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, 2008.

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 if the  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, 2008:

                                       1
<PAGE>

Limited Partner Units, $500.00 Par Value - $34,164,000 (computed on the basis of
$2,261.00  per unit  which was the  highest  reported  sale  price  prior to the
quarter ended June 30, 2008).

The number of units outstanding of the registrant's  classes of common equity as
of March 25, 2009:

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 entirety 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").

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, which includes  unaudited  financial
statements  with  such  filings.   The  Partnership  expects  to  continue  such
reporting.  Upon written request, the Partnership will mail a copy of its Annual
Report on Form 10-K to the limited partners.

         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  20.0%
of the outstanding common shares of PS at March 16, 2009.

                                       3
<PAGE>

         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.

The Impact of Current Economic Factors
--------------------------------------

         The recession being experienced in California,  Florida and the U.S. is
having a  negative  impact on the  Partnership's  business.  Operationally,  the
Partnership's  occupancies  and rental rates have come under  pressure as demand
for self-storage  space has softened.  The  Partnership,  through its management
agreement with PS (the "Management Agreement"), has responded by reducing rental
rates, increasing promotional discounts, and increasing its marketing activities
to stimulate additional demand for storage.

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,  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.  As the capital and credit
markets are currently  constrained  and in flux,  there can be no assurance that
the  Partnership  would be able to access any such borrowings in order to do so,
if such a course of action were otherwise deemed necessary.

         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.  Storage facility spaces are rented on a month-to-month  basis.
Rental rates vary  according to the  location of the  property,  the size of the
storage space and length of stay.

         Users of space in  self-storage  facilities  include  individuals  from
virtually all demographic  groups,  as well as businesses.  Individuals  usually
obtain  this space for  storage of  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 1,700 storage spaces, most of which have between 25 and 400
square feet and an interior height of approximately 8 to 12 feet.

                                       4
<PAGE>

         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 the appropriate balance between occupancy, rental rates,
       and  promotional  discounting.  Average  occupancy for the  Partnership's
       self-storage  facilities  (excluding  the Azusa  property)  was 89.7% and
       89.0% in 2008 and 2007, respectively.  Annual realized rents per occupied
       square  foot  increased  from  $15.56 in 2007 to  $15.75  in 2008.  These
       amounts  exclude the property  operated  pursuant to the  management  and
       performance  agreement with a subsidiary of PS (the "PS Sub"). See Note 5
       to  the  Partnership's   December  31,  2008  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 adherence to specified policies
       and procedures, and thereby 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  (the  "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. Property managers are trained in detailed operating procedures.

         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.

         Under the supervision of the Partnership, PS seeks to increase the cash
flow generated by the Partnership's  facilities by: a) regularly evaluating call
volume,  reservation  activity,  and  move-in/move-out  rates for each  property
relative  to  marketing  activities,  b)  evaluating  market  supply  and demand
factors,  and based upon these analyses,  adjusting the marketing activities and
rental  rates,  c)  attempting  to  maximize  revenues  through  evaluating  the
appropriate   balance   between   occupancy,   rental  rates,   and  promotional
discounting, and d) controlling expense levels.

         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 a
subsidiary of PS ("PS Sub"). See Item 13 below for more information.

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

         Local market conditions play a significant role in how competition will
affect the Partnership's operations. Self-storage generally draws customers from
residents  within  a  three  to five  mile  radius.  Many  of the  Partnership's
self-storage  facilities  operate within three to five miles of well-located and
well-managed competitors and seek the same group of customers.  Competition from
other  self-storage and other storage  alternatives in the market areas in which

                                       6
<PAGE>

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.

Other Business Activities
-------------------------

         PS  owns  a  corporation   that  reinsures   policies   issued  to  the
Partnership's  tenants  against  losses  to  goods  stored  by  tenants  in  the
Partnership's storage facilities.  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 a fee (an "Access
Fee") from this corporation in return for providing tenant listings. This Access
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.  We believe these  activities,  along with  availability  of insurance as
noted above,  supplement and strengthen the Partnership's  existing self-storage
business by further meeting the needs of storage customers. The subsidiary of PS
receives the revenues and bears the cost of the activities.

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

         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 income tax expense is recorded by the Partnership.

Employees
---------

         The Partnership has no direct  employees.  There are  approximately  79
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  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 a 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 33.0% 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 THE RISKS RELATED TO THE OWNERSHIP AND OPERATION OF REAL ESTATE THAT
CAN ADVERSELY IMPACT OUR BUSINESS AND FINANCIAL CONDITION.

         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 acquiring and 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;

                                       7
<PAGE>

o      natural disasters, such as earthquakes and floods;

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  nonstrategic  property
       difficult or unattractive  including the impact of the current turmoil in
       the credit markets;

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

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

o      tenant and employment-related claims.

         In addition,  we self-insure  certain of our property loss,  liability,
and workers  compensation  risks for which other real estate  companies  may use
third-party  insurers.  This  results  in a higher  risk of losses  that are not
covered by third-party insurance contracts.

         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,
2008.  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 some 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
environmental 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 operations.

         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 give no assurance that
material legal claims relating to moisture  infiltration and the presence of, or
exposure to, mold will not arise in the future.

                                       8
<PAGE>

         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 could award 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.

         PUBLIC STORAGE'S 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.

         THE  GLOBAL  ECONOMIC  CRISIS  COULD  ADVERSELY  AFFECT  OUR  BUSINESS,
FINANCIAL CONDITION, GROWTH AND ACCESS TO CAPITAL.

         By the end of 2008,  the  national  economy was in a recession  and the
global  financial  crisis had  broadened  and  intensified.  Declining  economic
conditions  in  the  markets  where  we  operate  facilities,  including  higher
unemployment rates,  restrictions on the availability of credit, volatile energy
costs,  increased  governmental  needs for  revenue  including  property  taxes,
government  mandates  that  could  increase  costs  (such as  requiring  medical
insurance for property  management  personnel)  and other events or factors that
adversely  affect  disposable  income of the  consumer,  have and are  likely to
continue to adversely affect our business.

         As a further result of the current global financial crisis, our ability
to borrow at  reasonable  rates may be  adversely  affected by  illiquid  credit
markets.  While we currently believe that we have sufficient working capital and
cash  flow from  operations  to  continue  to  operate  our  business  as usual,
long-term continued turbulence in the credit markets and in the national economy
may adversely  affect our access to capital and adversely impact earnings growth
that might otherwise result from borrowing funds.

         FAILURE TO COMPLY  WITH  APPLICABLE  LAWS COULD HARM OUR  BUSINESS  AND
FINANCIAL RESULTS.

         We are  subject  to a wide range of  federal,  state and local laws and
regulations  including  those imposed by the SEC and the  Sarbanes-Oxley  Act of
2002, as well as applicable labor laws. Although we have policies and procedures
designed to comply with applicable laws and regulations,  failure to comply with
the various laws and  regulations  may result in civil and  criminal  liability,
fines and  penalties,  increased  costs of  compliance  and  restatement  of our
financial statements.

         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.

                                       9
<PAGE>

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.

         THE  PARTNERSHIP'S  CASH FLOWS COULD  DECLINE WITH RESPECT TO THE AZUSA
PROPERTY WHEN THE PERFORMANCE AGREEMENT EXPIRES.

         Pursuant to the Performance Agreement described further in Item 13, the
Partnership is guaranteed an annual increase in operating  income of at least 1%
each year with  respect to the Azusa  Property,  and  accordingly,  recorded net
operating income of $1,334,000 from this property during the year ended December
31, 2008. The  Performance  Agreement will expire on December 31, 2015, at which
time the  Partnership  will  earn the  underlying  net  cash  flow of the  Azusa
Property,  which totaled  $1,318,000  in 2008.  If the amount  payable under the
Performance  Agreement in 2015 exceeds the Azusa property's underlying cash flow
beginning in 2016, the Partnership's cash flow from operations will be adversely
impacted.

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

         One of the factors that  influence 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,
TELECOMMUNICATIONS, AND THE INTERNET AND ARE FACED WITH SYSTEM SECURITY 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.  Nearly half of our move-ins  comes from sales
channels dependent upon telecommunications (telephone or Internet).

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

         The  Partnership  has a  1.8%  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
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, 2008 financial
statements.

ITEM 1B. UNRESOLVED STAFF COMMENTS
         -------------------------

         Not applicable.


                                       10
<PAGE>


ITEM 2.  PROPERTIES
         ----------

         The  following  table sets forth  information  as of December  31, 2008
about properties owned by the Partnership:
<TABLE>
<CAPTION>

                                                                                                            Completion
         Location             Size of Parcel    Net Rentable Area   Number of Spaces   Date of Purchase         Date
----------------------       ----------------   -----------------   ----------------  -----------------    -------------
o  CALIFORNIA
<S>                             <C>              <C>                      <C>            <C>                <C>
Azusa (a)                       5.85 acres       173,000 sq. ft.          1,698          July 14, 1978      Nov. 1978
Concord                         2.87 acres        52,000 sq. ft.            519          June 20, 1978      Jan. 1979
Oakland                         1.97 acres        41,000 sq. ft.            352          Oct. 11, 1978      Apr. 1979
Pasadena                        1.82 acres        37,000 sq. ft.            337          July 19, 1978      Nov. 1978
Redlands                        3.44 acres        63,000 sq. ft.            575          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.            377          Dec. 14, 1978      Aug. 1979
Sacramento
   West Capitol                 3.38 acres        44,000 sq. ft.            451          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.            690          Dec. 22, 1978      June 1979 and
                                                                                                            July 1981
Tustin                          4.40 acres        67,000 sq. ft.            561          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.            476          Sept. 6, 1978      Apr. 1979
Pembroke Park                   2.35 acres        49,000 sq. ft.            412          Sept. 1, 1978      July 1979
Ft. Lauderdale
   I95 & 23rd Ave.              2.77 acres        45,000 sq. ft.            501          Nov. 9, 1978       Sept. 1979
Ft. Lauderdale
   I95 & Sunrise                3.32 acres        56,000 sq. ft.            558          Dec. 4, 1979       Sept. 1979
</TABLE>

(a)    This property is operated by a subsidiary  of PS (the "PS Sub")  pursuant
       to a Performance  Agreement  which will expire on December 31, 2015.  See
       Note 5 to the  Partnership's  December 31, 2008 Financial  Statements for
       further  information  regarding the terms of the  Performance  Agreement.
       Prior to the initiation of the Performance  Agreement,  this facility had
       105,000 net rentable square feet of storage space, and has been increased
       to 173,000 net rentable square feet by the PS Sub.

         For the year ended  December 31, 2008, the weighted  average  occupancy
level  and  the  average   realized  rent  per  occupied  square  foot  for  our
self-storage  facilities (excluding the Azusa property) were approximately 89.7%
and $15.75, 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, 2008,  none of the  properties  were  encumbered  by
mortgage debt.

                                       11
<PAGE>


ITEM 3.  LEGAL PROCEEDINGS
         -----------------

         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. The
plaintiff  has filed an appeal to the  Court's  June 22, 2007  summary  judgment
ruling.  On October 28, 2008,  the Court of Appeals  sustained the trial court's
ruling.  The plaintiff  filed a petition for review with the California  Supreme
Court,  which was granted but further action in this matter was deferred pending
consideration and disposition of a related issue in Brinker  Restaurant Corp. v.
Superior Court which is currently pending before the California Supreme Court.

         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, 2008.



                                       12
<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  first  hand
information  regarding the prices at which  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, 2008, there were approximately 928 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,
                                      ---------------------------------------------------------------------------------------
                                           2008              2007             2006              2005              2004
                                      ---------------- ---------------- ---------------- ----------------- ------------------
<S>                                   <C>               <C>              <C>              <C>               <C>
Revenues                              $   13,306,000    $   12,885,000   $   12,819,000   $   12,271,000    $   12,210,000
Depreciation                                 422,000           421,000          383,000          356,000           565,000
Casualty gain                                      -                 -           31,000           38,000                 -
Gain on disposition of marketable
     securities (1)                                -                 -          134,000       15,633,000                 -
Net income                                 9,250,000         8,809,000        8,862,000       24,190,000         8,233,000
Limited partners' share                    6,931,000         6,054,000        6,613,000       16,458,000         6,284,000
General partners' share                    2,319,000         2,755,000        2,249,000        7,732,000         1,949,000

LIMITED PARTNERS' PER UNIT DATA (2)
-----------------------------------
     Net income                             $173.28           $151.35          $165.33          $411.45           $157.10
     Cash distributions                     $167.00           $200.00          $162.00          $158.68           $140.00

BALANCE SHEET DATA:
-------------------
Cash and cash equivalents             $    1,139,000    $      787,000   $    2,525,000   $    2,571,000    $    2,595,000
Total assets                          $    8,074,000    $    7,752,000   $    9,725,000   $    9,721,000    $   31,000,000
</TABLE>


(1)    Increases  reflected  in the  amounts  presented  for 2005 as compared to
       other periods, are due to the distribution of marketable securities of an
       affiliate.  See Note 2 to the  Partnership's  December 31, 2008 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.

                                       13
<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 entirety 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").

CRITICAL ACCOUNTING POLICIES
----------------------------

         Management's Discussion and Analysis of Financial Condition and Results
of Operations  discusses our financial  statements,  which have been prepared in
accordance with United States ("U.S.") generally accepted accounting  principles
("GAAP"). The preparation of our financial statements and related disclosures in
conformity with GAAP and our discussion and analysis of our financial  condition
and results of operations requires management to make judgments, assumptions and
estimates  that  affect  the  amounts  reported  in our  consolidated  financial
statements and accompanying  notes. The notes to the Partnership's  December 31,
2008  financial   statements,   primarily  Note  2,  summarize  the  significant
accounting  policies and methods  used in the  preparation  of our  consolidated
financial statements and related disclosures.

         Management  believes the following are critical accounting policies the
application  of which  has a  material  impact  on the  Partnership's  financial
presentation. That is, they are both important to the portrayal of our financial
condition  and  results,  and they  require  management  to make  judgments  and
estimates about matters that are inherently uncertain.

         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  includes  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, 2008. 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  the
Partnership's 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 GAAP, 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 December 31, 2008 financial statements.

                                       14
<PAGE>

         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.

OVERVIEW OF MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS
--------------------------------------------------------------

         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
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 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.

         The self-storage  industry is not immune to the recessionary  pressures
in the general economic  environment.  Demand for self-storage space in the U.S.
has softened and, as a result, the Partnership is experiencing downward pressure
on occupancy levels, rental rates and revenue growth.

         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  potential future increases in rental
income to come  primarily  from increases in realized rent rather than increases
in occupancy, although there can be no assurance.

RESULTS OF OPERATIONS
---------------------

         YEAR ENDED DECEMBER 31, 2008 COMPARED TO YEAR ENDED DECEMBER 31, 2007:

         The  Partnership's  net income for 2008 was $9,250,000,  as compared to
$8,809,000 for 2007,  representing an increase of $441,000 or 5.0%. Property net
operating income (rental income less cost of operations, management fees paid to
an  affiliate  and  depreciation   expense)  increased  $257,000  or  3.5%  from
$7,300,000 in 2007 to $7,557,000 in 2008.

         Rental  income for 2008 was  $11,501,000  compared to  $11,271,000  for
2007,  representing  an increase of  $230,000  or 2.0%.  The  increase in rental
income  is  attributable  primarily  to an  increase  in  the  weighted  average
occupancy levels at the self-storage facilities from 89.0% for 2007 to 89.7% for
2008, as well as an increase in annualized  realized rent for 2008 to $15.75 per
occupied  square foot, as compared to $15.56 per occupied  square foot for 2007.
These  amounts  exclude the property  operated  pursuant to the  management  and
performance  agreement with a subsidiary of PS (the "PS Sub"). See Note 5 to the
Partnership's December 31, 2008 financial statements for additional information.

         We believe  that  demand  for  self-storage  space has been  negatively
impacted  by general  economic  conditions,  the slow down in housing  sales and
moving activity, as well as increased competition.  It is unclear to us how much
we have been  negatively  impacted by these factors,  and how much these factors
may impact us going forward.

         Other income was  $471,000 for 2008,  as compared to $340,000 for 2007,
representing an increase of $131,000 or 38.5%. Included in other income for 2008
are additional access fees paid by PS Insurance Company - Hawaii, Ltd. ("PSIC"),
a corporation  owned by PS (described more fully in Note 5 to the  Partnership's
December 31, 2008 financial statements),  totaling $65,000 for amounts earned in
2007. These additional  access fees were paid in 2008 as a result of a change in
PSIC's accounting  estimates which determine such fees. Included in other income
on our statements of income are access fees totaling  $412,000  (which  includes
the  $65,000  for  amounts  earned  in 2007)  and  $199,000  for 2008 and  2007,
respectively.

                                       15
<PAGE>

         Revenues from  Affiliates  under the  Performance  Agreement  increased
$60,000 or 4.7% to $1,334,000  for 2008 from  $1,274,000 for 2007. See Note 5 to
the Partnership's  December 31, 2008 financial statements for further discussion
of the nature of these revenues.

         Cost of  operations,  including  management  fees paid to an affiliate,
(see Note 5 to the  Partnership's  December 31, 2008 financial  statements)  for
2008 was $3,522,000 compared to $3,550,000 for 2007,  representing a decrease of
$28,000, as reductions in advertising and promotion, repairs and maintenance and
insurance expenses, were mostly offset by increases in payroll,  management fees
and property taxes expenses.

         Depreciation  expense  was  $422,000  and  $421,000  for 2008 and 2007,
respectively, representing an increase of $1,000.

         Administrative  expense  was  $112,000  and  $105,000 in 2008 and 2007,
respectively,  representing  an  increase  of $7,000 or 6.7%.  This  increase is
attributable to increased allocated expenses and professional fees.

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

         The  Partnership's  net income for 2007 was $8,809,000,  as compared to
$8,862,000 for 2006, representing a decrease of $53,000.  Property net operating
income  (rental  income  less  cost of  operations,  management  fees paid to an
affiliate and depreciation expense) decreased $35,000 from $7,335,000 in 2006 to
$7,300,000 in 2007.

         Rental income for 2007 was $11,271,000,  as compared to $11,294,000 for
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
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 the
PS Sub. See Note 5 to the Partnership's  December 31, 2008 financial  statements
for additional information.

         Dividend  income was $23,000 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 for 2007,  as compared to $277,000 for 2006,
representing  an increase of $63,000 or 22.7%.  Included in other  income on our
statements of income are access fees paid by PSIC totaling $199,000 and $110,000
for 2007 and 2006, respectively.

         Revenues from  Affiliates  under the  Performance  Agreement  increased
$49,000 or 4.0% to $1,274,000  for 2007 from  $1,225,000 for 2006. See Note 5 to
the Partnership's  December 31, 2008 financial statements for further discussion
of the nature of these revenues.

         Cost of  operations,  including  management  fees paid to an affiliate,
(see Note 5 to the  Partnership's  December 31, 2008 financial  statements)  for
2007 was $3,550,000 compared to $3,576,000 for 2006,  representing a decrease of
$26,000.  This decrease is  attributable  primarily to reductions in repairs and
maintenance and recruiting  costs,  partially offset by increases in advertising
and promotion and property tax expenses.

         Depreciation  expense  was  $421,000  and  $383,000  for 2007 and 2006,
respectively, representing 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%.  This decrease is
attributable  primarily 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.

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

         Cash generated from operations  ($9,768,000 for the year ended December
31,  2008)  has  been  sufficient  to  meet  all  current   obligations  of  the
Partnership. Capital improvements totaled $419,000 in 2008, $311,000 in 2007 and
$722,000 in 2006. Capital improvements are budgeted at $414,000 for 2009.

                                       16
<PAGE>

         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  to  partners.  As the capital and credit
markets are currently  constrained  and in flux,  there can be no assurance that
the  Partnership  would be able to access any such borrowings in order to do so,
if such a course of action were otherwise deemed necessary.

         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  $6,680,000  ($167.00  per unit) and
$2,317,000,   respectively,  for  the  year  ended  December  31,  2008.  Future
distribution  rates will be adjusted to levels which are  supported by operating
cash flow after capital improvements and any other necessary obligations.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
         ----------------------------------------------------------

         As of December 31, 2008, 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).

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, 2008,  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, 2008.

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

                                       17
<PAGE>

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, 2008.

         This  annual   report   does  not  include  an  audit   report  of  the
Partnership's  independent  registered public accounting firm regarding internal
control over financial  reporting.  Management's report was not subject to audit
by the Partnership's  independent  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.

                                       18
<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:

    Name                         Positions with PS
------------------------    ---------------------------------------------------
B. Wayne Hughes             Chairman of the Board
Ronald L. Havner, Jr.       Chief Executive Officer, Vice Chairman of the Board
                            and President
John Reyes                  Senior Vice President and Chief Financial Officer
Brian J. Fields             Senior Vice President and Chief Legal Officer
Mark C. Good                Senior Vice President and Chief Operating Officer
David F. Doll               Senior Vice President and President, Real Estate
                            Group
Candace N. Krol             Senior Vice President of Human Resources
Dann V. Angeloff            Trustee
William C. Baker            Trustee
John T. Evans               Trustee
Tamara Hughes Gustavson     Trustee
Uri P. Harkham              Trustee
B. Wayne Hughes, Jr.        Trustee
Harvey Lenkin               Trustee
Gary E. Pruitt              Trustee
Daniel C. Staton            Trustee

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

         Ronald  L.  Havner,  Jr.,  age 51,  has been the  Vice-Chairman,  Chief
Executive  Officer and a member of the Board of Public  Storage  since  November
2002 and President  since July 1, 2005. Mr. Havner joined Public Storage in 1986
and held a variety  of senior  management  positions  until his  appointment  as
Vice-Chairman  and Chief Executive Officer in 2002. Mr. Havner has been Chairman
of Public Storage's  affiliate,  PS Business Parks, Inc. (PSB), since March 1998
and was Chief Executive  Officer of PSB from March 1998 until August 2003. 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). He is also
a director of Business Machine Security, Inc., General Finance Corporation and a
member of the NYU REIT Center Board of Advisors.

         John  Reyes,  age 48, a  certified  public  accountant,  joined  Public
Storage in 1990 and was  Controller of Public  Storage from 1992 until  December
1996 when he became  Chief  Financial  Officer.  He became a Vice  President  of
Public Storage in November 1995 and a Senior Vice President of Public Storage in
December 1996. From 1983 to 1990, Mr. Reyes was employed by Ernst & Young.

         Brian J. Fields,  age 46, became Senior Vice  President and Chief Legal
Officer  of Public  Storage on April 1, 2008.  From 1997  until  joining  Public
Storage,  Mr.  Fields was  employed  by  WellPoint,  Inc.,  the  largest  health
insurance company in the United States. At WellPoint,  Mr. Fields held a variety
of legal management positions,  serving most recently as Vice President,  Deputy
General Counsel.

                                       19
<PAGE>

         Mark C. Good, age 52, became Senior Vice President and Chief  Operating
Officer of Public Storage on September 8, 2008.  Before joining Public  Storage,
Mr. Good was with Sears Holdings  Corporation since 1997, where he was Executive
Vice President and General Manager of Sears Home Services,  the nation's largest
home appliance repair and home  improvement  services  organization  with annual
revenues  of  approximately  $3  billion.  Mr. Good also served as a director of
Sears Canada, Inc.

         David F. Doll, age 50, became Senior Vice President and President, Real
Estate  Group,  in  February  2005,  with  responsibility  for the  real  estate
activities of Public Storage,  including  property  acquisitions,  developments,
repackagings, and capital improvements.  Before joining Public Storage, 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 47,  became  Senior  Vice  President  of  Human
Resources in September 2005.  From 1985 until joining Public  Storage,  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 75, 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., and Tamara Hughes  Gustavson,  who are also members of
the PS Board.

         Dann  V.  Angeloff,  age  73,  Chairman  of  the   Nominating/Corporate
Governance  Committee and a member of the Audit Committee,  has been a member 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
PS.  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  75,  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 70, member of the  Nominating/Corporate  Governance
Committee  and the  Compensation  Committee,  became a member of the PS Board 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.

         Tamara  Hughes  Gustavson,  age 47,  became a member of the PS Board in
November 2008.  She was employed by PS from 1978 to 2003,  serving most recently
as Vice President,  Administration. She also serves on the Board of Directors of
the USC-CHLA  Institute for  Pediatric  Clinical  research.  Ms Gustavson is the
daughter of B. Wayne Hughes,  Chairman of the Board, and the sister of B. Wayne.
Hughes, Jr., also a Trustee.

         Uri P. Harkham, age 60, a member of the Compensation Committee,  became
a trustee of the PS Board in March 1993.  Mr. Harkham has been the President and

                                       20
<PAGE>

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 1974. 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.

         B.  Wayne  Hughes,  Jr.,  age 49,  became a trustee  of the PS Board 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,  Chairman of the Board,  and the
brother of Tamara Hughes Gustavson, also a Trustee.

         Harvey  Lenkin,  age 72, became a trustee of the PS Board 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 Hospital,  Pasadena,  California and serves
on the Board of the Ronald McDonald House Charity of Southern California.

         Gary E. Pruitt, age 58, Chairman of the Audit Committee and a member of
the Compensation  Committee,  became a trustee of the PS Board in August 2006 in
connection with the merger of Shurgard Storage Centers, Inc. with 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 56, Chairman of the Compensation  Committee and a
member of the Audit Committee,  became a member of the PS Board 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  FriendFinder  Networks,  Inc.
(formerly  PMGI),  a print and  electronic  media  company  and Chief  Executive
Officer of  Enterprise  Acquisition  Corp.  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 or she 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 or she 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 trustee or executive officer of PS during the past five years.

         The members of the PS Audit  Committee of the Board are: Gary E. Pruitt
(Chairman),  Dann  V.  Angeloff  and  Daniel  C.  Staton.  The  Board  of PS has
determined  that Audit Committee  members,  Gary E. Pruitt and Daniel C. Staton,
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. Pruitt,  Angeloff and Staton 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 may be found on the
PS website at www.publicstorage.com/Corporateinformation/CorpGovernance.apsx and
              --------------------------------------------------------------
available in print by written  request  from the  Secretary of PS at 701 Western
Ave., Glendale, CA 91201-2349.

                                       21
<PAGE>

ITEM 11. EXECUTIVE COMPENSATION
         ----------------------

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

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

     (a) At March 25, 2009, 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,                       13,191 Units (2)          33.0%
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, on January 1, 2009,
            PS exercised its option to acquire from Tamara Hughes Gustavson,  an
            adult daughter of Hughes.

       (2)  Includes  (i) 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  and (ii)  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
trustee of PS,  beneficially owns nine Units (0.02% of the Units).  The trustees
and  executive  officers  of PS  (including  Hughes),  as a group (16  persons),
beneficially own an aggregate of 13,219 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.

                                       22
<PAGE>

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
2008, PS and BWH Marinas received $1,853,000 and $463,000 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  received  $3,117,000  and
$1,035,000, respectively, of cash distributions during 2008.

         The Partnership has a management agreement (the "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 2008,  2007 and 2006, the
Partnership paid fees of $689,000,  $675,000 and $678,000,  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 a subsidiary of PS (the "PS Sub").  Following the commencement
of the Performance  Agreement in March 2001, the facility was initially expanded
to  include  industrial  space,  and  this  industrial  space  was  subsequently
converted  to  self-storage  space.  These  improvements,  along  with any other
subsequent   improvements  or  capital  expenditures  during  the  term  of  the
Performance Agreement, are entirely funded by the PS Sub. During the term of 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  Performance  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").  The  Performance  Agreement
expires on  December  31,  2015,  at which time the  Partnership  will  commence
collecting the actual net operating  income  currently earned by the PS Sub from
operating the Azusa Property,  and the Guaranteed  Amounts will no longer apply.
The PS Sub recorded revenues of $1,984,000,  $2,002,000, and $1,813,000 in 2008,
2007,  and 2006,  respectively,  and  incurred  operating  expenses of $659,000,
$733,000,  and $588,000 in 2008, 2007, and 2006,  respectively,  with respect to
the  operation  of the Azusa  Property.  Capital  expenditures  totaled  $7,000,
$16,000, and $28,000, in 2008, 2007, and 2006,  respectively.  Average occupancy
of the Azusa Property was 84.7%,  65.7%,  and 62.3% during 2008, 2007, and 2006,
respectively.  The lower average  occupancies during 2007 and 2006 are primarily
due to the fill-up of expanded  self-storage  space which was  completed  at the
Azusa property,  and paid for by the PS Sub,  during 2006.  Included in the line
item "revenues from affiliate under performance  agreement" in the Partnership's
accompanying  statements  of income,  is the  Guaranteed  Amounts  earned by the
Partnership under the Performance Agreement. The Partnership recorded a total of
$1,334,000, $1,274,000 and $1,225,000 in revenue with respect to the Performance
Agreement for the years ended December 31, 2008, 2007 and 2006, 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  December 31, 2008  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, 2008, 2007 and 2006 were $103,000, $88,000 and $97,000,
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
$1,352,000,  $1,499,000,  and  $1,563,000 for the years ended December 31, 2008,
2007, and 2006, respectively.

         The Trustees of PS are identified in Item 10 on page 19 of this report.

                                       23
<PAGE>

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
         --------------------------------------

         Fees billed to the  Partnership  by Ernst & Young LLP for 2008 and 2007
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 each of
the years ended December 31, 2008 and 2007.

         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 each of the years ended December 31, 2008 and
2007.

         Audit-Related  Fees and Other Fees:  During 2008 and 2007 Ernst & Young
LLP did not  bill  the  Partnership  for  audit-related  services  or any  other
services, except audit services and tax services denoted above.

         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.


                                       24
<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.


                                       25
<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   Rule 13a - 14(a) Certification. Filed herewith.

31.2   Rule 13a - 14(a) Certification. Filed herewith.

32     Section 1350 Certifications. Filed herewith.




                                       26
<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 25, 2009           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



                                       27
<PAGE>


         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>
                                                 Vice Chairman of the Board, Chief Executive
                                                 Officer and President of Public Storage, Corporate
/s/ Ronald L. Havner Jr.                         General Partner                                            March 25, 2009
---------------------------------------
Ronald L. Havner, Jr.

                                                 General Partner and Chairman of the Board of
/s/ B. Wayne Hughes                              Public Storage                                             March 25, 2009
---------------------------------------
B. Wayne Hughes

                                                 Senior Vice President and Chief Financial Officer
                                                 of Public Storage (principal financial officer and
/s/ John Reyes                                   principal accounting officer)                              March 25, 2009
---------------------------------------
John Reyes

/s/ Dann V. Angeloff                             Trustee of Public Storage                                  March 25, 2009
---------------------------------------
Dann V. Angeloff

/s/ William Baker                                Trustee of Public Storage                                  March 25, 2009
---------------------------------------
William C. Baker

/s/ John T. Evans                                Trustee of Public Storage                                  March 25, 2009
---------------------------------------
John T. Evans

/s/ Tamara Hughes Gustavson                      Trustee of Public Storage                                  March 25, 2009
---------------------------------------
Tamara Hughes Gustavson

/s/ Uri P. Harkham                               Trustee of Public Storage                                  March 25, 2009
---------------------------------------
Uri P. Harkham

/s/ B. Wayne Hughes, Jr.                         Trustee of Public Storage                                  March 25, 2009
---------------------------------------
B. Wayne Hughes, Jr.

/s/ Harvey Lenkin                                Trustee of Public Storage                                  March 25, 2009
---------------------------------------
Harvey Lenkin

/s/ Gary E. Pruitt                               Trustee of Public Storage                                  March 25, 2009
---------------------------------------
Gary E. Pruitt

/s/ Daniel C. Staton                             Trustee of Public Storage                                  March 25, 2009
---------------------------------------
Daniel C. Staton

</TABLE>

                                       28
<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, 2008 and 2007                         F-2

For each of the years ended December 31, 2008, 2007 and 2006:

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-12

Schedule:

III - Real estate and accumulated depreciation                  F-13 - F-14

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.


<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,  2008 and 2007,  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, 2008.  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, 2008 and 2007,  and the results of its  operations  and its
cash flows for each of the three years in the period ended December 31, 2008, 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 25, 2009
Los Angeles, California

                                      F-1
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                                 BALANCE SHEETS
                           December 31, 2008 and 2007

<TABLE>
<CAPTION>

                                                                  December 31,        December 31,
                                                                      2008               2007
                                                                 ----------------    -----------------

                                     ASSETS

<S>                                                              <C>                  <C>
Cash and cash equivalents                                        $    1,139,000       $     787,000
Rent and other receivables                                               74,000              85,000

Real estate facilities, at cost:
     Buildings and equipment                                         20,358,000          19,939,000
     Land                                                             5,021,000           5,021,000
                                                                 ----------------    -----------------
                                                                     25,379,000          24,960,000

     Less accumulated depreciation                                  (18,642,000)        (18,220,000)
                                                                 ----------------    -----------------
                                                                      6,737,000           6,740,000

Other assets                                                            124,000             140,000
                                                                 ----------------    -----------------
Total assets                                                     $    8,074,000       $   7,752,000
                                                                 ================    =================
                        LIABILITIES AND PARTNERS' EQUITY

Accounts payable and accrued liabilities                         $      270,000       $     173,000
Deferred revenue                                                        297,000             325,000
                                                                 ----------------    -----------------
         Total liabilities                                              567,000             498,000

Commitments and contingencies (Note 8)

Partners' equity:
     Limited partners' equity, $500 per unit, 40,000 units
       authorized, issued and outstanding                             5,574,000           5,386,000
     General partners' equity                                         1,933,000           1,868,000
                                                                 ----------------    -----------------
     Total partners' equity                                           7,507,000           7,254,000
                                                                 ----------------    -----------------
Total liabilities and partners' equity                           $    8,074,000       $   7,752,000
                                                                 ================    =================
</TABLE>

                            See accompanying notes.
                                      F-2
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
              For the years ended December 31, 2008, 2007 and 2006

<TABLE>
<CAPTION>

                                                        2008                2007             2006
  REVENUES:                                          --------------    --------------   --------------
<S>                                                  <C>               <C>              <C>
  Rental income                                      $ 11,501,000      $  11,271,000    $ 11,294,000
  Dividends from marketable securities of affiliate             -                  -          23,000
  Other income                                            471,000            340,000         277,000
  Revenues from affiliate under
      performance agreement                             1,334,000          1,274,000       1,225,000
                                                     --------------    --------------   --------------
                                                       13,306,000         12,885,000      12,819,000
                                                     --------------    --------------   --------------
  COSTS AND EXPENSES:

  Cost of operations                                    2,833,000          2,875,000       2,898,000
  Management fees paid to affiliate                       689,000            675,000         678,000
  Depreciation                                            422,000            421,000         383,000
  Administrative                                          112,000            105,000         163,000
                                                     --------------    --------------   --------------
                                                        4,056,000          4,076,000       4,122,000
                                                     --------------    --------------   --------------
  Net income before gain                                9,250,000          8,809,000       8,697,000

  Casualty gain                                                 -                  -          31,000
  Gain on disposition of marketable securities of
    affiliate                                                   -                  -         134,000
                                                     --------------    --------------   --------------
  NET INCOME:                                        $  9,250,000      $   8,809,000    $  8,862,000
                                                     ==============    ==============   ==============
  Limited partners' share of net income              $  6,931,000      $   6,054,000    $  6,613,000
  General partners' share of net income                 2,319,000          2,755,000       2,249,000
                                                     --------------    --------------   --------------
                                                     $  9,250,000      $   8,809,000    $  8,862,000
                                                     ==============    ==============   ==============
  COMPREHENSIVE INCOME:

  Net income                                         $  9,250,000      $   8,809,000    $  8,862,000
  Other comprehensive income:
    Change in unrealized gain on marketable
       securities of affiliate                                  -                  -           7,000
    Realized gain on disposition of marketable
       securities of affiliate                                  -                  -        (134,000)
                                                     --------------    --------------   --------------
                                                     $  9,250,000      $   8,809,000    $  8,735,000
                                                     ==============    ==============   ==============
  Limited partners' share of net income per unit
    (40,000 units outstanding)                       $     173.28      $      151.35    $     165.33
                                                     ==============    ==============   ==============
</TABLE>

                            See accompanying notes.
                                       F-3
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                         STATEMENTS OF PARTNERS' EQUITY
              For the years ended December 31, 2008, 2007 and 2006

<TABLE>
<CAPTION>

                                                                                          Other
                                                   Limited            General         Comprehensive      Total Partners'
                                                  Partners'          Partners'            Income             Equity
                                              ------------------ -----------------  -----------------  ------------------
<S>                                           <C>                <C>                <C>                <C>
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

Net income                                           6,931,000          2,319,000                  -          9,250,000

Cash distributions                                  (6,680,000)        (2,317,000)                 -         (8,997,000)

Equity transfer                                        (63,000)            63,000                  -                  -
                                              ------------------ -----------------  -----------------  ------------------
Balance at December 31, 2008                  $      5,574,000   $      1,933,000   $              -   $      7,507,000
                                              ================== =================  =================  ==================
</TABLE>

                            See accompanying notes.
                                      F-4
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                            STATEMENTS OF CASH FLOWS
              For the years ended December 31, 2008, 2007 and 2006

<TABLE>
<CAPTION>

                                                                                    2008                2007              2006
Cash flows from operating activities:                                           --------------      -------------     -------------
<S>                                                                              <C>                <C>               <C>
     Net income                                                                  $  9,250,000       $  8,809,000      $  8,862,000
     Adjustments to reconcile net income to net cash provided
       by operating activities:
         Depreciation                                                                 422,000            421,000           383,000
         Decrease in rent and other receivables                                        11,000            112,000             4,000
         Decrease (increase) in other assets                                           16,000             13,000           (70,000)
         Casualty gain                                                                      -                  -           (31,000)
         Gain on disposition of marketable securities of affiliate                          -                  -          (134,000)
         Increase (decrease) in accounts payable and accrued liabilities               97,000            (20,000)            4,000
         (Decrease) increase in deferred revenue                                      (28,000)            12,000            (8,000)
                                                                                --------------      -------------     -------------
              Total adjustments                                                       518,000            538,000           148,000
                                                                                --------------      -------------     -------------
              Net cash provided by operating activities                             9,768,000          9,347,000         9,010,000
                                                                                --------------      -------------     -------------
Cash flows from investing activities:

    Proceeds from disposition of marketable securities of affiliate                         -                  -           393,000
     Additions to real estate facilities                                             (419,000)          (311,000)         (722,000)
                                                                                --------------      -------------     -------------
              Net cash used in investing activities                                  (419,000)          (311,000)         (329,000)
                                                                                --------------      -------------     -------------
Cash flows from financing activities:

     Distributions paid to partners                                                (8,997,000)       (10,774,000)       (8,727,000)
                                                                                --------------      -------------     -------------
              Net cash used in financing activities                                (8,997,000)       (10,774,000)       (8,727,000)
                                                                                --------------      -------------     -------------
Net increase (decrease) in cash and cash equivalents                                  352,000         (1,738,000)          (46,000)

Cash and cash equivalents at the beginning of the year                                787,000          2,525,000         2,571,000
                                                                                --------------      -------------     -------------
Cash and cash equivalents at the end of  the year                                $  1,139,000       $    787,000      $  2,525,000
                                                                                ==============      =============     =============
Supplemental schedule of non-cash investing and financing activities: Changes in
     fair market value of marketable securities:
         Marketable securities                                                   $          -       $          -      $     (7,000)
         Other comprehensive income                                                         -                  -             7,000

    Insurance receivable for hurricane damage                                               -                  -            34,000
</TABLE>

                            See accompanying notes.
                                      F-5
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2008


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, 2008


         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 a change in unrealized gain (loss) on marketable
         equity  securities  in 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 for the year ended December
         31, 2006.

              During  December  2006,  the  Partnership  sold all its marketable
         securities,  consisting of 624 shares of Public  Storage,  Inc.  common
         stock and 12,412 depository shares of Equity Stock,  Series A of Public
         Storage,  Inc.  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.

         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, 2008.

              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,  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, 2008.

              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.

                                      F-7


<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2008


         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 contingent proceeds in accordance
         with Statement of Financial  Accounting Standards No. 5 ("SFAS 5"), and
         not recorded until the uncertainties are satisfied.

              In 2006, we  re-evaluated  the damage  caused by Hurricane  Wilma,
         which  occurred in the fourth  quarter of 2005,  as well as the cost to
         repair this damage and any related  insurance  proceeds.  Based on this
         re-evaluation, we recorded an additional casualty gain of $31,000. This
         gain represents the additional insurance proceeds that we received.

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

              Deferred revenue totaling  $297,000 at December 31, 2008 ($325,000
         at December 31, 2007),  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  income tax expense is recorded by
         the Partnership.

         Recent Accounting Pronouncements and Guidance:
         ----------------------------------------------

              As of  March  25,  2009,  there  have  been no  recent  accounting
         pronouncements   and   guidance,   which   were   not   effective   for
         implementation  prior to December 31, 2008,  that would have a material
         impact upon  reporting  the  operations  or  financial  position of the
         Partnership.

         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 2008, we paid cash  distributions to the limited and

                                      F-8
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2008


         general partners totaling $6,680,000 ($167.00 per unit) and $2,317,000,
         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 transfers 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  (the  "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 2008, 2007 and 2006, the  Partnership  paid PS $689,000,
         $675,000 and $678,000, 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 a subsidiary of PS (the
         "PS Sub").  Following the commencement of the Performance  Agreement in
         March 2001, the facility was initially  expanded to include  industrial
         space,  and  this  industrial  space  was  subsequently   converted  to
         self-storage space. These improvements, along with any other subsequent
         improvements or capital expenditures during the term of the Performance
         Agreement,  are entirely  funded by the PS Sub.  During the term of 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 Performance 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").  The Performance Agreement expires
         on December  31,  2015,  at which time the  Partnership  will  commence
         collecting the actual net operating  income  currently earned by the PS
         Sub from operating the Azusa Property,  and the Guaranteed Amounts will
         no  longer  apply.   The  PS  Sub  recorded   revenues  of  $1,984,000,
         $2,002,000,  and $1,813,000 in 2008, 2007, and 2006, respectively,  and
         incurred  operating  expenses of  $659,000,  $733,000,  and $588,000 in
         2008,  2007, and 2006,  respectively,  with respect to the operation of
         the Azusa Property.  Capital expenditures totaled $7,000,  $16,000, and
         $28,000,  in 2008,  2007,  and 2006,  respectively.  Average  occupancy
         (unaudited)  of the Azusa Property was 84.7%,  65.7%,  and 62.3% during

                                      F-9
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2008


         2008,  2007,  and 2006,  respectively.  The lower  average  occupancies
         during  2007 and 2006 are  primarily  due to the  fill-up  of  expanded
         self-storage space which was completed at the Azusa property,  and paid
         for by the PS Sub,  during  2006.  Included in the line item  "revenues
         from  affiliate  under  performance  agreement"  in  the  Partnership's
         accompanying  statements of income, is the Guaranteed Amounts earned by
         the Partnership under the Performance Agreement.

              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 based
         upon the related  activities.  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 included
         in  cost  of  operations  on our  accompanying  statements  of  income,
         amounted to $1,170,000,  $1,198,000, and $1,304,000 for the years ended
         December 31, 2008, 2007 and 2006, 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.  On January 1, 2009, PS exercised
         its option to acquire these Units for a cost of approximately $136,000.

              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
         management and related individuals own approximately 6%.

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

              The  Partnership  has a 1.8% 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 in our accompanying balance sheets, on the cost method,
         and has received no distributions during the three years ended December
         31, 2008.

              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  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):

                                      F-10
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2008


                                                          2008        2007
                                                     ------------  ------------
                                                        (Amounts in thousands)
   For the year ended December 31,
   -------------------------------
   Net investment income...........................   $     675     $     871
   Loss and loss adjustment expense................        (500)          855
   Other expenses..................................        (258)         (248)
                                                     ------------  ------------
   Net income (loss)...............................   $     (83)    $   1,478
                                                     ============  ============
   At December 31,
   ---------------
   Total assets (primarily cash and other
      investments).................................   $  20,162     $  21,732
   Liabilities for losses and loss adjustment             4,946         6,917
      expenses.....................................
   Other liabilities...............................         725           764
   Member's surplus................................      14,491        14,051

              Premiums paid to the Captive Entities for the years ended December
         31,  2008,   2007  and  2006  were   $103,000,   $88,000  and  $97,000,
         respectively.

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

              PS Insurance Company - Hawaii,  Ltd. ("PSIC"),  a corporation that
         reinsures  policies  against  losses to goods  stored by tenants in the
         Partnership's  and PS' storage  facilities.  PSIC receives the premiums
         and bears the risks associated with the  re-insurance.  The Partnership
         receives a fee (an  "Access  Fee")  from PSIC in return  for  providing
         tenant  listings.  This Access 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 Access Fees are  $412,000,  $199,000 and
         $110,000  for the  years  ended  December  31,  2008,  2007  and  2006,
         respectively.  Included in other income for 2008 are additional  Access
         Fees paid by PSIC totaling  $65,000 for amounts  earned in 2007.  These
         additional  Access  Fees  were  paid in 2008 as a result of a change in
         PSIC's accounting estimates which determine such fees.

              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  $9,113,000,  $8,715,000  and
         $8,857,000  for the  years  ended  December  31,  2008,  2007  and 2006
         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, 2008


7.       SUPPLEMENTARY QUARTERLY FINANCIAL DATA (UNAUDITED)
<TABLE>
<CAPTION>

                                                                           Three Months Ended
                                            -------------------------------------------------------------------------------
                                            March 31, 2008      June 30, 2008      September 30, 2008     December 31, 2008
                                            ---------------    ----------------    ------------------     -----------------
<S>                                          <C>                <C>                 <C>                   <C>
Rental Income                                $    2,804,000     $    2,895,000      $    2,975,000        $    2,827,000
Cost of Operations (including
   management fees and depreciation)         $    1,004,000     $    1,034,000      $    1,008,000        $      898,000
Net Income                                   $    2,184,000     $    2,206,000      $    2,522,000        $    2,338,000
Net Income Per Limited Partner Unit          $        41.05     $        41.28      $        47.08        $        43.87
Cash Distributions                           $    2,101,000     $    2,155,000      $    2,478,000        $    2,263,000
</TABLE>

<TABLE>
<CAPTION>

                                                                           Three Months Ended
                                            -------------------------------------------------------------------------------
                                            March 31, 2008      June 30, 2008      September 30, 2008     December 31, 2008
                                            ---------------    ----------------    ------------------     -----------------
<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
</TABLE>


8.       COMMITMENTS AND CONTINGENCIES

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

         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.  The  plaintiff  has filed an appeal to the Court's June 22,
         2007 summary judgment ruling. On October 28, 2008, the Court of Appeals
         sustained the trial court's ruling.  The plaintiff filed a petition for
         review with the California Supreme Court, which was granted but further
         action  in  this  matter  was  deferred   pending   consideration   and
         disposition of a related issue in Brinker  Restaurant Corp. v. Superior
         Court which is currently pending before the California Supreme Court.

         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-12
<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            $398,000
Tustin                               517,000          844,000             517,000
Pasadena                             379,000          496,000             311,000
Azusa                                501,000        1,093,000             386,000
Redlands                             227,000          771,000             410,000
Riverside                             51,000          595,000             365,000
Oakland                              177,000          650,000             406,000
Richmond                             225,000          639,000             444,000
Santa Clara                          633,000        1,156,000             614,000
San Carlos                           396,000          902,000             239,000
Sacramento/Howe                      194,000          666,000             358,000
Sacramento/West Capitol              100,000          719,000             697,000

    FLORIDA
Miami/Airport Expressway             186,000          442,000             405,000
Miami/Cutler Ridge                   525,000          901,000             198,000
Pembroke Park                        255,000          607,000             583,000
Ft. Lauderdale/I-95 & 23rd Ave.      243,000          611,000             573,000
Ft. Lauderdale/I-95 & Sunrise        286,000          690,000             644,000
                                 -------------   -------------     -----------------
                                  $5,244,000      $12,587,000          $7,548,000
                                 =============   =============     =================
</TABLE>

<TABLE>
<CAPTION>

                                             Gross Carrying Amount
                                              at December 31, 2008
                                 -----------------------------------------------

                                                 Buildings &                        Accumulated          Date
         Description               Land           Equipment            Total        Depreciation       Completed
-----------------------------    ------------   ---------------     ------------    -------------    --------------
    CALIFORNIA
<S>                                 <C>            <C>               <C>              <C>                <C>
Concord                             $349,000       $1,203,000        $1,552,000       $1,098,000         01/79
Tustin                               517,000        1,361,000         1,878,000        1,231,000         12/78
Pasadena                             379,000          807,000         1,186,000          739,000         11/79
Azusa                                501,000        1,479,000         1,980,000        1,410,000         11/78
Redlands                             227,000        1,181,000         1,408,000        1,085,000         02/79
Riverside                             51,000          960,000         1,011,000          932,000         05/79
Oakland                              177,000        1,056,000         1,233,000          996,000         04/79
Richmond                             225,000        1,083,000         1,308,000        1,012,000         03/79
Santa Clara                          633,000        1,770,000         2,403,000        1,604,000        6 & 7/79
San Carlos                           396,000        1,141,000         1,537,000        1,119,000         10/79
Sacramento/Howe                      194,000        1,024,000         1,218,000          974,000         08/79
Sacramento/West Capitol              100,000        1,416,000         1,516,000        1,129,000         06/79

    FLORIDA
Miami/Airport Expressway             186,000          847,000         1,033,000          781,000         01/79
Miami/Cutler Ridge                   302,000        1,322,000         1,624,000        1,144,000         04/79
Pembroke Park                        255,000        1,190,000         1,445,000        1,086,000         07/79
Ft. Lauderdale/I-95 & 23rd Ave.      243,000        1,184,000         1,427,000        1,065,000         07/79
Ft. Lauderdale/I-95 & Sunrise        286,000        1,334,000         1,620,000        1,237,000         10/79
                                 ------------   ---------------     ------------    -------------
                                  $5,021,000      $20,358,000       $25,379,000      $18,642,000
                                 ============   ================    ============    =============

</TABLE>
Note:    Buildings are depreciated over a useful life of 25 years.

                                      F-13
<PAGE>


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


           Reconciliation of Real Estate and Accumulated Depreciation

<TABLE>
<CAPTION>

                                                             2008                     2007
                                                      -------------------      ------------------
Investment in Real Estate
<S>                                                   <C>                      <C>
   Balance at the beginning of the year               $       24,960,000       $       24,649,000

   Additions through capital expenditures                        419,000                  311,000
                                                      -------------------      ------------------
Balance at the end of the year                        $       25,379,000       $       24,960,000
                                                      ===================      ==================

Accumulated Depreciation
   Balance at the beginning of the year               $       18,220,000       $       17,799,000

   Depreciation expense                                          422,000                  421,000
                                                      -------------------      ------------------
   Balance at the end of the year                     $       18,642,000       $       18,220,000
                                                      ===================      ==================
</TABLE>

    (a)  The aggregate  depreciable cost, prior to depreciation,  of real estate
         (excluding  land)  for  federal  income  tax  purposes  is  $18,691,000
         (unaudited).



                                      F-14
<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 25, 2009

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

31.1           Rule 13a - 14(a) Certification. Filed herewith.

31.2           Rule 13a - 14(a) Certification. Filed herewith.

32             Section 1350 Certifications. Filed herewith.