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

                                    FORM 10-Q

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

For the period ended September 30, 1998

                                       or

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

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

Commission File Number 0-8667
                       ------

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


              California                                       95-3196921
-------------------------------------------          ---------------------------
   (State or other jurisdiction of                          (I.R.S. Employer
    incorporation or organization)                       Identification Number)

           701 Western Ave.
         Glendale, California                                  91201-2349
-------------------------------------------          ---------------------------
(Address of principal executive offices)                       (Zip Code)

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


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
                                       ---  ---

<PAGE>

                                      INDEX

                                                                         Page

PART I.   FINANCIAL INFORMATION

Condensed balance sheets at September 30, 1998
     and December 31, 1997                                                  2

Condensed statements of income for the three
     and nine months ended September 30, 1998 and 1997                      3

Condensed statement of partners' deficit for the
     nine months ended September 30, 1998                                   4

Condensed statements of cash flows for the
     nine months ended September 30, 1998 and 1997                          5

Notes to condensed financial statements                                   6-7

Management's discussion and analysis of
     financial condition and results of operations                       8-11

PART II.  OTHER INFORMATION

Item 6  Exhibits and Reports on Form 8-K                                   12

<PAGE>

                         PUBLIC STORAGE PROPERTIES, LTD.
                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                           September 30,         December 31, 
                                                                               1998                 1997
                                                                         -----------------    -----------------
                                                                           (Unaudited)

                                     ASSETS
                                     ------

<S>                                                                       <C>                  <C>            
Cash and cash equivalents                                                 $      169,000       $       546,000
Rent and other receivables                                                        39,000                46,000

Real estate facilities, at cost:
     Building, land improvements and equipment                                 8,347,000             8,001,000
     Land                                                                      2,511,000             2,511,000
                                                                         -----------------    -----------------
                                                                              10,858,000            10,512,000

     Less accumulated depreciation                                            (5,856,000)           (5,492,000)
                                                                         -----------------    -----------------
                                                                               5,002,000             5,020,000
                                                                         -----------------    -----------------

Other assets                                                                     125,000               148,000
                                                                         -----------------    -----------------

Total assets                                                              $    5,335,000       $     5,760,000
                                                                         =================    =================

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


Accounts payable                                                          $      152,000       $        32,000
Deferred revenue                                                                 136,000               131,000
Mortgage note                                                                  1,551,000            13,793,000
Note payable to general partner                                               10,770,000               300,000

Partners' deficit:
     Limited partners' deficit, $500 per unit, 20,000 units
         authorized, issued and outstanding                                   (5,401,000)           (6,308,000)
     General partners' deficit                                                (1,873,000)           (2,188,000)
                                                                         -----------------    -----------------

     Total partners' deficit                                                  (7,274,000)           (8,496,000)
                                                                         -----------------    -----------------
Total liabilities and partners' deficit                                   $    5,335,000       $     5,760,000
                                                                         =================    =================
</TABLE>
                            See accompanying notes.
                                       2

<PAGE>

                         PUBLIC STORAGE PROPERTIES, LTD.
                         CONDENSED STATEMENTS OF INCOME
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                            Three Months Ended               Nine Months Ended
                                                              September 30,                    September 30,
                                                     --------------------------------  --------------------------------
                                                          1998             1997             1998            1997
                                                     ---------------  ---------------  --------------  ----------------

  REVENUES:

   <S>                                                <C>              <C>              <C>             <C>         
  Rental income                                       $  1,164,000     $  1,102,000     $  3,431,000    $  3,203,000
  Other income                                               2,000            4,000           17,000           9,000
                                                     ---------------  ---------------  --------------  ----------------

                                                         1,166,000        1,106,000        3,448,000       3,212,000
                                                     ---------------  ---------------  --------------  ----------------

  COSTS AND EXPENSES:

  Cost of operations                                       272,000          233,000          792,000         709,000
  Management fees paid to affiliate                         69,000           66,000          205,000         192,000
  Depreciation                                             128,000          115,000          364,000         329,000
  Administrative                                            13,000           14,000           48,000          39,000
  Interest expense                                         243,000          310,000          817,000         948,000
                                                     ---------------  ---------------  --------------  ----------------

                                                           725,000          738,000        2,226,000       2,217,000
                                                     ---------------  ---------------  --------------  ----------------

  NET INCOME                                          $    441,000     $    368,000     $  1,222,000    $    995,000
                                                     ===============  ===============  ==============  ================
Limited partners' share of net income ($60.45 per
     unit in 1998 and $49.25 per unit in 1997)                                          $  1,209,000    $    985,000

  General partners' share of net income                                                       13,000          10,000
                                                                                       --------------  ----------------
                                                                                        $  1,222,000    $    995,000
                                                                                       ==============  ================
</TABLE>
                            See accompanying notes.
                                       3

<PAGE>

                         PUBLIC STORAGE PROPERTIES, LTD.
                    CONDENSED STATEMENT OF PARTNERS' DEFICIT
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                       Total
                                                            Limited              General             Partners'
                                                           Partners             Partners              Deficit
                                                     -------------------  -------------------  -------------------

<S>                                                   <C>                  <C>                  <C>              
Balance at December 31, 1997                          $     (6,308,000)    $     (2,188,000)    $     (8,496,000)

Net income                                                   1,209,000               13,000            1,222,000

Equity transfer                                               (302,000)             302,000               -
                                                     -------------------  -------------------  -------------------

Balance at September 30, 1998                         $     (5,401,000)    $     (1,873,000)    $     (7,274,000)
                                                     ===================  ===================  ===================
</TABLE>
                            See accompanying notes.
                                       4

<PAGE>

                         PUBLIC STORAGE PROPERTIES, LTD.
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                        Nine Months Ended
                                                                                          September 30,
                                                                             -------------------------------------
                                                                                    1998                1997
                                                                             ------------------ ------------------

  CASH FLOWS FROM OPERATING ACTIVITIES:

    <S>                                                                      <C>                  <C>            
    Net income                                                               $     1,222,000      $       995,000

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

         Depreciation                                                                364,000              329,000
         Decrease (increase) in rent and other receivables                             7,000               (1,000)
         Amortization of prepaid loan fees                                            25,000               25,000
         (Increase) decrease in other assets                                          (2,000)              10,000
         Increase in accounts payable                                                120,000               42,000
         Increase in deferred revenue                                                  5,000                8,000
                                                                             ------------------ ------------------

             Total adjustments                                                       519,000              413,000
                                                                             ------------------ ------------------

             Net cash provided by operating activities                             1,741,000            1,408,000
                                                                             ------------------ ------------------

  CASH FLOWS FROM INVESTING ACTIVITIES:

    Additions to real estate facilities                                             (346,000)            (259,000)
                                                                             ------------------ ------------------

             Net cash used in investing activities                                  (346,000)            (259,000)
                                                                             ------------------ ------------------

  CASH FLOWS FROM FINANCING ACTIVITIES:

    Principal payments on mortgage note payable                                  (12,242,000)            (389,000)
    Proceeds from note payable to general partner                                 11,000,000                -
    Principal payment on note payable to general partner                            (530,000)            (450,000)
                                                                             ------------------ ------------------

             Net cash used in financing activities                                (1,772,000)            (839,000)
                                                                             ------------------ ------------------

  Net (decrease) increase in cash and cash equivalents                              (377,000)             310,000

  Cash and cash equivalents at the beginning of the period                           546,000               69,000
                                                                             ------------------ ------------------

  Cash and cash equivalents at the end of the period                         $       169,000      $       379,000
                                                                             ================== ==================
</TABLE>
                            See accompanying notes.
                                       5

<PAGE>

                         PUBLIC STORAGE PROPERTIES, LTD.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.   The  accompanying   unaudited  condensed  financial  statements  have  been
     prepared  pursuant  to the  rules and  regulations  of the  Securities  and
     Exchange Commission.  Certain information and footnote disclosures normally
     included in financial  statements  prepared in  accordance  with  generally
     accepted  accounting  principles have been condensed or omitted pursuant to
     such  rules  and  regulations,   although   management  believes  that  the
     disclosures contained herein are adequate to make the information presented
     not misleading.  These unaudited condensed  financial  statements should be
     read in  conjunction  with  the  financial  statements  and  related  notes
     appearing in the  Partnership's  Form 10-K for the year ended  December 31,
     1997.

2.   In  the  opinion  of  management,   the  accompanying  unaudited  condensed
     financial  statements  reflect all  adjustments,  consisting of only normal
     accruals,  necessary to present fairly the Partnership's financial position
     at September 30, 1998, the results of its operations for the three and nine
     months  ended  September  30, 1998 and 1997 and its cash flows for the nine
     months then ended.

3.   The results of operations for the three and nine months ended September 30,
     1998 are not  necessarily  indicative of the results  expected for the full
     year.

4.   On June 1, 1998, the  Partnership  paid down its mortgage note with a third
     party lender by $11,641,000. The payment was made from cash reserves and an
     $11,000,000  loan from  Public  Storage,  Inc.,  a general  partner  of the
     Partnership. The loan from Public Storage, Inc. bears interest at the fixed
     rate of 7.3% and matures June 1999. The loan calls for monthly  payments of
     interest only.  Principal may be paid at anytime  without  penalty.  Public
     Storage,  Inc. has also provided the Partnership with options to extend the
     loan term through June 2003. Interest paid to Public Storage,  Inc. in 1998
     was $317,000.

5.   During October 1998, the Partnership borrowed $12,400,000 from a commercial
     bank to payoff the loan from Public  storage,  Inc. and the  mortgage  note
     with a third party.  The loan is unsecured and bears interest at the London
     Interbank  Offering  Rate  ("LIBOR")  plus 0.55%  (5.77% as of  November 9,
     1998).  The loan requires  monthly  payments of interest and mature October
     2002.  Principal  may be paid,  in whole  or in part,  at any time  without
     penalty or premium.

                                       6

<PAGE>

5.   (continued)

     The  Partnership  also entered into interest rate swap agreements to reduce
     the impact of changes in interest  rates on a portion of its floating  rate
     debt. The agreement,  which covers $5,000,000 of debt through October 2000,
     effectively  changes the interest  rate  exposure  from  floating rate to a
     fixed rate of 5.205%. The second agreement, which covers $2,500,000 of debt
     through  October 2001 and  effectively  changes the interest  rate exposure
     from floating rate to a fixed rate of 5.33%. 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.


                                       7

<PAGE>

                        PUBLIC STORAGE PROPERTIES, LTD.,
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

     Management's  Discussion and Analysis of Financial Condition and Results of
Operations   contains  "forward  looking"  statements  that  involve  risks  and
uncertainties  and are based upon a number of  assumptions.  Actual  results and
trends may differ  materially  depending  upon a number of factors.  Information
regarding these factors is contained in the Partnership's  Annual Report on Form
10-K for the fiscal  year ended  December  31,  1997 and in the  reports for the
quarterly  periods on Form 10-Q for the  quarters  ended March 31, 1998 and June
30, 1998.

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

     THREE AND NINE MONTHS ENDED  SEPTEMBER  30, 1998 COMPARED TO THREE AND NINE
MONTHS ENDED SEPTEMBER 30, 1997:

     The  Partnership's  net income for the nine months ended September 30, 1998
was  $1,222,000  compared to $995,000  for the nine months ended  September  30,
1997,  representing an increase of $227,000 or 23%. The Partnership's net income
for the three months ended September 30, 1998 was $441,000  compared to $368,000
for the three  months ended  September  30,  1997,  representing  an increase of
$73,000 or 20%.  These  increases are primarily a result of increased  operating
results at the Partnership's real estate facilities  combined with a decrease in
interest  expense  resulting from a lower notes payable balance in 1998 compared
to 1997.

     Rental income for the nine months ended  September 30, 1998 was  $3,431,000
compared to $3,203,000 for the nine months ended September 30,1997, representing
an  increase  of  $228,000  or 7%.  Rental  income  for the three  months  ended
September 30, 1998 was  $1,164,000  compared to $1,102,000  for the three months
ended  September  30,  1997,  representing  an increase of $62,000 or 6%.  These
increases are primarily attributable to higher rental rates at the Partnership's
mini-warehouse   facilities.  The  weighted  average  occupancy  levels  at  the
mini-warehouse  facilities  were 94% and 95% for the nine months ended September
30,  1998 and  1997,  respectively.  Realized  rent for the  nine  months  ended
September  30, 1998  increased  to $.80 per  occupied  square foot from $.74 per
occupied square foot for the nine months ended September 30, 1997.

     Cost of operations (including management fees paid to an affiliate) for the
nine months ended  September 30, 1998 was $997,000  compared to $901,000 for the
nine months ended  September  30, 1997,  representing  an increase of $96,000 or
11%. Cost of operations (including management fees paid to an affiliate) for the
three months ended September 30, 1998 was $341,000  compared to $299,000 for the
three months ended  September 30, 1997,  representing  an increase of $42,000 or

                                       8

<PAGE>

14%. This increase is mainly  attributable to increases in management  fees, and
advertising and promotion expenses.

     Interest expense  decreased  $131,000 to $817,000 for the nine months ended
September 30, 1998 from  $948,000 for the same period in 1997.  This decrease is
mainly  attributable to lower outstanding  principal balances 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  generated  from  operations  ($1,741,000  for the nine  months  ended
September 30, 1998) has been  sufficient to meet all current  obligations of the
Partnership.

     In the fourth quarter of 1990, quarterly distributions were discontinued to
enable the Partnership to increase its cash reserves for principal payments that
commenced in 1993.

     On June 1, 1998, the  Partnership  paid down its mortgage note with a third
party  lender by  $11,641,000.  The payment was made from cash  reserves  and an
$11,000,000  loan from Public Storage,  Inc. The loan from Public Storage,  Inc.
bears  interest at the fixed rate of 7.3% and matures June 1999.  The loan calls
for monthly payments of interest only.  Principal may be paid at anytime without
penalty.  Public Storage, Inc. has also provided the Partnership with options to
extend the loan term through June 2003. Interest paid to Public Storage, Inc. in
1998 was $317,000.

     During October 1998, the Partnership borrowed $12,400,000 from a commercial
bank to payoff the loan from Public  storage,  Inc. and the mortgage note with a
third party.  The loan is unsecured and bears  interest at the London  Interbank
Offering Rate  ("LIBOR")  plus 0.55% (5.77% as of November 9,  1998).  The loan
requires monthly payments of interest and mature October 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 existing indebtedness.

     The  Partnership  also entered into interest rate swap agreements to reduce
the impact of changes in interest  rates on a portion of its floating rate debt.
The agreement, which covers $5,000,000 of debt through October 2000, effectively
changes the interest rate exposure from floating rate to a fixed rate of 5.205%.
The second  agreement,  which covers  $2,500,000 of debt through October 2001and
effectively  changes the interest  rate  exposure  from floating rate to a fixed
rate of 5.33%. 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.

                                       9

<PAGE>

IMPACT ON THE YEAR 2000 ISSUE
-----------------------------

     Public Storage, Inc. ("PSI"), the general partner and property manager, has
completed an  assessment  of all of its hardware  and software  applications  to
identify  susceptibility  to what is  commonly  referred  to as the "Y2K  Issue"
whereby certain computer programs have been written using two digits rather than
four to define the applicable  year. Any of PSI's computer  programs or hardware
with the Y2K Issue that have  date-sensitive  applications or embedded chips may
recognize  a date  using  "00" as the year  1900  rather  than  the  year  2000,
resulting  in   miscalculations   or  system  failure  causing   disruptions  of
operations.

     Many of PSI's critical  applications,  relative to the direct management of
properties,  have  recently been replaced and PSI believes they are already Year
2000 compliant.  PSI has an implementation in process on the remaining  critical
applications,  including  its  general  ledger  and  related  systems,  that are
believed to have Y2K Issues.  PSI expects the  implementation  to be complete by
June  1999.  Contingency  plans  have  been  developed  for  use in  case  PSI's
implementations  are not  completed  on a  timely  basis.  While  PSI  presently
believes  that the impact of the Y2K Issue on its systems can be  mitigated,  if
the plan for ensuring Year 2000  compliance  and the related  contingency  plans
were  to  fail,  be  insufficient,  or not be  implemented  on a  timely  basis,
operations of the Partnership could be materially impacted.

     Certain of PSI's other non-computer related systems that may be impacted by
the Y2K Issue, such as security systems, are currently being evaluated,  and PSI
expects  the   evaluation  to  be  completed  by  June  1999.  PSI  expects  the
implementation  of any required  solutions to be complete in advance of December
31, 1999. PSI has not fully evaluated the impact of lack of Year 2000 compliance
on these  systems,  but has no reason to believe that lack of  compliance  would
materially impact the operations of the Partnership.

     The Partnership  exchanges  electronic data with certain outside vendors in
the banking and payroll  processing areas. PSI has been advised by these vendors
that their systems are or will be Year 2000 compliant,  but has requested a Year
2000 compliance certification from these entities. PSI is not aware of any other
vendors,  suppliers,  or other  external  agents  with a Y2K  Issue  that  would
materially impact the Partnership's resuls of operations,  liquidity, or capital
resources.  However,  PSI has no means of ensuring that external  agents will be
Year 2000  compliant,  and there can be no assurance  that the  Partnership  has
identified  all such  external  agents.  The  inability  of  external  agents to
complete their Year 2000 compliance process in a timely fashion could materially
impact the Partnership.  The effect of  non-compliance by external agents is not
determinable.

     The total cost of PSI's Year 2000 compliance  activities  (which  primarily
consists of the costs of new systems) will be allocated to all entities that use
the PSI  computer  systems.  The amount to be allocated  to the  Partnership  is
estimated at approximately $36,000. These costs are capitalized.

     The costs of the projects  and the date on which PSI believes  that it will
be Year 2000  compliant are based upon  management's  best  estimates,  and were
derived utilizing numerous assumptions of future events. There can be no

                                       10

<PAGE>

assurance that these estimates will be achieved, and actual results could differ
materially  from  those  anticipated.  There  can be no  assurance  that PSI has
identified  all potential Y2K Issue either within PSI and the  Partnership or at
external  agents.  In  addition,  the  impact of the Y2K  Issue on  governmental
entities and utility  providers and the resultant impact on the Partnership,  as
well as  disruptions  in the  general  economy,  may be  material  but cannot be
reasonably determined or quantified.

                                       11

<PAGE>

                           PART II. OTHER INFORMATION


ITEMS 1 through 5 are inapplicable.

ITEM 6   Exhibits and Reports on Form 8-K

         (a)  The following Exhibits are included herein:

                  10.1  Credit  Agreement  dated October 23, 1998 between Public
                        Storage Properties, Ltd. and First Union National Bank

                  10.2  Interest Rate Swap  Confirmation  dated October 26, 1998
                        by and between Public Storage Properties, Ltd. and First
                        Union National Bank expires on October 23, 2001

                  10.3  Interest Rate Swap  Confirmation  dated October 27, 1998
                        by and between Public Storage Properties, Ltd. and First
                        Union National Bank expires on October 23, 2000

                  (27)  Financial Data Schedule

         (b)  Form 8-K

                  None. 


                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.




                                           DATED: November 13, 1998

                                           PUBLIC STORAGE PROPERTIES, LTD.

                                           BY:  Public Storage, Inc.
                                                General Partner





                                           BY   /s/ John Reyes
                                                -------------------------
                                                John Reyes
                                                Senior Vice President and
                                                  Chief Financial Officer

                                       12