway Golf Company from August 2004
until August 2005.  From August 1998 through  April 2000,  he was  President and
Treasurer of Meditrust  Operating  Company, a real estate investment trust. From
April 1996 to December  1998,  Mr.  Baker was Chief  Executive  Officer of Santa
Anita Companies,  which then operated the Santa Anita Racetrack. From April 1993
through May 1995, he was President of Red Robin International, Inc., an operator
and  franchisor  of casual dining  restaurants  in the United States and Canada.
From  January  1992  through  December  1995,  Mr.  Baker was Chairman and Chief
Executive Officer of Carolina Restaurant Enterprises,  Inc., a franchisee of Red
Robin  International,  Inc.  From 1991 to 1999,  he was Chairman of the Board of
Coast Newport  Properties,  a real estate brokerage company.  From 1976 to 1988,
Mr. Baker was a principal  shareholder and Chairman and Chief Executive  Officer
of Del Taco,  Inc.,  an operator  and  franchisor  of fast food  restaurants  in
California.  He is a director of  California  Pizza  Kitchen  and Javo  Beverage
Company, a supplier of coffee, tea and other beverage mixes.

         JOHN T. EVANS,  age 69,  Chairman of the Audit  Committee and member of
the Nominating/Corporate  Governance Committee, became a trustee of the Board of
PS in August 2003. Mr. Evans has been a partner in the law firm of Osler, Hoskin
& Harcourt  LLP,  Toronto,  Canada from April 1993 to the present and in the law
firm of Blake,  Cassels & Graydon LLP, Toronto,  Canada from April 1966 to April
1993. Mr. Evans specializes in business law matters, securities, restructurings,
mergers and  acquisitions and advising on corporate  governance.  Mr. Evans is a
director of Cara Operations Inc., Kubota Metal Corporation, and Vice-Chairman of
Toronto East General  Hospital.  Until August 2003,  Mr. Evans was a director of
Canadian  Mini-Warehouse  Properties  Ltd., a Canadian  corporation  owned by B.
Wayne Hughes and members of his family.

         URI P. HARKHAM, age 59, a member of the Compensation Committee,  became
a trustee of the Board of PS in March 1993.  Mr.  Harkham has been the President
and  Chief  Executive  Officer  of  Harkham  Industries,  which  specializes  in
designing,  manufacturing  and marketing women's clothing under its four labels,
Harkham,  Hype,  Jonathan  Martin and Johnny Martin,  since its  organization in
1976.  Since 1978, Mr. Harkham has been the Chief  Executive  Officer of Harkham
Family  Enterprises,  a real estate firm  specializing  in buying and rebuilding
retail and mixed use real estate throughout Southern California.

                                       19
<PAGE>

         B. WAYNE  HUGHES,  JR., age 48,  became a trustee of the Board of PS in
January 1998. He was employed by PS from 1989 to 2002, serving as Vice President
- Acquisitions  of the Company from 1992 to 2002.  Mr. Hughes,  Jr. is currently
Vice  President  of  American  Commercial  Equities,  LLC  and  its  affiliates,
companies  engaged in the acquisition and operation of commercial  properties in
California. He is the son of B. Wayne Hughes.

         HARVEY LENKIN, age 71, became a trustee of the Board of PS in 1991. Mr.
Lenkin retired as President and Chief Operating Officer of PS in 2005, and was a
consultant  for PS until July 1, 2006.  Mr.  Lenkin  was  employed  by PS or its
predecessor for 27 years.  He has been a director of PS' affiliate,  PS Business
Parks,  Inc., since March 1998 and was President of PS Business Parks, Inc. from
1990 until March 1998. He is also a director of Paladin Realty Income Properties
I, Inc. and a director of Huntington Memorial Hospital, Pasadena, California and
a former member of the Executive Committee of the Board of Governors of NAREIT.

         GARY E.  PRUITT,  age 57, a member  of the Audit  Committee  and of the
Compensation  Committee,  became a trustee of the Board of PS in August  2006 in
connection with the merger of Shurgard  Storage  Centers,  Inc. with the PS. Mr.
Pruitt was  previously  a director of  Shurgard.  He is the  Chairman  and Chief
Executive  Officer of Univar  N.V.,  a chemical  distribution  company  based in
Bellevue,  Washington with distribution centers in the United States, Canada and
Europe. Mr. Pruitt joined Univar in 1978 and held a variety of senior management
positions until his appointment as Chairman and Chief Executive Officer in 2002.

         DANIEL C. STATON, age 55, Chairman of the Compensation  Committee and a
member of the Audit Committee, became a trustee of the Board of PS in March 1999
in  connection  with the merger of Storage  Trust Realty with the  Company.  Mr.
Staton was  Chairman  of the Board of  Trustees  of Storage  Trust  Realty  from
February  1998  until  March 1999 and a Trustee of  Storage  Trust  Realty  from
November 1994 until March 1999. He is Chairman of Staton Capital,  an investment
and venture capital company and the Co-Chief Executive Officer of PMGI (formerly
Media General, Inc.), a print and electronic media company and CEO of Enterprise
Acquisition  Corp.,  an AMEX  listed  company  (EST).  Mr.  Staton was the Chief
Operating Officer and Executive Vice President of Duke Realty Investments,  Inc.
from 1993 to 1997 and a director  of Duke  Realty  Investments,  Inc.  from 1993
until August 1999.

         Each trustee of PS serves until he resigns or is removed from office by
PS, and may resign or be removed from office at any time with or without  cause.
Each  officer  of PS  serves  until he  resigns  or is  removed  by the Board of
Trustees  of PS. Any such  officer  may resign or be removed  from office at any
time with or without cause.

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

         The members of the PS Audit  Committee of the Board are:  John T. Evans
(Chairman), Daniel C. Staton, and Gary E. Pruitt. The Board of PS has determined
that Audit Committee  members Daniel C. Staton and Gary E. Pruitt,  each qualify
as an audit  committee  financial  expert within the meaning of the rules of the
Securities  and  Exchange  Commission.  The Board has  further  determined  that
Messrs. Evans, Staton and Pruitt are each independent within the meaning of Item
7(d)(3)(iv) of Schedule 14A under the Exchange Act.

         The financial records of the Partnership are maintained and prepared by
employees  of PS. The Board of  Trustees  of PS has adopted a code of ethics for
its senior  financial  officers.  The Code of Ethics  applies  to those  persons
serving as PS' principal  executive  officer,  principal  financial  officer and
principal  accounting  officer.  A copy of the Code of  Ethics is  available  by
written  request from the  Secretary  of PS at 701 Western  Ave.,  Glendale,  CA
91201-2349.

ITEM 11. Executive Compensation
         ----------------------

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

                                       20

<PAGE>

ITEM 12. Security  Ownership of Certain Beneficial Owners and Management and
         -------------------------------------------------------------------
         Related Stockholder Matters
         ---------------------------

         (a) At March 25, 2008, the following beneficially owned more than 5% of
the Units:
<TABLE>
<CAPTION>

          Title                           Name and Address                   Beneficial          Percent
        of Class                        of Beneficial Owners                 Ownership           of Class
---------------------     -------------------------------------------    -----------------       --------
<S>                        <C>                                           <C>                      <C>
Units of Limited           Public Storage                                11,671 Units (1)         29.2%
Partnership Interest       701 Western Avenue
                           Glendale, California 91201

Units of Limited           B. Wayne Hughes, Tamara Hughes Gustavson,     13,497 Units (2)         33.7%
Partnership Interest       PS Orangeco Partnerships, Inc.
                           701 Western Avenue
                           Glendale, California 91201
</TABLE>


(1)    Includes  (i) 11,365 Units owned by PS as to which PS has sole voting and
       dispositive  power,  and (ii) 306 Units which PS has an option to acquire
       from Tamara Hughes Gustavson, an adult daughter of Hughes.

(2)    Includes  5,892 Units owned by BWH Marina  Corporation  II, a corporation
       wholly-owned  by  Hughes,   as  to  which  Hughes  has  sole  voting  and
       dispositive  power, (ii) 306 Units owned by Tamara Hughes Gustavson as to
       which Tamara Hughes  Gustavson has sole voting and dispositive  power; PS
       has an option to acquire these 306 units,  and (iii) 7,299 Units owned by
       PS Orangeco Partnerships, Inc., a corporation in which Hughes and members
       of his family own  approximately 48% of the voting stock, PS owns 46% and
       members of PS's management and related individuals own approximately 6%.

         (b) The Partnership has no officers and directors. The General Partners
contributed  $202,020 to the original capital of the Partnership and as a result
participate  in  the   distributions   to  the  limited   partners  and  in  the
Partnership's  profits  and  losses  in the same  proportion  that  the  General
Partners'  capital   contribution  bears  to  the  total  capital   contribution
(approximately $161,616 was contributed by PS and $40,404 was contributed by Mr.
Hughes).   In  1995,  Mr.  Hughes   contributed  his  ownership  and  rights  to
distributions  from the Partnership to BWH Marina  Corporation II, a corporation
wholly-owned  by Mr. Hughes.  As such, Mr. Hughes  continues to act as a general
partner but  receives no direct  compensation  or other  consideration  from the
Partnership.  Information  regarding  ownership  of Units by PS and Hughes,  the
General  Partners,  is set forth under section (a) above.  Dann V.  Angeloff,  a
director of PS,  beneficially owns nine Units (0.02% of the Units). The trustees
and  executive  officers  of PS  (including  Hughes),  as a group (17  persons),
beneficially own an aggregate of 13,210 Units,  representing  33.0% of the Units
(including  the 5,892  Units  owned by Hughes  and the 7,299  Units  owned by PS
Orangeco Partnerships, Inc.).

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

ITEM 13. Certain Relationships, Related Transactions and Trustee Independence
         --------------------------------------------------------------------

         The Partnership  Agreement  provides that the General  Partners will be
entitled  to  cash  incentive  distributions  in an  amount  equal  to (i) 8% of
distributions  of cash  flow from  operations  until  the  distributions  to all
partners from all sources equal their capital contributions;  thereafter, 25% of
distributions of cash flow from operations,  and (ii) 25% of distributions  from
net proceeds from sale and financing of the Partnership's  properties  remaining
after  distribution  to all  partners of any portion  thereof  required to cause
distributions to partners from all sources to equal their capital contributions.
During  1986,  the partners  received  cumulative  distributions  equal to their
capital  contributions.  Mr. Hughes has assigned his ownership and  distribution
rights in the  Partnership  to BWH Marina  Corporation  II ("BWH  Marinas").  In
addition to their  distribution  rights with respect to their general  partner's
interests, PS and BWH Marinas own 11,365 and 5,892 Units,  respectively.  During
2007, PS and BWH Marinas received $2,220,000 and $555,000 respectively,  in cash
distributions  related  to  their  general  partner's  ownership  interests.  As
described  above,  the General  Partners  also hold Limited  Partnership  Units.
Through  these  holdings,  PS and  the  Hughes  Family,  respectively,  received
$2,273,000 and $1,178,000 of cash distributions during 2007.

                                       21
<PAGE>

         The   Partnership   has   a   Management    Agreement   with   PS   (as
successor-in-interest  to PSMI). Under the Management Agreement, the Partnership
pays  PS a fee of 6% of  the  gross  revenues  of  the  self-storage  facilities
operated  for the  Partnership.  For as long as the  Management  Agreement is in
effect,  PS has granted the  Partnership a  non-exclusive  license to use two PS
service  marks and related  designs,  including  the "Public  Storage"  name, in
conjunction  with rental and  operation of  facilities  managed  pursuant to the
Management  Agreement.   Upon  termination  of  the  Management  Agreement,  the
Partnership  would no longer have the right to use the service marks and related
designs.  The  General  Partners  believe  that the loss of the right to use the
service marks and related  designs could have a material  adverse  effect on the
Partnership's  business.  The  Management  Agreement  with PS provides  that the
Management Agreement may be terminated without cause upon 60 days written notice
by the  Partnership or six months notice by PS. During 2007,  2006 and 2005, the
Partnership paid fees of $676,000,  $678,000 and $643,000,  respectively,  to PS
pursuant to the Management Agreement.

         A real estate facility owned by the Partnership (the "Azusa  Property")
is operated pursuant to a management and performance agreement (the "Performance
Agreement") with Public Storage Pickup and Delivery, LP ("PSPUD"),  a subsidiary
of PS. Following the commencement of the Performance Agreement, the facility was
modified to include  self-storage and industrial  space,  with the cost of these
improvements  entirely funded by PSPUD. The industrial space was constructed for
use  in  PSPUD's  containerized   storage  operations.   Under  the  Performance
Agreement,  the  Partnership  is  guaranteed  to receive the same net  operating
income it received  with respect to the Azusa  Property  prior to the  effective
date of the agreement, with an annual increase of the greater of a) 1% or b) the
percentage  increase  in net  operating  income  achieved  at  the  self-storage
facilities  managed by PS in the market in which this  facility is located  (the
"Guaranteed  Amounts").  Where  the net  operating  income  earned  by the Azusa
Property  is  less  than  these  Guaranteed   Amounts,   PSPUD  supplements  the
Partnership's  income. Where the amount earned by the Azusa Property exceeds the
Guaranteed  Amounts,  the excess is remitted to PSPUD.  The costs of all capital
improvements with respect to the Azusa Property are funded by PSPUD. Included in
the line item  "Revenues  from  Affiliate  under  Performance  Agreement" on the
Partnership's   Statements  of  Income,  is  the  net  operating  income  before
depreciation  with respect to the Azusa  Property.  The  Partnership  recorded a
total of  $1,274,000,  $1,225,000  and $1,117,000 in revenue with respect to the
Performance  Agreement  for the years ended  December 31,  2007,  2006 and 2005,
respectively.

         In addition,  the Partnership  combines its insurance  purchasing power
with PS through captive insurance  entities  controlled by PS (see Note 5 to the
Partnership's  financial  statements).  The  captive  entities  provide  limited
property and liability insurance to the Partnership at commercially  competitive
rates. The Partnership and PS also utilize  unaffiliated  insurance  carriers to
provide  property and  liability  insurance  in excess of the captive  entities'
limitations.  Premiums paid to the captive entities for the years ended December
31, 2007, 2006 and 2005 were $88,000, $97,000 and $77,000, respectively.

         The Partnership's facilities, along with facilities owned by PS and its
affiliates, are managed and marketed jointly by PS in order to take advantage of
scale and other  efficiencies.  Joint costs are allocated on a methodology meant
to fairly  allocate such costs. As a result,  significant  components of cost of
operations,  such as payroll costs,  advertising and promotion,  data processing
and  insurance  expenses are shared and  allocated  among the  properties  using
methodologies  meant to  fairly  allocate  such  costs  based  upon the  related
activities. The total of such expenses,  substantially all of which are included
in cost of operations  on the  Partnership's  statements of income,  amounted to
$1,499,000,  $1,563,000,  and  $1,197,000 for the years ended December 31, 2007,
2006, and 2005, respectively.

         The Trustees of PS are identified in Item 10 on page 18 of this report.

ITEM 14. Principal Accountant Fees and Services
         --------------------------------------

         Fees billed to the  Partnership  by Ernst & Young LLP for 2007 and 2006
as are follows:

         Audit  Fees:  Audit  fees  billed  (or  expected  to be  billed) to the
Partnership  by  Ernst & Young  LLP for the  audit of the  Partnership's  annual
financial  statements and reviews of the quarterly financial statements included
in the Partnership's quarterly reports on Form 10-Q totaled $19,000 for 2007 and
$18,000 for 2006.

         Tax Fees: Tax fees billed (or expected to be billed) to the Partnership
by Ernst & Young LLP for tax  services  (primarily  federal and state income tax
preparation) totaled $13,000 for 2007 and $10,000 for 2006.

         Audit-Related  Fees and Other Fees:  During 2007 and 2006 Ernst & Young
LLP did not  bill  the  Partnership  for  audit-related  services  or any  other
services, except audit services and tax services denoted above.

                                       22
<PAGE>

         The Audit Committee of PS pre-approves all services  performed by Ernst
& Young LLP, including those listed above. At this time, the Audit Committee has
not  delegated  pre-approval  authority  to any  member or  members of the Audit
Committee.

                                       23

<PAGE>

                                     PART IV

ITEM 15. Exhibits and Financial Statement Schedules
         ------------------------------------------

(a) List of documents filed as part of this Report.

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

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

         3. Exhibits: See Exhibit Index contained below.

(b) Exhibits: See Exhibit Index contained below.

(c) Not applicable.

                                       24

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.

                                  EXHIBIT INDEX

                           (Items 15(a)(3) and 15 (b))


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

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

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

14       Code of Ethics for Senior Financial  Officers of Public Storage.  Filed
         with the  Partnership's  Annual  Report on Form 10-K for the year ended
         December 31, 2003 and incorporated herein by reference.

31.1     Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
         signed and dated by Ronald L. Havner, Jr. Filed herewith.

31.2     Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
         signed and dated by John Reyes. Filed herewith.

32       Certification  pursuant  to Section  906 of the  Sarbanes-Oxley  Act of
         2002. Furnished herewith.


                                       25

<PAGE>

                                   SIGNATURES

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

                              PUBLIC STORAGE PROPERTIES IV, LTD.
                              A California Limited Partnership
Dated:  March 26, 2008        By:    Public Storage, General Partner

                                 By:  /s/ Ronald L. Havner, Jr.
                                      ------------------------------------------
                                      Ronald L Havner, Jr., Vice Chairman of the
                                      Board, Chief Executive Officer and
                                      President of Public Storage, Corporate
                                      General Partner

                              By: /s/ B. Wayne Hughes
                                   ---------------------------------------------
                                   B. Wayne Hughes, General Partner and Chairman
                                   of the Board of Public Storage

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

<TABLE>
<CAPTION>

            Signature                                             Capacity                                       Date
---------------------------------------          ---------------------------------------------------       ----------------
<S>                                              <C>                                                        <C>

/s/ Ronald L. Havner, Jr.                        Vice Chairman of the Board, Chief Executive                March 26, 2008
---------------------------------------          Officer and President of Public Storage, Corporate
Ronald L. Havner, Jr.                            General Partner

/s/ B. Wayne Hughes                              General Partner and Chairman of the Board of               March 26, 2008
---------------------------------------          Public Storage
B. Wayne Hughes

/s/ John Reyes                                   Senior Vice President and Chief Financial Officer          March 26, 2008
---------------------------------------          of Public Storage (principal financial officer
John Reyes                                       and principal accounting officer)

/s/ Harvey Lenkin                                Trustee of Public Storage                                  March 26, 2008
---------------------------------------
Harvey Lenkin

/s/ B. Wayne Hughes, Jr.                         Trustee of Public Storage                                  March 26, 2008
---------------------------------------
B. Wayne Hughes, Jr.

/s/ Dann V. Angeloff                             Trustee of Public Storage                                  March 26, 2008
---------------------------------------
Dann V. Angeloff

/s/ William Baker                                Trustee of Public Storage                                  March 26, 2008
---------------------------------------
William C. Baker

/s/ John T. Evans                                Trustee of Public Storage                                  March 26, 2008
---------------------------------------
John T. Evans

/s/ Uri P. Harkham                               Trustee of Public Storage                                  March 26, 2008
---------------------------------------
Uri P. Harkham

/s/ Gary E. Pruitt                               Trustee of Public Storage                                  March 26, 2008
---------------------------------------
Gary E. Pruitt

/s/ Daniel C. Staton                             Trustee of Public Storage                                  March 26, 2008
---------------------------------------
Daniel C. Staton

</TABLE>

                                       26
<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.

                          INDEX TO FINANCIAL STATEMENTS
                                       AND
                          FINANCIAL STATEMENT SCHEDULE
                                  (Item 15 (a))


                                                                         Page
                                                                   References

Report of Independent Registered Public Accounting Firm                   F-1

Balance sheets as of December 31, 2007 and 2006                           F-2

For each of the years ended December 31, 2007, 2006 and 2005:

Statements of income and comprehensive income                             F-3

Statements of partners' equity                                            F-4

Statements of cash flows                                                  F-5

Notes to financial statements                                      F-6 - F-13

SCHEDULE:

III - Real estate and accumulated depreciation                    F-14 - F-15

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

                                       27
<PAGE>


             Report of Independent Registered Public Accounting Firm



The Partners
Public Storage Properties IV, Ltd.


We have audited the accompanying balance sheets of Public Storage Properties IV,
Ltd.  (the  "Partnership")  as of December  31,  2007 and 2006,  and the related
statements of income and comprehensive  income,  partners' equity and cash flows
for each of the three years in the period ended  December  31, 2007.  Our audits
also included the schedule  listed in the index at item 15(a).  These  financial
statements and schedule are the responsibility of the Partnership's  management.
Our  responsibility  is to express an opinion on these financial  statements and
schedule based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  We were not engaged to perform an
audit of the Partnership's internal control over financial reporting. Our audits
included  consideration of internal control over financial  reporting as a basis
for designing audit  procedures that are appropriate in the  circumstances,  but
not for the  purpose  of  expressing  an  opinion  on the  effectiveness  of the
Partnership's internal control over financial reporting.  Accordingly we express
no such opinion.  An audit also includes  examining,  on a test basis,  evidence
supporting the amounts and  disclosures in the financial  statements,  assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall  financial  statement  presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial position of Public Storage Properties IV,
Ltd. at December 31, 2007 and 2006,  and the results of its  operations  and its
cash flows for each of the three years in the period ended December 31, 2007, in
conformity with U.S.  generally  accepted  accounting  principles.  Also, in our
opinion,  the related financial statement schedule,  when considered in relation
to the  basic  financial  statements  taken as a whole,  presents  fairly in all
material respects the information set forth therein.


                                              /s/ ERNST & YOUNG LLP




March 21, 2008
Los Angeles, California

                                      F-1
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                                 BALANCE SHEETS
                           December 31, 2007 and 2006

<TABLE>
<CAPTION>

                                                                     December 31,           December 31,
                                                                         2007                   2006
                                                                    -----------------     ------------------

                                     ASSETS

<S>                                                                 <C>                    <C>
Cash and cash equivalents                                           $        787,000       $      2,525,000
Rent and other receivables                                                    85,000                197,000

Real estate facilities, at cost:
     Buildings and equipment                                              19,939,000             19,628,000
     Land                                                                  5,021,000              5,021,000
                                                                    -----------------     ------------------
                                                                          24,960,000             24,649,000
     Less accumulated depreciation                                       (18,220,000)           (17,799,000)
                                                                    -----------------     ------------------
                                                                           6,740,000              6,850,000

Other assets                                                                 140,000                153,000
                                                                    -----------------     ------------------
Total assets                                                        $      7,752,000       $      9,725,000
                                                                    =================     ==================
                        LIABILITIES AND PARTNERS' EQUITY

Accounts payable and accrued liabilities                            $        173,000       $        193,000
Deferred revenue                                                             325,000                313,000
                                                                    -----------------     ------------------
         Total liabilities                                                   498,000                506,000

Commitments and contingencies (Note 8)

Partners' equity:
     Limited partners' equity, $500 per unit, 40,000 units
       authorized, issued and outstanding                                  5,386,000              6,845,000
     General partners' equity                                              1,868,000              2,374,000
                                                                    -----------------     ------------------
     Total partners' equity                                                7,254,000              9,219,000
                                                                    -----------------     ------------------
Total liabilities and partners' equity                              $      7,752,000       $      9,725,000
                                                                    =================     ==================
</TABLE>

                            See accompanying notes.
                                      F-2
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
              For the years ended December 31, 2007, 2006 and 2005

<TABLE>
<CAPTION>

                                                            2007                2006               2005
                                                     -----------------    ----------------   ----------------
  REVENUES:

<S>                                                  <C>                  <C>                <C>
  Rental income                                      $    11,271,000      $    11,294,000    $    10,726,000
  Dividends from marketable securities of affiliate                -               23,000            203,000
  Other income                                               340,000              277,000            225,000
  Revenues from affiliate under
      performance agreement                                1,274,000            1,225,000          1,117,000
                                                     -----------------    ----------------   ----------------
                                                          12,885,000           12,819,000         12,271,000
                                                     -----------------    ----------------   ----------------
  COSTS AND EXPENSES:

  Cost of operations                                       2,875,000            2,898,000          2,635,000
  Management fees paid to affiliate                          675,000              678,000            643,000
  Depreciation                                               421,000              383,000            356,000
  Administrative                                             105,000              163,000            118,000
                                                     -----------------    ----------------   ----------------
                                                           4,076,000            4,122,000          3,752,000
                                                     -----------------    ----------------   ----------------
  Net income before gain                                   8,809,000            8,697,000          8,519,000

  Casualty gain                                                    -               31,000             38,000
  Gain on disposition of marketable securities of
    affiliate                                                      -              134,000         15,633,000
                                                     -----------------    ----------------   ----------------
  NET INCOME:                                        $     8,809,000      $     8,862,000    $    24,190,000
                                                     =================    ================   ================

  Limited partners' share of net income              $     6,054,000      $     6,613,000    $    16,458,000
  General partners' share of net income                    2,755,000            2,249,000          7,732,000
                                                     -----------------    ----------------   ----------------
                                                     $     8,809,000      $     8,862,000    $    24,190,000
                                                     =================    ================   ================
  COMPREHENSIVE INCOME:

  Net income                                         $     8,809,000      $     8,862,000    $    24,190,000
  Other comprehensive income:
    Change in unrealized gain on marketable equity
       securities of affiliate                                     -                7,000            456,000
    Realized gain on disposition of marketable
       securities of affiliate                                     -             (134,000)       (15,633,000)
                                                     -----------------    ----------------   ----------------
                                                     $     8,809,000      $     8,735,000      $   9,013,000
                                                     =================    ================   ================
  Limited partners' share of net income per unit
    (40,000 units outstanding)                       $        151.35      $        165.33      $      411.45
                                                     =================    ================   ================

</TABLE>

                            See accompanying notes.
                                      F-3

<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.
                         STATEMENTS OF PARTNERS' EQUITY
              For the years ended December 31, 2007, 2006 and 2005

<TABLE>
<CAPTION>

                                                                                        Other
                                                   Limited          General         Comprehensive     Total Partners'
                                                  Partners'        Partners'            Income             Equity
                                               ----------------  ---------------   ----------------  ----------------

<S>                                            <C>               <C>               <C>               <C>
Balance at December 31, 2004                   $    11,253,000   $    3,903,000    $    15,304,000   $  30,460,000

Change in unrealized gain on marketable
securities                                                   -                -            456,000         456,000

Realized gain on disposition of marketable
securities of affiliate                                      -                -        (15,633,000)    (15,633,000)

Net income                                          16,458,000        7,732,000                  -      24,190,000

Cash distributions                                  (6,347,000)      (2,201,000)                 -      (8,548,000)

Distribution of marketable securities of
affiliate                                          (16,123,000)      (5,591,000)                 -     (21,714,000)

Equity transfer                                      1,504,000       (1,504,000)                 -               -
                                               ----------------  ---------------   ----------------  ----------------
Balance at December 31, 2005                         6,745,000        2,339,000            127,000       9,211,000

Change in unrealized gain on marketable
securities                                                   -                -              7,000           7,000

Realized gain on disposition of marketable
securities of affiliate                                      -                -           (134,000)       (134,000)

Net income                                           6,613,000        2,249,000                  -       8,862,000

Cash distributions                                  (6,480,000)      (2,247,000)                 -      (8,727,000)

Equity transfer                                        (33,000)          33,000                  -               -
                                               ----------------  ---------------   ----------------  ----------------
Balance at December 31, 2006                         6,845,000        2,374,000                  -       9,219,000

Net income                                           6,054,000        2,755,000                  -       8,809,000

Cash distributions                                  (8,000,000)      (2,774,000)                 -     (10,774,000)

Equity transfer                                        487,000         (487,000)                 -               -
                                               ----------------  ---------------   ----------------  ----------------
Balance at December 31, 2007                   $     5,386,000   $    1,868,000    $             -   $   7,254,000
                                               ================  ===============   ================  ================
</TABLE>

                            See accompanying notes.
                                      F-4


<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.
                            STATEMENTS OF CASH FLOWS
              For the years ended December 31, 2007, 2006 and 2005

<TABLE>
<CAPTION>

                                                                              2007                2006               2005
                                                                          --------------     --------------      -------------
Cash flows from operating activities:

<S>                                                                       <C>                <C>                 <C>
     Net income                                                           $  8,809,000       $  8,862,000        $ 24,190,000
     Adjustments to reconcile net income to net cash provided
       by operating activities:
         Depreciation                                                          421,000            383,000             356,000
         Decrease in rent and other receivables                                112,000              4,000               2,000
         Decrease (increase) in other assets                                    13,000            (70,000)             (1,000)
         Casualty gain                                                               -            (31,000)            (38,000)
         Gain on disposition of marketable securities of affiliate                   -           (134,000)        (15,633,000)
         (Decrease) increase in accounts payable and accrued liabilities       (20,000)             4,000             (37,000)
         Increase (decrease) in deferred revenue                                12,000             (8,000)              7,000
                                                                          --------------     --------------      -------------
              Total adjustments                                                538,000            148,000         (15,344,000)
                                                                          --------------     --------------      -------------
              Net cash provided by operating activities                      9,347,000          9,010,000           8,846,000
                                                                          --------------     --------------      -------------
Cash flows from investing activities:

    Proceeds from disposition of marketable securities of affiliate                  -            393,000                   -
     Additions to real estate facilities                                      (311,000)          (722,000)           (322,000)
                                                                          --------------     --------------      -------------
              Net cash used in investing activities                           (311,000)          (329,000)           (322,000)
                                                                          --------------     --------------      -------------
Cash flows from financing activities:

     Distributions paid to partners                                        (10,774,000)        (8,727,000)         (8,548,000)
                                                                          --------------     --------------      -------------
              Net cash used in financing activities                        (10,774,000)        (8,727,000)         (8,548,000)
                                                                          --------------     --------------      -------------
Net decrease in cash and cash equivalents                                   (1,738,000)           (46,000)            (24,000)

Cash and cash equivalents at the beginning of the year                       2,525,000          2,571,000           2,595,000
                                                                          --------------     --------------      -------------
Cash and cash equivalents at the end of  the year                         $    787,000       $  2,525,000        $  2,571,000
                                                                          ==============     ==============      =============
Supplemental schedule of non-cash investing and financing activities:
     Changes in fair market value of marketable securities
         Marketable securities                                            $          -       $     (7,000)       $   (456,000)
         Other comprehensive income                                                  -              7,000             456,000
    Distribution of marketable securities of affiliate:
         Marketable securities                                                       -                  -          21,714,000
         Partners' equity                                                            -                  -         (21,714,000)
    Insurance receivable for hurricane damage                                        -             34,000              41,000

</TABLE>

                            See accompanying notes.
                                      F-5

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

1.   DESCRIPTION OF THE BUSINESS

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

         The  Partnership was formed to engage in the business of developing and
     operating  self-storage  facilities  for  personal  and  business  use. The
     Partnership owns 17 self-storage properties in California and Florida.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PARTNERSHIP MATTERS

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

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

         Revenue and Expense Recognition:
         --------------------------------

         Rental income,  which is generally  earned  pursuant to  month-to-month
     leases for storage space,  is recognized as earned.  Promotional  discounts
     are recognized as a reduction to rental income over the promotional period,
     which is generally  during the first month of  occupancy.  Late charges and
     administrative  fees are  recognized  as income  when  collected.  Interest
     income is recognized as earned.

         We accrue for property tax expense based upon  estimates and historical
     trends. If these estimates are incorrect, the timing of expense recognition
     could be affected.

         Cost of  operations,  general and  administrative  expense,  as well as
     television, yellow page, and other advertising expenditures are expensed as
     incurred.

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

         The  general   partners'  share  of  net  income  consists  of  amounts
     attributable to their 1% capital contribution and an additional  percentage
     of cash flow (as defined) which relates to the general  partners'  share of
     cash distributions as set forth in the Partnership  Agreement (Note 4). All
     remaining net income is allocated to the limited partners.

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

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

         For financial statement purposes,  the Partnership considers all highly
     liquid  financial  instruments  such as short-term  treasury  securities or
     investment grade short-term  commercial paper with remaining  maturities of
     three months or less at the date of acquisition to be cash equivalents.

                                      F-6
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

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

         In accordance with the Financial Accounting Standards Board's Statement
     No. 130, "Recording  Comprehensive Income," at each balance sheet date, the
     Partnership reflects its marketable  securities at market value (based upon
     their closing price on the balance sheet date), with the difference between
     the market value and historical cost shown as other comprehensive income in
     partners'  equity  on the  accompanying  statements  of  partners'  equity.
     Adjustments  to market  value are  reflected as change in  unrealized  gain
     (loss) on marketable  equity  securities on the accompanying  statements of
     comprehensive   income.   When  marketable   securities  are  disposed  of,
     comprehensive  income is  adjusted  to reflect  the change in market  value
     through the  disposition  date.  The realized gain is then reflected in net
     income, and as a reduction to other comprehensive income.

         In  accordance   with  this  policy,   the  Partnership  has  reflected
     adjustments to unrealized  gains of $7,000 and $456,000 for the years ended
     December 31, 2006, and 2005, respectively.

         At December 31, 2005,  marketable securities consisted of 624 shares of
     Public Storage,  Inc. common stock and 12,412  depository  shares of Equity
     Stock,  Series  A, of  Public  Storage,  Inc.  During  December  2006,  the
     Partnership sold all of these marketable securities and recorded a realized
     gain of $134,000 on the accompanying statement of income for the year ended
     December 31, 2006. All of the Partnership's  marketable  securities for all
     periods had been designated as available-for-sale.

         On March 31, 2005, the  Partnership  distributed all of its holdings in
     Public  Storage Inc.,  common stock on a pro-rata  basis to  unitholders of
     record  as of  January  1,  2005.  As a  result  of this  transaction,  the
     Partnership  recorded  a  realized  gain of  $15,633,000  during  the first
     quarter of 2005,  representing  the  difference  between the closing market
     price on March 31, 2005 and the  weighted  average  historical  cost of the
     securities  disposed.  The  limited  and  general  partners'  share of this
     distribution  totaled  approximately  $16,123,000  ($403.08  per  unit) and
     $5,591,000,  respectively.  The limited and general  partners' share of the
     realized  gain  attributable  to  this  transaction  totaled  approximately
     $10,102,000 ($252.55 per unit) and $5,531,000, respectively.

         Real Estate Facilities and Evaluation of Asset Impairment:
         ----------------------------------------------------------

         Real estate  facilities are recorded at cost. Costs associated with the
     development,  construction,  renovation  and  improvement of properties are
     capitalized.  Interest, property taxes, and other costs associated with the
     development  incurred  during the  construction  period are  capitalized as
     building  cost.  Expenditures  for repairs and  maintenance  are charged to
     expense as  incurred.  Depreciation  is  computed  using the  straight-line
     method over the estimated  useful lives of the buildings and  improvements,
     which are generally between 5 and 25 years.  Certain real estate facilities
     have been in service  longer than 25 years,  and  accordingly  the original
     development  cost of such  buildings are fully  depreciated at December 31,
     2007.

         We evaluate our real estate for  impairment  on a quarterly  basis.  We
     first  evaluate  these assets for  indicators  of  impairment  such as a) a
     significant  decrease in the market price of real estate,  b) a significant
     adverse  change in the extent or manner in which real  estate is being used
     or in its physical  condition,  c) a  significant  adverse  change in legal
     factors or the  business  climate  that could  affect the value of the real
     estate,  d) an accumulation of costs  significantly in excess of the amount
     originally  projected for the  acquisition of or  construction  of the real
     estate, or e) a current-period  operating or cash flow loss combined with a
     history of operating or cash flow losses or a projection  or forecast  that
     demonstrates  continuing losses associated with the use of the real estate.
     When any such  indicators of impairment are noted,  we compare the carrying
     value of the real estate to the future  estimated  undiscounted  cash flows
     attributable to the real estate. If the real estate's recoverable amount is
     less than the carrying  value of the asset,  then an  impairment  charge is
     booked for the excess of carrying  value over the real estate's fair value.
     Except  as  noted  below  under   "Accounting  for  Casualty  Losses,"  our
     evaluations have identified no such impairments at December 31, 2007.

                                      F-7
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

         Any real estate  facility,  which we expect to sell or dispose of prior
     to its  previously  estimated  useful  life is  stated  at the lower of its
     estimated net realizable value, less cost to sell, or its carrying value.

         Accounting for Casualty Losses:
         -------------------------------

         Our  policy is to record  casualty  losses or gains in the  period  the
     casualty  occurs  equal to the  differential  between (a) the book value of
     assets  destroyed  and (b)  insurance  proceeds,  if any, that we expect to
     receive in accordance  with our insurance  contracts.  Potential  insurance
     proceeds  that are  subject to  uncertainties,  such as  interpretation  of
     deductible  provisions  of the governing  agreements  or the  estimation of
     costs of  restoration,  are treated as a contingent  proceeds in accordance
     with Statement of Financial  Accounting Standards No. 5 ("SFAS 5"), and not
     recorded until the uncertainties are satisfied.

         During 2005, we recorded a casualty  gain totaling  $38,000 as a result
     of physical  damage to our  facilities  caused by  Hurricane  Wilma,  which
     occurred in the fourth quarter of 2005. This gain represented the excess of
     the insurance proceeds that we expected to receive of approximately $41,000
     over the aggregate net book values of the assets damaged ($3,000). In 2006,
     we  reevaluated  the damage  caused by the hurricane as well as the cost to
     repair  this  damage  and any  related  insurance  proceeds.  Based on this
     reevaluation, we recorded an additional casualty gain of $31,000. This gain
     represents the additional insurance proceeds that we received.

         Deferred Revenue:
         -----------------

         Deferred  revenue  totaling  $325,000 at December 31, 2007 ($313,000 at
     December 31, 2006),  consists of prepaid rents,  which are recognized  when
     earned.

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

         The Partnership's policy is to accrue environmental  assessments and/or
     remediation  costs when it is probable  that such  efforts will be required
     and the related costs can be reasonably estimated. Although there can be no
     assurance,  we are not aware of any  environmental  contamination at any of
     our facilities,  which, individually or in the aggregate, would be material
     to our overall business, financial condition or results of operations.

         Income Taxes:
         -------------

         Public  Storage  Properties  IV, Ltd. is treated as a  partnership  for
     Federal and state income tax purposes with the taxable income of the entity
     allocated to each partner in  accordance  with the  partnership  agreement.
     Accordingly  no Federal  or state  income tax  expense is  recorded  by the
     Partnership.

         Recent Accounting Pronouncements and Guidance:

         As  of  March  21,   2008,   there  have  been  no  recent   accounting
     pronouncements  and guidance,  which were not effective for  implementation
     prior to  December  31,  2007,  that  would  have a  material  impact  upon
     reporting the operations or financial position of the Partnership.

                                      F-8

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

         Segment Reporting:
         ------------------

         The  Partnership  only has one  reportable  segment as  defined  within
     Statement of Financial Accounting Standards No. 131.

3.       CASH DISTRIBUTIONS

         The Partnership Agreement requires that cash available for distribution
     (cash flow from all sources  less cash  necessary  for any  obligations  or
     capital  improvements)  needs to be distributed at least quarterly.  During
     2006,  we paid cash  distributions  to the  limited  and  general  partners
     totaling $6,480,000 ($162.00 per unit) and $2,247,000, respectively. During
     2007,  we paid cash  distributions  to the  limited  and  general  partners
     totaling $8,000,000 ($200.00 per unit) and $2,774,000, respectively. Future
     distribution  rates may be  adjusted  to  levels,  which are  supported  by
     operating cash flow after capital improvements and any other obligations.

4.       PARTNERS' EQUITY

         PS and Hughes are general partners of the Partnership.  In 1995, Hughes
     contributed his ownership and rights to distributions  from the Partnership
     to BWH Marina  Corporation  II, a corporation  wholly-owned  by Hughes.  As
     such,  Hughes  continues to act as a general partner of the Partnership but
     does  not  directly  receive  any  compensation,   distributions  or  other
     consideration from the Partnership.

         The  general  partners  have  a 1%  interest  in  the  Partnership.  In
     addition,  the general  partners  had an 8% interest in cash  distributions
     attributable to operations (exclusive of distributions attributable to sale
     and financing  proceeds) until the limited partners  recovered all of their
     investment.  Thereafter,  the general  partners  have a 25% interest in all
     cash distributions  (including sale and financing  proceeds).  During 1986,
     the  limited  partners  recovered  all of  their  initial  investment.  All
     subsequent  distributions are being made 25.75% (including the 1% interest)
     to the general  partners and 74.25% to the limited  partners.  Transfers of
     equity are made  periodically to reconcile the partners' equity accounts to
     the provisions of the Partnership  Agreement.  These  transactions  have no
     effect on the results of operations or distributions to partners.

5.       RELATED PARTY TRANSACTIONS

         Management Agreements and Shared Expenses with Affiliates
         ---------------------------------------------------------

         The Partnership has a Management Agreement with PS pursuant to which PS
     operates  the  self-storage  facilities  for a  fee  equal  to  6%  of  the
     facilities'  gross  revenue  (as  defined).  For 2007,  2006 and 2005,  the
     Partnership paid PS $675,000,  $678,000 and $643,000,  respectively,  under
     this management agreement.

         The Management  Agreement  between the Partnership and PS provides that
     the  Management  Agreement  may be  terminated  without  cause upon 60 days
     written notice by the Partnership or six months notice by PS.

         A real estate facility owned by the Partnership (the "Azusa  Property")
     is  operated  pursuant  to a  management  and  performance  agreement  (the
     "Performance  Agreement")  with  Public  Storage  Pickup and  Delivery,  LP
     ("PSPUD"),   a  subsidiary  of  PS.   Following  the  commencement  of  the
     Performance  Agreement in March 2001,  the facility was modified to include
     self-storage  and  industrial  space,  with the cost of these  improvements

                                      F-9
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

     entirely funded by PSPUD.  The industrial  space was constructed for use in
     PSPUD's containerized storage operations.  Under the Performance Agreement,
     the  Partnership is guaranteed to receive the same net operating  income it
     received with respect to the Azusa  Property prior to the effective date of
     the  agreement,  with an annual  increase of the greater of a) 1% or b) the
     percentage  increase in net operating  income achieved at the  self-storage
     facilities  managed by PS in the market in which this  facility  is located
     (the  "Guaranteed  Amounts").  Where the net operating income earned by the
     Azusa Property is less than these Guaranteed Amounts, PSPUD supplements the
     Partnership's income. Where the amount earned by the Azusa Property exceeds
     the Guaranteed  Amounts,  the excess is remitted to PSPUD. The costs of all
     capital  improvements  with  respect  to the Azusa  Property  are funded by
     PSPUD.  Included in the line item revenues from affiliate under performance
     agreement on our accompanying  partnership's  statements of income,  is the
     net  operating  income  before  depreciation  with  respect  to  the  Azusa
     Property.  The Partnership  recorded a total of $1,274,000,  $1,225,000 and
     $1,117,000  in revenue with respect to the  Performance  Agreement  for the
     years ended December 31, 2007, 2006 and 2005, respectively.

         The Partnership's facilities, along with facilities owned by PS and its
     affiliates,  are  managed  and  marketed  jointly  by PS in  order  to take
     advantage of scale and other  efficiencies.  Joint costs are allocated on a
     methodology  meant to fairly allocate such costs. As a result,  significant
     components of cost of operations,  such as payroll costs,  advertising  and
     promotion,  data processing and insurance expenses are shared and allocated
     among the  properties  using  methodologies  meant to fairly  allocate such
     costs  based  upon the  related  activities.  The  total of such  expenses,
     substantially  all of  which  are  included  in cost of  operations  on our
     accompanying statements of income, amounted to $1,499,000,  $1,563,000, and
     $1,197,000  for  the  years  ended  December  31,  2007,   2006  and  2005,
     respectively.

         Ownership Interest by the General Partners
         ------------------------------------------

         In addition to the general partnership interests outlined in Note 4, PS
     owns 11,365 Limited  Partnership  Units ("Units"),  as to which PS has sole
     voting and dispositive power.

         Hughes and members of his family (the "Hughes Family") own 6,198 Units.
     Hughes owns 5,892 Units, as to which Hughes has sole voting and dispositive
     power, through a wholly-owned  corporation and Tamara Hughes Gustavson,  an
     adult  daughter  of  Hughes,  owns  306  Units as to  which  Tamara  Hughes
     Gustavson  has sole  voting  and  dispositive  power;  PS has an  option to
     acquire these 306 Units.

         In addition,  there are 7,299 Units owned by PS Orangeco  Partnerships,
     Inc., a corporation  in which Hughes Family owns  approximately  48% of the
     voting  stock,  PS owns 46% and  members  of PS's  management  and  related
     individuals own approximately 6%.

         Captive Insurance Activities with PS
         ------------------------------------

         The  Partnership  has a  1.7%  ownership  interest  in  STOR-Re  Mutual
     Insurance  Corporation  ("STOR-Re"),   which  was  formed  in  1994  as  an
     association  captive  insurance  company,  and is  controlled  by  PS.  The
     Partnership  accounts for its  investment in STOR-Re,  which is included in
     other assets on our accompanying  balance sheets,  on the cost method,  and
     has  received no  distributions  during the three years ended  December 31,
     2007.

         STOR-Re provides limited property and liability  insurance  coverage to
     the  Partnership,  PS, and affiliates for losses  occurring before April 1,
     2004.  STOR-Re was succeeded  with respect to these  activities  for losses
     occurring  after  March  31,  2004  by a  wholly  owned  subsidiary  of  PS
     (collectively,  this  entity and STOR-Re  are  referred to as the  "Captive
     Entities").  Liabilities for losses and loss adjustment expenses include an
     amount  determined  from loss reports and  individual  cases and an amount,
     based on  recommendations  from an outside  actuary that is a member of the

                                      F-10
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

     American Academy of Actuaries,  using a frequency and severity method,  for
     losses  incurred but not  reported.  Determining  the  liability for unpaid
     losses and loss  adjustment  expense is based upon  estimates  and while we
     believe that the amount is adequate,  the ultimate loss may be in excess of
     or less than the amounts  provided.  The methods for making such  estimates
     and for establishing the resulting liability are reviewed quarterly.

         The following table sets forth certain condensed consolidated financial
     information  with respect to STOR-Re  (representing  100% of this  entity's
     operations and not the Partnership's pro-rata share):

                                                        2007             2006
                                                     -----------      ----------
                                                         (Amounts in thousands)
   For the year ended December 31,
   Net investment income...........................  $     871        $    890
   Loss and loss adjustment expense................        855          (1,053)
   Other expenses..................................       (248)           (234)
                                                     -----------      ----------
   Net income (loss)...............................  $   1,478        $   (397)
                                                     ===========      ==========
   At December 31,
   Total assets (primarily cash and other
      investments).................................  $  21,732        $ 27,772
   Liabilities for losses and loss adjustment
      expenses.....................................      6,917          11,470
   Other liabilities...............................        764           1,314
   Member's surplus................................     14,051          14,988

         Premiums paid to the Captive  Entities for the years ended December 31,
     2007, 2006 and 2005 were $88,000, $97,000 and $77,000, respectively.

         Other Activities with PS
         ------------------------

         PS owns a corporation  that reinsures  policies against losses to goods
     stored by tenants in the  Partnership's  and PS' storage  facilities.  This
     corporation  receives the premiums and bears the risks  associated with the
     re-insurance.  The Partnership receives an access fee from this corporation
     in return for providing tenant listings. This fee is based on the number of
     spaces  the  Partnership  has to  rent.  Included  in other  income  on our
     accompanying statements of income for these fees are $199,000, $110,000 and
     $108,000  for  the  years  ended   December   31,  2007,   2006  and  2005,
     respectively.

         A  subsidiary  of PS sells  locks and  boxes  and  rents  trucks to the
     general  public and tenants to be used in securing  their spaces and moving
     their goods.  The subsidiary of PS receives the revenues and bears the cost
     of the activities.

6.       TAXES BASED ON INCOME

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

         Taxable  net  income   (unaudited)  was   $8,715,000,   $8,857,000  and
     $8,583,000  for  the  years  ended   December  31,  2007,   2006  and  2005
     respectively.  The difference  between taxable net income and net income is
     primarily  related to depreciation  expense  resulting from  differences in
     depreciation and capitalization methodologies.

                                      F-11

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

7.       SUPPLEMENTARY QUARTERLY FINANCIAL DATA (UNAUDITED)

<TABLE>
<CAPTION>

                                                                           Three Months Ended
                                            -------------------------------------------------------------------------------
                                             March 31, 2007      June 30, 2007     September 30, 2007     December 31, 2007
                                            ----------------    ----------------   ------------------     -----------------
<S>                                          <C>                <C>                 <C>                   <C>
Rental Income                                $    2,808,000     $    2,827,000      $    2,858,000        $    2,778,000
Cost of Operations (including
   management fees and depreciation)         $    1,021,000     $    1,023,000      $    1,002,000        $      925,000
Net Income                                   $    2,127,000     $    2,145,000      $    2,252,000        $    2,285,000
Net Income Per Limited Partner Unit          $        39.97     $        28.40      $        40.08        $        42.90
Cash distributions                           $    2,047,000     $    3,987,000      $    2,532,000        $    2,208,000

                                                                           Three Months Ended
                                            -------------------------------------------------------------------------------
                                             March 31, 2006      June 30, 2006     September 30, 2006     December 31, 2006
                                            ----------------    ----------------   ------------------     -----------------
Rental Income                                $    2,766,000     $    2,831,000      $    2,905,000        $    2,792,000
Cost of Operations (including
   management fees and depreciation)         $      974,000     $      992,000      $      988,000        $    1,005,000
Net Income (1)                               $    2,109,000     $    2,169,000      $    2,306,000        $    2,278,000
Net Income Per Limited Partner Unit          $        39.53     $        41.00      $        44.45        $        40.35
Cash distributions                           $    2,047,000     $    2,047,000      $    2,047,000        $    2,586,000

</TABLE>

(1)  Net income includes gains on disposition of marketable  securities totaling
     $134,000 during the year ended December 31, 2006.


8.       COMMITMENTS AND CONTINGENCIES

         Legal Proceedings:
         ------------------

     Serrao v.  Public  Storage,  Inc.  (filed  April 2003)  (Superior  Court of
     ---------------------------------------------------------------------------
     California - Orange County)
     ---------------------------

         The  plaintiff  in this  case  filed a suit  against  PS on behalf of a
     putative class of renters who rented  self-storage units from PS. Plaintiff
     alleges that PS  misrepresented  the size of its storage units, has brought
     claims  under  California  statutory  and common law  relating  to consumer
     protection, fraud, unfair competition, and negligent misrepresentation, and
     is seeking monetary  damages,  restitution,  and declaratory and injunctive
     relief.  On November 26, 2007,  the Court entered an order  dismissing  the
     matter in its entirety without any liability to PS.

     Brinkley v. Public  Storage,  Inc.  (filed April 2005)  (Superior  Court of
     ---------------------------------------------------------------------------
     California - Los Angeles County)
     --------------------------------

         The  plaintiff  sued PS on behalf of a  purported  class of  California
     non-exempt  employees  based on various  California  wage and hour laws and
     seeking monetary damages and injunctive  relief.  In May 2006, a motion for
     class certification was filed seeking to certify five subclasses. Plaintiff
     sought  certification  for  alleged  meal  period  violations,  rest period
     violations,  failure to pay for  travel  time,  failure to pay for  mileage
     reimbursement,  and for wage  statement  violations.  In October 2006,  the
     Court declined to certify three out of the five subclasses.  The Court did,
     however, certify subclasses based on alleged meal period and wage statement
     violations. Subsequently, PS filed a motion for summary judgment seeking to
     dismiss the matter in its entirety. On June 22, 2007, the Court granted PS'
     summary  judgment  motion  as to  the  causes  of  action  relating  to the
     subclasses  certified and dismissed those claims. The only surviving claims
     are those relating to the named  plaintiff only. The plaintiff has filed an
     appeal to the Court's June 22, 2007 summary judgment  ruling.  An appeal to
     the Court's  June 22, 2007 order  granting PS' summary  judgment  motion is
     currently pending.

                                      F-12
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

         Other Items
         -----------

         PS and the Partnership are a party to various claims,  complaints,  and
     other legal  actions that have arisen in the normal course of business from
     time to time, that are not described  above. We believe that it is unlikely
     that the  outcome  of  these  other  pending  legal  proceedings  including
     employment  and  tenant  claims,  in the  aggregate,  will have a  material
     adverse   effect  upon  the   operations  or  financial   position  of  the
     Partnership.

                                      F-13

<PAGE>


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

<TABLE>
<CAPTION>


                                         Initial Cost
                                  -----------------------------
                                                                 Costs Subsequent
                                                  Buildings &     to Construction
         Description                Land           Equipment      (Improvements)
-------------------------------   ------------  ---------------  ----------------
    California
<S>                                 <C>              <C>               <C>
Concord                             $349,000         $805,000          $391,000
Tustin                               517,000          844,000           428,000
Pasadena                             379,000          496,000           300,000
Azusa                                501,000        1,093,000           379,000
Redlands                             227,000          771,000           397,000
Riverside                             51,000          595,000           352,000
Oakland                              177,000          650,000           396,000
Richmond                             225,000          639,000           435,000
Santa Clara                          633,000        1,156,000           603,000
San Carlos                           396,000          902,000           232,000
Sacramento/Howe                      194,000          666,000           341,000
Sacramento/West Capitol              100,000          719,000           560,000

    Florida
Miami/Airport Expressway             186,000          442,000           392,000
Miami/Cutler Ridge                   525,000          901,000           188,000
Pembroke Park                        255,000          607,000           568,000
Ft. Lauderdale/I-95 &
   23rd Ave.                         243,000          611,000           555,000
Ft. Lauderdale/I-95 & Sunrise        286,000          690,000           612,000
                                  ------------  ---------------  ---------------
                                  $5,244,000      $12,587,000        $7,129,000
                                  ============  ===============  ===============
</TABLE>

<TABLE>
<CAPTION>

                                              Gross Carrying Amount
                                               at December 31, 2007
                                  -----------------------------------------------

                                                  Buildings &                      Accumulated
         Description                Land           Equipment          Total        Depreciation     Date Completed
-------------------------------   ------------   --------------    --------------  -------------    --------------
    California
<S>                                  <C>            <C>             <C>              <C>                <C>
Concord                              $349,000       $1,196,000      $1,545,000       $1,081,000         01/79
Tustin                                517,000        1,272,000       1,789,000        1,211,000         12/78
Pasadena                              379,000          796,000       1,175,000          730,000         11/79
Azusa                                 501,000        1,472,000       1,973,000        1,388,000         11/78
Redlands                              227,000        1,168,000       1,395,000        1,062,000         02/79
Riverside                              51,000          947,000         998,000          925,000         05/79
Oakland                               177,000        1,046,000       1,223,000          978,000         04/79
Richmond                              225,000        1,074,000       1,299,000        1,001,000         03/79
Santa Clara                           633,000        1,759,000       2,392,000        1,548,000        6 & 7/79
San Carlos                            396,000        1,134,000       1,530,000        1,115,000         10/79
Sacramento/Howe                       194,000        1,007,000       1,201,000          966,000         08/79
Sacramento/West Capitol               100,000        1,279,000       1,379,000        1,078,000         06/79

    Florida
Miami/Airport Expressway              186,000          834,000       1,020,000          757,000         01/79
Miami/Cutler Ridge                    302,000        1,312,000       1,614,000        1,086,000         04/79
Pembroke Park                         255,000        1,175,000       1,430,000        1,052,000         07/79
Ft. Lauderdale/I-95 &
   23rd Ave.                          243,000        1,166,000       1,409,000        1,030,000         07/79
Ft. Lauderdale/I-95 & Sunrise         286,000        1,302,000       1,588,000        1,212,000         10/79
                                  ------------   --------------    --------------  -------------
                                   $5,021,000      $19,939,000     $24,960,000      $18,220,000
                                  ============   ==============    ==============  =============
</TABLE>

Note:    Buildings are depreciated over a useful life of 25 years.

                                      F-14
<PAGE>

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


           Reconciliation of Real Estate and Accumulated Depreciation


                                                 2007                2006
                                            ---------------    ---------------

Investment in Real Estate
   Balance at the beginning of the year     $   24,649,000     $  23,994,000

   Disposition of real estate                            -           (67,000)
   Additions through capital expenditures          311,000           722,000
                                            ---------------    ---------------
Balance at the end of the year              $   24,960,000     $  24,649,000
                                            ===============    ===============

Accumulated Depreciation
   Balance at the beginning of the year     $   17,799,000     $  17,480,000

   Disposition of real estate                            -           (64,000)
   Additions charged to costs and expenses         421,000           383,000
                                            ---------------    ---------------
                                            $   18,220,000     $  17,799,000
                                            ===============    ===============

(a)  The  aggregate  depreciable  cost,  prior to  depreciation,  of real estate
     (excluding   land)  for  Federal   income  tax   purposes  is   $18,669,000
     (unaudited).

                                      F-15


<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.




                                DATED: March 26, 2008

                                PUBLIC STORAGE PROPERTIES IV, LTD.

                                BY:  Public Storage
                                     General Partner

                                     BY:   /s/ John Reyes
                                           -------------------------
                                           John Reyes
                                           Senior Vice President and
                                           Chief Financial Officer



<PAGE>



EXHIBIT NO.                           EXHIBIT INDEX
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31.1           Rule   13a-14(a)/15d-14(a)   Certification   of  Chief  Executive
               Officer. Filed herewith.

31.2           Rule   13a-14(a)/15d-14(a)   Certification   of  Chief  Financial
               Officer. Filed herewith.

32             Section 1350  Certification of Chief Executive  Officer and Chief
               Financial Officer. Filed herewith.