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, 1999

                                       or

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

For the transition period from ___________to__________

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

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

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

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

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

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

                                      NONE

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

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

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

                                    Yes X No
                                       ---  ---

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

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      NONE


<PAGE>

                                     PART I

ITEM 1.  BUSINESS

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 include the impact of competition from new and existing real estate
facilities  which could  impact  rents and  occupancy  levels at the real estate
facilities that the Partnership's has an interest in; the Partnership's  ability
to  effectively  compete in the markets that it does  business in; the impact of
the  regulatory  environment  as well as  national,  state,  and local  laws and
regulations including, without limitation, those governing Partnerships; and the
impact of general economic  conditions upon rental rates and occupancy levels at
the real estate facilities that the Partnership has an interest in.

General
-------

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

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

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

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

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

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

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

         At December  31,  1999,  the  Partnership  owned 17  properties  in two
states.

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

                                       2

<PAGE>

         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.

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  175,000  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 94% in 1998 and 93% 1999.  Annual  realized  rents per
     occupied square foot increased 6% from $10.66 in 1998 to $11.30 in 1999.

                                       3

<PAGE>

*    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 4,450 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.

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

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

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

         The Management  Agreement between the Partnership and PSI provides that
the Management  Agreement may be terminated  without cause upon 60 days' written
notice by either party.

                                       4

<PAGE>

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

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

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

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

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

Employees
---------

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

                                       5

<PAGE>

ITEM 2.  PROPERTIES

         The  following  table sets forth  information  as of December  31, 1999
about properties owned by the Partnership:

<TABLE>
<CAPTION>
                                                  Net Rentable        Number of                             Completion
         Location             Size of Parcel          Area              Space         Date of Purchase         Date
-----------------------       --------------    ----------------      ---------       ----------------      -----------
CALIFORNIA
<S>                             <C>              <C>                      <C>                <C> <C>              <C>
Azusa                           5.85 acres       105,000 sq. ft.          905           July 14, 1978        Nov. 1978

Concord                         2.87 acres        52,000 sq. ft.          523           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.          339           July 19, 1978        Nov. 1978

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

Richmond                        1.82 acres        35,000 sq. ft.          353           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.          442           Jan. 5, 1979         June 1979

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

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

Tustin                          4.40 acres        67,000 sq. ft.          560           July 3, 1978         Dec. 1978

FLORIDA
Miami Airport
   Expressway                   1.70 acres        29,000 sq. ft.          269           Aug. 24, 1978        Jan. 1979

Miami (1)
   Cutler Ridge                 4.00 acres        46,000 sq. ft.          482           Sept. 6, 1978        Apr. 1979

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

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

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

</TABLE>

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

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

                                       6

<PAGE>

         The weighted average occupancy level for the mini-warehouse  facilities
was 94% and 93% for 1998 and 1999, respectively.

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

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

ITEM 3.  LEGAL PROCEEDINGS

         No material legal proceeding is pending against the Partnership.

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

         No matters  were  submitted  to a vote of security  holders  during the
fourth quarter of 1999.

                                     PART II

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

         The Partnership has no common stock.

         The Units are not listed on any national  securities exchange or quoted
on the NASDAQ System,  and there is no established public trading market for the
Units. Secondary sales activity for the Units has been limited and sporadic. The
General Partners monitor transfers of the Units (a) because the admission of the
transferee as a substitute  limited partner  requires the consent of the General
Partners under the Partnership's  Amended and Restated Certificate and Agreement
of  Limited  Partnership,  (b) in order to ensure  compliance  with safe  harbor
provisions  to  avoid  treatment  as a  "publicly  traded  partnership"  for tax
purposes,  and (c) because  the General  Partners  (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, 1999, there were approximately 1,071 record holders of Units.

         Distributions to the general and limited partners of all cash available
for  distribution  have been made quarterly.  Cash available for distribution is
generally  funds from  operations  of the  Partnership,  without  deduction  for
depreciation,  but after  deducting  funds to pay or establish  reserves for all
other expenses (other than incentive  distributions to the general partners) and
capital  improvements,  plus net  proceeds  from any  sale or  financing  of the
Partnership's  properties. In the third quarter of 1991, quarterly distributions
were discontinued to enable the Partnership to pay down its outstanding debt.

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

                                       7

<PAGE>

ITEM 6.  SELECTED FINANCIAL DATA

<TABLE>
<CAPTION>
For the Year Ended December 31,              1999              1998             1997              1996              1995
-------------------------------         --------------    --------------    --------------   --------------    --------------
<S>                                     <C>               <C>               <C>              <C>               <C>
Revenues                                $    9,886,000    $    9,234,000    $    8,516,000   $    7,774,000    $    7,629,000

Depreciation and amortization                  991,000           926,000           881,000          814,000           742,000

Interest expense                             1,021,000         2,080,000         2,805,000        2,898,000         2,967,000

Gain on sale of real estate (2)                 -                 -                 -                -                125,000

Net income                                   5,105,000         3,507,000         2,281,000        1,698,000         1,724,000

Limited partners' share                      5,049,000         3,468,000         2,256,000        1,680,000         1,704,000

General partners' share                         56,000            39,000            25,000           18,000            20,000

Limited partners' per unit data (1)
     Net income                               $126.23            $86.70            $56.40           $42.00            $42.60

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

Cash and cash equivalents               $      249,000    $      433,000    $    1,911,000   $    2,440,000    $      967,000

Total Assets                            $   18,643,000    $   20,876,000    $   23,818,000   $   22,742,000    $   18,367,000

Debt                                    $   14,050,000    $   19,650,000    $   25,405,000   $   26,338,000    $   27,178,000

</TABLE>

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

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

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 include the impact of competition from new and existing real estate
facilities  which could  impact  rents and  occupancy  levels at the real estate
facilities that the Partnership's has an interest in; the Partnership's  ability
to  effectively  compete in the markets that it does  business in; the impact of
the  regulatory  environment  as well as  national,  state,  and local  laws and
regulations including, without limitation, those governing Partnerships; and the
impact of general economic  conditions upon rental rates and occupancy levels at
the real estate facilities that the Partnership has an interest in.

                                       8

<PAGE>

RESULTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 1999 COMPARED TO YEAR ENDED DECEMBER 31, 1998:

         The  Partnership's  net  income  was  $5,105,000  in 1999  compared  to
$3,507,000 in 1998,  representing  an increase of  $1,598,000.  This increase is
primarily a result of  increased  operating  results at the  Partnership's  real
estate facilities combined with a decrease in interest expense.

         During 1999 property net operating  income  (rental income less cost of
operations,  management fees paid to an affiliate and depreciation  expense) was
$5,609,000 in 1999 compared to $5,241,000 in 1998,  representing  an increase of
$368,000 or 7%.  This  increase  was  primarily  attributable  to an increase in
rental income at the Partnership's mini-warehouse facilities partially offset by
an increase in cost of operations and depreciation expense.

         Rental  income was  $9,293,000  in 1999 compared to $8,811,000 in 1998,
representing  an  increase  of  $482,000  or  5%.  The  increase  was  primarily
attributable to an increase in rental rates at the Partnership's facilities. The
weighted average occupancy levels at the mini-warehouse  facilities were 93% and
94% in 1999 and 1998, respectively. The annual realized rent per occupied square
foot was $11.30 in 1999 compared to $10.66 in 1998.

         Other income decreased  $79,000 in 1999 compared to 1998. This decrease
is primarily a result of payments  which have reduced the  principal  balance on
the note  payable to a commercial  bank with cash  reserves,  which  resulted in
lower cash balances and consequently less interest earned.

         Dividend  income from  marketable  securities  of  affiliate  increased
$249,000 in 1999 compared to 1998.  This increase is due to increased  dividends
on the marketable securities of affiliate in 1999 compared to 1998.

         Cost of  operations  (including  management  fees paid to an affiliate)
increased  $49,000 or 2% to  $2,693,000 in 1999 from  $2,644,000  in 1998.  This
increase  was  primarily  attributable  to  increases  in  management  fees  and
advertising expenses.

         Interest  expense  was  $1,021,000  and  $2,080,000  in 1999 and  1998,
respectively,  representing  a decrease of  $1,059,000  or 51%. The decrease was
primarily a result of a lower average  outstanding loan balance in 1999 compared
to 1998 and reduced  interest rates on the  Partnership's  debt resulting from a
refinancing of the partnership's debt. See Liquidity and Capital Resources for a
discussion of the refinancing of the Partnership's indebtedness.

YEAR ENDED DECEMBER 31, 1998 COMPARED TO YEAR ENDED DECEMBER 31, 1997:

         The  Partnership's  net  income  was  $3,507,000  in 1998  compared  to
$2,281,000 in 1997,  representing  an increase of  $1,226,000.  This increase is
primarily a result of  increased  operating  results at the  Partnership's  real
estate facilities combined with a decrease in interest expense.

         During 1998 property net operating  income  (rental income less cost of
operations,  management fees paid to an affiliate and depreciation  expense) was
$5,241,000 in 1998 compared to $4,731,000 in 1997,  representing  an increase of
$510,000 or 11%.  This  increase was  primarily  attributable  to an increase in
rental income at the Partnership's mini-warehouse facilities partially offset by
an increase in cost of operations and depreciation expense.

         Rental  income was  $8,811,000  in 1998 compared to $8,086,000 in 1997,
representing  an  increase  of  $725,000  or  9%.  The  increase  was  primarily
attributable  to an  increase  in  occupancy  level  and  rental  rates  at  the
Partnership's   facilities.   The  weighted  average  occupancy  levels  at  the
mini-warehouse  facilities were 94% and 93% in 1998 and 1997, respectively.  The
annual  realized rent per occupied  square foot  increased from $9.93 in 1997 to
$10.66 in 1998.

         Other income decreased  $42,000 in 1998 compared to 1997. This decrease
is  primarily a result of the pay off of the  mortgage  note  payable  with cash
reserves  in  September  1998,   which  resulted  in  lower  cash  balances  and
consequently less interest earned.

                                       9

<PAGE>

         Dividend  income from  marketable  securities  of  affiliate  increased
$35,000 in 1998 compared to 1997.  This increase is primarily due to an increase
in the weighted average number of shares owned in 1998 compared to 1997.

         Cost of  operations  (including  management  fees paid to an affiliate)
increased  $170,000 or 7% to  $2,644,000 in 1998 from  $2,474,000 in 1997.  This
increase  was  primarily   attributable   to  increases  in   management   fees,
advertising, property tax, and repairs and maintenance expenses.

         Interest  expense  was  $2,080,000  and  $2,805,000  in 1998 and  1997,
respectively,  representing  a decrease  of $725,000 or 26%.  The  decrease  was
primarily a result of a lower average  outstanding loan balance in 1998 compared
to  1997  and  lower  interest  rates  on the  Partnership's  indebtedness.  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  ($5,789,000  for the year ended
December 31, 1999) have been  sufficient to meet all current  obligations of the
Partnership.  During 2000, the Partnership anticipates approximately $294,000 of
capital improvements compared to $373,000 in 1999 and $393,000 in 1998.

         At December 31, 1999,  the  Partnership  held 381,980  shares of common
stock (marketable  securities) with a fair value totaling $8,666,000 (cost basis
of  $6,091,000  at  December  31,  1999) in  Public  Storage,  Inc.  (PSI).  The
Partnership recognized $585,000 in dividends during 1999.

         In the third quarter of 1991, quarterly distributions were discontinued
to enable the  Partnership  to increase its funds  available for debt  principal
payments.

         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.

         During 1988,  the  Partnership  financed all of its  properties  with a
$30,500,000 loan with fixed interest of 10.47 percent per annum. Net proceeds of
$29,360,000 were distributed to the partners in October 1988 and are included in
the 1988 distribution.

         On July 1, 1998,  the  Partnership  paid off the mortgage  note payable
with cash  reserves  and with the  proceeds  of a  $22,000,000  loan from Public
Storage,  Inc.,  a general  partner  of the  Partnership.  The loan from  Public
Storage,  Inc. had a fixed  interest rate of 7.2% and matured June 30, 1999. The
loan was liquidated  through  proceeds as described in the next  paragraph.  The
loan called for monthly payments of interest only.  Principal was payable at any
time without  penalty.  Public Storage,  Inc. also provided the Partnership with
options to extend the loan term through June 2003.

         During  September 1998, the  Partnership  borrowed  $21,000,000  from a
commercial  bank.  The  loan is  unsecured  and  bears  interest  at the  London
Interbank  Offering  Rate  ("LIBOR")  plus 0.60% to 1.20% (7.10% at December 31,
1999) depending on the Partnership's  interest coverage ratio. The loan requires
monthly payments of interest and matures September 2002.  Principal may be paid,
in whole or in part, at any time without  penalty or premium.  The loan proceeds
were used to pay off the Partnership's note to Public Storage, Inc.

         The  Partnership  also entered into an interest rate swap  agreement to
reduce the impact of changes in interest rates on a portion of its floating rate
debt.  The  agreement,  which covers  $11,500,000 of debt through March 2000 and
$7,500,000  from March 2000  through  September  2000,  effectively  changes the
interest rate exposure from floating rate to a fixed rate of 5.22% plus 0.60% to
1.20%  (5.82% as of  December  31,  1999)  based on the  Partnership's  interest
coverage  ratio.  Market  gains and losses on the value of the swap are deferred
and included in income over the life of the contract.  The  Partnership  records
the differences  paid or received on the interest rate swap in interest  expense
as payments are made or received.  As of December 31, 1999, the unrealized  gain
on the  interest  rate swap,  if required to be  liquidated,  was  approximately
$35,000.

                                       10

<PAGE>

YEAR 2000 SYSTEM ISSUES
-----------------------

         The Year 2000 Issue arises  because many  computerized  systems use two
digits rather than four to identify a year. Date sensitive systems may recognize
the Year 2000 as 1900 or some other date,  resulting in errors when  information
using Year 2000 dates is processed.  In addition,  similar problems may arise in
some systems which use certain dates in 1999 to represent something other than a
date. Although the change in date to the Year 2000 has occurred and no Year 2000
Issues have been identified,  it is not possible to conclude that all aspects of
the Year 2000  Issue  that may affect the  entity,  including  those  related to
customers, suppliers, or other third parties, have been fully resolved.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         The  Partnership's  interest  expense  is  sensitive  to changes in the
general level of U.S.  interest rates. In this regard,  changes in U.S. interest
rates affect the interest paid on the Partnership's debt. To mitigate the impact
of fluctuations in U.S. interest rates, the Partnership  generally maintains its
debt as fixed rate in nature by borrowing on a long-term  basis or entering into
interest  swap  transactions.  As of December  31,  1999,  the  Partnership  had
$14,050,000  of  outstanding  debt  maturing  in  September,   2002.  Also,  the
Partnership  has an interest rate swap in the notional  amount of $11,500,000 as
of December 31,  1999,  the interest  swap expires in stages  through  September
2000.

         As of December 31, 1999, the unrealized gain on the interest rate swap,
which would be deferred  if  liquidated  prior to  maturity,  was  approximately
$35,000.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

         The Partnership's  financial  statements are included elsewhere herein.
Reference is made to the Index to Financial  Statements and Financial  Statement
Schedule in Item 14(a).

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

         None.

                                    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.

                                       11

<PAGE>

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

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

         B. Wayne Hughes, age 66, a general partner of the Partnership, has been
a director of PSI since its  organization in 1980 and was President and Co-Chief
Executive  Officer from 1980 until November 1991 when he became  Chairman of the
Board and sole Chief Executive  Officer.  Mr. Hughes has been active in the real
estate  investment field for over 30 years. He is the father of B. Wayne Hughes,
Jr.

         Harvey Lenkin, age 63, has been employed by PSI for 22 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).

         Marvin M. Lotz,  age 57,  became a director of PSI in May 1999.  He has
had overall responsibility for Public Storage's mini-warehouse  operations since
1988. He became a Senior Vice President of PSI in November 1995. Mr. Lotz was an
officer of PSI with  responsibility  for property  acquisitions  from 1983 until
1988.

         B. Wayne Hughes,  Jr., age 40, became  director of PSI in January 1998.
He has been employed by the Company  since 1989 and has been a Vice  President -
Acquisitions of PSI since 1992. Mr. Hughes,  Jr. is involved in the coordination
and direction of PSI's acquisition and development activities.  He is the son of
B. Wayne Hughes.

         John Reyes, age 39, a certified public  accountant,  joined PSI in 1990
and was  Controller  of PSI from 1992 until  December  1996 when he became Chief
Financial  Officer.  He became a Vice  President  of PSI in November  1995 and a
Senior Vice President of PSI in December 1996.  From 1983 to 1990, Mr. Reyes was
employed by Ernst & Young.

         Carl B.  Phelps,  age 61,  became a  Senior  Vice  President  of PSI in
January  1998  with  overall   responsibility   for  property   acquisition  and
development.  From June 1991 until joining PSI, he was a partner in the law firm
of  Andrews & Kurth,  L.L.P.,  which  performed  legal  services  for PSI.  From
December 1982 through May 1991, his  professional  corporation  was a partner in
the law firm of Sachs & Phelps, then counsel to PSI.

         Obren B. Gerich, age 61, a certified public accountant, has been a Vice
President of PSI since 1980 and became Senior Vice  President of PSI in November
1995. He was Chief Financial Officer of PSI until November 1991.

         David  Goldberg,  age 50,  joined  PSI's legal  staff in June 1991.  He
became Senior Vice President and General  Counsel of PSI in November 1995.  From
December  1982  until  May  1991,  he was a  partner  in the law firm of Sachs &
Phelps, then counsel to PSI.

                                       12

<PAGE>

         A.  Timothy  Scott,  age 48,  became a Senior  Vice  President  and Tax
Counsel of PSI and Vice President and Tax Counsel of the Public Storage REITs in
November 1996.  From June 1991 until joining PSI, Mr. Scott practiced tax law as
a shareholder of the law firm of Heller,  Ehrman, White & McAuliffe,  counsel to
PSI. Prior to June 1991, his  professional  corporation was a partner in the law
firm of Sachs & Phelps, then counsel to PSI.

         David P.  Singelyn,  age 38, a certified  public  accountant,  has been
employed by PSI since 1989 and became Vice  President  and  Treasurer  of PSI in
November  1995.  From 1987 to 1989,  Mr.  Singelyn was  Controller of Winchell's
Donut Houses, L.P.

         Sarah Hass,  age 44,  became  Secretary  of PSI in February  1992.  She
became  a Vice  President  of PSI in  November  1995.  She  joined  PSI's  legal
department  in June 1991,  rendering  services on behalf of PSI. From 1987 until
May 1991, her professional  corporation was a partner in the law firm of Sachs &
Phelps,  then  counsel to PSI,  and from  April  1986  until June 1987,  she was
associated  with that  firm,  practicing  in the area of  securities  law.  From
September 1979 until  September  1985, Ms. Hass was associated with the law firm
of Rifkind & Sterling, Incorporated.

         Robert J.  Abernethy,  age 60, 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  and 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 64, has been President of the Angeloff Company, a
corporate  financial  advisory  firm,  since  1976.  The  Angeloff  Company  has
rendered,  and is  expected  to  continue  to  render,  financial  advisory  and
securities  brokerage services for PSI. Mr. Angeloff is the general partner of a
limited partnership that owns a mini-warehouse operated by PSI and which secures
a note  owned  by PSI.  Mr.  Angeloff  has  been a  director  of PSI  since  its
organization in 1980. He is a director of AremisSoft Corporation, Balboa Capital
Corporation, Compensation Resource Group, Nicholas/Applegate Growth Equity Fund,
ReadyPac Produce, Inc., Royce Medical Company,  topjobs.net plc and WorldxChange
Communications, Inc. He was a director of SPI from 1989 until June 1996.

         William C. Baker,  age 66,  became a director of PSI in November  1991.
[From January 1999 until June 1999, Mr. Baker was President and Chief  Executive
Officer of Los Angeles Turf Club,  Incorporated,  which operates the Santa Anita
Racetrack and is a wholly-owned  subsidiary of Magna  International  Inc.] Since
August 1998,  he has been  President of Meditrust  Operating  Company,  a paired
share real estate  investment  trust. From November 1997 until December 1998, he
was  Chairman  of the Board  and  Chief  Executive  Officer  of The Santa  Anita
Companies,  Inc., a wholly-owned subsidiary of Meditrust Operating Company which
then operated the Santa Anita  Racetrack.  From August 1996 until November 1997,
he was  Chairman  of the  Board  and  Chief  Executive  Officer  of Santa  Anita
Operating  Company and Chairman of the Board of Santa Anita Realty  Enterprises,
Inc.,  the companies  which were merged with  Meditrust in November  1997.  From
April 1993 through May 1995, Mr. Baker was President of Red Robin International,
Inc.,  an operator and  franchiser of casual  dining  restaurants  in the United
States and Canada.  From January 1992 through  December 1995 he was Chairman and
Chief Executive Officer of Carolina Restaurant  Enterprises,  Inc., a franchisee
of Red Robin  International,  Inc. Since 1991, he has been Chairman of the Board
of Coast Newport Properties, a real estate brokerage company. From 1976 to 1988,
he was a principal  shareholder and Chairman and Chief Executive  Officer of Del
Taco,  Inc., an operator and franchiser of fast food  restaurants in California.
Mr.  Baker is a director  of  Callaway  Golf  Company  and  Meditrust  Operating
Company.

         Thomas J.  Barrack,  Jr., age 52,  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.

                                       13

<PAGE>

         Uri P.  Harkham,  age 51,  became a director of PSI in March 1993.  Mr.
Harkham  has been the  President  and Chief  Executive  Officer of the  Jonathan
Martin  Fashion  Group,  which  specializes  in  designing,   manufacturing  and
marketing  women's  clothing,  since its  organization in 1976.  Since 1978, Mr.
Harkham has been the Chairman of the Board of Harkham Properties,  a real estate
firm specializing in buying and managing fashion warehouses in Los Angeles.

         Daniel C. Staton, age 47, 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 1993,  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. From 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,  a copy of  which is  included  in the
Partnership's  prospectus included in the Partnership's  Registration  Statement
File No.  2-60530,  each of the General  Partners  continues  to serve until (i)
death, insanity, insolvency, bankruptcy or dissolution, (ii) withdrawal with the
consent  of the  other  general  partner  and a  majority  vote  of the  limited
partners, or (iii) removal by a majority vote of the limited partners.

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

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

ITEM 11. EXECUTIVE COMPENSATION

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

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

         (a) At March 10, 1999, the following  persons  beneficially  owned more
than 5% of the Units:

<TABLE>
<CAPTION>

                                                                                       Beneficial
         Title of Class                Name and Address of Beneficial Owners           Ownership       Percent of Class
----------------------------      -------------------------------------------      -----------------   ----------------
<S>                               <C>                                              <C>          <C>          <C>
Units of Limited Partnership      Public Storage, Inc.                             13,271 Units (1)          33.2%
Interest                          701 Western Avenue
                                  Glendale, California 91201

Units of Limited Partnership      B. Wayne Hughes,                                 12,314 Units (2)          30.8%
Interest                          Tamara Hughes Gustavson, PS Orangeco, 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)  6,116  Units
         owned  by  PS  Orangeco,   Inc.,  a  corporation   whose  common  stock
         (representing  5% of the  equity) is owned by Hughes and members of his
         family and whose non-voting  preferred stock  (representing  95% if the
         equity) is owned by PSI,  and as to which Units PS  Orangeco,  Inc. and
         Hughes share voting and dispositive power.

                                       14

<PAGE>

         (b) The Partnership has no officers and directors. The General Partners
contributed  $202,000 to the original capital of the Partnership and as a result
participate  in  the   distributions   to  the  limited   partners  and  in  the
Partnership's  profits  and  losses  in the same  proportion  that  the  General
Partners'  capital  contribution  bears  to  the  total  capital   contribution.
Information  regarding  ownership  of  Units  by PSI  and  Hughes,  the  General
Partners,  is set forth under section (a) above. Dann V. Angeloff, a director of
PSI, beneficially owns 9 Units (0.02% of the Units). The directors and executive
officers of PSI (including Hughes), as a group (17 persons), beneficially own an
aggregate of 12,027 Units,  representing 30.1% of the Units (including the 5,892
Units owned by Hughes and the 6,116 Units owned by PS Orangeco, Inc. as to which
Hughes shares voting and dispositive power set forth above).

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

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

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

         The   Partnership   has   a   Management   Agreement   with   PSI   (as
successor-in-interest  to PSMI). Under the Management Agreement, the Partnership
pays PSI a fee of 6% of the  gross  revenues  of the  mini-warehouse  properties
operated for the Partnership. During 1999, the Partnership paid fees of $558,000
to PSI pursuant to the Management Agreement.

                                     PART IV

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

         (a)  List of Documents filed as part of the Report.

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

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

              3.  Exhibits: See Exhibit Index contained below.

         (b)  Reports on Form 8-K:  No  reports  on Form 8-K were  filed  during
              1999.

         (c)  Exhibits: See Exhibit Index contained below.

                                       15

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.

                                  EXHIBIT INDEX

                                  (Item 14 (c))


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

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

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

10.2     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.

10.3     Interest Swap Agreement  dated September 18, 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.

27       Financial Data Schedule.  Filed herewith.

                                       16

<PAGE>
                                   SIGNATURES

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

                                PUBLIC STORAGE PROPERTIES IV, LTD.,
                                A California Limited Partnership
Dated:  March 28, 2000          By:  Public Storage, Inc., General Partner

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

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

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

<TABLE>
<CAPTION>
        Signature                                 Capacity                           Date
---------------------------  ------------------------------------------------   --------------
<S>                          <C>                                                <C>
/s/ B. Wayne Hughes          Chairman of the Board and Chief Executive          March 28, 2000
---------------------------  Officer of Public Storage, Inc. and General
B. Wayne Hughes              Partner (principal executive offer)

/s/ Harvey Lenkin            President and Director of                          March 28, 2000
---------------------------  Public Storage, Inc.
Harvey Lenkin

/s/ Marvin M. Lotz           Senior Vice President and Director                 March 28, 2000
---------------------------
Marvin M. Lotz

/s/ B. Wayne Hughes, Jr.     Vice President and Director of                     March 28, 2000
---------------------------  Public Storage, Inc.
B. Wayne Hughes, Jr.

/s/ John Reyes               Senior Vice President and Chief Financial Officer  March 28, 2000
---------------------------  of Public Storage, Inc. (principal financial
John Reyes                   officer and principal accounting officer)

/s/ Robert J. Abernethy      Director of Public Storage, Inc.                   March 28, 2000
---------------------------
Robert J. Abernethy

/s/ Dann V. Angeloff         Director of Public Storage, Inc.                   March 28, 2000
---------------------------
Dann V. Angeloff

                             Director of Public Storage, Inc.                   March 28, 2000
---------------------------
William C. Baker

                             Director of Public Storage, Inc.                   March 28, 2000
---------------------------
Thomas J. Barrack, Jr.

/s/ Uri P. Harkham           Director of Public Storage, Inc.                   March 28, 2000
---------------------------
Uri P. Harkham

/s/ Daniel C. Staton         Director of Public Storage, Inc.                   March 28, 2000
---------------------------
Daniel C. Staton

</TABLE>
                                       17

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.

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


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

Report of Independent Auditors                                            F-1

Financial Statements and Schedule:

Balance Sheets as of December 31, 1999 and 1998                           F-2

For the years ended December 31, 1999, 1998 and 1997:

         Statements of Income                                             F-3

         Statements of Partners' Equity (Deficit)                         F-4

         Statements of Cash Flows                                   F-5 - F-6

Notes to Financial Statements                                      F-7 - F-10

Schedule:

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




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

<PAGE>

                         Report of Independent Auditors




The Partners
Public Storage Properties IV, Ltd.


We have audited the accompanying balance sheets of Public Storage Properties IV,
Ltd. as of December  31, 1999 and 1998,  and the related  statements  of income,
partners'  equity  (deficit)  and cash flows for each of the three  years in the
period ended December 31, 1999. Our audits also included the schedule  listed in
the  index at item  14(a).  These  financial  statements  and  schedule  are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with 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, 1999 and 1998,  and the results of its  operations  and its
cash flows for each of the three years in the period ended December 31, 1999, 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




February 14, 2000
Los Angeles, California

                                      F-1

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                                 BALANCE SHEETS
                           December 31, 1999 and 1998

<TABLE>
<CAPTION>
                                                                                  1999                    1998
                                                                            -----------------       -----------------
                                     ASSETS

<S>                                                                         <C>                     <C>
Cash and cash equivalents                                                   $        249,000        $        433,000
Marketable securities of affiliate (cost of $6,091,000)                            8,666,000              10,337,000
Rent and other receivables                                                           389,000                 136,000

Real estate facilities:
     Building and equipment                                                       16,797,000              16,424,000
     Land                                                                          5,244,000               5,244,000
                                                                            -----------------       -----------------
                                                                                  22,041,000              21,668,000

     Less accumulated depreciation                                               (12,815,000)            (11,824,000)
                                                                            -----------------       -----------------
                                                                                   9,226,000               9,844,000

Other assets                                                                         113,000                 126,000
                                                                            -----------------       -----------------
Total assets                                                                $     18,643,000        $     20,876,000
                                                                            =================       =================

                        LIABILITIES AND PARTNERS' EQUITY

Accounts payable                                                            $        177,000        $        249,000
Deferred revenue                                                                     240,000                 235,000
Note payable to commercial bank                                                   14,050,000              19,650,000

Partners' equity (deficit):
     Limited partners' equity (deficit), $500 per unit, 40,000 units
         authorized, issued and outstanding                                        1,188,000              (2,599,000)
     General partners' equity (deficit)                                              413,000                (905,000)
     Other comprehensive income                                                    2,575,000               4,246,000
                                                                            -----------------       -----------------
     Total partners' equity                                                        4,176,000                 742,000
                                                                            -----------------       -----------------
Total liabilities and partners' equity                                      $     18,643,000        $     20,876,000
                                                                            =================       =================
</TABLE>
                            See accompanying notes.
                                       F-2

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                              STATEMENTS OF INCOME
              For the years ended December 31, 1999, 1998 and 1997

<TABLE>
<CAPTION>
                                                            1999                   1998                   1997
                                                      ------------------     ------------------     ------------------
REVENUES:

<S>                                                   <C>                    <C>                    <C>
Rental income                                         $       9,293,000      $       8,811,000      $       8,086,000
Dividends from marketable securities
     of affiliate                                               585,000                336,000                301,000
Other income                                                      8,000                 87,000                129,000
                                                      ------------------     ------------------     ------------------
                                                              9,886,000              9,234,000              8,516,000
                                                      ------------------     ------------------     ------------------
COSTS AND EXPENSES:

Cost of operations                                            2,135,000              2,115,000              1,989,000
Management fees paid to affiliate                               558,000                529,000                485,000
Depreciation                                                    991,000                926,000                881,000
Administrative                                                   76,000                 77,000                 75,000
Interest expense                                              1,021,000              2,080,000              2,805,000
                                                      ------------------     ------------------     ------------------
                                                              4,781,000              5,727,000              6,235,000
                                                      ------------------     ------------------     ------------------

NET INCOME                                            $       5,105,000      $       3,507,000      $       2,281,000
                                                      ==================     ==================     ==================

Limited partners' share of net income ($126.23
     per unit in 1999, $86.70 per unit in 1998
     and $56.40 per unit in 1997)                     $       5,049,000      $       3,468,000      $       2,256,000

General partners' share of net income                            56,000                 39,000                 25,000
                                                      ------------------     ------------------     ------------------
                                                      $       5,105,000      $       3,507,000      $       2,281,000
                                                      ==================     ==================     ==================
</TABLE>
                             See accompanying notes.
                                      F-3

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
              For the years ended December 31, 1999, 1998 and 1997

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

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

Change in unrealized gain on marketable
     securities                                           -                   -           (291,000)          (291,000)

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

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

Change in gain on marketable securities                   -                   -           (883,000)          (883,000)

Net income                                        3,468,000              39,000                  -          3,507,000

Equity transfer                                    (867,000)            867,000                  -                  -
                                            ----------------    ----------------   ----------------   ----------------
Balance at December 31, 1998                $    (2,599,000)    $      (905,000)   $     4,246,000    $       742,000

Change in unrealized gain on marketable
     securities                                                                         (1,671,000)        (1,671,000)

Net income                                        5,049,000              56,000                  -          5,105,000

Equity transfer                                  (1,262,000)          1,262,000                  -                  -
                                            ----------------    ----------------   ----------------   ----------------
Balance at December 31, 1999                $     1,188,000     $       413,000    $     2,575,000    $     4,176,000
                                            ================    ================   ================   ================
</TABLE>
                            See accompanying notes.
                                      F-4

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                            STATEMENTS OF CASH FLOWS
              For the years ended December 31, 1999, 1998 and 1997


<TABLE>
<CAPTION>
                                                                        1999               1998                1997
                                                                   ----------------   ----------------   ----------------
Cash flows from operating activities:

     <S>                                                           <C>                <C>                <C>
     Net income                                                    $     5,105,000    $     3,507,000    $     2,281,000

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

     Depreciation                                                          991,000            926,000            881,000
     (Increase) decrease in rent and other receivables                    (253,000)            30,000            (16,000)
     Amortization of prepaid loan fees                                      13,000             69,000             92,000
     Decrease (increase) in other assets                                         -            (51,000)            37,000
     (Decrease) increase in accounts payable                               (72,000)           184,000             13,000
     Increase in deferred revenue                                            5,000              5,000              6,000
                                                                   ----------------   ----------------   ----------------
         Total adjustments                                                 684,000          1,163,000          1,013,000
                                                                   ----------------   ----------------   ----------------
         Net cash provided by operating activities                       5,789,000          4,670,000          3,294,000
                                                                   ----------------   ----------------   ----------------

Cash flows from investing activities:

     Purchase of marketable securities of affiliate                              -                  -         (2,300,000)
     Additions to real estate facilities                                  (373,000)          (393,000)          (590,000)
                                                                   ----------------   ----------------   ----------------
         Net cash used in investing activities                            (373,000)          (393,000)        (2,890,000)
                                                                   ----------------   ----------------   ----------------

Cash flows from financing activities:

     Proceeds from note payable to general partner                               -         22,000,000                  -
     Principal payments on note payable to general partner                       -        (22,000,000)                 -
     Proceeds from note payable to commercial bank                               -         21,000,000                  -
     Principal payments on note payable to commercial bank              (5,600,000)        (1,350,000)                 -
     Principal payments on mortgage note payable                                 -        (25,405,000)          (933,000)
                                                                   ----------------   ----------------   ----------------
         Net cash used in financing activities                          (5,600,000)        (5,755,000)          (933,000)
                                                                   ----------------   ----------------   ----------------

Net decrease in cash and cash equivalents                                 (184,000)        (1,478,000)          (529,000)

Cash and cash equivalents at the beginning of the year                     433,000          1,911,000          2,440,000
                                                                   ----------------   ----------------   ----------------

Cash and cash equivalents at the end of the year                   $       249,000    $       433,000    $     1,911,000
                                                                   ================   ================   ================
</TABLE>
                            See accompanying notes.
                                      F-5

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                            STATEMENTS OF CASH FLOWS
              For the years ended December 31, 1999, 1998 and 1997
                                   (Continued)

<TABLE>
<CAPTION>
                                                                    1999                1998               1997
                                                               ----------------   ----------------   ----------------
Supplemental schedule of non-cash investing and financing activities:

     <S>                                                       <C>                <C>                 <C>
     Decrease in fair value of marketable securities of
       affiliate                                               $     1,671,000    $       883,000     $       291,000
                                                               ================   ================   ================

     Other comprehensive income                                $    (1,671,000)   $      (883,000)    $      (291,000)
                                                               ================   ================   ================
</TABLE>
                            See accompanying notes.
                                      F-6

<PAGE>

                       PUBLIC STORAGE PROPERTIES IV, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 1999


1.       DESCRIPTION OF PARTNERSHIP

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

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PARTNERSHIP MATTERS

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

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

                  In 1995,  the  Financial  Accounting  Standards  Board  issued
         Statement of Financial  Accounting  Standards No. 121,  "Accounting for
         the  Impairment of Long-Lived  Assets and for  Long-Lived  Assets to be
         Disposed of"  ("Statement  121").  Statement  121  requires  impairment
         losses to be recorded on  long-lived  assets  used in  operations  when
         indicators of impairment  are present and the  undiscounted  cash flows
         estimated  to be  generated  by those  assets are less than the assets'
         carrying  amount.  Statement  121 also  addresses  the  accounting  for
         long-lived  assets that are expected to be disposed of. The Partnership
         has not  identified  any assets  which  indicate an  impairment  in the
         carrying value of the asset is present.

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

                  Property rents are recognized as earned.

         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, 1999 and 1998 consist of
         381,980 shares of common stock of PSI. The  Partnership  has designated
         its  portfolio of marketable  securities  as being  available for sale.
         Accordingly,  at  December  31,  1999 and  1998,  the  Partnership  has
         recorded  the  marketable  securities  at fair  value,  based  upon the
         closing  quoted price of the  securities at December 31, 1999 and 1998,
         and has recorded a corresponding  unrealized loss totaling  $1,671,000,
         $883,000,  and $291,000 for the years ended December 31, 1999, 1998 and
         1997,   respectively,   as  a  decrease  to  Partnership   equity.  The
         Partnership recognized dividends of $585,000, $336,000 and $301,000 for
         the years ended December 31, 1999, 1998 and 1997, respectively.

                                      F-7

<PAGE>

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

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

                  As of January 1, 1998,  the  Company  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 Company's
         net income or shareholders'  equity.  Statement 130 requires unrealized
         gains or losses on the Company'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  Company is to  recharacterize  unrealized  gains or
         losses in shareholders' equity as "other  comprehensive  income." Prior
         year  financial  statements  have been  reclassified  to conform to the
         requirements of Statement 130.

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

                  Included  in other  assets  are  deferred  financing  costs of
         $68,000 at  December  31,  1997.  Such  balance has been  amortized  as
         interest  expense using the  straight-line  method over the life of the
         related  mortgage note  payable.  As of December 31, 1998 the remaining
         balance  related to these  deferred  financing  charges  has been fully
         amortized.

                  In 1998, the partnership  incurred  financing costs of $54,000
         in connection with the note payable from a commercial bank. These costs
         are being  amortized over the life of the loan. As of December 31, 1999
         other assets includes $37,000 relating to these financing costs.

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

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

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

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

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

                  Effective  January 1, 1998, the  Partnership  adopted SFAS No.
         131,   "Disclosure   about   Segments  of  an  Enterprise  and  Related
         Information."  SFAS No. 131  established  standards  for the way public
         business  enterprises  report  information about operating  segments in
         annual financial  statements and requires that those enterprises report
         selected  information  about  operating  segments in interim  financial
         reports.   SFAS  No.  131  also   establishes   standards  for  related
         disclosures  about  products and services,  geographic  areas and major
         customers.  The Partnership only has one reportable  segment as defined
         within  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)

         Derivatives:
         ------------

                   In June 1998, the Financial Accounting Standards Board issued
         Statement No. 133,  Accounting for Derivative  Instruments  and Hedging
         Activities,  which is required to be adopted in years  beginning  after
         June 15, 2000.  Management does not anticipate that the adoption of the
         new  Statement  will  have a  significant  effect  on  earnings  or the
         financial position 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.

4.       PARTNERS' EQUITY (DEFICIT)

                  The general  partners have a 1.1% interest in the Partnership.
         In  addition,   the  general  partners  had  an  8%  interest  in  cash
         distributions  attributable to operations  (exclusive of  distributions
         attributable to sale and financing proceeds) until the limited partners
         recovered all of their  investment.  Thereafter,  the general  partners
         have a 25%  interest  in all  cash  distributions  (including  sale and
         financing proceeds). During 1986, the limited partners recovered all of
         their initial investment.  All subsequent  distributions are being made
         25.83% (including the 1.1% interest) to the general partners and 74.17%
         to the limited partners.

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

5.       RELATED PARTY TRANSACTIONS

                  The Partnership has a Management Agreement with PSI. 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).

                  The  Management  Agreement  between  the  Partnership  and PSI
         provides that the Management  Agreement may be terminated without cause
         upon 60 days' written notice by either party.

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  $5,408,000,  $3,777,000 and
         $2,550,000  for the  years  ended  December  31,  1999,  1998 and 1997,
         respectively.  The difference between taxable net income and net income
         is primarily related to depreciation expense resulting from differences
         in depreciation methods.

                                      F-9

<PAGE>

7.       NOTES PAYABLE

                  During  September  1988, the  Partnership  financed all of its
         properties  with a  $30,500,000,  ten-year  nonrecourse  mortgage  note
         secured by the  Partnership's  properties.  The note provides for fixed
         interest of 10.47  percent per annum.  Loan payments for the first year
         consisted of interest only.  Thereafter,  principal is being  amortized
         over a 20 year term with monthly  payments of principal and interest of
         $303,891. The note had a maturity date of October 1, 1998 on which date
         the note required  that all remaining  principal and accrued and unpaid
         interest be paid.

                  On July 1, 1998,  the  Partnership  paid off the mortgage note
         payable with cash reserves and with the proceeds of a $22,000,000  loan
         from Public Storage,  Inc., a general partner of the  Partnership.  The
         loan from Public Storage,  Inc. provided for interest at the fixed rate
         of 7.2% and matured June 30, 1999. The loan called for monthly payments
         of interest only. Principal was payable at any time without penalty.

                  During  September 1998, the Partnership  borrowed  $21,000,000
         from a commercial bank. The loan is unsecured and bears interest at the
         London Interbank  Offering Rate ("LIBOR") plus 0.60% to 1.20% (7.10% at
         December 31, 1999)  depending on the  Partnership's  interest  coverage
         ratio.  The loan  requires  monthly  payments of  interest  and matures
         September 2002. Principal may be paid, in whole or in part, at any time
         without penalty or premium.  The loan proceeds were used to pay off the
         Partnership's note to Public Storage, Inc.

                  Carrying value of the outstanding  debt  approximates its fair
         value.

                  The  Partnership  has  entered  into  an  interest  rate  swap
         agreement  to reduce  the  impact of  changes  in  interest  rates on a
         portion  of  its  floating  rate  debt.  The  agreement,  which  covers
         $11,500,000 of debt through March 2000 and  $7,500,000  from March 2000
         through September 2000,  effectively changes the interest rate exposure
         from  floating rate to a fixed rate of 5.22% plus 0.60% to 1.20% (5.82%
         as of December 31, 1999) based on the  Partnership's  interest coverage
         ratio.  Market  gains and losses on the value of the swap are  deferred
         and included in income over the life of the swap or related  debt.  The
         Partnership  records the  differences  paid or received on the interest
         rate swap in interest  expense as payments are made or received.  As of
         December 31, 1999, the unrealized gain on the interest rate swap, which
         would  be  deferred  if   liquidated   prior  to  its   maturity,   was
         approximately $35,000.

                  Interest  paid  during  1999,  1998  and  1997  was  $938,000,
         $1,911,000 and $2,713,000, respectively.

8.       YEAR 2000 SYSTEM ISSUES

                  The Year 2000 Issue arises because many  computerized  systems
         use two digits  rather  than four to  identify a year.  Date  sensitive
         systems  may  recognize  the  Year  2000 as 1900  or some  other  date,
         resulting  in  errors  when  information   using  Year  2000  dates  is
         processed.  In  addition,  similar  problems  may arise in some systems
         which use certain  dates in 1999 to  represent  something  other than a
         date.  Although the change in date to the Year 2000 has occurred and no
         Year 2000 Issues have been  identified,  it is not possible to conclude
         that all  aspects of the Year 2000  Issue  that may affect the  entity,
         including  those  related  to  customers,  suppliers,  or  other  third
         parties, have been fully resolved.

                                      F-10

<PAGE>

                       Public Storage Properties IV, Ltd.
             Schedule III - Real Estate and Accumulated Depreciation
                      For the year ended December 31, 1999

<TABLE>
<CAPTION>

                                                          Initial Cost
                                                   ---------------------------
                                                                    Building,          Costs
                                                                    Land Imp      Subsequent to
                                                                        &          construction
         Description             Encumbrances         Land          Equipment     (Improvements)
-----------------------------    ------------      ----------      -----------    --------------
    CALIFORNIA
<S>                                   <C>            <C>              <C>            <C>
Concord                               -              $349,000         $805,000       $220,000
Tustin                                -               517,000          844,000        269,000
Pasadena                              -               379,000          496,000        128,000
Azusa                                 -               501,000        1,093,000        238,000
Redlands                              -               227,000          771,000        169,000
Riverside                             -                51,000          595,000        220,000
Oakland                               -               177,000          650,000        222,000
Richmond                              -               225,000          639,000        291,000
Santa Clara                           -               633,000        1,156,000        197,000
San Carlos                            -               396,000          902,000        154,000
Sacramento/Howe                       -               194,000          666,000        264,000
Sacramento/West Capitol               -               100,000          719,000        288,000

    FLORIDA
Miami/Airport Expressway              -               186,000          442,000        225,000
Miami/Cutler Ridge                    -               525,000          901,000        193,000
Pembroke Park                         -               255,000          607,000        375,000
Ft. Lauderdale/I-95 &
   23rd Ave.                          -               243,000          611,000        338,000
Ft. Lauderdale/I-95 & Sunrise         -               286,000          690,000        419,000
                                 ------------      ----------      -----------    --------------
                                      -            $5,244,000      $12,587,000     $4,210,000
                                 ============      ==========      ===========    ==============
</TABLE>

<TABLE>
<CAPTION>
                                           Gross Carrying Amount
                                            at December 31, 1999
                                 -----------------------------------------

                                                Building,
                                                Land Imp &                     Accumulated        Date
         Description                Land         Equipment        Total        Depreciation    Completed
-----------------------------    ----------     -----------    -----------     ------------    ---------
    CALIFORNIA
<S>                                <C>           <C>            <C>               <C>            <C>
Concord                            $349,000      $1,025,000     $1,374,000        $754,000       01/79
Tustin                              517,000       1,113,000      1,630,000         854,000       12/78
Pasadena                            379,000         624,000      1,003,000         480,000       11/79
Azusa                               501,000       1,331,000      1,832,000       1,042,000       11/78
Redlands                            227,000         940,000      1,167,000         707,000       02/79
Riverside                            51,000         815,000        866,000         628,000       05/79
Oakland                             177,000         872,000      1,049,000         652,000       04/79
Richmond                            225,000         930,000      1,155,000         668,000       03/79
Santa Clara                         633,000       1,353,000      1,986,000       1,027,000      6 & 7/79
San Carlos                          396,000       1,056,000      1,452,000         810,000       10/79
Sacramento/Howe                     194,000         930,000      1,124,000         679,000       08/79
Sacramento/West Capitol             100,000       1,007,000      1,107,000         783,000       06/79

    FLORIDA
Miami/Airport Expressway            186,000         667,000        853,000         527,000       01/79
Miami/Cutler Ridge                  525,000       1,094,000      1,619,000         830,000       04/79
Pembroke Park                       255,000         982,000      1,237,000         768,000       07/79
Ft. Lauderdale/I-95 &
   23rd Ave.                        243,000         949,000      1,192,000         737,000       07/79
Ft. Lauderdale/I-95 & Sunrise       286,000       1,109,000      1,395,000         869,000       10/79
                                 ----------     -----------    -----------     ------------
                                 $5,244,000     $16,797,000    $22,041,000     $12,815,000
                                 ==========     ===========    ===========     ============
</TABLE>
                                      F-11

<PAGE>

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


           Reconciliation of Real Estate and Accumulated Depreciation

                          Year Ended December 31, 1999


<TABLE>
<CAPTION>
                                                             1999                     1998                    1997
                                                      ---------------          ---------------         ---------------
Investment in Real Estate
   <S>                                                <C>                      <C>                     <C>
   Balance at the beginning of the year               $    21,668,000          $    21,275,000         $    20,685,000

   Additions through cash expenditures                        373,000                  393,000                 590,000
                                                      ---------------          ---------------         ---------------
Balance at the end of the year                        $    22,041,000          $    21,668,000         $    21,275,000
                                                      ===============          ===============         ===============

Accumulated Depreciation
   Balance at the beginning of the year               $    11,824,000          $    10,898,000         $    10,017,000

   Additions charged to costs and expenses                    991,000                  926,000                 881,000
                                                      ---------------          ---------------         ---------------
                                                      $    12,815,000          $    11,824,000         $    10,898,000
                                                      ===============          ===============         ===============
</TABLE>

(a)  The aggregate  depreciable cost of real estate (excluding land) for Federal
     income tax purposes is $5,702,000 (unaudited).

                                      F-12