UNITED STATES
                       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 [Fee Required]

For the fiscal year ended December 31, 1997

                                       or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 [No Fee Required]

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
----------------------------------------                -----------------------
(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 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 of any
amendment to the form 10-K. [ X ]

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      NONE


<PAGE>


                                     PART I
ITEM 1.       BUSINESS.
              ---------

General
-------

         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 was completed in November 1978.

         In  1995,   there  were  a  series  of  mergers  among  Public  Storage
Management,  Inc. (which was the Partnership's  mini-warehouse operator), Public
Storage,  Inc. (which was one of the Partnership's general partners) ("old PSI")
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. ("PSI") and
PSI acquired  substantially  all of PSMI's United States real estate  operations
and became a  co-general  partner of the  Partnership  and the  operator  of the
Partnership's mini-warehouse properties.

         The  Partnership's  general  partners  are  PSI  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 and chief  executive  officer of PSI,  and  Hughes and  members of his
family (the "Hughes Family") are the major shareholders of PSI.

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

         The  Partnership's  objectives  are to (i) maximize the  potential  for
appreciation  in  value  of  the  Partnership's  properties  and  (ii)  generate
sufficient cash flow from operations to pay all expenses,  including the payment
of interest to  Noteholders.  All of the  properties  were financed in September
1988.

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

Investments in Facilities
-------------------------

         At December  31,  1997,  the  Partnership  owned 17  properties  in two
states.

         The Partnership believes that its operating results have benefited from
favorable   industry   trends  and  conditions.   Notably,   the  level  of  new
mini-warehouse  construction  has decreased since 1988 while consumer demand has
increased.  In  addition,  in recent  years  consolidation  has  occurred in the
fragmented mini-warehouse industry.

         Mini-warehouses  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 resident  managers who are  supervised by area managers.
Some  mini-warehouses  also include rentable uncovered parking areas for vehicle
storage.  Leases for  mini-warehouse  space may be on a long-term or  short-term
basis,  although typically spaces are rented on a month-to-month  basis.  Rental
rates vary according to the location of the property and the size of the storage
space.

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

         Mini-warehouses in which the Partnership has invested generally consist
of three to seven  buildings  containing  an  aggregate  of  between  350 to 750
storage  spaces,  most of  which  have  between  25 and 400  square  feet and an
interior height of approximately 8 to 12 feet.


                                       2
<PAGE>



         The  Partnership   experiences  minor  seasonal   fluctuations  in  the
occupancy levels of mini-warehouses 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  mini-warehouses  are geographically  diversified 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
mini-warehouses to alternative uses in connection with a sale or otherwise would
generally require substantial  capital  expenditures.  However,  the Partnership
does not intend to convert its mini-warehouses to other uses.

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

         The Partnership's mini-warehouses are operated by PSI under the "Public
Storage" name, which the Partnership believes is the most recognized name in the
mini-warehouse  industry.  The major  elements  of the  Partnership's  operating
strategies are as follows:

     * Capitalize on "Public Storage's" name recognition. PSI, together with its
     predecessor,  has  more  than  20  years  of  operating  experience  in the
     mini-warehouse  business.  PSI has informed the Partnership  that it is the
     largest  mini-warehouse  facility operator in the United States in terms of
     both number of facilities  and rentable space  operated.  PSI believes that
     its marketing and advertising  programs improve its competitive position in
     the  market.   PSI's  in-house   Yellow  Pages  staff  designs  and  places
     advertisements in approximately 700 directories.  Commencing in early 1996,
     PSI began to experiment  with a telephone  reservation  system  designed to
     provide added customer  service.  Customers  calling either PSI's toll-free
     telephone referral system, (800) 44-STORE, or a mini-warehouse facility are
     directed  to  PSI's  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 PSI. The telephone  reservation system supports rental activity
     at all of the Partnership's properties.  PSI's toll-free telephone referral
     system  services  approximately  160,000  calls  per month  from  potential
     customers inquiring as to the nearest Public Storage mini-warehouse.

     * Maintain high occupancy  levels and increase  realized rents.  Subject to
     market  conditions,  the  Partnership  generally  seeks to achieve  average
     occupancy  levels  in excess of 90% and to  eliminate  promotions  prior to
     increasing   rental  rates.   Average   occupancy  for  the   Partnership's
     mini-warehouses has increased from 89% in 1996 to 93% 1997. The Partnership
     has  increased  rental  rates in many markets  where it has  achieved  high
     occupancy levels and eliminated or minimized promotions.

     * Systems and controls. PSI has an organizational  structure and a property
     operation system, "CHAMP" (Computerized Help and Management Program), which
     links its corporate  office with each  mini-warehouse.  This enables PSI to
     obtain  daily   information  from  each   mini-warehouse   and  to  achieve
     efficiencies in operations and maintain  control over its space  inventory,
     rental rates,  promotional discounts and delinquencies.  Expense management
     is achieved through  centralized payroll and accounts payable systems and a
     comprehensive  property  tax appeals  department  and PSI has an  extensive
     internal  audit  program   designed  to  ensure  proper  handling  of  cash
     collections.

     * Professional  property  operation.  There are approximately 3,800 persons
     who render  services for the Public  Storage  system,  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 PSI and others owners of properties operated by PSI.


                                       3
<PAGE>



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

         The   Partnership's    mini-warehouses   are   managed   by   PSI   (as
successor-in-interest  to PSMI) under a Management  Agreement.  PSI has informed
the Partnership that it is the largest  mini-warehouse  facility operator in the
United States in terms of both number of facilities and rentable space operated.

         Under the supervision of the Partnership, PSI 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.

         PSI  engages,  at the  expense of the  Partnership,  employees  for the
operation  of  the  Partnership's   facilities,   including  resident  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 PSI.

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

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

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

         For as long as the Management  Agreement is in effect,  PSI has granted
the Partnership a non-exclusive license to use two PSI 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  except as  described
below.  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 PSI provides that
the Management  Agreement may be terminated  without cause upon 60 days' written
notice by either party.

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

         Competition  in the market areas in which the  Partnership  operates is
significant  and  affects  the  occupancy  levels,  rental  rates and  operating
expenses  of  certain  of  the  Partnership's  facilities.  Competition  may  be
accelerated  by any increase in  availability  of funds for  investment  in real
estate. Recent increases in plans for development of mini-warehouses is expected
to further  intensify  competition  among  mini-warehouse  operators  in certain
market areas. In addition to competition from  mini-warehouses  operated by PSI,
there are three other national firms and numerous  regional and local operators.
The Partnership believes that the significant operating and financial experience
of PSI, and the "Public Storage" name, should enable the Partnership to continue
to compete effectively with other entities.

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

         A corporation  owned by the Hughes Family  reinsures  policies  against
losses to goods  stored by tenants  in the  Partnership's  mini-warehouses.  The
Partnership  believes that the  availability of insurance  reduces the potential
liability of the  Partnership to tenants for losses to their goods from theft or
destruction.  This  corporation  receives  the  premiums  and  bears  the  risks
associated with the insurance.


                                       4
<PAGE>



         A corporation,  in which PSI has a 95% economic interest and the Hughes
Family has a 5% economic interest,  sells locks, boxes and tape to tenants to be
used in securing  their  spaces and moving their  goods.  PSI believes  that the
availability of locks, boxes and tape for sale promotes the rental of spaces.

Employees
---------

         There are 54 persons who render services on behalf of the  Partnership.
These persons include resident managers,  assistant  managers,  relief managers,
district managers, and administrative  personnel. Some employees may be employed
on a part-time basis and may be employed by other persons,  Partnerships,  REITs
or other entities owning facilities operated by PSI.

Year 2000 Compliance
--------------------

         PSI has completed an initial  assessment of its computer  systems.  The
majority of the computer  programs were  installed or upgraded over the past few
years and are Year 2000 compliant.  Some of the older computer programs utilized
by PSI were written without regard for Year 2000 issues and could cause a system
failure or miscalculations with possible disruption of operations. Each of these
computer  programs and systems has been  evaluated to be upgraded or replaced as
part of PSI Year 2000 project.

         The cost of the Year 2000 project  will be  allocated to all  companies
that use the PSI computer  systems.  The cost of the Year 2000 project  which is
expected to be  allocated to the Company is less than  $50,000.  The cost of new
software will be capitalized and the cost of existing  software will be expensed
as incurred.

         The  project is  expected  to be  completed  by March 31, 1999 which is
prior to any  anticipated  impact on operating  systems.  PSI believes that with
modifications to existing software and, in some instances, the conversion to new
software,  the Year 2000 issue will not pose significant  operational  problems.
However,  if such  modifications are not made, or are not completed timely,  the
Year 2000 issue could have a material impact on the operations of the Company.

         The costs of the  project  and the date on which PSI  believes  it will
complete the Year 2000  modifications  are based on management's best estimates,
which were derived utilizing numerous assumptions of future events. There can be
no guarantee  that these  estimates  will be achieved and actual  results  could
differ materially from those anticipated.


                                       5
<PAGE>



ITEM 2.       PROPERTIES.
              -----------
         The  following  table sets forth  information  as of December  31, 1997
about properties owned by the Partnership:

<TABLE>
<CAPTION>
                                                  Net Rentable         Number of
         Location             Size of Parcel         Area               Spaces          Date of Purchase    Completion Date
--------------------------    --------------    ----------------       ---------        ----------------    ---------------
        CALIFORNIA
<S>                             <C>              <C>                       <C>            <C>                       <C>
Azusa                           5.85 acres       105,000 sq. ft.           941            July 14, 1978        Nov. 1978

Concord                         2.87 acres        52,000 sq. ft.           525            June 20, 1978        Jan. 1979

Oakland                         1.97 acres        41,000 sq. ft.           370            Oct. 11, 1978        Apr. 1979

Pasadena                        1.82 acres        37,000 sq. ft.           339            July 19, 1978        Nov. 1978

Redlands                        3.44 acres        63,000 sq. ft.           580            Aug. 24, 1978        Feb. 1979

Richmond                        1.82 acres        35,000 sq. ft.           352            Aug. 23, 1978        Mar. 1979

Riverside                       2.47 acres        45,000 sq. ft.           393            Jan. 2, 1979          May 1979

Sacramento
   Howe Avenue                  2.36 acres        41,000 sq. ft.           386            Dec. 14, 1978        Aug. 1979
                                     .
Sacramento
   West Capitol                 3.38 acres        44,000 sq. ft.           457            Jan. 5, 1979         June 1979

San Carlos                      2.80 acres        51,000 sq. ft.           458            Jan. 30, 1979        Oct. 1979

Santa Clara                     4.45 acres        75,000 sq. ft.           698            Dec. 22, 1978      June 1979 and
                                                                                                               July 1981

Tustin                          4.40 acres        67,000 sq. ft.           559            July 3, 1978         Dec. 1978

          FLORIDA
Miami Airport
   Expressway                   1.70 acres        29,000 sq. ft.           274            Aug. 24, 1978        Jan. 1979

Miami (1)
   Cutler Ridge                 4.00 acres        46,000 sq. ft.           481            Sept. 6, 1978        Apr. 1979

Pembroke Park (2)               2.35 acres        49,000 sq. ft.           446            Sept. 1, 1978        July 1979

Ft. Lauderdale
   I95 & 23rd Ave.              2.77 acres        45,000 sq. ft.           504            Nov. 9, 1978         Sept. 1979

Ft. Lauderdale
   I95 & Sunrise                3.32 acres        56,000 sq. ft.           558            Dec. 4, 1979         Sept. 1979

---------------
</TABLE>

(1) On August 24, 1992, this property was damaged by Hurricane  Andrew and, as a
    result,  the  facility  became idle as of this date.  The  facility has been
    rebuilt and recommenced operations in October 1994.

(2) In 1995, the Partnership sold  approximately  4,729 sq. ft. of this property
    to the State of Florida under a condemnation proceeding.


                                       6
<PAGE>



         Substantially all of the  Partnership's  facilities were acquired prior
to the time that it was  customary to conduct  environmental  investigations  in
connection with property  acquisitions.  During 1995, the Partnership  completed
environmental  assessments  of its  properties  to  evaluate  the  environmental
condition of, and potential environmental liabilities of such properties.  These
assessments  were performed by an  independent  environmental  consulting  firm.
Based on the  assessments,  the Partnership  expensed  $26,000 in 1995 for known
environmental remediation requirements.

         The properties are held subject to encumbrances  which are described in
this report under Note 7 of the Notes to the  Financial  Statements  included in
Item 14(a).

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

         No material legal proceeding is pending against 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 1997.

                                     PART II

ITEM 5.       MARKET FOR THE PARTNERSHIP'S COMMON EQUITY AND RELATED STOCKHOLDER
              -----------------------------------------------------------------
              MATTERS.
              --------

         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 have purchased  Units.  However,
the General Partners do not have  information  regarding the prices at which all
secondary  sale  transactions  in  the  Units  have  been  effectuated.  Various
organizations  offer  to  purchase  and  sell  limited   partnership   interests
(including  securities  of the  type  such  as the  Units)  in  secondary  sales
transactions.  Various  publications  such as The Stanger  Report  summarize and
report  information (on a monthly,  bimonthly or less frequent basis)  regarding
secondary sales transactions in certain 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, 1997, there were approximately 1,120 record holders of Units.

         In May 1997,  B.  Wayne  Hughes  ("Hughes")  a general  partner  of the
Partnership,  completed  a cash tender  offer,  which  commenced  in March 1997,
pursuant to which Hughes acquired a total of 5,003 limited  partnership units at
$447 per Unit.

         Distributions to the general and limited partners of all cash available
for  distribution  have been made quarterly.  Cash available for distribution is
generally  funds from  operations  of the  Partnership,  without  deduction  for
depreciation,  but after  deducting  funds to pay or establish  reserves for all
other expenses (other than incentive  distributions to the general partners) and
capital  improvements,  plus net  proceeds  from any  sale or  financing  of the
Partnership's  properties. In the third quarter of 1991, quarterly distributions
were  discontinued  to enable the  Partnership  to  increase  its  reserves  for
principal  repayments that commenced in 1990 and will continue  through 1998, at
which time the entire remaining principal balance will be payable.

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


                                       7
<PAGE>



                       PUBLIC STORAGE PROPERTIES IV, LTD.


ITEM 6.       SELECTED FINANCIAL DATA.
              ------------------------
<TABLE>
<CAPTION>

For the Year Ended December 31,             1997             1996              1995              1994              1993
-------------------------------        --------------   --------------    --------------    --------------    --------------

<S>                                    <C>              <C>               <C>               <C>               <C>
Revenues                               $    8,516,000   $    7,774,000    $    7,629,000    $    7,085,000    $    6,979,000

Depreciation and amortization                 881,000          814,000           742,000           692,000           648,000

Interest expense                            2,805,000        2,898,000         2,967,000         3,071,000         3,137,000

Gain on sale of real estate                  -                -                  125,000          -                 -

Net income                                  2,281,000        1,698,000         1,724,000         1,208,000         1,099,000

Limited partners' share                     2,256,000        1,680,000         1,704,000         1,195,000         1,087,000

General partners' share                        25,000           18,000            20,000            13,000            12,000

Limited partners' per unit data (1)
     Net income                                $56.40           $42.00            $42.60            $29.88            $27.18

As of December 31,
------------------

Cash and cash equivalents              $    1,911,000   $    2,440,000    $      967,000    $      551,000    $    2,807,000

Total Assets                           $   23,818,000   $   22,742,000    $   18,367,000    $   16,505,000    $   17,548,000

Mortgage note payable                  $   25,405,000   $   26,338,000    $   27,178,000    $   28,086,000    $   28,754,000

</TABLE>

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

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


ITEM 7.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
              ---------------------------------------------------------------
              RESULTS OF OPERATIONS.
              ----------------------

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

YEAR ENDED DECEMBER 31, 1997 COMPARED TO YEAR ENDED DECEMBER 31, 1996:

         The  Partnership's  net  income  was  $2,281,000  in 1997  compared  to
$1,698,000  in 1996,  representing  an increase of  $583,000.  This  increase is
primarily a result of  increased  operating  results at the  Partnership's  real
estate facilities combined with a decrease in interest expense.

         During 1997 property net operating  income  (rental income less cost of
operations,  management fees paid to an affiliate and depreciation  expense) was
$4,731,000 in 1997 compared to $4,310,000 in 1996,  representing  an increase of
$421,000 or 10%.  This  increase was  primarily  attributable  to an increase in
rental income at the Partnership's mini-warehouse facilities partially offset by
an increase in cost of operations and depreciation expense.


                                       8
<PAGE>


         Rental  income was  $8,086,000  in 1997 compared to $7,423,000 in 1996,
representing  an  increase  of  $663,000  or  9%.  The  increase  was  primarily
attributable to an increase in occupancy level at the Partnership's  facilities.
The weighted average occupancy levels at the mini-warehouse  facilities were 93%
and 89% in 1997 and 1996,  respectively.  The monthly realized rent per occupied
square foot averaged $.83 in 1997 compared to $.79 in 1996.

         Other income increased  $40,000 in 1997 compared to 1996. This increase
is primarily due to an increase in invested cash balances.

         Dividend  income from  marketable  securities  of  affiliate  increased
$39,000 in 1997 compared to 1996.  This increase is primarily due to an increase
in the weighted average number of shares owned in 1997 compared to 1996.

         Cost of  operations  (including  management  fees paid to an affiliate)
increased  $175,000 or 8% to  $2,474,000 in 1997 from  $2,299,000 in 1996.  This
increase  was  primarily   attributable   to  increases  in   management   fees,
advertising, property tax, and repairs and maintenance expenses.

         In 1995, the  Partnership  prepaid eight months of 1996 management fees
on its mini-warehouse operations discounted at the rate of 14% effective rate to
compensate for early payment. As a result, management fee expense for the twelve
months ended December 31, 1996 was $26,000 lower than it would have been without
the discounted fee structure.

         Interest  expense  was  $2,805,000  and  $2,898,000  in 1997 and  1996,
respectively,  representing  a  decrease  of $93,000  or 3%.  The  decrease  was
primarily a result of a lower average  outstanding loan balance in 1997 compared
to 1996.

YEAR ENDED DECEMBER 31, 1996 COMPARED TO YEAR ENDED DECEMBER 31, 1995:

         The  Partnership's  net  income  was  $1,698,000  in 1996  compared  to
$1,724,000  in 1995,  representing  a decrease  of  $26,000.  The  decrease  was
primarily  attributed to the effects in 1995 of a one-time  gain from  insurance
proceeds  ($236,000  gain from  reconstruction  receipts and $49,000 in business
interruption  proceeds)  and  the  disposition  of  land  in  1995  at a gain of
$125,000.  These  effects  were offset by a $234,000  increase  in net  property
income in 1996.

         During 1996,  property net operating income (rental income less cost of
operations,  management fees paid to an affiliate and depreciation  expense) was
$4,310,000 in 1996 compared to $4,076,000 in 1995,  representing  an increase of
$234,000 or 6%.  This  increase  was  primarily  attributable  to an increase in
rental income at the Partnership's mini-warehouse facilities partially offset by
an increase in cost of operations and depreciation expense.

         Rental  income was  $7,423,000  in 1996 compared to $7,045,000 in 1995,
representing  an  increase  of  $378,000  or  5%.  The  increase  was  primarily
attributable to an increase in occupancy level at the Partnership's  facilities.
The weighted average occupancy levels at the mini-warehouse  facilities were 89%
and 85% in 1996 and 1995,  respectively.  The monthly realized rent per occupied
square foot averaged $.79 in 1996 compared to $.78 in 1995.

         Other income decreased  $248,000 in 1996 compared to 1995. The decrease
is due to the 1995 recognition of a $236,000 gain from  reconstruction  proceeds
and the 1995 recognition of $49,000 of business interruption insurance proceeds.
The  $236,000  gain is  attributable  to actual  cost being  lower than  amounts
received from insurance  proceeds to reconstruct a real estate facility  located
in Miami,  Florida,  which was damaged by  Hurricane  Andrew in August 1992 (see
Note 8 in the Notes to  Financial  Statements)  included  in Item  14(a).  These
negative  effects  were  offset by a $37,000  increase  in other  income  due to
increased invested cash balances.

         Dividend  income from  marketable  securities  of  affiliate  increased
$15,000 in 1996 compared to 1995.  This increase is primarily due to an increase
in the weighted average number of shares owned in 1996 compared to 1995.

         Cost of  operations  (including  management  fees paid to an affiliate)
increased  $72,000 or 3% to  $2,299,000 in 1996 from  $2,227,000  in 1995.  This
increase was primarily  attributable to increases in  advertising,  property tax
costs, and repairs and maintenance.


                                       9
<PAGE>



         In 1995, the  Partnership  prepaid eight months of 1996 management fees
on  its  mini-warehouse  operations  (based  on  the  management  fees  for  the
comparable period during the calendar year immediately preceding the prepayment)
discounted  at the rate of 14% per year to  compensate  for early  payment.  The
Partnership has expensed the prepaid  management fees during 1996. The amount is
included in management fees paid to affiliate in the statements of income.  As a
result  of the  prepayment,  the  Partnership  saved  approximately  $26,000  in
management  fees,  based on the management  fees that would have been payable on
rental income generated during 1996 compared to the amount prepaid.

         Interest  expense  was  $2,898,000  and  $2,967,000  in 1996 and  1995,
respectively,  representing  a  decrease  of $69,000  or 2%.  The  decrease  was
primarily a result of a lower average  outstanding loan balance in 1996 compared
to 1995.

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

         Cash flows from  operating  activities  ($3,294,000  for the year ended
December 31, 1997) have been  sufficient to meet all current  obligations of the
Partnership.  During 1998, the Partnership anticipates approximately $331,000 of
capital improvements. During 1995, the Partnership's property operator commenced
a program to enhance the visual  appearance  of the  mini-warehouse  facilities.
Such   enhancements   will  include  new  signs,   exterior  color  schemes  and
improvements to the rental offices.

         At December 31, 1997,  the  Partnership  held 381,980  (including  1997
purchase)  shares of common  stock  (marketable  securities)  with a fair  value
totaling  $11,220,000  (cost basis of $6,091,000 at December 31, 1997) in Public
Storage, Inc. (PSI). During 1997, the Partnership purchased an additional 84,850
shares  of  common  stock  in  Public  Storage,  Inc.  at an  aggregate  cost of
$2,300,000 . The Partnership recognized $301,000 in dividends during 1997.

         In the third quarter of 1991, quarterly distributions were discontinued
to enable the Partnership to increase its funds available for principal payments
that  commenced in 1990 and increase in subsequent  years through 1998, at which
time the remaining principal balance is due.

         Distributions  to the  limited  and  general  partners  for  the  years
1978-1991  aggregated  $62,032,000  including  $29,360,000  distributed  to  the
partners in 1988 in connection  with a financing of the properties  (see below).
During 1991, the Partnership  stopped paying  distributions  to pay debt,  build
cash and other liquid assets.

         During 1988,  the  Partnership  financed all of its  properties  with a
$30,500,000 loan with fixed interest of 10.47 percent per annum. Net proceeds of
$29,360,000 were distributed to the partners in October 1988 and are included in
the 1988  distribution.  At December 31, 1997,  the  outstanding  balance of the
mortgage note was $25,405,000, which matures on October 1, 1998.

Year 2000 System Issues
-----------------------

         PSI has completed an initial  assessment of its computer  systems.  The
majority of the computer  programs were  installed or upgraded over the past few
years and are Year 2000 compliant.  Some of the older computer programs utilized
by PSI were written without regard for Year 2000 issues and could cause a system
failure or miscalculations with possible disruption of operations. Each of these
computer  programs and systems has been  evaluated to be upgraded or replaced as
part of PSI Year 2000 project.

         The cost of the Year 2000 project  will be  allocated to all  companies
that use the PSI computer  systems.  The cost of the Year 2000 project  which is
expected to be  allocated to the Company is less than  $50,000.  The cost of new
software will be capitalized and the cost of existing  software will be expensed
as incurred.

         The  project is  expected  to be  completed  by March 31, 1999 which is
prior to any  anticipated  impact on operating  systems.  PSI believes that with
modifications to existing software and, in some instances, the conversion to new
software,  the Year 2000 issue will not pose significant  operational  problems.
However,  if such  modifications are not made, or are not completed timely,  the
Year 2000 issue could have a material impact on the operations of the Company.

         The costs of the  project  and the date on which PSI  believes  it will
complete the Year 2000  modifications  are based on management's best estimates,
which were derived utilizing numerous assumptions of future events. There can be
no guarantee  that these  estimates  will be achieved and actual  results  could
differ materially from those anticipated.

                                       10
<PAGE>


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 14(a).

ITEM 9.       CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
              ---------------------------------------------------------------
              FINANCIAL DISCLOSURE.
              ---------------------

         None.


                                       11
<PAGE>


                                    PART III

ITEM 10.      DIRECTORS AND EXECUTIVE OFFICERS OF THE PARTNERSHIP.
              ----------------------------------------------------

         The Partnership has no directors or executive officers.

         The  Partnership's  general partners are PSI and B. Wayne Hughes.  PSI,
acting through its directors and executive  officers,  and Mr. Hughes manage and
make investment decisions for the Partnership.

         The names of all directors  and executive  officers of PSI, the offices
held by each of them with PSI, and their ages and business experience during the
past five years are as follows:

       Name                                   Positions with PSI
----------------------         ------------------------------------------------

B. Wayne Hughes                Chairman of the Board and Chief Executive Officer
Harvey Lenkin                  President and Director
B. Wayne Hughes, Jr.           Vice President and Director
John Reyes                     Senior Vice President and Chief Financial Officer
Carl B. Phelps                 Senior Vice President
Obren B. Gerich                Senior Vice President
Marvin M. Lotz                 Senior Vice President
David Goldberg                 Senior Vice President and General Counsel
A. Timothy Scott               Senior Vice President and Tax Counsel
David P. Singelyn              Vice President and Treasurer
Sarah Hass                     Vice President and Secretary
Robert J. Abernethy            Director
Dann V. Angeloff               Director
William C. Baker               Director
Thomas J. Barrack Jr.          Director
Uri P. Harkham                 Director

         B. Wayne Hughes, age 64, a general partner of the Partnership, has been
a director of PSI since its  organization in 1980 and 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 has been active in the real
estate  investment field for over 25 years. He is the father of B. Wayne Hughes,
Jr.

         Harvey Lenkin, age 61, has been employed by PSI for 20 years and became
President  and a director of PSI in November  1991.  Mr. Lenkin is a director of
the National Association of Real Estate Investment Trusts (NAREIT).

         B. Wayne Hughes,  Jr., age 38, became  director of PSI in January 1998.
He has been a Vice President - Acquisitions  of PSI since 1992. He is the son of
B. Wayne Hughes.

         John Reyes, age 37, a certified public  accountant,  joined PSI in 1990
and was  Controller  of PSI from 1992 until  December  1996 when he became Chief
Financial  Officer.  He became a Vice  President  of PSI in November  1995 and a
Senior Vice President of PSI in December 1996.  From 1983 to 1990, Mr. Reyes was
employed by Ernst & Young.

         Carl B.  Phelps,  age 58,  became a  Senior  Vice  President  of PSI in
January  1998  with  overall   responsibility   for  property   acquisition  and
development.  From June 1991 until joining PSI, he was a partner in the law firm
of  Andrews & Kurth,  L.L.P.,  which  performed  legal  services  for PSI.  From
December 1982 through May 1991, his  professional  corporation  was a partner in
the law firm of Sachs & Phelps, then counsel to PSI.

         Obren B. Gerich, age 59, a certified public accountant, has been a Vice
President of PSI since 1980 and became Senior Vice  President of PSI in November
1995. He was Chief Financial Officer of PSI until November 1991.

         Marvin M.  Lotz,  age 55,  has had  overall  responsibility  for Public
Storage's  mini-warehouse  operations  since  1988.  He  became  a  Senior  Vice
President  of PSI  in  November  1995.  Mr.  Lotz  was an  officer  of PSI  with
responsibility for property acquisitions from 1983 until 1988.


                                       12
<PAGE>



         David  Goldberg,  age 48,  joined  PSI's legal  staff in June 1991.  He
became Senior Vice President and General  Counsel of PSI in November 1995.  From
December  1982  until  May  1991,  he was a  partner  in the law firm of Sachs &
Phelps, then counsel to PSI.

         A.  Timothy  Scott,  age 46,  became a Senior  Vice  President  and Tax
Counsel of PSI and Vice President and Tax Counsel of the Public Storage REITs in
November 1996.  From June 1991 until joining PSI, Mr. Scott practiced tax law as
a shareholder of the law firm of Heller,  Ehrman, White & McAuliffe,  counsel to
PSI. Prior to June 1991, his  professional  corporation was a partner in the law
firm of Sachs & Phelps, then counsel to PSI.

         David P.  Singleyn,  age 36, a certified  public  accountant,  has been
employed by PSI since 1989 and became Vice  President  and  Treasurer  of PSI in
November  1995.  From 1987 to 1989,  Mr.  Singelyn was  Controller of Winchell's
Donut Houses, L.P.

         Sarah Hass,  age 42,  became  Secretary  of PSI in February  1992.  She
became  a Vice  President  of PSI in  November  1995.  She  joined  PSI's  legal
department  in June 1991,  rendering  services on behalf of PSI. From 1987 until
May 1991, her professional  corporation was a partner in the law firm of Sachs &
Phelps,  then  counsel to PSI,  and from  April  1986  until June 1987,  she was
associated  with that  firm,  practicing  in the area of  securities  law.  From
September 1979 until  September  1985, Ms. Hass was associated with the law firm
of Rifkind & Sterling, Incorporated.

         Robert J.  Abernethy,  age 58, has been President of American  Standard
Development Company and of Self-Storage  Management  Company,  which develop and
operate mini-warehouses,  since 1976 and 1977,  respectively.  Mr. Abernethy has
been a director  of PSI since its  organization  in 1980.  He is a member of the
board of directors of Johns  Hopkins  University  and of the Los Angeles  County
Metropolitan  Transportation  Authority,  and a former  member  of the  board of
directors of the Metropolitan Water District of Southern California.

         Dann V. Angeloff, age 62, has been President of the Angeloff Company, a
corporate  financial  advisory  firm,  since  1976.  The  Angeloff  Company  has
rendered,  and is  expected  to  continue  to  render,  financial  advisory  and
securities  brokerage services for PSI. Mr. Angeloff is the general partner of a
limited partnership that owns a mini-warehouse operated by PSI and which secures
a note  owned  by PSI.  Mr.  Angeloff  has  been a  director  of PSI  since  its
organization  in 1980. He is a director of Compensation  Resource  Group,  Eagle
Lifestyle   Nutrition,    Inc.,    Nicholas/Applegate    Growth   Equity   Fund,
Nicholas/Applegate  Investment Trust, Ready Pac Produce,  Inc. and Royce Medical
Company.

         William C. Baker,  age 64,  became a director of PSI in November  1991.
Since  November  1997,  Mr.  Baker has been  Chairman  of the Board of and Chief
Executive  Officer of The Santa Anita Companies,  Inc., which operates the Santa
Anita Racetrack and is a wholly-owned subsidiary of Meditrust Operating Company.
From August 1996 until  November  1997,  he was  Chairman of the Board and Chief
Executive  Officer of Santa Anita Operating Company and Chairman of the Board of
Santa Anita  Realty  Enterprises,  Inc.,  the  companies  which were merged with
Meditrust  in November  1997.  From April 1993  through May 1995,  Mr. Baker was
President of Red Robin International, Inc., an operator and franchiser of casual
dining  restaurants  in the United States and Canada.  From January 1992 through
December 1995 he was Chairman and Chief Executive Officer of Carolina Restaurant
Enterprises, Inc., a franchisee of Red Robin International,  Inc. Since 1991, he
has been  Chairman  of the  Board of Coast  Newport  Properties,  a real  estate
brokerage  company.  From  1976 to  1988,  he was a  principal  shareholder  and
Chairman  and  Chief  Executive  Officer  of Del Taco,  Inc.,  an  operator  and
franchiser of fast food  restaurants in  California.  Mr. Baker is a director of
Callaway Golf Company and Meditrust Operating Company .

         Thomas J.  Barrack,  Jr., age 50,  became a director of PSI in February
1998.  Mr. Barrack has been the Chairman and Chief  Executive  Officer of Colony
Capital, Inc. since September,  1991. Colony Capital, Inc. is one of the largest
real estate investors in America, having acquired properties in the U.S., Europe
and Asia. Prior to founding Colony Capital, Inc., from 1987 to 1991, Mr. Barrack
was a principal with the Robert M. Bass Group,  Inc.,  the principal  investment
vehicle for Robert M. Bass of Fort Worth,  Texas. From 1985 to 1987, Mr. Barrack
was President of Oxford Ventures, Inc., a Canadian-based real estate development
company.  From  1984 to 1985 he was a  Senior  Vice  President  at E. F.  Hutton
Corporate  Finance in New York.  Mr.  Barrack was appointed by President  Roland
Reagan as Deputy Under  Secretary at the U.S.  Department  of the Interior  from
1982 to 1983. Mr. Barrack currently is a director of Continental Airlines,  Inc.
and Virgin Entertainment Group, Ltd.

         Uri P.  Harkham,  age 49,  became a director of PSI in March 1993.  Mr.
Harkham  has been the  President  and Chief  Executive  Officer of the  Jonathan
Martin  Fashion  Group,  which  specializes  in  designing,   manufacturing  and


                                       13
<PAGE>

marketing  women's  clothing,  since its  organization in 1976.  Since 1978, Mr.
Harkham has been the Chairman of the Board of Harkham Properties,  a real estate
firm  specializing in buying and managing fashion  warehouses in Los Angeles and
Australia.

         Pursuant to Articles 16 and 17 of the Partnership's Amended Certificate
and  Agreement  of  Limited  Partnership,  a copy of  which is  included  in the
Partnership's  prospectus included in the Partnership's  Registration  Statement
File No.  2-60530,  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.

         Each  director of PSI serves until he resigns or is removed from office
by the shareholders of PSI, and may resign or be removed from office at any time
with or without cause. Each officer of PSI serves until he resigns or is removed
by the board of directors of PSI. Any such officer may resign or be removed from
office at any time with or without cause.

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

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.
              ---------------------------------------------------------------

         (a) At March 10, 1998, the following  persons  beneficially  owned more
than 5% of the Units:

<TABLE>
<CAPTION>

                                    Name and Address of
        Title of Class               Beneficial Owners        Beneficial Ownership       Percent of Class
-----------------------------    ---------------------------  ---------------------      ----------------

<S>                              <C>                            <C>                            <C>
Units of Limited Partnership     Public Storage, Inc.
Interest                         701 Western Avenue             12,965 Units (1)               32.4%
                                 Glendale, California 91201     11,345 Units (2)               28.4%

Units of Limited Partnership     B. Wayne Hughes
Interest                         Tamara L. Hughes               11,627 Units (3)               29.1%
                                 701 Western Avenue
                                 Glendale, California 91201

</TABLE>

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

(1) Units owned by PSI as to which PSI has sole voting and dispositive power.

(2) Includes (i) 5,892 Units which PSI has an option to acquire  (together  with
    other securities) from BWH Marina Corporation II (a corporation wholly-owned
    by  Hughes)  and as to  which  PSI has sole  voting  power  (pursuant  to an
    irrevocable  proxy) and no dispositive  power and (ii) 5,453 Units which PSI
    has an option to acquire from BWH Marina  Corporation  II commencing  May 2,
    1998.

(3) Includes (i) 5,577 Units owned by BWH Marina  Corporation  II, a corporation
    wholly-owned  by Hughes,  as to which Hughes has sole voting and dispositive
    power;  PSI has an option to acquire 5,453 of these Units  commencing May 2,
    1998, (ii) 5,892 Units owned by BWH Marina Corporation II as to which Hughes
    has sole dispositive power and no voting power; PSI has an option to acquire
    these Units and an irrevocable proxy to vote these Units and (iii) 158 Units
    owned by THG  Acquisitions,  Inc., a corporation  wholly-owned  by Tamara L.
    Hughes,  an adult daughter of Hughes,  as to which Tamara L. Hughes has sole
    voting and dispositive power.

         (b) The Partnership has no officers and directors. The General Partners
contributed  $202,000 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.
Information  regarding  ownership  of  Units  by PSI  and  Hughes,  the  General
Partners,  is set forth under section (a) above. Dann V. Angeloff, a director of
PSI, beneficially owns 9 Units (0.02% of the Units). The directors and executive


                                       14
<PAGE>


officers of PSI (including Hughes), as a group (16 persons), own an aggregate of
11,488  Units,  representing  28.7% of the Units  (including  the  11,469  Units
beneficially owned by Hughes as set forth above).

         (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 AND RELATED TRANSACTIONS.
              -----------------------------------------------

         The Partnership  Agreement  provides that the General  Partners will be
entitled  to  cash  incentive  distributions  in an  amount  equal  to (i) 8% of
distributions  of cash  flow from  operations  until  the  distributions  to all
partners from all sources equal their capital contributions;  thereafter, 25% of
distributions of cash flow from operations,  and (ii) 25% of distributions  from
net proceeds from sale and financing of the Partnership's  properties  remaining
after  distribution  to all  partners of any portion  thereof  required to cause
distributions to partners from all sources to equal their capital contributions.
During  1986,  the partners  received  cumulative  distributions  equal to their
capital contributions.  The Partnership has not made any distributions since the
third quarter of 1991.

         The   Partnership   has   a   Management   Agreement   with   PSI   (as
successor-in-interest  to PSMI). Under the Management Agreement, the Partnership
pays PSI a fee of 6% of the  gross  revenues  of the  mini-warehouse  properties
operated for the Partnership. During 1997, the Partnership paid fees of $485,000
to PSI pursuant to the Management Agreement.


                                     PART IV

ITEM 14.      EXHIBITS. FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.
              ----------------------------------------------------------------

         (a) List of Documents file as part of the 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) Reports on Form 8-K:  No reports on Form 8-K were filed  during the
             last quarter of fiscal 1996.

         (c) Exhibits: See Exhibit Index contained below.


                                       15
<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.

                                  EXHIBIT INDEX
                                  (Item 14 (c))


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 references.

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,  Inc.  Previously filed with
        the  Securities  and Exchange  Commission  as an exhibit to PS Partners,
        Ltd.'s Annual  Report on Form 10-K for the year ended  December 31, 1996
        and incorporated herein by reference.

10.2    Loan documents  dated  September 16, 1988 between the Registrant and The
        Prudential  Insurance  Company  of  America.  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.

27      Financial Data Schedule. Filed herewith.


                                       16
<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 31, 1998            By:    Public Storage, Inc., General Partner


                                  By:    /s/ B Wayne Hughes
                                         --------------------------------------
                                         B. Wayne Hughes, Chairman of the Board

                                  By:    /s/ B Wayne Hughes
                                         --------------------------------------
                                         B. Wayne Hughes, General Partner



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

<TABLE>
<CAPTION>

Signature                                    Capacity                                           Date
-----------------------                      -----------------------------------                ----------------

<S>                                          <C>                                                <C>
/s/ B Wayne Hughes                           Chairman of the Board and                          March  31, 1998
-----------------------                      Chief Executive Officer of
B. Wayne Hughes                              Public Storage, Inc. and General
                                             Partner (principal executive offer)


/s/ Harvey Lenkin                            President and Director of                          March  31, 1998
-----------------------                      Public Storage, Inc.
Harvey Lenkin


/s/ B. Wayne Hughes, Jr.                     Vice President and Director of                     March  31, 1998
-----------------------                      Public Storage, Inc.
B. Wayne Hughes, Jr.


/s/ John Reyes                               Senior Vice President and Chief                    March  31, 1998
-----------------------                      Financial Officer of Public Storage, Inc.
John Reyes                                   (principal financial officer and
                                             principal accounting officer)


/s/ Robert J. Abernethy                      Director of Public Storage, Inc.                   March  31, 1998
-----------------------
Robert J. Abernethy


/s/ Dann V. Angeloff                         Director of Public Storage, Inc.                   March  31, 1998
-----------------------
Dann V. Angeloff


/s/ William C. Baker                         Director of Public Storage, Inc.                   March  31, 1998
-----------------------
William C. Baker


                                             Director of Public Storage, Inc.                   March  31, 1998
-----------------------
Thomas J. Barrack, Jr.


/s/ Uri P. Harkham                           Director of Public Storage, Inc.                   March  31, 1998
-----------------------
Uri P. Harkham

</TABLE>
                                       17
<PAGE>



                       PUBLIC STORAGE PROPERTIES IV, LTD.

                                    INDEX TO
                              FINANCIAL STATEMENTS
                                       AND
                          FINANCIAL STATEMENT SCHEDULE
                                  (Item 14 (a))




                                                                         Page
                                                                   References
                                                                   ----------

  Report of Independent Auditors                                          F-1


  Financial Statements and Schedule:


  Balance Sheets as of December 31, 1997 and 1996                         F-2


  For the years ended December 31, 1997, 1996 and 1995:


       Statements of Income                                               F-3


       Statements of Partners' Deficit                                    F-4


       Statements of Cash Flows                                     F-5 - F-6


  Notes to Financial Statements                                    F-7 - F-10


  Schedule:


       III - Real Estate and Accumulated Depreciation             F-11 - F-12




         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 the notes thereto.


<PAGE>


                         Report of Independent Auditors





The Partners
Public Storage Properties IV, Ltd.

We have audited the accompanying balance sheets of Public Storage Properties IV,
Ltd. as of December  31, 1997 and 1996,  and the related  statements  of income,
partners' deficit and cash flows for each of the three years in the period ended
December 31, 1997. Our audits also included the schedule  listed in the index at
item 14(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  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as 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, 1997 and 1996,  and the results of its  operations  and its
cash flows for each of the three years in the period ended December 31, 1997, in
conformity with 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.




                                                               ERNST & YOUNG LLP

March 24, 1998
Los Angeles, California


                                      F-1
<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.
                                 BALANCE SHEETS
                           December 31, 1997 and 1996

<TABLE>
<CAPTION>

                                                                                      1997                  1996
                                                                                ---------------       ---------------

                                     ASSETS
                                     ------

<S>                                                                             <C>                   <C>
Cash and cash equivalents                                                       $    1,911,000        $    2,440,000
Marketable securities of affiliate (cost of  $6,091,000 in 1997
     and $3,791,000 in 1996)                                                        11,220,000             9,211,000
Rent and other receivables                                                             166,000               150,000

Real estate facilities:
     Building and equipment                                                         16,031,000            15,441,000
     Land                                                                            5,244,000             5,244,000
                                                                                ---------------       ---------------
                                                                                    21,275,000            20,685,000

     Less accumulated depreciation                                                 (10,898,000)          (10,017,000)
                                                                                ---------------       ---------------
                                                                                    10,377,000            10,668,000
                                                                                ---------------       ---------------

Other assets                                                                           144,000               273,000
                                                                                ---------------       ---------------
         Total assets                                                           $   23,818,000        $   22,742,000
                                                                                ===============       ===============


                        LIABILITIES AND PARTNERS' DEFICIT
                        ---------------------------------

Accounts payable                                                                $       65,000        $       52,000
Deferred revenue                                                                       230,000               224,000
Mortgage note payable                                                               25,405,000            26,338,000

Partners' deficit:
     Limited partners' deficit, $500 per unit, 40,000 units authorized,
         issued and outstanding                                                     (5,200,000)           (6,892,000)
     General partners' deficit                                                      (1,811,000)           (2,400,000)
     Unrealized gain on marketable securities                                        5,129,000             5,420,000
                                                                                ---------------       ---------------

     Total partners' deficit                                                        (1,882,000)           (3,872,000)
                                                                                ---------------       ---------------

Total liabilities and partners' deficit                                         $   23,818,000        $   22,742,000
                                                                                ===============       ===============
</TABLE>
                            See accompanying notes.
                                       F-2

<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.
                              STATEMENTS OF INCOME
              For the years ended December 31, 1997, 1996, and 1995

<TABLE>
<CAPTION>

                                                            1997                     1996                      1995
                                                      ----------------        ------------------       ------------------
REVENUES:

<S>                                                  <C>                      <C>                      <C>
Rental income                                        $       8,086,000        $       7,423,000        $       7,045,000
Dividends from marketable securities
     of affiliate                                              301,000                  262,000                  247,000
Other income                                                   129,000                   89,000                  337,000
                                                      ----------------        ------------------       ------------------
                                                             8,516,000                7,774,000                7,629,000
                                                      ----------------        ------------------       ------------------

COSTS AND EXPENSES:

Cost of operations                                           1,989,000                1,880,000                1,804,000
Management fees paid to affiliate                              485,000                  419,000                  423,000
Depreciation                                                   881,000                  814,000                  742,000
Administrative                                                  75,000                   65,000                   68,000
Environmental cost                                               -                        -                       26,000
Interest expense                                             2,805,000                2,898,000                2,967,000
                                                      ----------------        ------------------       ------------------

                                                             6,235,000                6,076,000                6,030,000
                                                      ----------------        ------------------       ------------------

Income before gain on sale of land                           2,281,000                1,698,000                1,599,000
Gain on sale of land                                             -                        -                      125,000
                                                      ----------------        ------------------       ------------------

NET INCOME                                           $       2,281,000        $       1,698,000        $       1,724,000
                                                      ================        ==================       ==================

Limited partners' share of net income ($56.40
     per unit in 1997, $42.00 per unit in 1996,
     $42.60 per unit in 1995)                        $       2,256,000        $       1,680,000        $       1,704,000

General partners' share of net income                           25,000                   18,000                   20,000
                                                      ----------------        ------------------       ------------------

                                                     $       2,281,000        $       1,698,000        $       1,724,000
                                                      ================        ==================       ==================

</TABLE>
                            See accompanying notes.
                                      F-3
<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.
                         STATEMENTS OF PARTNERS' DEFICIT
              For the years ended December 31, 1997, 1996, and 1995

<TABLE>
<CAPTION>
                                                                                  Unrealized Gain
                                                                                   on Marketable      Total Partners'
                                          Limited Partners      General Partners    Securities           Deficit
                                          -----------------   ------------------  ----------------   ------------------

<S>                                        <C>                <C>                 <C>                <C>
Balance at December 31, 1994               $    (9,430,000)   $    (3,284,000)    $      556,000     $   (12,158,000)

Unrealized gain on marketable
     securities                                      -                  -              1,298,000           1,298,000

Net income                                       1,704,000             20,000              -               1,724,000

Equity transfer                                   (426,000)           426,000              -                   -
                                          -----------------   ------------------  ----------------   ------------------

Balance at December 31, 1995                    (8,152,000)        (2,838,000)         1,854,000          (9,136,000)

Unrealized gain on marketable securities
                                                     -                  -              3,566,000           3,566,000

Net income                                       1,680,000             18,000              -               1,698,000

Equity transfer                                   (420,000)           420,000              -                   -
                                          -----------------   ------------------  ----------------   ------------------

Balance at December 31, 1996                    (6,892,000)        (2,400,000)         5,420,000          (3,872,000)

Unrealized loss on marketable securities
                                                     -                  -               (291,000)           (291,000)

Net income                                       2,256,000             25,000              -               2,281,000

Equity transfer                                   (564,000)           564,000              -                   -
                                          -----------------   ------------------  ----------------   ------------------
Balance at December 31, 1997               $    (5,200,000)   $    (1,811,000)    $    5,129,000     $    (1,882,000)
                                          =================   ==================  ================   ==================

</TABLE>
                            See accompanying notes.
                                      F-4
<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.
                            STATEMENTS OF CASH FLOWS
              For the years ended December 31, 1997, 1996, and 1995

<TABLE>
<CAPTION>

                                                                   1997               1996                1995
                                                              ---------------    ---------------    ----------------

Cash flows from operating activities:

     <S>                                                      <C>                <C>                <C>
     Net income                                               $     2,281,000    $     1,698,000    $     1,724,000

     Adjustments  to  reconcile   net  income
         to  cash  provided  by  operating activities:

     Gain on sale of land                                              -                   -               (125,000)
     Depreciation                                                     881,000            814,000            742,000
     Increase in rent and other receivables                           (16,000)           (50,000)           (12,000)
     Amortization of prepaid loan fees                                 92,000             92,000             92,000
     Decrease (increase) in other assets                               37,000            (31,000)            (6,000)
     Amortization (payment) of prepaid management fees                 -                 265,000           (265,000)
     Increase (decrease) in accounts payable                           13,000            (29,000)            33,000
     Decrease in advances to reconstruct real estate
        facility                                                       -                   -               (236,000)
     Increase (decrease) in deferred revenue                            6,000            (20,000)           (48,000)
                                                              ---------------    ---------------    ----------------

         Total adjustments                                          1,013,000          1,041,000            175,000
                                                              ---------------    ---------------    ----------------

         Net cash provided by operating activities                  3,294,000          2,739,000          1,899,000
                                                              ---------------    ---------------    ----------------

Cash flows from investing activities:

     Proceeds from sale of land                                        -                   -                137,000
     Purchase of marketable securities of affiliate                (2,300,000)             -               (399,000)
     Expenditures to reconstruct damaged real estate
         facility                                                      -                   -                 (1,000)
     Additions to real estate facilities                             (590,000)          (426,000)          (312,000)
                                                              ---------------    ---------------    ----------------

         Net cash used in investing activities                     (2,890,000)          (426,000)          (575,000)
                                                              ---------------    ---------------    ----------------

Cash flows from financing activities:

    Principal payments on mortgage note payable                      (933,000)          (840,000)          (908,000)
                                                              ---------------    ---------------    ----------------

         Net cash used in financing activities                       (933,000)          (840,000)          (908,000)
                                                              ---------------    ---------------    ----------------

Net (decrease) increase in cash and cash equivalents                 (529,000)         1,473,000            416,000

Cash and cash equivalents at the beginning of the year              2,440,000            967,000            551,000
                                                              ---------------    ---------------    ----------------

Cash and cash equivalents at the end of the year              $     1,911,000    $     2,440,000    $       967,000
                                                              ===============    ================   ================
</TABLE>
                            See accompanying notes.
                                      F-5

<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.
                            STATEMENTS OF CASH FLOWS
              For the years ended December 31, 1997, 1996, and 1995
                                   (Continued)

<TABLE>
<CAPTION>
                                                                   1997               1996                1995
                                                              ---------------    ---------------    ----------------

Supplemental schedule of non-cash investing and financing activities:

     <S>                                                          <C>             <C>                 <C>
     Decrease (increase) in fair value of marketable
       securities of affiliate                                    $291,000        $(3,566,000)        $(1,298,000)
                                                              ===============    ================   ================

     Unrealized ( loss) gain on marketable securities of
       affiliate                                                 $(291,000)       $3,566,000            $1,298,000
                                                              ===============    ================   ================

</TABLE>
                            See accompanying notes.
                                      F-6

<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 1997

1.       DESCRIPTION OF PARTNERSHIP

                   Public Storage  Properties IV, Ltd. (the  "Partnership")  was
         formed with the proceeds of a public offering.  The general partners in
         the Partnership are Public  Storage,  Inc.  ("PSI") and B. Wayne Hughes
         ("Hughes").  The Partnership owns 17 mini-warehouse  facilities located
         in California and Florida.

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PARTNERSHIP MATTERS

         Mini-Warehouse Facilities:
         --------------------------

                  Cost of land includes appraisal fees and legal fees related to
         acquisition  and closing costs.  Buildings and equipment  reflect costs
         incurred to develop primarily  mini-warehouse  facilities which provide
         self-service  storage  spaces  for lease,  usually on a  month-to-month
         basis,  to  the  general  public.   The  buildings  and  equipment  are
         depreciated on a straight-line  basis over estimated useful lives of 25
         and 5 years, respectively.

                  In 1995,  the  Partnership  sold a  portion  of its  Pembroke,
         Florida   property  to  the  State  of  Florida  under  a  condemnation
         proceeding for $137,000.  The Partnership recognized a gain of $125,000
         on the sale.  Proceeds  from the sale were used to make an  unscheduled
         principal payment on the Partnership's mortgage note payable.

                  In 1995,  the  Financial  Accounting  Standards  Board  issued
         Statement of Financial  Accounting  Standards No. 121,  "Accounting for
         the  Impairment of Long-Lived  Assets and for  Long-Lived  Assets to be
         Disposed of"  ("Statement  121").  Statement  121  requires  impairment
         losses to be recorded on  long-lived  assets  used in  operations  when
         indicators of impairment  are present and the  undiscounted  cash flows
         estimated  to be  generated  by those  assets are less than the assets'
         carrying  amount.  Statement  121 also  addresses  the  accounting  for
         long-lived  assets that are expected to be disposed of. The Partnership
         adopted  Statement  121 in 1996 and the  adoption  had no effect on the
         Partnership's financial Statements.

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

                  The general  partners' share of net income consists of amounts
         attributable to their 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 investments purchased with a maturity of three months
         or less to be cash equivalents.


                                      F-7
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 1997


2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PARTNERSHIP MATTERS
         ------------------------------------------------------------------
         (CONTINUED)
         -----------

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

                  Marketable securities at December 31, 1997 and 1996 consist of
         381,980 and 297,130 shares of common stock of PSI, respectively. During
         1997, the Partnership  purchased an additional  84,850 shares of common
         stock in Public Storage,  Inc. at an aggregate cost of $2,300,000.  The
         Partnership  has designated  its portfolio of marketable  securities as
         being available for sale.  Accordingly,  at December 31, 1997 and 1996,
         the Partnership  has recorded the marketable  securities at fair value,
         based upon the closing  quoted price of the  securities at December 31,
         1997 and 1996, and has recorded a corresponding  unrealized (loss) gain
         totaling  $(291,000),  $3,566,000  and  $1,298,000  for the years ended
         December 31, 1997, 1996, 1995,  respectively,  as a (decrease) increase
         to  Partnership  equity.  The  Partnership   recognized   dividends  of
         $301,000, $262,000, and $247,000 for the years ended December 31, 1997,
         1996, and 1995, respectively.

         Other Assets:
         -------------

                  Included  in  other  assets  is  deferred  financing  costs of
         $68,000  ($160,000  at  December  31,  1996).  Such  balance  is  being
         amortized as interest expense using the  straight-line  method over the
         life of the related mortgage note payable.

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

                  The preparation of the financial statements in conformity with
         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.

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

                   Substantially  all  of  the  Partnership's   facilities  were
         acquired   prior  to  the  time  that  it  was   customary  to  conduct
         environmental  investigations in connection with property acquisitions.
         During 1995, the Partnership completed environmental assessments of its
         properties  to evaluate the  environmental  condition of, and potential
         environmental  liabilities of such properties.  These  assessments were
         performed by an independent environmental consulting firm. Based on the
         assessments,  the  Partnership  expensed  $26,000  in  1995  for  known
         environmental  remediation  requirements.  Although  there  can  be  no
         assurance,   the   Partnership  is  not  aware  of  any   environmental
         contamination of any of its property sites which individually or in the
         aggregate  would be material  to the  Partnership's  overall  business,
         financial condition or results of operations.

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  improvement  needs) be  distributed  at least
         quarterly.  Cash  distributions  have  been  suspended  since the third
         quarter of 1991 in order to build cash reserves for future debt service
         payments.

4.       PARTNERS' DEFICIT

                  The general  partners have a 1.1% 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
         25.83% (including the 1.1% interest) to the general partners and 74.17%
         to the limited partners.


                                      F-8
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 1997


4.       PARTNERS' DEFICIT (CONTINUED)

                  Transfers  of equity  are made  periodically  to  conform  the
         partners'   equity  accounts  to  the  provisions  of  the  Partnership
         Agreement.  These  transactions  have  no  effect  on  the  results  of
         operations  or  distributions   to  partners.   The  financing  of  the
         properties  (Note 7) provided the  Partnership  with cash for a special
         distribution  without affecting the Partnership's  taxable income.  The
         majority of the proceeds from the financing, approximately $29,360,000,
         were distributed to the partners in October 1988 resulting in a deficit
         in limited and general partners' equity accounts.

5.       RELATED PARTY TRANSACTIONS

                  The  Partnership  has a  Management  Agreement  with  PSI  (as
         successor-in-interest  to PSMI). Under the terms of the agreement,  PSI
         operates  the  mini-warehouse  facilities  for a fee equal to 6% of the
         facilities' monthly gross revenue (as defined).

                  In November  1995,  the  Management  Agreement  was amended to
         provide  that upon demand  from PSI or PSMI made prior to December  15,
         1995,  the  Partnership  agreed to prepay  (within  15 days  after such
         demand) up to 12 months of  management  fees  (based on the  management
         fees for the  comparable  period during the calendar  year  immediately
         preceding  such  prepayment)  discounted at the rate of 14% per year to
         compensate  for  early  payment.  In  December  1995,  the  Partnership
         prepaid,  to  PSI,  8  months  of  1996  management  fees  at a cost of
         $265,000.  The amount is included in other assets in the balance  sheet
         at December 31, 1995. The amount was amortized as management  fees paid
         to affiliate during 1996.

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 was $2,550,000,  $2,100,000, and $1,715,000
         for the years ended December 31, 1997, 1996 and 1995, respectively. The
         difference  between  taxable  net income  and net  income is  primarily
         related  to  depreciation   expense   resulting  from   differences  in
         depreciation methods.

7.       MORTGAGE NOTE PAYABLE

                  During  September  1988, the  Partnership  financed all of its
         properties  with a  $30,500,000,  ten-year  nonrecourse  mortgage  note
         secured by the  Partnership's  properties.  The note provides for fixed
         interest of 10.47  percent per annum.  Loan payments for the first year
         consisted of interest only.  Thereafter,  principal is being  amortized
         over a 20 year term with monthly  payments of principal and interest of
         $303,891.  The note matures on October 1, 1998 and a balloon payment is
         due for accrued  interest and any unpaid  principal  on that date.  The
         general  partners  believes the  Partnership  can refinance the loan on
         terms acceptable to the Partnership upon maturity.

                   Interest  paid on the note  was  $2,713,000,  $2,806,000  and
         $2,876,000  for the  years  ended  December  31,  1997,  1996 and 1995,
         respectively.


                                       F-9
<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 1997


8.       INSURANCE SETTLEMENT ON RECONSTRUCTION OF REAL ESTATE FACILITY

                  In  1993,  the  Partnership  reached  a  settlement  with  its
         insurance  carrier for damage  sustained  to the  Partnerships'  Miami,
         Florida property and for business  interruption  while the facility was
         being  reconstructed.  The  settlement  provided  for  the  payment  of
         $2,987,000  consisting of (i)  reconstruction  and related costs of the
         facility  and (ii)  business  interruption.  The  facility  recommenced
         operations in October 1994 and the  reconstruction  of the facility was
         completed in the second quarter of 1995.  During 1995, the  Partnership
         recognized $236,000 of income as a result of actual cost to reconstruct
         the facility being lower then amounts received from insurance proceeds.

                  Business  interruption proceeds were being recognized over the
         period  from  the  time  the  facility  was  damaged  through  the time
         estimated  that the project  would be fully  operating  at a stabilized
         occupancy.   Other  income  includes  business  interruption  insurance
         proceeds  (net  of  certain  costs  and  expenses  of  maintaining  the
         facility) of $49,000 for the year ended December 31, 1995.


                                      F-10
<PAGE>




                       Public Storage Properties IV, Ltd.
             Schedule III - Real Estate and Accumulated Depreciation
                      For the year ended December 31, 1997

<TABLE>
<CAPTION>
                                                                                  Gross Carrying Amount
                                          Initial Cost                            at December 31, 1996
                                    ------------------------              --------------------------------------
                                                               Costs
                                                 Building,  Subsequent to              Building,
                                                Land Imp &  construction              Land Imp &                   Accum.       Date
   Description        Encumbrances     Land      Equipment  (Improvement)    Land      Equipment       Total        Depr. Compeleted
-------------------- -------------- ----------  ------------ ----------   ----------  ------------  ------------   ------- ---------
Mini-warehouses:
    CALIFORNIA
<S>                         <C>      <C>        <C>           <C>         <C>         <C>           <C>            <C>         <C>
Azusa                       -        $501,000   $1,093,000    $153,000    $501,000    $1,246,000    $1,747,000     $912,000    11/78
Concord                     -         349,000      805,000     182,000     349,000       987,000     1,336,000      654,000    01/79
Oakland                     -         177,000      650,000     145,000     177,000       795,000       972,000      553,000    04/79
Pasadena                    -         379,000      496,000     113,000     379,000       609,000       988,000      414,000    11/79
Redlands                    -         227,000      771,000     126,000     227,000       897,000     1,124,000      609,000    02/79
Richmond                    -         225,000      639,000     246,000     225,000       885,000     1,110,000      555,000    03/79
Riverside                   -          51,000      595,000     176,000      51,000       771,000       822,000      522,000    05/79
Sacramento/Howe             -         194,000      666,000     199,000     194,000       865,000     1,059,000      556,000    08/79
Sacramento/West Capitol     -         100,000      719,000     262,000     100,000       981,000     1,081,000      667,000    06/79
San Carlos                            396,000      902,000     111,000     396,000     1,013,000     1,409,000      712,000    10/79
                                                                                                                                6/79
Santa Clara                           633,000    1,156,000     161,000     633,000     1,317,000     1,950,000      889,000   & 7/79
Tustin                                517,000      844,000     192,000     517,000     1,036,000     1,553,000      726,000    12/78

    Florida
Miami/Airport Expressway    -         186,000      442,000     205,000     186,000       647,000       833,000      436,000    01/79
Miami/Cutler Ridge          -         525,000      901,000     158,000     525,000     1,059,000     1,584,000      727,000    04/79
Pembroke Park (2)           -         255,000      607,000     327,000     255,000       934,000     1,189,000      625,000    07/79
Ft. Lauderdale/I-95 & 23rd
   Ave.                               243,000      611,000     304,000     243,000       915,000     1,158,000      622,000
Ft. Lauderdale/I-95 &
   Sunrise                  -         286,000      690,000     384,000     286,000     1,074,000     1,360,000      719,000    10/79
                    -------------- ----------  ------------ ----------   ----------  ------------  ------------ -----------
                    $25,405,000(1) $5,244,000  $12,587,000  $3,444,000  $5,244,000   $16,031,000   $21,275,000  $10,898,000
                    ============== ==========  ============ ==========   ==========  ============  ============ ===========
</TABLE>


         (1) All 17  mini-warehouse  locations  are  encumbered  by a promissory
         note. The $25,405,000  listed above is the principal  balance remaining
         on the note at 12/31/97.

         (2) In 1995, the Partnership  sold  approximately  4,729 sq. ft. of the
         facility to the State of Florida  under  condemnation  proceeding.  The
         Partnership adjusted land by $12,000 for the sale.


                                      F-11
<PAGE>


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


           Reconciliation of Real Estate and Accumulated Depreciation

                          Year Ended December 31, 1997

<TABLE>
<CAPTION>

                                                            1997                    1996                     1995
                                                   ----------------------  -----------------------  -----------------------
Investment in Real estate
   <S>                                               <C>                     <C>                      <C>
   Balance at the beginning of the year              $    20,685,000         $    20,259,000          $    19,959,000
   Additions through cash expenditures                       590,000                 426,000                  312,000
   Deductions during the period:
     Sale of land                                             -                       -                       (12,000)
                                                   ----------------------  -----------------------  -----------------------

Balance at the end of the year                       $    21,275,000         $    20,685,000          $    20,259,000
                                                   ======================  =======================  =======================

Accumulated Depreciation
   Balance at the beginning of the year              $    10,017,000         $     9,203,000          $     8,461,000

   Additions charged to costs and expenses                   881,000                 814,000                  742,000
                                                   ----------------------  -----------------------  -----------------------
                                                     $    10,898,000         $    10,017,000          $     9,203,000
                                                   ======================  =======================  =======================

</TABLE>

(a) The aggregate  depreciable cost of real estate  (excluding land) for Federal
income tax purposes is $16,031,000.


                                      F-12