SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K
[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934

For the fiscal year ended December 31, 2004 or
                         ------------------

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

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

Commission File Number:     0-8908

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

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

Registrant's telephone number, including area code: (818) 244-8080.
                                                    ---------------
Securities registered pursuant to Section 12(b) of the Act:   NONE

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

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

Indicate by check mark 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.

                                [ X ] Yes [ ] No

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

Indicate by check mark whether the Registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act)
                                Yes [ ] No [ X ]

The aggregate market value of the voting and non-voting common equity held by
non-affiliates of the Registrant as of June 30, 2004:

Limited Partner Units, $500.00 Par Value - $18,888,000 (computed on the basis of
$1,250.00 per unit which was the highest reported sale price prior to the
quarter ended June 30, 2004).

The number of units outstanding of the registrant's classes of common equity as
of March 25, 2005:

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

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      NONE

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                                     PART I

ITEM 1.  BUSINESS
         --------

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

     When  used  within  this  document,   the  words  "expects,"   "believes,"
"anticipates,"  "should,"  "estimates," and similar expressions are intended to
identify  "forward-looking  statements"  within  the  meaning  of that  term in
Section 27A of the Securities Exchange Act of 1933, as amended,  and in Section
21E of the Securities  Exchange Act of 1934, as amended.  Such  forward-looking
statements involve known and unknown risks,  uncertainties,  and other factors,
which may cause the  actual  results  and  performance  of the  Public  Storage
Properties IV, Ltd., (the "Partnership") to be materially  different from those
expressed  or implied in the  forward  looking  statements.  Such  factors  are
described in Item 1A, "Risk  Factors" and include  changes in general  economic
conditions and in the markets in which the Partnership  operates and the impact
of  competition  from new and existing  storage and  commercial  facilities and
other storage  alternatives,  which could impact rents and occupancy  levels at
the Partnership's facilities;  the impact of the regulatory environment as well
as national,  state, and local laws and  regulations,  which could increase the
Partnership's   expense  and  reduce  the  Partnership's   cash  available  for
distribution;  and economic  uncertainty  due to the impact of war or terrorism
could  adversely  affect our  business  plan.  We disclaim  any  obligation  to
publicly  release  the  results  of  any  revisions  to  these  forward-looking
statements reflecting new estimates,  events or circumstances after the date of
this report.

General
-------

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

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

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

     In 1995,  there were a series of mergers among Public Storage  Management,
Inc. (which was the Partnership's  self-storage  facilities  operator),  Public
Storage,  Inc. (which was one of the Partnership's  general partners) and their
affiliates (collectively,  "PSMI"), culminating in the November 16, 1995 merger
(the  "PSMI  Merger")  of PSMI  into  Storage  Equities,  Inc.,  a real  estate
investment trust ("REIT")  organized as a California  corporation.  In the PSMI
Merger, Storage Equities, Inc. was renamed Public Storage, Inc. ("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 self-storage facilities.

     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
of PSI,  and was its chief  executive  officer  through  November 7, 2002,  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.

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<PAGE>

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

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

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

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

     *  Our investments consist of (i) 17 self-storage facilities, (ii) 381,980
        shares  of  Public  Storage,   Inc.  common  stock,  and  (iii)  12,412
        depositary  shares of Public Storage,  Inc. Series A, Equity Stock. All
        of these investments are in real estate or real estate entities holding
        real estate located in the United States. See "Self-storage Facilities"
        and  Item 2  "Properties"  for  further  information.  The  Partnership
        distributed  substantially  all of the shares of Public  Storage,  Inc.
        common stock and  depositary  shares of Public  Storage  Equity  Stock,
        Series A, on a pro-rata basis to all unitholders of record as of January
        1, 2005 on March 31, 2005.  These  investments  were  acquired both for
        income and capital gains.

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

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

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

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

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

     Self-storage  facilities in which the Partnership  has invested  generally
consist of three to seven  buildings  containing an aggregate of between 269 to
980 storage  spaces,  most of which have  between 25 and 400 square feet and an
interior height of approximately 8 to 12 feet.

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

     The  Partnership's  self-storage  facilities are located in California and
Florida  and are  generally  located  in heavily  populated  areas and close to
concentrations of apartment complexes,  single family residences and commercial
developments.   However,  there  may  be  circumstances  in  which  it  may  be
appropriate to own a property in a less populated area, for example, in an area

                                       3
<PAGE>

that is highly visible from a major thoroughfare and close to, although not in,
a heavily populated area. Moreover,  in certain population centers,  land costs
and zoning  restrictions may create a demand for space in nearby less populated
areas.

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

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

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

     o  Capitalize on "Public  Storage's" name recognition.  PSI, together with
        its predecessor,  has more than 20 years of operating experience in the
        self-storage  business. PSI has informed the Partnership that it is the
        largest self-storage 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 directories in virtually all markets in which
        it  operates.   Customers  calling  either  PSI's  toll-free  telephone
        referral  system,  (800)  44-STORE,  or  a  self-storage  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.

     o  Maintain high  occupancy  levels and increase  annual  realized  rents.
        Subject  to  market  conditions,  the  Partnership  generally  seeks to
        achieve  average  occupancy  levels in  excess of 92% and to  eliminate
        promotions prior to increasing rental rates.  Average occupancy for the
        Partnership's self-storage facilities was 92% and 91% in 2004 and 2003,
        respectively.  Annual realized rents per occupied square foot increased
        from $13.38 in 2003 to $13.83 in 2004.

     o  Systems  and  controls.  PSI  has  an  organizational  structure  and a
        property  operation  system which links its corporate  office with each
        self-storage  facility.  This enables PSI to obtain  daily  information
        from each  facility  and to  achieve  efficiencies  in  operations  and
        maintain  control over its space inventory,  rental rates,  promotional
        discounts and  delinquencies.  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.

     o  Professional property operation.  There are approximately 4,100 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.

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

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

     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  property  managers,
assistant  managers,  relief managers,  and billing and maintenance  personnel.
Some or all of these  employees  may be employed  on a part-time  basis and may
also be employed by other persons, partnerships,  real estate investment trusts
or other entities owning facilities operated by 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.

                                       4
<PAGE>

     PSI has systems for managing  space  inventories,  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  (i.e.  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 between the Partnership and PSI 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.  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 the Partnership or six months notice by PSI.

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

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

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

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

     A corporation  that reinsures  policies  against losses to goods stored by
tenants in PSI's  storage  facilities  was purchased by PSI from Mr. Hughes and
members of his family (the "Hughes  Family") on December  31, 2001.  We believe
that the availability of insurance  reduces our potential  liability to tenants
for losses to their goods from theft or destruction.  This corporation receives
the premiums and bears the risks associated with the re-insurance.

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

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

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

Employees
---------

     There are  approximately  24 persons who render  services on behalf of the
Partnership.  These persons  include  resident  managers,  assistant  managers,
relief managers,  area managers,  and administrative and maintenance personnel.
Some  employees  may be employed  on a  part-time  basis and may be employed by
other persons, Partnerships, REITs or other entities owning facilities operated
by PSI.

                                       5
<PAGE>

ITEM 1A. RISK FACTORS
         ------------

     In addition to the other information in our Form 10-K, you should consider
the following factors in evaluating the Partnership:

     THE  GENERAL  PARTNERS  HAVE A  SIGNIFICANT  DEGREE  OF  CONTROL  OVER THE
PARTNERSHIP.

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

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

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

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

     o changes in general economic or local conditions;

     o natural disasters, such as earthquakes;

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

     o potential terrorists attacks;

     o the impact of environmental protection laws;

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

     o changes in tax, real estate and zoning laws.

     There is significant  competition among  self-storage  facilities and from
other storage alternatives.  All of our properties are self-storage facilities,
which  generated  substantially  all of our revenue for the year ended December
31,  2004.  Local  market  conditions  will  play  a  significant  part  in how
competition  will affect us.  Competition  in the market areas in which many of
our properties are located from other self-storage facilities and other storage
alternatives is significant and has affected the occupancy levels, rental rates
and operating expenses of some of our properties.  Any increase in availability
of funds for  investment  in real estate may  accelerate  competition.  Further
development  of  self-storage   facilities  may  intensify   competition  among
operators of self-storage facilities in the market areas in which we operate.

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

     We  have   conducted   preliminary   environmental   assessments   on  the
Partnership's  properties  to  evaluate  the  environmental  condition  of, and
potential  environmental  liabilities  associated  with, our properties.  These
assessments  generally consist of an investigation of environmental  conditions
at the property (not including soil or  groundwater  sampling or analysis),  as
well as a review  of  available  information  regarding  the site and  publicly
available  data  regarding  conditions  at  other  sites  in the  vicinity.  In
connection  with these  property  assessments,  we have become aware that prior
operations or activities at some  facilities or from nearby  locations  have or
may  have  resulted  in  contamination  to the  soil or  groundwater  at  these
facilities. In this regard, some of our facilities are or may be the subject of

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<PAGE>

federal or state environment  investigations  or remedial actions.  Although we
cannot  provide  any  assurance,   based  on  the   preliminary   environmental
assessments,  we believe we have funds  available to cover any  liability  from
environmental  contamination or potential contamination and we are not aware of
any  environmental  contamination  of our  facilities  material  to our overall
business, financial condition or results of operation.

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

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

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

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

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

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

     Approximately  70%  of  the   Partnership's   properties  are  located  in
California. California is facing serious budgetary problems. Action that may be
taken in response to these  problems,  such as an increase in property taxes on
commercial  properties,  could  adversely  impact our  business  and results of
operations. In addition, the Partnership could be adversely impacted by efforts
to reenact legislation  mandating medical insurance for employees of California
businesses and members of their families.

                                       7
<PAGE>

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

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

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

     The Partnership has a 1.6% ownership  interest in STOR-Re Mutual Insurance
Corporation  ("STOR-Re"),  which was formed in 1994 as an  association  captive
insurance company,  and is controlled by PSI. STOR-Re provides limited property
and liability insurance coverage to the Partnership, PSI, and affiliates of PSI
for losses  occurring  prior to April 1, 2004.  Liabilities for losses and loss
adjustment  expenses  include  an  amount  determined  from  loss  reports  and
individual  cases  and an  amount,  based on  recommendations  from an  outside
actuary  that  is a  member  of the  American  Academy  of  Actuaries,  using a
frequency  and  severity   method,   for  losses  incurred  but  not  reported.
Determining  the  liability for unpaid  losses and loss  adjustment  expense is
based upon  estimates  and while we believe  that the amount is  adequate,  the
ultimate loss may be in excess of or less than the amounts provided,  which may
result in a reduction  in the value of the  Partnership's  investment  or could
result in future  payments to STOR-Re if its  reserves  were  determined  to be
inadequate. Financial data with respect to STOR-Re is included in Note 5 to the
Partnership's December 31, 2004 financial statements.

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


     The following  table sets forth  information as of December 31, 2004 about
properties owned by the Partnership:

<TABLE>
<CAPTION>

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

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

</TABLE>

(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
        was rebuilt  and  recommenced  operations  in October  1994.  In the
        second quarter  of 2000,  the  Partnership  sold  land  adjacent  to,
        and not utilized by, the  facility  (approximately  43% of the entire
        parcel).

        The weighted average  occupancy level for the self-storage  facilities
was 91% and 92% for 2003 and 2004, respectively.

        As of December 31, 2004, the properties were not encumbered. See Note 7
to the Financial Statements included in Item 15(a).

        The Partnership does not have any agreements to buy or sell any real
estate nor does it expect to further develop any new or existing facilities
except for capital improvements.

                                       8
<PAGE>

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

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

     The plaintiff in this case filed a suit against  Public  Storage,  Inc. on
behalf of a putative class of renters who rented self-storage units from Public
Storage,  Inc. Plaintiff alleges that Public Storage,  Inc.  misrepresented the
size of its storage units,  has brought claims under  California  statutory and
common law relating to consumer  protection,  fraud,  unfair  competition,  and
negligent misrepresentation,  and is seeking monetary damages, restitution, and
declaratory and injunctive relief.

     The claim in this case is  substantially  similar to those in Henriquez v.
Public Storage,  Inc.,  which was disclosed in prior reports.  In January 2003,
the plaintiff caused the Henriquez action to be dismissed.

     Based upon the uncertainty  inherent in any putative class action,  Public
Storage,  Inc. cannot presently determine the potential damages, if any, or the
ultimate  outcome of this  litigation.  On November 3, 2003,  the court granted
Public  Storage,  Inc.'s  motion to strike  the  plaintiff's  nationwide  class
allegations  and to limit any  putative  class to  California  residents  only.
Public  Storage,  Inc.  is  vigorously  contesting  the claims  upon which this
lawsuit is based including class certification efforts.

Salaam et al v. Public  Storage,  Inc.  (filed February 2000) (Superior Court -
-------------------------------------------------------------------------------
Sacramento County); Holzman et al v. Public Storage, Inc. (filed October 2004)
-------------------------------------------------------------------------------
(Superior Court - Sacramento County)
------------------------------------

     This action,  which was described in the Partnership's prior reports,  was
disposed of in February 2005.

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

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

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
         ---------------------------------------------------

     No matters were submitted to a vote of security  holders during the fourth
quarter of the fiscal year ended December 31, 2004.

                                       9
<PAGE>
                        PART II

ITEM 5. MARKET FOR THE  REGISTRANT'S  COMMON  EQUITY,  RELATED  STOCKHOLDER
        -------------------------------------------------------------------
        MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
        -------------------------------------------------

     The Partnership has no common stock.

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

     Exclusive  of the General  Partners'  interest in the  Partnership,  as of
December 31, 2004, there were approximately 1,000 unitholders of record.

     Distributions  to the general and limited  partners of all cash  available
for  distribution   (as  defined)  are  made  quarterly.   Cash  available  for
distribution  is generally 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 partner) and capital  improvements,  plus net proceeds from any sale or
financing of the Partnership's properties.

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

                                      10
<PAGE>


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

For the Year Ended December 31,              2004              2003             2002              2001              2000
---------------------------------       ---------------   --------------   ---------------  ---------------  ----------------
<S>                                     <C>               <C>               <C>              <C>               <C>
Revenues                                $   12,210,000    $   11,672,000    $   11,165,000   $   11,358,000    $   10,243,000

Depreciation and amortization                  565,000           942,000           951,000          973,000           962,000

Interest expense                                     -                 -                 -          232,000           709,000

Net income (2)                               8,233,000         7,537,000         7,311,000        7,326,000         5,667,000

Limited partners' share                      6,284,000         5,648,000         5,345,000        7,246,000         5,604,000

General partners' share                      1,949,000         1,889,000         1,966,000           80,000            63,000

Limited partners' per unit data (1)
     Net income (2)                           $157.10           $141.20           $133.63          $181.15           $140.10
     Cash Distributions                       $140.00           $136.00           $142.00             -                 -

As of December 31,
---------------------------------
Cash and cash equivalents               $    2,595,000    $    1,587,000    $      698,000   $      434,000    $      525,000

Total Assets                            $   31,000,000    $   25,526,000    $   21,012,000   $   21,928,000    $   18,675,000

Note payable to commercial bank         $            -    $            -    $            -   $            -    $    7,750,000

</TABLE>

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

(2)    Net income for the year ended  December 31, 2000 includes a gain relating
       to the sale of excess land totaling  $61,000  ($1.13 per limited
       partnership unit).

                                      11
<PAGE>

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

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

FORWARD LOOKING STATEMENTS
--------------------------

     When  used  within  this  document,   the  words  "expects,"   "believes,"
"anticipates,"  "should,"  "estimates," and similar expressions are intended to
identify  "forward-looking  statements"  within  the  meaning  of that  term in
Section 27A of the Securities Exchange Act of 1933, as amended,  and in Section
21E of the Securities  Exchange Act of 1934, as amended.  Such  forward-looking
statements involve known and unknown risks,  uncertainties,  and other factors,
which may cause the actual  results and  performance  of the  Partnership to be
materially  different  from those  expressed or implied in the forward  looking
statements.  Such factors are described in Item 1A, "Risk  Factors" and include
changes  in  general  economic  conditions  and in the  markets  in  which  the
Partnership  operates  and the  impact  of  competition  from new and  existing
storage and commercial facilities and other storage  alternatives,  which could
impact rents and occupancy levels at the Partnership's  facilities;  the impact
of the regulatory  environment as well as national,  state,  and local laws and
regulations,  which could  increase  the  Partnership's  expense and reduce the
Partnership's cash available for distribution;  and economic uncertainty due to
the impact of war or terrorism  could  adversely  affect our business  plan. We
disclaim any  obligation  to publicly  release the results of any  revisions to
these   forward-looking   statements   reflecting  new  estimates,   events  or
circumstances after the date of this report.

         OVERVIEW

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

     PSI is the largest  owner and operator of  self-storage  facilities in the
United States.  All of PSI's facilities are operated under the "Public Storage"
brand name, which we believe is the most recognized and established name in the
self-storage  industry.  Market  concentration  establishes  PSI  as one of the
dominant  providers of self-storage space in most markets in which PSI operates
and enables PSI to use a variety of promotional activities,  such as television
advertising as well as targeted discounting and referrals,  which are generally
not economically viable to most of PSI's competitors.

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

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

         IMPAIRMENT OF REAL ESTATE

     On a quarterly  basis,  we evaluate  our real estate for  impairment.  The
evaluation  of  real  estate  for  impairment   requires   determining  whether
indicators  of  impairment  exist,  which  is a  subjective  process.  When any
indicators of impairment are found, the evaluation then entails  projections of
future  operating  cash flows,  which also involves  significant  judgment.  We
identified no such impairments at December 31, 2004. However, future events, or
facts and  circumstances  that currently exist that we have not yet identified,
could cause us to conclude in the future that our real estate is impaired.  Any
resulting  impairment  loss  could  have  a  material,  adverse  impact  on our
financial condition and results of operations.

         ESTIMATED USEFUL LIVES OF LONG-LIVED ASSETS

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

                                      12
<PAGE>

         ACCRUALS FOR CONTINGENCIES

     We are exposed to business and legal liability risks with respect to events
that have occurred,  but in accordance with U.S. generally  accepted  accounting
principles,  we have not accrued for such potential liabilities because the loss
is either  not  probable  or not  estimable  or  because we are not aware of the
event.  Future events and the result of pending  litigation could result in such
potential losses becoming  probable and estimable,  which could have a material,
adverse  impact on our  financial  condition or results of  operations.  Some of
these potential losses, which we are aware of, are described in Notes 5 and 9 to
the Partnership's financial statements.

         ACCRUALS FOR OPERATING EXPENSES

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

RESULTS OF OPERATIONS
---------------------
         YEAR ENDED DECEMBER 31, 2004 COMPARED TO YEAR ENDED DECEMBER 31, 2003:

     The Partnership's net income was $8,233,000 in 2004 compared to $7,537,000
in 2003,  representing a increase of $696,000 or 9%. This increase is primarily
a result of  increased  operating  results  at the  Partnership's  self-storage
facilities.

     During 2004  property net  operating  income  (rental  income less cost of
operations,  management fees paid to an affiliate and depreciation expense) was
$6,446,000 in 2004 compared to $5,854,000 in 2003,  representing an increase of
$592,000  or 10%.  This  increase  is  attributable  to an  increase  in rental
revenues,   partially  offset  by  increase  to  cost  of  operations,  at  the
Partnership's self-storage facilities.

     Rental  income was  $10,325,000  in 2004  compared to  $9,883,000 in 2003,
representing  an increase of $442,000 or 4%. The increase is attributable to an
increase in average occupancy at the Partnership's self-storage facilities. The
weighted average  occupancy levels at the self-storage  facilities were 92% and
91% in 2004 and 2003,  respectively.  In addition, the annual realized rent per
occupied square foot was $13.83 in 2004 compared to $13.38 in 2003.

     Dividends  from  marketable  securities  of $718,000 for 2004 and 2003 are
from the Partnership's investment in Public Storage, Inc. securities.  See Note
2 to the Partnership's  financial statements.  As a result of the Partnership's
distribution of its Public Storage securities  holdings to unitholders on March
31, 2005, we expect such dividends to cease effective April 1, 2005.

     On March 31, 2005, we distributed  substantially all of the Public Storage
common stock and Public Storage Equity Stock,  Series A, on a pro-rata basis to
all unitholders of record as of January 1, 2005. Accordingly,  during the first
quarter ended March 31, 2005, we expect a gain on disposition of  approximately
$15.7  million  (based upon a value of $56.73 per share for the Public  Storage
common  stock and $28.01 per  depositary  share for the Public  Storage  Equity
Stock, Series A). The actual gain will be based on the closing market price per
share on March 31, 2005.

     Cost of  operations  (including  management  fees  paid  to an  affiliate)
increased  $227,000 or 7% to $3,314,000 in 2004 from  $3,087,000 in 2003.  This
increase is primarily  attributable  to increases in payroll,  property  taxes,
management  fees (as a result of higher  revenues)  and repair and  maintenance
expenses.

     Depreciation  expense was  $565,000  for the year ended  December  31, 2004
compared to $942,000 for the same period in 2003.  The decrease in  depreciation
expense is  primarily  related  to the full  depreciation  of the  Partnership's
buildings which were placed in service in 1978 and 1979. We expect  depreciation
expense with respect to the original cost of buildings to decline  approximately
$185,000 in 2005  compared to 2004  primarily  as a result of the  Partnership's
buildings becoming fully depreciated.

     Revenues from Affiliate under the Performance  Agreement increased $75,000
or 8% to $1,066,000 in 2004 from  $991,000 in 2003.  These amounts  include the
pre-depreciation   net  income  of  the  facility  that  has  self-storage  and
containerized storage operations.

                                      13
<PAGE>

         YEAR ENDED DECEMBER 31, 2003 COMPARED TO YEAR ENDED DECEMBER 31, 2002:

     The Partnership's net income was $7,537,000 in 2003 compared to $7,311,000
in 2002, representing an increase of $226,000 or 3%. This increase is primarily
a result of  increased  operating  results  at the  Partnership's  self-storage
facilities.

     During 2003  property net  operating  income  (rental  income less cost of
operations,  management fees paid to an affiliate and depreciation expense) was
$5,854,000 in 2003 compared to $5,610,000 in 2002,  representing an increase of
$244,000  or 4%.  This  increase  is  attributable  to an  increase  in  rental
revenues,   partially  offset  by  increase  to  cost  of  operations,  at  the
Partnership's self-storage facilities.

     Rental  income was  $9,883,000  in 2003  compared to  $9,383,000  in 2002,
representing  an increase of $500,000 or 5%. The increase is attributable to an
increase in average occupancy at the Partnership's self-storage facilities. The
weighted average  occupancy levels at the self-storage  facilities were 91% and
86% in 2003 and 2002,  respectively.  The  annual  realized  rent per  occupied
square foot was $13.38 in 2003 compared to $13.85 in 2002.

     Cost of  operations  (including  management  fees  paid  to an  affiliate)
increased  $265,000 or 9% to $3,087,000 in 2003 from  $2,822,000 in 2002.  This
increase is primarily  attributable  to increases in payroll,  property  taxes,
management fees (as a result of higher revenues) and insurance expenses.

     Depreciation  expense was  $942,000  for the year ended  December 31, 2003
compared to $951,000 for the same period in 2002. The decrease in  depreciation
expense is  primarily  related to the full  depreciation  of the  Partnership's
buildings which were placed in service in 1978.

     Revenues from Affiliate under the Performance  Agreement increased $10,000
or 1% to $991,000  in 2003 from  $981,000 in 2002.  These  amounts  include the
pre-depreciation   net  income  of  the  facility  that  has  self-storage  and
containerized storage operations.

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

     Cash flows from  operating  activities  of  $8,915,000  for the year ended
December 31, 2004 have been  sufficient to meet all current  obligations of the
Partnership. During 2005, the Partnership anticipates approximately $248,000 of
capital  improvements  compared  to  $365,000  in  2004,  $444,000  in 2003 and
$359,000 in 2002.  Such  enhancements  will include new signs,  exterior  color
schemes, and improvements to the rental offices.

     At December 31, 2004 the  Partnership  held 381,980 shares of common stock
and  12,412  depositary  shares  of  Equity  Stock,   Series  A,  (collectively
"marketable  securities") with a fair value totaling $21,644,000 (cost basis of
$6,340,000  at December  31,  2004) in Public  Storage,  Inc.  The  Partnership
received $718,000 in dividends during 2004, 2003 and 2002,  respectively.  As a
result  of  the  Partnership's   decision  to  distribute  its  Public  Storage
marketable  securities  to  unitholders,  we  expect  such  dividends  to cease
effective April 1, 2005.

         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 to be distributed at least quarterly.  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.   In  the  third  quarter  of  1991,  quarterly
distributions were discontinued to enable the Partnership to increase its funds
available  for debt  principal  payments.  As all debt service was repaid as of
December  31,  2001,  the  Partnership  resumed  with  quarterly  distributions
beginning in the first  quarter of 2002. We paid  distributions  during 2003 to
the limited and general  partners  totaling  $5,440,000  ($136.00 per unit) and
$1,887,000,  respectively. We paid distributions during 2004 to the limited and
general  partners  totaling  $5,600,000  ($140.00  per  unit)  and  $1,942,000,
respectively.  Future  distribution  rates may be adjusted to levels  which are
supported  by  operating  cash flow after  capital  improvements  and any other
necessary  obligations.  As discussed  above, on March 31, 2005, we distributed
substantially all of our holdings of Public Storage marketable  securities on a
pro-rata basis to all unitholders of record as of January 1, 2005. Accordingly,
we expect  annual cash  available  for  distribution  to decline  approximately
$718,000 after March 31, 2005.

                                      14
<PAGE>

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

         As of December 31, 2004, the Partnership had no outstanding debt.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
         -------------------------------------------

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

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

         Not applicable.

ITEM 9A. CONTROLS AND PROCEDURES
         -----------------------

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

     At the end of the period  covered by this  report,  Public  Storage,  Inc.
carried out an evaluation,  under the supervision and with the participation of
the Partnership's management,  including Public Storage, Inc.'s Chief Executive
Officer and Chief Financial  Officer,  of the  effectiveness  of the design and
operation of the Partnership's  disclosure controls and procedures.  Based upon
that  evaluation,  the Chief  Executive  Officer  and Chief  Financial  Officer
concluded  that the  Partnership's  disclosure  controls  and  procedures  were
effective. During the fourth quarter of 2004, there were no significant changes
in the  Partnership's  internal  controls over  financial  reporting  that have
materially  affected,  or are  reasonably  likely  to  materially  affect,  the
Partnership's internal control over financial reporting.

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

     Not applicable

                                      15
<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 self-storage facilities are
managed by PSI pursuant to a Management Agreement.

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

     The names of all 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
Ronald L. Havner, Jr.   Chief Executive Officer and Vice Chairman of the Board
Harvey Lenkin           President and Director
John Reyes              Senior Vice President and Chief Financial Officer
John S. Baumann         Senior Vice President and Chief Legal Officer
John G. Graul           Senior Vice President and President, Self-storage
                        Operations
David F. Doll           Senior Vice President and President, Real Estate Group
B. Wayne Hughes, Jr.    Director
Robert J. Abernethy     Director
Dann V. Angeloff        Director
William C. Baker        Director
John T. Evans           Director
Uri P. Harkham          Director
Daniel C. Staton        Director


     B. Wayne Hughes, age 71, 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 retired as Chief Executive
Officer of PSI in November 2002 and remains  Chairman of the Board.  Mr. Hughes
is currently engaged in the acquisition and operation of commercial  properties
in  California  and in the  acquisition  and  operation of  mini-warehouses  in
Canada.  He was  Chairman of the Board and Chief  Executive  Officer  from 1990
until March 1998 of Public Storage  Properties  XI, Inc.,  which was renamed PS
Business Parks, Inc. ("PSB"), an affiliated REIT. Mr. Hughes has been active in
the real  estate  investment  field for over 30 years.  He is the  father of B.
Wayne Hughes, Jr., also a member of the PSI Board.

     Ronald L. Havner,  Jr., age 47, has been Vice  Chairman,  Chief  Executive
Officer and a director of PSI since November 2002. Mr. Havner has been Chairman
of PS Business Parks,  Inc. (PSB) since March 1998, Chief Executive  Officer of
PSB from March 1998 until  August 2003 and  President of PSB from March 1998 to
September  2002.  He is a member  of the  Board of  Governors  of the  National
Association  of Real  Estate  Investment  Trusts  (NAREIT)  and a  director  of
Business Machine Security, Inc., The Mobile Storage Group, and Union BanCal and
its primary subsidiary, Union Bank of California, N.A.

                                      16
<PAGE>

     Harvey Lenkin,  age 68, became President and a director of PSI in November
1991. Mr. Lenkin has been employed by PSI or its  predecessor  for 27 years. He
has been a director of PS Business  Parks since March 1998 and was President of
PS  Business  Parks from 1990 until  March  1998.  He is a director  of Paladin
Realty Income Properties I, Inc., a director of Huntington Memorial Hospital in
Pasadena,  California,  and a former member of the  Executive  Committee of the
Board of  Governors  of the  National  Association  of Real  Estate  Investment
Trusts, Inc. (NAREIT).

     John Reyes, age 44, 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.

     John S.  Baumann,  age 44,  became  Senior Vice  President and Chief Legal
Officer of PSI in June 2003.  From 1998 to 2002,  Mr.  Baumann  was Senior Vice
President  and  General  Counsel  of  Syncor  International   Corporation,   an
international high technology health care services company.  From 1995 to 1998,
he was Associate General Counsel of KPMG LLP, an international accounting,  tax
and consulting firm.

     John E.  Graul,  age 53,  became  Senior  Vice  President  and  President,
Self-Storage Operations,  for PSI in February 2004, with overall responsibility
for PSI's national  operations.  From 1992 until joining the Company, Mr. Graul
was employed by McDonald's  Corporation  where he served in various  management
positions, most recently as Vice President and General Manager - Pacific Sierra
Region.

     David F. Doll, age 46, became Senior Vice  President and  President,  Real
Estate Group,  for PSI in February  2005,  with  responsibility  for PSI's real
estate  activities,   including  property   acquisitions,   developments,   and
repackagings.  Before joining PSI, Mr. Doll was Senior Executive Vice President
of  Development  for Westfield  Corporation,  a major  international  owner and
operator of shopping malls, where he was employed since 1995.

     B. Wayne  Hughes,  Jr., age 45 became  director of PSI in January 1998. He
was employed by PSI from 1989 to 2002 serving as Vice  President - Acquisitions
of PSI  from  1992 to  2002.  Mr.  Hughes,  Jr.  is  currently  engaged  in the
acquisition   and   operation  of  commercial   property  in   California   and
mini-warehouses  in Canada.  He is the son of B. Wayne Hughes,  Chairman of the
PSI Board.

     Robert J.  Abernethy,  age 65, has been  President  of  American  Standard
Development Company and of Self-Storage  Management Company and of Self-Storage
Management Company,  which develop and operate self-storage  facilities,  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 trustees of Johns Hopkins
University,  a director of the Los Angeles Music Center,  a member of the Board
of Overseers  of the Los Angeles  Philharmonic,  a trustee of Loyola  Marymount
University,  a director  of the  Pacific  Council on  International  Policy,  a
director of the Atlantic Council,  a member of the Council on Foreign Relations
and a former California Transportation Commissioner.  Mr. Abernethy is a former
member  of the  board  of  directors  of the Los  Angeles  County  Metropolitan
Transportation  Authority and of the  Metropolitan  Water  District of Southern
California,  a former  member of the  California  State Board of  Education,  a
former  member  of  the  California  State  Arts  Council,  a  former  Planning
Commissioner,   a  former   Telecommunications   Commissioner  and  the  former
Vice-Chairman  of  the  Economic  Development  Commission  of the  City  of Los
Angeles.  He received an M.B.A. from the Harvard University  Graduate School of
Business.

     Dann V. Angeloff,  age 69, has been President of the Angeloff  Company,  a
corporate  financial  advisory firm,  since 1976. Mr. Angeloff is currently the
general   partner  of  a  limited   partnership   that  in  1974   purchased  a
mini-warehouse  operated by PSI. Mr.  Angeloff has been a director of PSI since
its  organization  in 1980.  He is a director  of Bjurman,  Barry  Fund,  Inc.,
Corporation,  Nicholas/Applegate Fund, ReadyPac Foods, Retirement Capital Group
and Soft Brands, Inc.

     William C. Baker,  age 71, became a director of PSI in November  1991. Mr.
Baker has been the  Chairman  and Chief  Executive  Officer  of  Calloway  Golf
Company  since  August  2004.  From August  1998  through  April  2000,  he was
President  and  Treasurer  of  Meditrust   Operating  Company,  a  real  estate
investment  trust.  From  April  1996 to  December  1998,  Mr.  Baker was Chief
Executive  Officer of Santa Anita Companies which then operated the Santa Anita
Racetrack.  From April 1993 through May 1995,  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. From 1991 to
1999, he was 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
LaQuinta, Inc., California Pizza Kitchen, and Callaway Golf Company.

                                      17
<PAGE>

     John T. Evans,  age 66, became a director of PSI in August 2003. Mr. Evans
has been a partner in the law firm of Osler,  Hoskin & Harcourt  LLP,  Toronto,
Canada from April 1993 to the  present and in the law firm of Blake,  Cassels &
Graydon  LLP,  Toronto,  Canada  from  April  1966 to  April  1993.  Mr.  Evans
specializes in business law matters,  securities,  restructurings,  mergers and
acquisitions and advising on corporate  governance.  Mr. Evans is a director of
Cara  Operations  Inc.,  Kubota  Metal  Corporation  and Toronto  East  General
Hospital.   Until   August   2003,   Mr.  Evans  was  a  director  of  Canadian
Mini-Warehouse Properties Ltd., a Canadian corporation owned by B. Wayne Hughes
and members of his family.

     Uri P.  Harkham,  age 56,  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
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.

     Daniel  C.  Staton,  age 52,  became a  director  of PSI in March  1999 in
connection  with the merger of Storage Trust Realty,  a real estate  investment
trust,  with PSI.  Mr.  Staton was Chairman of the Board of Trustees of Storage
Trust Realty from February 1998 until March 1999 and a Trustee of Storage Trust
Realty from November  1994 until March 1999. He is President of Walnut  Capital
Partners,  an investment and venture capital company and the Co-Chief Executive
Officer of PMGI (formerly  Media General,  Inc.), a print and electronic  media
company.  Mr.  Staton  was the  Chief  Operating  Officer  and  Executive  Vice
President of Duke Realty Investments,  Inc. from 1993 to 1997 and a director of
Duke Realty  Investments,  Inc. from 1993 until August 1999. From 1981 to 1983,
Mr. Staton was a principal  owner of Duke  Associates,  the predecessor of Duke
Realty  Investments,  Inc.  Prior to joining Duke  Associates in 1981, he was a
partner and general manager of his own moving  company,  Gateway Van & Storage,
Inc. in St. Louis, Missouri.  Form 1986 to 1988, Mr. Staton served as president
of the Greater Cincinnati Chapter of the National Association of Industrial and
Office Parks.

     Each  director of PSI serves until he resigns or is removed from office by
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.

     The  members  of the PSI  Audit  Committee  of the  Board  are:  Robert J.
Abernethy  (Chairman),  John T. Evans, and Daniel Staton.  The Board of PSI has
determined that Mr.  Abernethy  satisfies the audit committee  financial expert
criteria  established  by the SEC  and  the  accounting  or  related  financial
management  expertise  criteria  established  by the New  York  Stock  Exchange
(NYSE).  All members of the Audit  Committee  are  independent  as that term is
defined in applicable SEC Rules and NYSE listing standards.

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

ITEM 11. EXECUTIVE COMPENSATION
         ----------------------
         The Partnership has no subsidiaries, directors or officers. See Item 13
for a description of certain transactions between the Partnership and its
General Partners and their affiliates.

                                      18
<PAGE>

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
         -------------------------------------------------------------------
         RELATED STOCKHOLDER MATTERS
         ---------------------------

         (a) At March 25, 2005, the following beneficially owned more than 5%
             of the Units:
<TABLE>
<CAPTION>

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

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

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

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

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

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

ITEM 13. CERTAIN RELATIONSHIPS 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. Mr. Hughes has assigned his ownership and
distribution  rights in the  Partnership  to BWH  Marina  Corporation  II ("BWH
Marinas").  In addition  to their  distribution  rights  with  respect to their
general  partner's  interests,  PSI and BWH Marinas own 11,365 and 5,892 Units.
During  2004,  PSI  and  BWH  Marinas  received   $1,554,000  and  $388,000  in
distributions related to their general partner's ownership interests.

                                      19
<PAGE>

     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  self-storage  facilities
operated for the  Partnership.  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.  The General  Partners  believe  that the loss of the right to use the
service marks and related  designs could have a material  adverse effect on the
Partnership's  business.  The  Management  Agreement with PSI provides that the
Management  Agreement  may be  terminated  without  cause upon 60 days  written
notice by the  Partnership or six months notice by PSI.  During 2004,  2003 and
2002,  the   Partnership   paid  fees  of  $619,000,   $606,000  and  $563,000,
respectively, to PSI pursuant to the Management Agreement.

     A real estate facility owned by the Partnership (the "Azusa  Property") is
operated  pursuant to a management and performance  agreement (the "Performance
Agreement") with Public Storage Pickup and Delivery, LP ("PSPUD"), a subsidiary
of PSI. Following the commencement of the Performance  Agreement,  the facility
was modified to include  self-storage  and industrial  space,  with the cost of
these  improvements   entirely  funded  by  PSPUD.  The  industrial  space  was
constructed  for use in PSPUD's  containerized  storage  operations.  Under the
Performance  Agreement,  the  Partnership is guaranteed to receive the same net
operating  income it received with respect to the Azusa  Property  prior to the
effective date of the agreement,  with an annual  increase of the greater of a)
1% or b) the  percentage  increase  in net  operating  income  achieved  at the
self-storage  facilities managed by PSI in the market in which this facility is
located (the  "Guaranteed  Amounts").  Where the net operating income earned by
the Azusa Property is less than these Guaranteed Amounts, PSPUD supplements the
Partnership's income. Where the amount earned by the Azusa Property exceeds the
Guaranteed  Amounts,  the excess is remitted to PSPUD. The costs of all capital
improvements  with respect to the Azusa Property are funded by PSPUD.  Included
in the line item "Revenues from Affiliate under  Performance  Agreement" on the
Partnership's  Statements  of Income,  is the  pre-depreciation  net  operating
income with respect to the Azusa Property.  The Partnership recorded a total of
$1,066,000,  $991,000 and  $981,000 in revenue with respect to the  Performance
Agreement for the years ended December 31, 2004, 2003 and 2002, respectively.

     In addition,  the Partnership  combines its insurance purchasing power with
PSI through  captive  insurance  entities  controlled by PSI. (See Note 5 to the
Partnership's  financial  statements.)  The  captive  entities  provide  limited
property and liability insurance to the Partnership at commercially  competitive
rates. The Partnership and PSI also utilize  unaffiliated  insurance carriers to
provide  property and  liability  insurance  in excess of the captive  entities'
limitations. Premiums paid the the captive entities for the years ended December
31, 2004, 2003 and 2002 were  $138,000,  $94,000 and $66,000, respectively.

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

         Fees billed to the  Partnership  by Ernst & Young LLP for 2003 and 2004
         as are follows:

         Audit  Fees:  Audit  fees  billed  (or  expected  to be  billed) to the
         Partnership  by Ernst & Young  LLP for the  audit of the  Partnership's
         annual  financial  statements  and reviews of the  quarterly  financial
         statements included in the Partnership's quarterly reports on Form 10-Q
         totaled $9,000 for 2003 and $8,000 in 2004.

         Tax Fees: Tax fees billed (or expected to be billed) to the Partnership
         by Ernst & Young  LLP for tax  services  (primarily  federal  and state
         income tax preparation) totaled $7,000 in 2003 and $7,000 in 2004.

         Audit-Related  Fees and Other Fees:  During 2003 and 2004 Ernst & Young
         LLP did not bill the  Partnership  for  audit-related  services  or any
         other services, except audit services and tax services denoted above.

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

                                      20
<PAGE>

                                     PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
         ------------------------------------------

(a) List of Documents filed 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) Exhibits: See Exhibit Index contained below.

(c) Not applicable.

                                      21

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.

                                  EXHIBIT INDEX

                                  (Item 15 (b))


3.1       Amended Certificate and Agreement of Limited Partnership.  Previously
          filed with the Securities and Exchange Commission as Exhibit A to the
          Registrant's   Prospectus  included  in  Registration  Statement  No.
          2-60530 and incorporated herein by 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     Credit Agreement dated September 1, 1998 by and between Public Storage
         Properties IV, Ltd. and Wells Fargo Bank, National Association.
         Previously filed with the Securities and Exchange Commission as an
         exhibit to the Partnership's Quarterly Report on Form 10-Q for the
         quarter ended September 30, 1998 and incorporated herein by reference.

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

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

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

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

                                      22
<PAGE>
                                   23
                                   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, 2005         By:    Public Storage, Inc., General Partner

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

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

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

<TABLE>
<CAPTION>

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

/s/ Ronald L. Havner, Jr.                              Vice Chairman of the Board and Chief Executive             March 31, 2005
---------------------------------------
Ronald L. Havner, Jr.                                  Officer of Public Storage, Inc., Corporate General
                                                       Partner

/s/ B. Wayne Hughes                                    General Partner and Chairman of the Board of               March 31, 2005
---------------------------------------                Public Storage, Inc.
B. Wayne Hughes

/s/ Harvey Lenkin                                      President and Director of Public Storage, Inc.             March 31, 2005
---------------------------------------
Harvey Lenkin

/s/ John Reyes                                         Senior Vice President and Chief Financial Officer          March 31, 2005
---------------------------------------                of Public Storage, Inc. (principal financial
John Reyes                                             officer and principal accounting officer)

/s/ B. Wayne Hughes, Jr.                               Director of Public Storage, Inc.                           March 31, 2005
---------------------------------------
B. Wayne Hughes, Jr.

/s/ Robert J. Abernethy                                Director of Public Storage, Inc.                           March 31, 2005
---------------------------------------
Robert J. Abernethy

/s/ Dann V. Angeloff                                   Director of Public Storage, Inc.                           March 31, 2005
---------------------------------------
Dann V. Angeloff

                                                       Director of Public Storage, Inc.
---------------------------------------
William C. Baker

/s/ John T. Evans                                      Director of Public Storage, Inc.                           March 31, 2005
---------------------------------------
John T. Evans

/s/ Uri P. Harkham                                     Director of Public Storage, Inc.                           March 31, 2005
---------------------------------------
Uri P. Harkham

/s/ Daniel C. Staton                                   Director of Public Storage, Inc.                           March 31, 2005
---------------------------------------
Daniel C. Staton

</TABLE>

                                                                              23
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.

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


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

Report of Independent Registered Public Accounting Firm            F-1

Financial Statements and Schedule:

Balance Sheets as of December 31, 2004 and 2003                    F-2

For the years ended December 31, 2004, 2003 and 2002:

         Statements of Income and Comprehensive Income             F-3

         Statements of Partners' Equity                            F-4

         Statements of Cash Flows                                  F-5

Notes to Financial Statements                               F-6 - F-12

Schedule:

         III - Real Estate and Accumulated Depreciation    F-13 - F-14

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


<PAGE>

             Report of Independent Registered Public Accounting Firm




The Partners
Public Storage Properties IV, Ltd.


We have audited the accompanying balance sheets of Public Storage Properties IV,
Ltd.  (the  "Partnership")  as of December  31,  2004 and 2003,  and the related
statements of income,  comprehensive income, partners' equity and cash flows for
each of the three years in the period ended  December 31, 2004.  Our audits also
included  the  schedule  listed  in the  index at item  15(a).  These  financial
statements and schedule are the responsibility of the Partnership's  management.
Our  responsibility  is to express an opinion on these financial  statements and
schedule based on our audits.

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

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial position of Public Storage Properties IV,
Ltd. at December 31, 2004 and 2003,  and the results of its  operations  and its
cash flows for each of the three years in the period ended December 31, 2004, in
conformity with U.S.  generally  accepted  accounting  principles.  Also, in our
opinion,  the related financial statement schedule,  when considered in relation
to the  basic  financial  statements  taken as a whole,  presents  fairly in all
material respects the information set forth therein.


                                                        ERNST & YOUNG LLP

March 25, 2005
Los Angeles, California


                                      F-1
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                                 BALANCE SHEETS
                           December 31, 2004 and 2003

<TABLE>
<CAPTION>

                                                                                  2004                    2003
                                                                        --------------------       --------------------

                                ASSETS

<S>                                                                         <C>                     <C>
Cash and cash equivalents                                                   $      2,595,000        $      1,587,000
Marketable securities of affiliate (cost of $6,340,000 as of December
     31, 2004 and 2003, respectively)                                             21,644,000               16,945,000
Rent and other receivables                                                           128,000                 194,000

Real estate facilities:
     Building and equipment                                                       18,738,000              18,373,000
     Land                                                                          5,021,000               5,021,000
                                                                        --------------------       --------------------
                                                                                  23,759,000              23,394,000

     Less accumulated depreciation                                               (17,208,000)            (16,643,000)
                                                                        --------------------       --------------------
                                                                                   6,551,000               6,751,000

Other assets                                                                          82,000                  49,000

                                                                        --------------------       --------------------
Total assets                                                                $     31,000,000        $     25,526,000
                                                                        ====================       ====================


                   LIABILITIES AND PARTNERS' EQUITY

Accounts payable                                                            $        226,000        $        170,000
Deferred revenue                                                                     314,000                 286,000

Commitments and contingencies (Note 9)                                                     -                       -

Partners' equity:
     Limited partners' equity, $500 per unit, 40,000 units authorized,
         issued and outstanding
                                                                                  11,253,000              10,740,000
     General partners' equity                                                      3,903,000               3,725,000
     Other comprehensive income                                                   15,304,000              10,605,000
                                                                        --------------------       --------------------

     Total partners' equity                                                       30,460,000              25,070,000
                                                                        --------------------       --------------------

Total liabilities and partners' equity                                      $     31,000,000        $     25,526,000
                                                                        ====================       ====================
</TABLE>

                            See accompanying notes
                                      F-2
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
              For the years ended December 31, 2004, 2003 and 2002

<TABLE>
<CAPTION>

                                                                2004                2003                  2002
                                                          --------------------  ------------------  -----------------
REVENUES:
<S>                                                        <C>                 <C>                  <C>
Rental income                                              $     10,325,000    $       9,883,000    $       9,383,000
Dividends from marketable securities
     of affiliate                                                   718,000              718,000              718,000
Revenues from affiliate under Performance Agreement
     (Note 5)                                                     1,066,000              991,000              981,000
Other income                                                        101,000               80,000               83,000
                                                          --------------------  ------------------  -----------------
                                                                 12,210,000           11,672,000           11,165,000
                                                          --------------------  ------------------  -----------------

COSTS AND EXPENSES:

Cost of operations                                                2,695,000            2,481,000            2,259,000
Management fees paid to affiliate                                   619,000              606,000              563,000
Depreciation                                                        565,000              942,000              951,000
Administrative                                                       98,000              106,000               81,000
                                                          --------------------  ------------------  -----------------
                                                                  3,977,000            4,135,000            3,854,000
                                                          --------------------  ------------------  -----------------

NET INCOME                                                 $      8,233,000    $       7,537,000    $       7,311,000
                                                          ====================  ==================  =================

Limited partners' share of net income ($157.10 per
     unit in 2004, $141.20 per unit in 2003 and
     $133.63 per unit in 2002)                             $      6,284,000    $       5,648,000    $       5,345,000

General partners' share of net income                             1,949,000            1,889,000            1,966,000
                                                          --------------------  ------------------  -----------------

                                                           $      8,233,000    $       7,537,000    $       7,311,000
                                                          ====================  ==================  =================



COMPREHENSIVE INCOME:
Net income                                                 $      8,233,000    $       7,537,000    $       7,311,000
Other comprehensive income (change in fair market
   value of marketable equity securities)                         4,699,000            4,272,000             (423,000)
                                                          --------------------  ------------------  -----------------

                                                           $     12,932,000    $      11,809,000    $       6,888,000
                                                          ====================  ==================  =================

</TABLE>

                            See accompanying notes
                                      F-3
<PAGE>


                       PUBLIC STORAGE PROPERTIES IV, LTD.
                         STATEMENTS OF PARTNERS' EQUITY
              For the years ended December 31, 2004, 2003 and 2002


<TABLE>
<CAPTION>
                                                                                        Other
                                                                                    Comprehensive     Total Partners'
                                            Limited Partners   General Partners        Income             Equity
                                        ---------------------  ------------------  ----------------  ------------------

<S>                 <C> <C>                      <C>                  <C>                <C>               <C>
Balance at December 31, 2001                     10,825,000           3,769,000          6,756,000         21,350,000

Change in unrealized gain on marketable
     securities                                           -                   -           (423,000)          (423,000)

Net income                                        5,345,000           1,966,000                  -          7,311,000

Distributions paid to partners                   (5,680,000)         (1,970,000)                 -         (7,650,000)

Equity transfer                                      94,000             (94,000)                 -                  -
                                        ---------------------  ------------------  ----------------  ------------------

Balance at December 31, 2002                     10,584,000           3,671,000          6,333,000         20,588,000

Change in unrealized gain on marketable
     securities                                           -                   -          4,272,000          4,272,000

Net income                                        5,648,000           1,889,000                  -          7,537,000

Distributions paid to partners                   (5,440,000)         (1,887,000)                 -         (7,327,000)

Equity transfer                                     (52,000)             52,000                  -                  -
                                        ---------------------  ------------------  ----------------  ------------------

Balance at December 31, 2003                     10,740,000           3,725,000         10,605,000         25,070,000

Change in unrealized gain on marketable
     securities                                           -                   -          4,699,000          4,699,000

Net income                                        6,284,000           1,949,000                  -          8,233,000

Distributions paid to partners                   (5,600,000)         (1,942,000)                 -         (7,542,000)

Equity transfer                                    (171,000)            171,000                  -                  -
                                        ---------------------  ------------------  ----------------  ------------------

Balance at December 31, 2004                $    11,253,000     $     3,903,000    $    15,304,000    $    30,460,000
                                        =====================  ==================  ================  ==================

</TABLE>
                            See accompanying notes
                                      F-4

<PAGE>
                       PUBLIC STORAGE PROPERTIES IV, LTD.
                            STATEMENTS OF CASH FLOWS
              For the years ended December 31, 2004, 2003 and 2002

<TABLE>
<CAPTION>

                                                                        2004               2003                2002
                                                                  -----------------   ---------------    ----------------
Cash flows from operating activities:

<S>                                                                <C>                <C>                <C>
     Net income                                                    $     8,233,000    $     7,537,000    $     7,311,000

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

         Depreciation                                                      565,000            942,000            951,000
         Decrease in rent and other receivables                             66,000             94,000            207,000
         (Increase) decrease in other assets                               (33,000)            55,000            (42,000)
         Increase (decrease) in accounts payable                            56,000             20,000           (204,000)
         Increase in deferred revenue                                       28,000             12,000             50,000
                                                                  -----------------   ---------------    ----------------

         Total adjustments                                                 682,000          1,123,000            962,000
                                                                  -----------------   ---------------    ----------------

         Net cash provided by operating activities                       8,915,000          8,660,000          8,273,000
                                                                  -----------------   ---------------    ----------------

Cash flows from investing activities:

     Additions to real estate facilities                                  (365,000)          (444,000)          (359,000)
                                                                  -----------------   ---------------    ----------------

         Net cash used in investing activities                            (365,000)          (444,000)          (359,000)
                                                                  -----------------   ---------------    ----------------

Cash flows from financing activities:

     Distributions paid to partners                                     (7,542,000)        (7,327,000)        (7,650,000)
                                                                  -----------------   ---------------    ----------------

         Net cash used in financing activities                          (7,542,000)        (7,327,000)        (7,650,000)
                                                                  -----------------   ---------------    ----------------

Net increase in cash and cash equivalents                                1,008,000            889,000            264,000

Cash and cash equivalents at the beginning of the year                   1,587,000            698,000            434,000
                                                                  -----------------   ---------------    ----------------

Cash and cash equivalents at the end of the year                   $     2,595,000    $     1,587,000    $       698,000
                                                                  =================   ===============    ================
Supplemental schedule of non-cash investing and financing activities:

     Increase (decrease) in fair value of marketable securities:
       Marketable securities                                       $     4,699,000    $     4,272,000    $      (423,000)
                                                                  =================   ===============    ================
       Other comprehensive income                                  $     4,699,000    $     4,272,000    $      (423,000)
                                                                  =================   ===============    ================

</TABLE>

                            See accompanying notes.
                                      F-5
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2004

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 self-storage  facilities located
          in California and Florida.

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PARTNERSHIP MATTERS

         Basis of Presentation:
         ----------------------

            Certain  amounts  previously  reported  have been  reclassified  to
          conform to the  December  31, 2004  presentation,  including  amounts
          pursuant to the Performance Agreement (see Note 5).

         Real Estate Facilities:
         -----------------------

            Cost of land  includes  appraisal  fees and legal  fees  related to
          acquisition  and closing  costs.  Buildings,  land  improvements  and
          equipment  reflect costs incurred  through December 31, 2004 and 2003
          to  develop  and  improve   self-storage   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
          generally  depreciated on a straight-line basis over estimated useful
          lives of 25 and 5 years, respectively.

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

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

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

            Cost of operations,  general and administrative  expense,  interest
          expense,  as well as television,  yellow page, and other  advertising
          expenditures are expensed as incurred.  Television,  yellow page, and
          other  advertising   expenditures  totaled  $417,000,   $413,000  and
          $399,000  for the years ended  December  31,  2004,  2003,  and 2002,
          respectively.

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

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

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

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

            For financial  statement  purposes,  the Partnership  considers all
          highly liquid  investments with an original  maturity of three months
          or less to be cash equivalents.

                                      F-6
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2004

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

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

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

            Marketable  securities  at  December  31,  2004  consist of 381,980
          shares of common stock and 12,412  depositary shares of Equity Stock,
          Series A, of Public Storage,  Inc. The Partnership has designated its
          portfolio  of  marketable  securities  as being  available  for sale.
          Accordingly,  at December 31, 2004, the  Partnership has recorded the
          marketable  securities at fair value,  based upon the closing  quoted
          price of the  securities  at December  31,  2004,  and has recorded a
          corresponding unrealized gain (loss) totaling $4,699,000,  $4,272,000
          and $(423,000) for the years ended December 31, 2004,  2003 and 2002,
          respectively,  as a corresponding  increase (decrease) to Partnership
          equity. The Partnership  recognized dividends of $718,000 for each of
          the years ended December 31, 2004, 2003 and 2002, respectively.

         Comprehensive Income:
         ---------------------

            As of January 1,  1998,  the  Partnership  adopted  Statement  130,
          Reporting  Comprehensive Income.  Statement 130 establishes new rules
          for  the  reporting  and  display  of  comprehensive  income  and its
          components;  however, the adoption of this Statement had no impact on
          the Partnership's net income or shareholders'  equity.  Statement 130
          requires   unrealized   gains   or   losses   on  the   Partnership's
          available-for-sale  securities, which prior to adoption were reported
          separately  in  shareholders'   equity,   to  be  included  in  other
          comprehensive  income.  The primary  impact of this statement for the
          Partnership  is to  recharacterize  unrealized  gains  or  losses  in
          shareholders' equity as "other comprehensive income."

         Impairment of Real Estate:
         --------------------------

            We evaluate our real estate for impairment on a quarterly basis. We
          first evaluate these assets for indicators of impairment such as a) a
          significant  decrease  in the  market  price  of  real  estate,  b) a
          significant  adverse  change in the  extent  or manner in which  real
          estate is being used or in its physical  condition,  c) a significant
          adverse  change in legal  factors or the business  climate that could
          affect  the value of the real  estate,  d) an  accumulation  of costs
          significantly  in excess of the amount  originally  projected for the
          acquisition   of   construction   of  the  real   estate,   or  e)  a
          current-period operating or cash flow loss combined with a history of
          operating  or cash  flow  losses or a  projection  or  forecast  that
          demonstrates  continuing  losses  associated with the use of the real
          estate.  When any such indicators of impairment are noted, we compare
          the  carrying  value  of the  real  estate  to the  future  estimated
          undiscounted cash flows  attributable to the real estate. If the real
          estate's  recoverable  amount is less than the carrying  value of the
          asset, then an impairment charge is booked for the excess of carrying
          value  over  the real  estate's  fair  value.  Our  evaluations  have
          identified  no such  impairments  at December 31, 2004.  Certain real
          estate  facilities  have been in service  longer  than 25 years,  and
          accordingly  these buildings are fully depreciated as of December 31,
          2004.

            Any  long-lived  assets which we expect to sell or dispose of prior
          to their previously  estimated useful life are stated at the lower of
          their  estimated  net  realizable  value (less cost to sell) or their
          carrying value.

                                      F-7
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2004

         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.  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.

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

            As of  March  25,  2005,  there  have  been  no  recent  accounting
          pronouncements   and   guidance,   which  were  not   effective   for
          implementation prior to December 31, 2004, that would have a material
          impact upon  reporting the  operations  or financial  position of the
          Partnership.

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

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

3.       CASH DISTRIBUTIONS

            The  Partnership   Agreement   requires  that  cash  available  for
          distribution  (cash flow from all sources less cash necessary for any
          obligations or capital  improvement) needs to 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.  As all debt service was repaid as of December 31,
          2001, the Partnership resumed with quarterly  distributions beginning
          in the first quarter of 2002.  During 2003, we paid  distributions to
          the limited and general  partners  totaling  $5,440,000  ($136.00 per
          unit)   and   $1,887,000,   respectively.   During   2004,   we  paid
          distributions to the limited and general partners totaling $5,600,000
          ($140.00 per unit) and $1,942,000,  respectively. Future distribution
          rates may be adjusted to levels which are supported by operating cash
          flow after capital improvements and any other obligations.

4.       PARTNERS' EQUITY

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

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

5.       RELATED PARTY TRANSACTIONS

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

            The  Partnership  has a Management  Agreement  with PSI pursuant to
          which PSI operates the self-storage  facilities for a fee equal to 6%
          of the  facilities'  gross revenue (as defined).  For 2004,  2003 and
          2002,  the  Partnership  paid PSI  $619,000,  $606,000 and  $563,000,
          respectively, under this management agreement.

                                      F-8
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2004

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

            A real  estate  facility  owned  by  the  Partnership  (the  "Azusa
          Property")  is operated  pursuant  to a  management  and  performance
          agreement (the  "Performance  Agreement")  with Public Storage Pickup
          and  Delivery,  LP  ("PSPUD"),  a subsidiary  of PSI.  Following  the
          commencement of the Performance Agreement in March 2001, the facility
          was modified to include  self-storage and industrial  space, with the
          cost of these  improvements  entirely funded by PSPUD. The industrial
          space  was  constructed  for  use in  PSPUD's  containerized  storage
          operations.  Under the  Performance  Agreement,  the  Partnership  is
          guaranteed to receive the same net operating  income it received with
          respect  to the Azusa  Property  prior to the  effective  date of the
          agreement,  with an annual increase of the greater of a) 1% or b) the
          percentage   increase  in  net  operating   income  achieved  at  the
          self-storage  facilities  managed  by PSI in the market in which this
          facility  is  located  (the  "Guaranteed  Amounts").  Where  the  net
          operating  income  earned by the Azusa  Property  is less than  these
          Guaranteed Amounts, PSPUD supplements the Partnership's income. Where
          the  amount  earned  by the Azusa  Property  exceeds  the  Guaranteed
          Amounts,  the excess is remitted  to PSPUD.  The costs of all capital
          improvements  with respect to the Azusa Property are funded by PSPUD.
          Included in the line item "Revenues from Affiliate under  Performance
          Agreement"  on  the  Partnership's   Statements  of  Income,  is  the
          pre-depreciation  net  operating  income  with  respect  to the Azusa
          Property.  The Partnership  recorded a total of $1,066,000,  $991,000
          and $981,000 in revenue with respect to the Performance Agreement for
          the years ended December 31, 2004, 2003 and 2002, respectively.

            The  Partnership's  facilities,  along with facilities owned by PSI
          and its affiliates,  are managed and marketed jointly by PSI in order
          to take  advantage of scale and other  efficiencies.  Joint costs are
          allocated on a methodology  meant to fairly allocate such costs. Such
          joint costs include supervisory, relief, and administrative personnel
          costs, television advertising expenses, yellow page advertising, data
          processing,  and insurance (including amounts paid to STOR-Re and its
          successor  as   discussed   below.   The  total  of  such   expenses,
          substantially  all of  which  are  included  in Cost  of  Operations,
          amounted to $1,142,000,  $1,069,000, and $905,000 for the years ended
          December 31, 2004, 2003, and 2002, respectively.

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

            In addition, B. Wayne Hughes, General Partner of the "Partnership",
          and  Chairman  of PSI and  members  of his  family  own  15.5% of the
          Limited  Partnership  units.  PSI and its affiliates own 46.7% of the
          Limited Partnership units.

         Captive Insurance Activities with PSI
         -------------------------------------

            The  Partnership  has a 1.6%  ownership  interest in STOR-Re Mutual
          Insurance  Corporation  ("STOR-Re"),  which was  formed in 1994 as an
          association captive insurance company,  and is controlled by PSI. The
          Partnership accounts for its investment in STOR-Re, which is included
          in  other   assets,   on  the  cost  method,   and  has  received  no
          distributions during the three years ended December 31, 2004.

            STOR-Re provides limited property and liability  insurance coverage
          to the  Partnership,  PSI, and affiliates for losses occurring before
          April 1, 2004. STOR-Re was succeeded with respect to these activities
          for  losses  occurring  after  March  31,  2004  by  a  wholly  owned
          subsidiary  of  PSI.  Liabilities  for  losses  and  loss  adjustment
          expenses   include  an  amount   determined  from  loss  reports  and
          individual  cases and an  amount,  based on  recommendations  from an
          outside  actuary  that  is  a  member  of  the  American  Academy  of
          Actuaries, using a frequency and severity method, for losses incurred
          but not  reported.  Determining  the  liability for unpaid losses and
          loss adjustment  expense is based upon estimates and while we believe
          that the amount is adequate, the ultimate loss may be in excess of or
          less than the amounts provided. The methods for making such estimates
          and  for  establishing   the  resulting   liability  are  continually
          reviewed.

                                      F-9
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2004

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

                                                                 2004 (a)                  2003
                                                        -----------------------  ----------------------
                                                                   (Amounts in thousands)
<S>                            <C>
   For the year ended December 31,
   Premiums earned.................................       $        3,994            $       14,766
   Net investment income...........................                  677                       721
   Loss and loss adjustment expense................               (2,948)                  (14,731)
   Other expenses..................................                 (200)                     (298)
                                                        -----------------------  ----------------------
      Net income (loss)............................       $        1,523            $          458
                                                        =======================  ======================

   At December 31,
   Total assets (primarily cash and other                 $       33,071            $       41,778
      investments).................................
   Liabilities for losses and loss adjustment                     20,222                    29,634
      expenses.....................................
   Other liabilities...............................                    -                     4,053
   Member's surplus................................               12,849                     8,091

</TABLE>

         (a)    Effective April 1, 2004, STOR-Re ceased providing  insurance for
                losses  occurring  after April 1, 2004,  and was succeeded  with
                respect to these activities by PSIC-H, a wholly owned subsidiary
                of PSI.  Accordingly,  premiums and associated  loss expense for
                periods after March 31, 2004 are not included in this table.

            Premiums paid the captive  entities for the years ended December 31,
          2004, 2003 and 2002 were $138,000, $94,000 and $66,000, respectively.

          Other Activities with PSI
          -------------------------

            A corporation that reinsures policies against losses to goods stored
          by tenants in PSI's storage  facilities  was purchased by PSI from Mr.
          Hughes and members of his family (the "Hughes Family") on December 31,
          2001.  This  corporation  receives  the  premiums  and bears the risks
          associated with the re-insurance.

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


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.

            Unaudited  taxable  net  income  was  $8,341,000,   $7,698,000  and
          $7,580,000  for the years  ended  December  31,  2004,  2003 and 2002
          respectively.  The  difference  between  taxable  net  income and net
          income is primarily  related to depreciation  expense  resulting from
          differences in depreciation methods.

7.       NOTES PAYABLE

            During September 1998, the Partnership  borrowed $21,000,000 from a
          commercial  bank.  Interest  on the  loan  was  based  on the  London
          Interbank  Offering Rate ("LIBOR") plus a spread 0.60% to 1.20%.  The
          loan  required  monthly  payments of interest  and matured  September
          2002.  During  December 2001, the  Partnership  paid the loan in full
          without premium or penalty.

            No interest was paid during the years ended December 31, 2004, 2003
          or 2002 as the loan was paid off in December 2001.

                                     F-10
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2004

8.       SUPPLEMENTARY QUARTERLY FINANCIAL DATA (UNAUDITED)

<TABLE>
<CAPTION>


                                                                           Three Months Ended
                                            -------------------------------------------------------------------------------
                                            March 31, 2004      June 30, 2004      September 30, 2004     December 31, 2004
                                            ---------------  -----------------  ---------------------  --------------------
<S>                                          <C>                <C>                 <C>                   <C>
Rental Income                                $    2,524,000     $    2,581,000      $    2,616,000        $    2,604,000
 Cost of Operations (including
  management fees and depreciation)          $    1,020,000     $      997,000      $      931,000        $      931,000
Net Income                                   $    1,930,000     $    2,016,000      $    2,164,000        $    2,123,000
 Net Income Per Limited Partner Unit         $        36.43     $        38.57      $        42.23        $        39.87
Distributions                                $    1,832,000     $    1,831,000      $    1,832,000        $    2,047,000


                                                                           Three Months Ended
                                           -------------------------------------------------------------------------------
                                            March 31, 2003      June 30, 2003      September 30, 2003     December 31, 2003
                                            ---------------  -----------------  ---------------------  --------------------
Rental Income                                $    2,397,000     $    2,460,000      $    2,535,000        $    2,491,000
 Cost of Operations(including management
  fees and depreciation)                     $      953,000     $    1,022,000      $    1,005,000        $    1,049,000
Net Income                                   $    1,845,000     $    1,850,000      $    1,995,000        $    1,847,000
 Net Income Per Limited Partner Unit         $        34.33     $        34.45      $        38.05        $        34.37
 Distributions                               $    1,832,000     $    1,831,000      $    1,832,000        $    1,832,000
</TABLE>


9.       COMMITMENTS AND CONTINGENCIES

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

                  The  plaintiff  in  this  case  filed  a suit  against  Public
         Storage,  Inc.  on behalf of a  putative  class of  renters  who rented
         self-storage  units from Public Storage,  Inc..  Plaintiff alleges that
         Public Storage, Inc.  misrepresented the size of its storage units, has
         brought  claims under  California  statutory and common law relating to
         consumer   protection,   fraud,  unfair   competition,   and  negligent
         misrepresentation,  and is seeking monetary damages,  restitution,  and
         declaratory and injunctive relief.

                  The claim in this case is  substantially  similar  to those in
         Henriquez  v.  Public  Storage,  Inc.,  which  was  disclosed  in prior
         reports.  In January 2003, the plaintiff caused the Henriquez action to
         be dismissed.

                  Based upon the  uncertainty  inherent  in any  putative  class
         action,  Public Storage,  Inc. cannot presently determine the potential
         damages,  if  any,  or the  ultimate  outcome  of this  litigation.  On
         November 3, 2003,  the court granted Public  Storage,  Inc.'s motion to
         strike the plaintiff's  nationwide  class  allegations and to limit any
         putative class to California  residents only.  Public Storage,  Inc. is
         vigorously  contesting  the claims  upon  which  this  lawsuit is based
         including class certification efforts.

         Salaam et al v. Public Storage,  Inc. (filed  February 2000)
         --------------------------------------------------------------
        (Superior Court - Sacramento  County);  Holzman et al v. Public
         ---------------------------------------------------------------
         Storage, Inc. (filed October 2004) (Superior Court - Sacramento County)
         ----------------------------------------------------------------------

                  This action,  which was  described in the Partnership prior
         reports, was disposed of in February 2005.

                                     F-11
<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2004

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

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


10.      SUBSEQUENT EVENT (UNAUDITED)

                  On March 31, 2005,  we  distributed  substantially  all of the
         Public Storage common stock and Public Storage Equity Stock,  Series A,
         on a pro-rata basis to all unitholders of record as of January 1, 2005.
         Accordingly, during the first quarter ended March 31, 2005, we expect a
         gain on disposition of approximately  $15.7 million (based upon a value
         of $56.73 per share for the Public  Storage common stock and $28.01 per
         depositary  share for the Public Storage  Equity Stock,  Series A). The
         actual  gain  will be based on the  closing  market  price per share on
         March 31, 2005.

                                     F-12
<PAGE>

                       Public Storage Properties IV, Ltd.
             Schedule III - Real Estate and Accumulated Depreciation
                      For the year ended December 31, 2004
<TABLE>
<CAPTION>


                                         Initial Cost
                                  -----------------------------
                                                                   Costs Subsequent
                                                 Building, Land     to construction
         Description                Land        Imp & Equipment     (Improvements)
-------------------------       --------------  ---------------  ---------------------
    CALIFORNIA
<S>                                 <C>              <C>                 <C>
Concord                             $349,000         $805,000            $365,000
Tustin                               517,000          844,000             379,000
Pasadena                             379,000          496,000             280,000
Azusa                                501,000        1,093,000             333,000
Redlands                             227,000          771,000             387,000
Riverside                             51,000          595,000             341,000
Oakland                              177,000          650,000             344,000
Richmond                             225,000          639,000             397,000
Santa Clara                          633,000        1,156,000             411,000
San Carlos                           396,000          902,000             220,000
Sacramento/Howe                      194,000          666,000             319,000
Sacramento/West Capitol              100,000          719,000             347,000

    FLORIDA
Miami/Airport Expressway
                                     186,000          442,000             327,000
Miami/Cutler Ridge                   525,000          901,000              35,000
Pembroke Park                        255,000          607,000             445,000
Ft. Lauderdale/I-95 &
   23rd Ave.                         243,000          611,000             448,000
Ft. Lauderdale/I-95 &
   Sunrise                           286,000          690,000             550,000
                                --------------  ---------------  ---------------------

                                  $5,244,000      $12,587,000          $5,928,000
                                ==============  ===============  =====================
</TABLE>

<TABLE>
<CAPTION>

                                               Gross Carrying Amount
                                                  at December 31, 2004
                                  ----------------------------------------------


                                                Building, Land                       Accumulated        Date
         Description              Land         Imp & Equipment         Total        Depreciation      Completed
-------------------------     -------------   -----------------  ---------------  ---------------  --------------

    CALIFORNIA
<S>                                <C>            <C>               <C>              <C>                <C>
Concord                            $349,000       $1,170,000        $1,519,000       $1,010,000         01/79
Tustin                              517,000        1,223,000         1,740,000        1,169,000         12/78
Pasadena                            379,000          776,000         1,155,000          671,000         11/79
Azusa                               501,000        1,426,000         1,927,000        1,329,000         11/78
Redlands                            227,000        1,158,000         1,385,000          945,000         02/79
Riverside                            51,000          936,000           987,000          880,000         05/79
Oakland                             177,000          994,000         1,171,000          913,000         04/79
Richmond                            225,000        1,036,000         1,261,000          960,000         03/79
Santa Clara                         633,000        1,567,000         2,200,000        1,383,000        6 & 7/79
San Carlos                          396,000        1,122,000         1,518,000        1,091,000         10/79
Sacramento/Howe                     194,000          985,000         1,179,000          941,000         08/79
Sacramento/West Capitol             100,000        1,066,000         1,166,000        1,013,000         06/79

    FLORIDA
Miami/Airport Expressway
                                    186,000          769,000           955,000          703,000         01/79
Miami/Cutler Ridge                  302,000        1,159,000         1,461,000        1,066,000         04/79
Pembroke Park                       255,000        1,052,000         1,307,000        1,008,000         07/79
Ft. Lauderdale/I-95 &
   23rd Ave.                        243,000        1,059,000         1,302,000          983,000         07/79
Ft. Lauderdale/I-95 &
   Sunrise                          286,000        1,240,000         1,526,000        1,143,000         10/79
                                -------------   -----------------  ---------------  ---------------
                                 $5,021,000      $18,738,000       $23,759,000      $17,208,000
                                =============   =================  ===============  ===============
</TABLE>

                                     F-13
<PAGE>

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


           Reconciliation of Real Estate and Accumulated Depreciation

<TABLE>
<CAPTION>

                                                             2004                     2003
                                                     -----------------------  ----------------------
Investment in Real Estate
<S>                                                   <C>                      <C>
   Balance at the beginning of the year               $       23,394,000       $       22,950,000

   Additions through capital expenditures                        365,000                  444,000
                                                     -----------------------  ----------------------
Balance at the end of the year                        $       23,759,000       $       23,394,000
                                                     =======================  ======================



Accumulated Depreciation
   Balance at the beginning of the year               $       16,643,000       $       15,701,000

   Additions charged to costs and expenses                       565,000                  942,000
                                                     -----------------------  ----------------------
                                                      $       17,208,000       $       16,643,000
                                                     =======================  ======================
</TABLE>

(a)   The aggregate  depreciable  cost,  prior to  depreciation,  of real estate
      (excluding   land)  for  Federal   income  tax  purposes  is   $17,966,000
      (unaudited).

                                     F-14