UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K

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

For the fiscal year ended December 31, 2002

                                       or

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

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

Commission File Number 0-8908
                       ------

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

               California                                       95-3192402
----------------------------------------                  ----------------------
     (State or other jurisdiction of                         (I.R.S. Employer
     Incorporation or organization)                       Identification Number)

           701 Western Avenue
          Glendale, California                                     91201
----------------------------------------                  ----------------------
(Address of principal executive offices)                        (Zip Code)

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

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

                                      NONE

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

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

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

                                    Yes X No
                                       ---  ---

         Indicate by check mark whether the registrant is an accelerated filer
(as defined in Rule 12b-2 of the Act)

                                    Yes   No X
                                       ---  ---

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

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      NONE

<PAGE>

                                     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 21F 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.

General
-------

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

         The Partnership has reported annually to the Securities and Exchange
Commission on form 10-K which includes financial statements certified by
independent public accountants. The Partnership has also reported quarterly to
the Securities and Exchange Commission on Form 10-Q and includes unaudited
financial statements with such filings. The Partnership expects to continue such
reporting.

         In 1995, there were a series of mergers among Public Storage
Management, Inc. (which was the Partnership's mini-warehouse operator), Public
Storage, Inc. (which was one of the Partnership's general partners) ("old PSI")
and their affiliates (collectively, "PSMI"), culminating in the November 16,
1995 merger (the "PSMI Merger") of PSMI into Storage Equities, Inc., a real
estate investment trust ("REIT") organized as a California corporation. In the
PSMI Merger, Storage Equities, Inc. was renamed Public Storage, Inc. ("PSI") and
PSI acquired substantially all of PSMI's United States real estate operations
and became a co-general partner of the Partnership and the operator of the
Partnership's mini-warehouse properties.

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

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

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

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

                                       2

<PAGE>

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, (iii) provide Federal income tax deductions so that during the
early years of property operations a portion of cash distributions may be
treated as a return of capital for tax purposes, and therefore, may not
represent taxable income to the limited partners, and (iv) provided 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, PSI holds a majority
of the limited partnership units, and as a result, the General Partners could
change these policies through PSI's vote.

         *    Our investments consists of (i) 17 self-storage  facilities,  (ii)
              381,980  shares of Public  Storage,  Inc.  common  stock and (iii)
              12,412 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
              "Mini-warehouses" and Item 2 "Properties" for further information.
              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 anticipated borrowing money, issuing senior
securities, making loans to other persons, investing in the securities of other
issuers for the purpose of exercising control, underwriting the securities of
other issuers, engaging in the purchase and sale of investments, offering
securities in exchange for property, or repurchasing or otherwise reacquiring
its outstanding securities.

Mini-warehouses
---------------

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

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

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

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

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

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

                                       3

<PAGE>

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

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

         *    CAPITALIZE ON "PUBLIC  STORAGE'S" NAME RECOGNITION.  PSI, together
              with  its  predecessor,  has  more  than  20  years  of  operating
              experience in the  mini-warehouse  business.  PSI has informed the
              Partnership  that  it  is  the  largest  mini-warehouse   facility
              operator  in  the  United  States  in  terms  of  both  number  of
              facilities  and rentable  space  operated.  PSI believes  that its
              marketing  and  advertising   programs   improve  its  competitive
              position in the market.  PSI's in-house Yellow Pages staff designs
              and  places   advertisements  in  approximately  700  directories.
              Commencing in early 1996, PSI began to experiment with a telephone
              reservation  system  designed to provide added  customer  service.
              Customers  calling  either  PSI's  toll-free   telephone  referral
              system, (800) 44-STORE, or a mini-warehouse  facility are directed
              to  PSI's  reservation  system  where  a  trained   representative
              discusses with the customer space requirements, price and location
              preferences  and also informs the  customer of other  products and
              services  provided  by  PSI.  The  telephone   reservation  system
              supports rental activity at all of the  Partnership's  properties.
              PSI's toll-free  telephone referral system services  approximately
              200,000 calls per month from potential  customers  inquiring as to
              the nearest Public Storage mini-warehouse.

         *    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 90% and to eliminate
              promotions prior to increasing rental rates. Average occupancy for
              the  Partnership's  mini-warehouses  was 91% in 2001 and 86% 2002.
              Annual realized rents per occupied square foot decreased 2.9% from
              $14.27 in 2001 to $13.85 in 2002.

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

         *    PROFESSIONAL  PROPERTY  OPERATION.  There are approximately  4,500
              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 mini-warehouses are managed by PSI (as
successor-in-interest to PSMI) under a Management Agreement. PSI has informed
the Partnership that it is the largest mini-warehouse facility operator in the
United States in terms of both number of facilities and rentable space operated.

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

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

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

                                       4

<PAGE>

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

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

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

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

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

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

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

         A corporation 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. 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 partners in accordance with the partnership agreement.

Employees
---------

         There are 26 persons who render services on behalf of the Partnership.
These persons include resident managers, assistant managers, relief managers,
district managers, and administrative personnel. Some employees may be employed
on a part-time basis and may be employed by other persons, Partnerships, REITs
or other entities owning facilities operated by PSI.

                                       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:

         PUBLIC STORAGE HAS A SIGNIFICANT DEGREE OF CONTROL OVER THE
PARTNERSHIP.

         Public Storage is general partner and owns approximately 33.2% of our
outstanding limited partnership units. In addition, PS Orangeco Partnerships,
Inc., an affiliate of Public Storage, owns an additional 18.2% of our
outstanding limited partnership units. As a result, Public Storage has a
significant degree of control over matters submitted to a vote of our
unitholders, including amending our organizational documents, dissolving the
Partnership and approving other extraordinary transactions.

         SINCE OUR BUSINESS CONSISTS PRIMARILY OF ACQUIRING AND 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:

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

     *   changes in general economic or local conditions;

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

     *   potential terrorists attacks;

     *   the impact of environmental protection laws;

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

     *   changes in tax, real estate and zoning laws.

         There is significant competition among self-storage facilities and from
other storage alternatives. Most of our properties are self-storage facilities,
which generated 94% of our rental revenue during 2002. 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 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, 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
properties the Partnership has an interest in to evaluate the environmental
condition of, and potential environmental liabilities associated with, our
properties. These assessments generally consist of an investigation of
environmental conditions at the property (not including soil or groundwater
sampling or analysis), as well as a review of available information regarding
the site and publicly available data regarding conditions at other sites in the
vicinity. In connection with these property assessments, we have become aware
that prior operations or activities at some facilities or from nearby locations
have or may have resulted in contamination to the soil or groundwater at these
facilities. In this regard, some of our facilities are or may be the subject of
federal or state environment investigations or remedial actions. Although we
cannot provide any assurance, based on the preliminary environmental
assessments, we believe we have funds available to cover any liability from
environmental contamination or potential contamination and we are not aware of
any environmental contamination of our facilities material to our overall
business, financial condition or results of operation.

         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 accomodations" 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.

                                       6

<PAGE>

ITEM 2.  Properties

         The following table sets forth information as of December 31, 2002
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).

                                       7

<PAGE>

         The weighted average occupancy level for the mini-warehouse facilities
was 91% and 86% for 2001 and 2002, respectively.

         As of December 31, 2002, the properties are not encumbered as described
further in this report under Note 7 of the Notes 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 of its facilities except for
capital improvements.

ITEM 3.  Legal Proceedings

Salaam, et. Al V. Public Storage, Inc. (filed February 2000)
------------------------------------------------------------

         The plaintiffs in this case are suing the Company on behalf of a
purported class of California resident property managers who claim that they
were not compensated for all the hours they worked. The named plaintiffs have
indicated that their claims total less than $20,000 in aggregate. This maximum
potential liability can only be increased if a class is certified or if claims
are permitted to be brought on behalf of the others under the California Unfair
Business Practices Act. The plaintiffs' motion for class certification was
denied in August 2002; the plaintiffs have appealed this denial. This denial
does not deal with the claim under the California Unfair Business Practices Act.

         The Company is continuing to vigorously contest the claims in this case
and intends to resist any expansion beyond the named plaintiffs on the grounds
of lack of commonality of claims. The Company's resistance will include opposing
the plaintiffs' appeal of the court's denial of class certification and opposing
the claim on behalf of others under the California Unfair Business Practices
Act.

Henriquez v. Public Storage, Inc. (Filed June 2002; Dismissed January, 2003)
----------------------------------------------------------------------------

         The plaintiff in this case filed a suit against the Company on behalf
of a purported class of renters who rented self-storage units from the Company.
Plaintiff alleged that the Company misrepresents the size of its units and
sought damages and injunctive and declaratory relief under California statutory
and common law relating to consumer protection, unfair competition, fraud and
deceit and negligent misrepresentation. In January 2003, the plaintiff caused
this suit to be dismissed. The plaintiff's attorney has advised that he
anticipates filing a similar suit against the Company on behalf of a new
plaintiff. However, the Company cannot presently determine the potential total
damages, if any, or the ultimate outcome of any such litigation. If a new suit
is filed, the Company intends to vigorously contest any claims on which it is
based.

         Public Storage 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. We believe that the outcome of these other pending
legal proceedings, in the aggregate, will not 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 2002.

                                     PART II

ITEM 5.  Market for the Partnership's Common Equity and Related Stockholder
         Matters

         The Partnership has no common stock.

                                       8

<PAGE>

         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 certain limited partnership
interests (including the Units), including the prices at which such secondary
sales transactions are effectuated.

         Exclusive of the General Partners' interest in the Partnership, as of
December 31, 2002, there were approximately 998 record holders of Units.

         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 partners) 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.

ITEM 6.  Selected financial data

<TABLE>
<CAPTION>
For the Year Ended December 31,              2002              2001             2000              1999              1998
------------------------------------    --------------    --------------    --------------   --------------    --------------
<S>                                     <C>               <C>               <C>              <C>               <C>
Revenues                                $   11,451,000    $   12,158,000    $   10,243,000   $    9,886,000    $    9,234,000

Depreciation and amortization                  951,000           973,000           962,000          991,000           926,000

Interest expense                                     -           232,000           709,000        1,021,000         2,080,000

Net income (2)                               7,311,000         7,326,000         5,667,000        5,105,000         3,507,000

Limited partners' share                      5,345,000         7,246,000         5,604,000        5,049,000         3,468,000

General partners' share                      1,966,000            80,000            63,000           56,000            39,000

Limited partners' per unit data (1)
     Net income (2)                           $133.63           $181.15           $140.10          $126.23            $86.70
     Cash Distributions                       $142.00              -                 -                -                 -

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

Cash and cash equivalents               $      698,000    $      434,000    $      525,000   $      249,000    $      433,000

Total Assets                            $   21,012,000    $   21,928,000    $   18,675,000   $   18,643,000    $   20,876,000

Note payable to commercial bank         $            -    $            -    $    7,750,000   $   14,050,000    $   19,650,000
</TABLE>

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

                                       9

<PAGE>

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

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 21F 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.

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

         IMPAIRMENT OF REAL ESTATE

         Substantially all of our assets consist of real estate. We quarterly
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 cashflows, which also
involves significant judgment. We have identified no such impairments at
December 31, 2002. However, future events, or facts and circumstances that
currently exist that we have not yet identified, could cause us to conclude in
the future that our real estate is impaired. Any resulting impairment loss could
have a material adverse impact on our financial condition and results of
operations.

         ESTIMATED USEFUL LIVES OF LONG-LIVED ASSETS

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


         ACCRUALS FOR CONTINGENCIES

         We are exposed to business and legal liability risks with respect to
events that have occurred, but in accordance with 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 Note 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, our expenses could be misstated.

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

         YEAR ENDED DECEMBER 31, 2002 COMPARED TO YEAR ENDED DECEMBER 31, 2001:

         The Partnership's net income was $7,311,000 in 2002 compared to
$7,326,000 in 2001, representing a decrease of $15,000. This decrease is
primarily a result of decreased operating results at the Partnership's real
estate facilities partially offset by a decrease in interest expense.

                                       10

<PAGE>

         During 2002 property net operating income (rental income less cost of
operations, management fees paid to an affiliate and depreciation expense) was
$6,591,000 in 2002 compared to $6,902,000 in 2001, representing a decrease of
$311,000 or 5%. This decrease is attributable to a decrease in rental revenues
at the Partnership's mini-warehouse facilities partially offset by a decrease in
cost of operations.

         Rental income was $10,650,000 in 2002 compared to $11,400,000 in 2001,
representing a decrease of $750,000 or 7%. The decrease is attributable to a
decrease in average occupancy at the Partnership's mini-warehouse facilities.
The weighted average occupancy levels at the mini-warehouse facilities were 86%
and 91% in 2002 and 2001, respectively. The annual realized rent per occupied
square foot was $13.85 in 2002 compared to $14.27 in 2001.

         Cost of operations (including management fees paid to an affiliate)
decreased $417,000 or 12% to $3,108,000 in 2002 from $3,525,000 in 2001. This
decrease is primarily attributable to decrease in payroll expenses.

         YEAR ENDED DECEMBER 31, 2001 COMPARED TO YEAR ENDED DECEMBER 31, 2000:

         The Partnership's net income was $7,326,000 in 2001 compared to
$5,667,000 in 2000, representing an increase of $1,659,000. This increase is
primarily a result of increased operating results at the Partnership's real
estate facilities and a decrease in interest expense.

         During 2001 property net operating income (rental income less cost of
operations, management fees paid to an affiliate and depreciation expense) was
$6,902,000 in 2001 compared to $5,807,000 in 2000, representing an increase of
$1,095,000 or 19%. This increase is attributable to an increase in rental income
at the Partnership's mini-warehouse facilities partially offset by an increase
in cost of operations and depreciation expense.

         Rental income was $11,400,000 in 2001 compared to $9,575,000 in 2000,
representing an increase of $1,825,000 or 19%. The increase is attributable to
an increase in rental rates at the Partnership's facilities. The weighted
average occupancy levels at the mini-warehouse facilities were 91% and 94% in
2001 and 2000, respectively. The annual realized rent per occupied square foot
was $14.27 in 2001 compared to $11.84 in 2000 (a 21% increase).

         Cost of operations (including management fees paid to an affiliate)
increased $719,000 or 26% to $3,525,000 in 2001 from $2,806,000 in 2000. This
increase is primarily attributable to increases in management fees and
advertising expenses.

         Interest expense was $232,000 and $709,000 in 2001 and 2000,
respectively, representing a decrease of $477,000 or 67%. The decrease results
from a lower average outstanding loan balance in 2001 compared to 2000. See
Liquidity and Capital Resources for a discussion of the refinancing of the
Partnership's indebtedness.

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

         Cash flows from operating activities ($8,273,000 for the year ended
December 31, 2002) have been sufficient to meet all current obligations of the
Partnership. During 2003, the Partnership anticipates approximately $309,000 of
capital improvements compared to $359,000 in 2002 and $483,000 in 2001.

         At December 31, 2002 the Partnership held 381,980 shares of common
stock and 12,412 shares of Equity Stock, Series A (marketable securities) with a
fair value totaling $12,673,000 (cost basis of $6,340,000 at December 31, 2002)
in Public Storage, Inc. (PSI). The Partnership received $718,000 in dividends
during 2002.

         DISTRIBUTIONS

         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 for the year to the limited and general partners totaling
$5,680,000 ($142.00 per unit) and $1,970,000, respectively, as of December 31,
2002. Future distribution rates may be adjusted to levels which are supported by
operating cash flow after capital improvements and any other necessary
obligations.

                                       11

<PAGE>

ITEM 7A. Quantitative and Qualitative Disclosures about Market Risk

         As of December 31, 2002, 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

         None.

                                    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 Mini-Warehouse Properties are
managed by PSI pursuant to a Management Agreement.

         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               Chief Executive Officer (through November 7, 2002)
                                and Chairman of the Board
Ronald L. Havner, Jr.         Chief Executive Officer (after November 7, 2002)
                                and Vice Chairman of the Board
Harvey Lenkin                 President and Director
Marvin M. Lotz                Senior Vice President and Director
B. Wayne Hughes, Jr.          Director
John Reyes                    Senior Vice President and Chief Financial Officer
Robert J. Abernethy           Director
Dann V. Angeloff              Director
William C. Baker              Director
Thomas J. Barrack Jr.         Director
Uri P. Harkham                Director
Daniel C. Staton              Director

         B. Wayne Hughes, age 69, 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. On November 7, 2002, Mr. Hughes resigned
as Chief Executive Officer of PSI. He remains as chairman of the board of
directors, and intends to focus on strategic and marketing initiatives. Mr.
Hughes has been active in the real estate investment field for over 30 years. He
is the father of B. Wayne Hughes, Jr.

         Ronald L. Havner,  Jr., age 45, was  appointed  Vice Chairman and Chief
Executive  Officer of PSI on November 7, 2002.  Mr.  Havner has been employed by
PSI in various  accounting and operational  capacities  since 1986 and served as
Senior Vice  President  and Chief  Financial  Officer from  November  1991 until
December 1996 when be became Chairman,  President and Chief Executive Officer of
PS Business Parks, Inc. (AMEX:  symbol PSB) an affiliate of the Company. He is a
member of the National Association of Real Estate Investment Trusts (NAREIT) and
the Urban Land Institute (ULI) and a Director of Business Machine Security, Inc.
and Mobile  Storage  Group,  Inc. Mr. Havner earned a Bachelor of Arts degree in
Economics from the University of California, Los Angeles.

         Harvey Lenkin, age 66, has been employed by PSI for 25 years and became
President and a director of PSI in November 1991. Mr. Lenkin has been a director
of PS Business Parks, Inc. ("PSBP"), an affiliated REIT, since March 16, 1998
and was President of PSBP (formerly Public Storage Properties XI, Inc.) from
1990 until March 16, 1998. He is a member of the Board of Governors of the
National Association of Real Estate Investment Trusts (NAREIT).

                                       12

<PAGE>

         Marvin M. Lotz, age 60, became a director of PSI in May 1999. Mr. Lotz
has been a Senior Vice President of the Company since November 1995 and
President of the Property Management Division since 1988 with overall
responsibility for Public Storage's mini-warehouse operations. He had overall
responsibility for the Company's property acquisitions from 1983 until 1988.

         B. Wayne Hughes, Jr., age 43 became a director of PSI in January 1998.
He has been employed by PSI from 1989 to 2002 serving as Vice President -
Acquisitions of PSI from 1992 to 2002. Mr. Hughes, Jr. is the president of a
firm that manufactures and distributes sweets. He is the son of B. Wayne Hughes.

         John Reyes, age 42, 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.

         Robert J. Abernethy, age 63, has been President of American Standard
Development Company and of Self-Storage Management Company, which develop and
operate mini-warehouses, since 1976 and 1977, respectively. Mr. Abernethy has
been a director of PSI since its organization in 1980. He is a member of the
board of trustees of Johns Hopkins University, a director of Marathon National
Bank and a California Transportation Commissioner. Mr. Abernethy is a former
member of the board of directors of the Los Angeles County Metropolitan
Transportation Authority and the Metropolitan Water District of Southern
California and a former Planning Commissioner and Telecommunications
Commissioner and former Vice-Chairman of the Economic Development Commission of
the City of Los Angeles.

         Dann V. Angeloff, age 67, has been President of the Angeloff Company, a
corporate financial advisory firm, since 1976. Mr. Angeloff is the general
partner of a limited partnership that owns a mini-warehouse operated by PSI and
which secures a note owned by PSI. Mr. Angeloff has been a director of PSI since
its organization in 1980. He is a director of AremisSoft Corporation, Balboa
Capital Corporation, Nicholas/Applegate Growth Equity Fund, ReadyPac Produce,
Inc., Royce Medical Company and xDimentional Technologies, Inc. He was a
director of SPI from 1989 until June 1996.

         William C. Baker,  age 69,  became a director of PSI in November  1991.
Since  1970,  Mr.  Baker  has been a  partner  in  Baker &  Simpson,  a  private
investment  entity.  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 Callaway Golf Company,  Meditrust  Operating  Company
and Meditrust Corporation.

         Thomas J.  Barrack,  Jr., age 55,  became a director of PSI in February
1998.  Mr. Barrack has been the Chairman and Chief  Executive  Officer of Colony
Capital, Inc. since September,  1991. Colony Capital, Inc. is one of the largest
real estate investors in America, having acquired properties in the U.S., Europe
and Asia. Prior to founding Colony Capital, Inc., from 1987 to 1991, Mr. Barrack
was a principal with the Robert M. Bass Group,  Inc.,  the principal  investment
vehicle for Robert M. Bass of Fort Worth,  Texas. From 1985 to 1987, Mr. Barrack
was President of Oxford Ventures, Inc., a Canadian-based real estate development
company.  From  1984 to 1985 he was a  Senior  Vice  President  at E. F.  Hutton
Corporate  Finance in New York.  Mr.  Barrack was appointed by President  Ronald
Reagan as Deputy Under  Secretary at the U.S.  Department  of the Interior  from
1982 to 1983. Mr. Barrack currently is a director of Continental Airlines,  Inc.
and Kennedy-Wilson, Inc.

         Uri P. Harkham, age 54, 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.

                                       13

<PAGE>

         Daniel C. Staton, age 50, became a director of PSI on March 12, 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 12, 1999 and a Trustee of Storage
Trust Realty from November 1994 until March 12, 1999. He is President of Walnut
Capital Partners, an investment and venture capital 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.

         Pursuant to Articles 16 and 17 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. 2-92009, each of the General Partners continues
to serve until (i) death, insanity, insolvency, bankruptcy or dissolution, (ii)
withdrawal with the consent of the other general partner and a majority vote of
the limited partners, or (iii) removal by a majority vote of the limited
partners.

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

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

ITEM 11. Executive Compensation

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

ITEM 12. Security Ownership of Certain Beneficial Owners and Management

         (a) At March 10, 2003, 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.                           13,271 Units (1)            33.2%
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) 12,965 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 and PSI and members of management
     own the remaining 52%.

                                       14

<PAGE>

         (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 9 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 12,965 and 5,892 Units. During 2002, PSI and
BWH Marinas received $1,576,000 and $394,000 in distributions related to their
general partner's ownership interests.

         The Partnership has a Management Agreement with PSI (as
successor-in-interest to PSMI). Under the Management Agreement, the Partnership
pays PSI a fee of 6% of the gross revenues of the mini-warehouse properties
operated for the Partnership. 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 tight 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 6 months notice by PSI. During 2002, the Partnership paid
fees of $639,000 to PSI pursuant to the Management Agreement.

         In addition, the Partnership combines its insurance purchasing power
with PSI through a captive insurance company controlled by PSI, STOR-Re Mutual
Insurance Corporation ("Stor-Re"). Stor-Re provides 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 Stor-Re's limitations.

ITEM 14. Controls and Procedures

         The Partnership 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, to allow timely decisions regarding required disclosure based on the
definition of "disclosure controls and procedures" in Rule 13a-14(c) 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.

                                       15

<PAGE>

         Within 90 days prior to the date of this report, the Partnership
carried out an evaluation, under the supervision and with the participation of
the Partnership's management, of the effectiveness of the design and operation
of the Partnership's disclosure controls and procedures. Based upon this
evaluation, the Partnership's Chief Executive Officer and Chief Financial
Officer concluded that the Partnership's disclosure controls and procedures were
effective. There have been no significant changes in the Partnership's internal
controls or in other factors that could significantly affect the internal
controls subsequent to the date of the Partnership's evaluation.

                                     PART IV

ITEM 15. Exhibits, Financial Statement Schedules and Reports on Form 8-K

(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.

     4.  Certification  of CEO and CFO Pursuant to 18 U.S.C.  Section  1350,  as
         Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(b)  Reports on Form 8-K. No reports on Form 8-K were filed during 2002.

(c)  Exhibits: See Exhibit Index contained below.

                                       16

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.

                                  EXHIBIT INDEX

                                  (Item 15 (c))


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

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

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

10.2     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.

99.1     Certification  pursuant  to Section  906 of the  Sarbanes-Oxley  Act of
         2002. Filed herewith.

99.2     Certification  pursuant  to Section  302 of the  Sarbanes-Oxley  Act of
         2002. Filed herewith.

99.3     Certification  pursuant  to Section  302 of the  Sarbanes-Oxley  Act of
         2002. Filed herewith.

99.4     Certification  pursuant  to Section  302 of the  Sarbanes-Oxley  Act of
         2002. Filed herewith.

                                       17

<PAGE>

                                   SIGNATURES

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

                                  PUBLIC STORAGE PROPERTIES IV, LTD.,
                                  A California Limited Partnership
Dated:  March 28, 2003            By: Public Storage, Inc., General Partner

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

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

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

<TABLE>
<CAPTION>
                 Signature                                         Capacity                                   Date
---------------------------------------       --------------------------------------------------         --------------
<S>                                           <C>                                                        <C>
/s/ B. Wayne Hughes                           Chairman of the Board of Public Storage, Inc. and          March 28, 2003
---------------------------------------       General Partner
B. Wayne Hughes

/s/ Ronald L. Havner, Jr.                     Vice Chairman of the Board and Chief Executive             March 28, 2003
---------------------------------------       Officer of Public Storage, Inc.
Ronald L. Havner, Jr.

/s/ Harvey Lenkin                             President and Director of                                  March 28, 2003
---------------------------------------       Public Storage, Inc.
Harvey Lenkin

/s/ Marvin M. Lotz                            Senior Vice President and Director                         March 28, 2003
---------------------------------------
Marvin M. Lotz

/s/ B. Wayne Hughes, Jr.                      Vice President and Director of                             March 28, 2003
---------------------------------------       Public Storage, Inc.
B. Wayne Hughes, Jr.

/s/ John Reyes                                Senior Vice President and Chief Financial Officer          March 28, 2003
---------------------------------------       of Public Storage, Inc. (principal financial
John Reyes                                    officer and principal accounting officer)

/s/ Robert J. Abernethy                       Director of Public Storage, Inc.                           March 28, 2003
---------------------------------------
Robert J. Abernethy

/s/ Dann V. Angeloff                          Director of Public Storage, Inc.                           March 28, 2003
---------------------------------------
Dann V. Angeloff

/s/ William C. Baker                          Director of Public Storage, Inc.                           March 28, 2003
---------------------------------------
William C. Baker

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

/s/ Uri P. Harkham                            Director of Public Storage, Inc.                           March 28, 2003
---------------------------------------
Uri P. Harkham

/s/ Daniel C. Staton                          Director of Public Storage, Inc.                           March 28, 2003
---------------------------------------
Daniel C. Staton
</TABLE>
                                       18

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.

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


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

Report of Independent Auditors                                              F-1

Financial Statements and Schedule:

Balance Sheets as of December 31, 2002 and 2001                             F-2

For the years ended December 31, 2002, 2001 and 2000:

         Statements of Income                                               F-3

         Statements of Partners' Equity                                     F-4

         Statements of Cash Flows                                     F-5 - F-6

Notes to Financial Statements                                        F-7 - F-11

Schedule:

         III - Real Estate and Accumulated Depreciation             F-12 - F-13

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

<PAGE>

                         Report of Independent Auditors




The Partners
Public Storage Properties IV, Ltd.


We have audited the accompanying balance sheets of Public Storage Properties IV,
Ltd. (the "Partnership") as of December 31, 2002 and 2001, and the related
statements of income, partners' equity and cash flows for each of the three
years in the period ended December 31, 2002. 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 auditing standards generally accepted
in the 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. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Public Storage Properties IV,
Ltd. at December 31, 2002 and 2001, and the results of its operations and its
cash flows for each of the three years in the period ended December 31, 2002, in
conformity with accounting principles generally accepted in the United States.
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 19, 2003
Los Angeles, California

                                       F-1

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                                 BALANCE SHEETS
                           December 31, 2002 and 2001


<TABLE>
<CAPTION>
                                                                                  2002                    2001
                                                                            -----------------       -----------------

                                ASSETS

<S>                                                                         <C>                     <C>
Cash and cash equivalents                                                   $        698,000        $        434,000
Marketable securities of affiliate (cost of $6,340,000 as of December
     31, 2002 and 2001, respectively)                                             12,673,000              13,096,000
Rent and other receivables                                                           288,000                 495,000

Real estate facilities:
     Building and equipment                                                       17,929,000              17,570,000
     Land                                                                          5,021,000               5,021,000
                                                                            -----------------       -----------------
                                                                                  22,950,000              22,591,000

     Less accumulated depreciation                                               (15,701,000)            (14,750,000)
                                                                            -----------------       -----------------
                                                                                   7,249,000               7,841,000

Other assets                                                                         104,000                  62,000
                                                                            -----------------       -----------------

Total assets                                                                $     21,012,000        $     21,928,000
                                                                            =================       =================


                   LIABILITIES AND PARTNERS' EQUITY

Accounts payable                                                            $        150,000        $        354,000
Deferred revenue                                                                     274,000                 224,000

Partners' equity:
     Limited partners' equity, $500 per unit, 40,000 units authorized,
         issued and outstanding                                                   10,584,000              10,825,000
     General partners' equity                                                      3,671,000               3,769,000
     Other comprehensive income                                                    6,333,000               6,756,000
                                                                            -----------------       -----------------

     Total partners' equity                                                       20,588,000              21,350,000
                                                                            -----------------       -----------------

Total liabilities and partners' equity                                      $     21,012,000        $     21,928,000
                                                                            =================       =================
</TABLE>
                            See accompanying notes.
                                      F-2

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                              STATEMENTS OF INCOME
              For the years ended December 31, 2002, 2001 and 2000


<TABLE>
<CAPTION>
                                                            2002                   2001                   2000
                                                      ------------------     ------------------     ------------------
REVENUES:

<S>                                                   <C>                    <C>                    <C>
Rental income                                         $      10,650,000      $      11,400,000      $       9,575,000
Dividends from marketable securities
     of affiliate                                               718,000                676,000                595,000
Gain on sale of land                                                  -                      -                 61,000
Other income                                                     83,000                 82,000                 12,000
                                                      ------------------     ------------------     ------------------

                                                             11,451,000             12,158,000             10,243,000

COSTS AND EXPENSES:

Cost of operations                                            2,469,000              2,878,000              2,232,000
Management fees paid to affiliate                               639,000                647,000                574,000
Depreciation                                                    951,000                973,000                962,000
Administrative                                                   81,000                102,000                 99,000
Interest expense                                                      -                232,000                709,000
                                                      ------------------     ------------------     ------------------

                                                              4,140,000              4,832,000              4,576,000
                                                      ------------------     ------------------     ------------------


NET INCOME                                            $       7,311,000      $       7,326,000      $       5,667,000
                                                      ==================     ==================     ==================

Limited partners' share of net income ($133.63
     per unit in 2002, $181.15 per unit in 2001
     and $140.10 per unit in 2000)                    $       5,345,000      $       7,246,000      $       5,604,000

General partners' share of net income                         1,966,000                 80,000                 63,000
                                                      ------------------     ------------------     ------------------

                                                      $       7,311,000      $       7,326,000      $       5,667,000
                                                      ==================     ==================     ==================

COMPREHENSIVE INCOME:
Net income                                            $       7,311,000      $       7,326,000      $       5,667,000
Other comprehensive income (change in unrealized
   gain (loss) of marketable equity securities)
                                                               (423,000)             3,530,000                651,000
                                                      ------------------     ------------------     ------------------

                                                      $       6,888,000      $      10,856,000      $       6,318,000
                                                      ==================     ==================     ==================
</TABLE>
                            See accompanying notes.
                                      F-3

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                         STATEMENTS OF PARTNERS' EQUITY
              For the years ended December 31, 2002, 2001 and 2000


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

<S>                                         <C>                 <C>                <C>                <C>
Balance at December 31, 1999                $     1,188,000     $       413,000    $     2,575,000    $     4,176,000

Change in unrealized gain on marketable
     securities                                           -                   -            651,000            651,000

Net income                                        5,604,000              63,000                  -          5,667,000

Equity transfer                                  (1,401,000)          1,401,000                  -                  -
                                            ----------------   -----------------   ----------------   ----------------

Balance at December 31, 2000                      5,391,000           1,877,000          3,226,000         10,494,000

Change in unrealized gain on marketable
     securities                                           -                   -          3,530,000          3,530,000

Net income                                        7,246,000              80,000                  -          7,326,000

Equity transfer                                  (1,812,000)          1,812,000                  -                  -
                                            ----------------   -----------------   ----------------   ----------------

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

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                            STATEMENTS OF CASH FLOWS
              For the years ended December 31, 2002, 2001 and 2000


<TABLE>
<CAPTION>
                                                                        2002               2001                2000
                                                                   ----------------   ----------------   ----------------
Cash flows from operating activities:

<S>                                                                <C>                <C>                <C>
     Net income                                                    $     7,311,000    $     7,326,000    $     5,667,000

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

         Depreciation                                                      951,000            973,000            962,000
         Gain on sale of land                                                    -                  -            (61,000)
         Decrease (increase) in rent and other receivables                 207,000           (344,000)           (11,000)
         Amortization of prepaid loan fees                                       -             24,000             13,000
         (Increase) decrease in other assets                               (42,000)            16,000             (2,000)
         (Decrease) increase  in accounts payable                         (204,000)           185,000             (8,000)
         Increase (decrease) in deferred revenue                            50,000            (38,000)            22,000
                                                                   ----------------   ----------------   ----------------

         Total adjustments                                                 962,000            816,000            915,000
                                                                   ----------------   ----------------   ----------------

         Net cash provided by operating activities                       8,273,000          8,142,000          6,582,000
                                                                   ----------------   ----------------   ----------------

Cash flows from investing activities:

     Proceeds from the sale of land                                              -                  -            305,000
     Additions to real estate facilities                                  (359,000)          (483,000)          (311,000)
                                                                   ----------------   ----------------   ----------------

         Net cash used in investing activities                            (359,000)          (483,000)            (6,000)
                                                                   ----------------   ----------------   ----------------

Cash flows from financing activities:

     Distributions paid to partners                                     (7,650,000)                 -                  -
     Principal payments on note payable to commercial bank                       -         (7,750,000)        (6,300,000)
                                                                   ----------------   ----------------   ----------------

         Net cash used in financing activities                          (7,650,000)        (7,750,000)        (6,300,000)
                                                                   ----------------   ----------------   ----------------

Net increase (decrease) in cash and cash equivalents                       264,000            (91,000)           276,000

Cash and cash equivalents at the beginning of the year                     434,000            525,000            249,000
                                                                   ----------------   ----------------   ----------------

Cash and cash equivalents at the end of the year                   $       698,000    $       434,000    $       525,000
                                                                   ================   ================   ================
</TABLE>
                            See accompanying notes.
                                      F-5

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                            STATEMENTS OF CASH FLOWS
              For the years ended December 31, 2002, 2001 and 2000
                                   (Continued)


<TABLE>
<CAPTION>
                                                                        2002               2001                2000
                                                                   ----------------   ----------------   ----------------

Supplemental schedule of non-cash investing and financing activities:

<S>                                                                <C>                <C>                <C>
     Receipt of stock dividend:
       Marketable securities                                       $             -    $             -    $       249,000
                                                                   ================   ================   ================

       Rent and other receivables                                  $             -    $             -    $      (249,000)
                                                                   ================   ================   ================


     (Decrease) increase in fair value of marketable securities:
       Marketable securities                                       $      (423,000)   $     3,530,000    $       651,000
                                                                   ================   ================   ================

       Other comprehensive income                                  $      (423,000)   $     3,530,000    $       651,000
                                                                   ================   ================   ================
</TABLE>
                            See accompanying notes.
                                      F-6

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2002


1.       Description of Partnership

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

2.       Summary of Significant Accounting Policies and Partnership Matters

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

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

                  In May 2000, the Partnership sold excess land adjacent to one
         of the operating properties for $305,000. This resulted in a gain of
         $61,000 realized in the second quarter of 2000.

         Revenue Recognition:
         --------------------

                  Property rents are recognized as earned. Advertising costs of
         $399,000, $420,000 and $274,000 in 2002, 2001 and 2000, respectively,
         are expensed as incurred.

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

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

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

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

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

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

                  Marketable securities at December 31, 2002 consist of 381,980
         shares of common stock and 12,412 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, 2002, the Partnership has recorded the marketable
         securities at fair value, based upon the closing quoted price of the
         securities at December 31, 2002, and has recorded a corresponding
         unrealized (loss) gain totaling $(423,000), $3,530,000 and $651,000 for
         the years ended December 31, 2002, 2001 and 2000, respectively, as a
         (decrease) increase to Partnership equity. The Partnership recognized
         dividends of $718,000, $676,000 and $595,000 for the years ended
         December 31, 2002, 2001 and 2000, respectively.

                                      F-7

<PAGE>

2.       Summary of Significant Accounting Policies and Partnership Matters
         (Continued)

         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."

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

                  The preparation of the financial statements in conformity with
         accounting principles generally accepted in the United States 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.

         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 indicated no impairment.

                  Any real estate 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 or their carrying value, less cost to
         sell, and are evaluated throughout the sale process for impairment.


         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.
         Based on the assessments, the Partnership expensed $26,000 in 1995 for
         known environmental remediation requirements. Although there can be no
         assurance, the Partnership is not aware of any environmental
         contamination of any of its property sites which individually or in the
         aggregate would be material to the Partnership's overall business,
         financial condition or results of operations.

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

                  The  Partnership  only has one  reportable  segment as defined
         within Statement of Financial  Accounting  Standards No. 131 ("SFAS No.
         131"),  therefore  the  adoption  of SFAS No.  131 had no effect on the
         Partnership disclosures.

                                      F-8

<PAGE>

2.       Summary of Significant Accounting Policies and Partnership Matters
         (Continued)

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

                  As of March 20, 2003, there have been no recent accounting
         pronouncements and guidance, which were not effective for
         implementation prior to December 31, 2002, that would have a material
         impact upon the operations of the Partnership.

3.       Cash Distributions

                  The Partnership Agreement requires that cash available for
         distribution (cash flow from all sources less cash necessary for any
         obligations or capital improvement needs) be distributed at least
         quarterly. Cash distributions have been suspended since the third
         quarter of 1991 in order to build cash reserves for future debt service
         payments. 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 for the year to the limited and
         general partners totaling $5,680,000 ($142.00 per unit) and $1,970,000,
         respectively, as of December 31, 2002. Future distribution rates may be
         adjusted to levels which are supported by operating cash flow after
         capital improvements and any other necessary 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 conform the
         partners' equity accounts to the provisions of the Partnership
         Agreement. These transactions have no effect on the results of
         operations or distributions to partners.

5.       Related Party Transactions

                  The Partnership has a Management Agreement with PSI. Under the
         terms of the agreement, PSI operates the mini-warehouse facilities for
         a fee equal to 6% of the facilities' monthly gross revenue (as
         defined). For 2002, 2001 and 2000, the Partnership paid PSI $639,000,
         $647,000 and $574,000, respectively, pursuant to this management
         agreement.

                  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.

                  In addition, the Partnership combines its insurance purchasing
         power with PSI through a captive insurance company controlled by PSI,
         STOR-Re Mutual Insurance Corporation ("Stor-Re"). Stor-Re provides
         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 Stor-Re's limitations.

                                      F-9

<PAGE>

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 $7,580,000, $7,535,000 and
         $5,947,000 for the years ended December 31, 2002, 2001 and 2000,
         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 on September
         2002. During December 2001, the Partnership paid the loan in full
         without premium or penalty.

                  There were no interest paid during 2002 as the loan was paid
         off in December 2001. Interest paid during 2001 and 2000 was $231,000
         and $656,000, respectively.

8.       Supplementary Quarterly Financial Data (Unaudited)

<TABLE>
<CAPTION>
                                                                           Three Months Ended
                                             ------------------------------------------------------------------------------
                                             March 31, 2002      June 30, 2002      September 30, 2002    December 31, 2002
                                             --------------     --------------      ------------------    -----------------
<S>                                          <C>                <C>                  <C>                   <C>
Rental Income                                $    2,809,000     $    2,818,000       $     2,651,000       $     2,372,000
Cost of Operations (including
  management fees and depreciation)          $    1,085,000     $    1,134,000       $     1,040,000       $       800,000
Net Income                                   $    1,901,000     $    1,857,000       $     1,862,000       $     1,691,000
Net Income Per Unit                          $        37.00     $        33.93       $         33.40       $         29.15
Distributions                                $    1,618,000     $    1,941,000       $     2,044,000       $     2,047,000


                                                                           Three Months Ended
                                             ------------------------------------------------------------------------------
                                             March 31, 2001      June 30, 2001      September 30, 2001    December 31, 2001
                                             --------------     --------------      ------------------    -----------------

Rental Income                                $    2,566,000     $    2,675,000       $     3,206,000       $     2,953,000
Cost of Operations(including management
  fees and depreciation                      $      946,000     $      955,000       $     1,377,000       $     1,220,000
Net Income                                   $    1,575,000     $    1,743,000       $     2,086,000       $     1,922,000
Net Income Per Unit                          $        38.95     $        43.08       $         51.57       $         47.55
Distributions                                $            -     $            -       $            -        $            -
</TABLE>
                                      F-10

<PAGE>

9.       Commitments and Contingencies

         Salaam, et. Al V. Public Storage, Inc. (filed February 2000)
         ------------------------------------------------------------

                  The plaintiffs in this case are suing the Company on behalf of
         a purported class of California resident property managers who claim
         that they were not compensated for all the hours they worked. The named
         plaintiffs have indicated that their claims total less than $20,000 in
         aggregate. This maximum potential liability can only be increased if a
         class is certified or if claims are permitted to be brought on behalf
         of the others under the California Unfair Business Practices Act. The
         plaintiffs' motion for class certification was denied in August 2002;
         the plaintiffs have appealed this denial. This denial does not deal
         with the claim under the California Unfair Business Practices Act.

                  The Company is continuing to vigorously contest the claims in
         this case and intends to resist any expansion beyond the named
         plaintiffs on the grounds of lack of commonality of claims. The
         Company's resistance will include opposing the plaintiffs' appeal of
         the court's denial of class certification and opposing the claim on
         behalf of others under the California Unfair Business Practices Act.

         Henriquez v. Public Storage, Inc. (Filed June 2002; Dismissed January,
         ----------------------------------------------------------------------
         2003)
         -----

                  The plaintiff in this case filed a suit against the Company on
         behalf of a purported class of renters who rented self-storage units
         from the Company. Plaintiff alleged that the Company misrepresents the
         size of its units and sought damages and injunctive and declaratory
         relief under California statutory and common law relating to consumer
         protection, unfair competition, fraud and deceit and negligent
         misrepresentation. In January 2003, the plaintiff caused this suit to
         be dismissed. The plaintiff's attorney has advised that he anticipates
         filing a similar suit against the Company on behalf of a new plaintiff.
         However, the Company cannot presently determine the potential total
         damages, if any, or the ultimate outcome of any such litigation. If a
         new suit is filed, the Company intends to vigorously contest any claims
         on which it is based.

                  Public Storage 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. We believe that the
         outcome of these other pending legal proceedings, in the aggregate,
         will not have a material adverse effect upon the operations or
         financial position of the Partnership.

                                      F-11

<PAGE>

                       Public Storage Properties IV, Ltd.
             Schedule III - Real Estate and Accumulated Depreciation
                      For the year ended December 31, 2002

<TABLE>
<CAPTION>

                                         Initial Cost
                                  ------------------------------
                                                 Building, Land    Costs Subsequent
                                                Imp & Equipment     to construction
         Description                Land                            (Improvements)
-------------------------         -----------   ----------------   -----------------
    CALIFORNIA
<S>                                <C>               <C>                 <C>
Concord                           $4,349,000         $805,000            $292,000
Tustin                               517,000          844,000             353,000
Pasadena                             379,000          496,000             237,000
Azusa                                501,000        1,093,000             259,000
Redlands                             227,000          771,000             236,000
Riverside                             51,000          595,000             319,000
Oakland                              177,000          650,000             278,000
Richmond                             225,000          639,000             369,000
Santa Clara                          633,000        1,156,000             306,000
San Carlos                           396,000          902,000             211,000
Sacramento/Howe                      194,000          666,000             304,000
Sacramento/West Capitol              100,000          719,000             331,000

    FLORIDA
Miami/Airport Expressway
                                     186,000          442,000             278,000
Miami/Cutler Ridge (1)               525,000          901,000             (20,000)
Pembroke Park                        255,000          607,000             422,000
Ft. Lauderdale/I-95 &
   23rd Ave.                         243,000          611,000             426,000
Ft. Lauderdale/I-95 & Sunrise
                                     286,000          690,000             518,000
                                  -----------   ----------------   -----------------
                                  $5,244,000      $12,587,000          $5,119,000
                                  ===========   ================   =================
</TABLE>

<TABLE>
<CAPTION>
                                             Gross Carrying Amount
                                              at December 31, 2002
                                  ---------------------------------------------
                                                Building, Land
                                               Imp & Equipment                      Accumulated           Date
         Description                 Land                              Total        Depreciation        Completed
-------------------------         -----------  ----------------     -----------    --------------      ------------
    CALIFORNIA
<S>                                 <C>            <C>               <C>                <C>              <C>
Concord                             $349,000       $1,097,000        $1,446,000         $921,000         01/79
Tustin                               517,000        1,197,000         1,714,000        1,070,000         12/78
Pasadena                             379,000          733,000         1,112,000          596,000         11/79
Azusa                                501,000        1,352,000         1,853,000        1,252,000         11/78
Redlands                             227,000        1,007,000         1,234,000          857,000         02/79
Riverside                             51,000          914,000           965,000          789,000         05/79
Oakland                              177,000          928,000         1,105,000          816,000         04/79
Richmond                             225,000        1,008,000         1,233,000          861,000         03/79
Santa Clara                          633,000        1,462,000         2,095,000        1,251,000        6 & 7/79
San Carlos                           396,000        1,113,000         1,509,000          977,000         10/79
Sacramento/Howe                      194,000          970,000         1,164,000          858,000         08/79
Sacramento/West Capitol              100,000        1,050,000         1,150,000          944,000         06/79

    FLORIDA
Miami/Airport Expressway
                                     186,000          720,000           906,000          649,000         01/79
Miami/Cutler Ridge (1)               302,000        1,104,000         1,406,000          993,000         04/79
Pembroke Park                        255,000        1,029,000         1,284,000          932,000         07/79
Ft. Lauderdale/I-95 &
   23rd Ave.                         243,000        1,037,000         1,280,000          891,000         07/79
Ft. Lauderdale/I-95 & Sunrise
                                     286,000        1,208,000         1,494,000        1,044,000         10/79
                                  -----------  ----------------     -----------    --------------
                                  $5,021,000      $17,929,000       $22,950,000      $15,701,000
                                  ===========  ================     ===========    ==============
</TABLE>

(1)  In the second quarter of 2000, the Partnership  sold  approximately  43% of
     the land.

                                      F-12

<PAGE>

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


           Reconciliation of Real Estate and Accumulated Depreciation


                                                   2002               2001
                                              --------------     --------------
Investment in Real Estate
   Balance at the beginning of the year       $   22,591,000     $   22,108,000

   Additions through cash expenditures               359,000            483,000
                                              --------------     --------------

Balance at the end of the year                $   22,950,000     $   22,591,000
                                              ==============     ==============

Accumulated Depreciation
   Balance at the beginning of the year       $   14,750,000     $   13,777,000

   Additions charged to costs and expenses           951,000            973,000
                                              --------------     --------------
                                              $   15,701,000     $   14,750,000
                                              ==============     ==============

(a)  The aggregate  depreciable cost of real estate (excluding land) for Federal
     income tax purposes is $17,212,000 (unaudited).

                                      F-13