<PAGE>   1
                       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 quarterly period ended March 31, 2001

                                       OR

[ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

                         Commission file number: 0-14207


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)

                 California                                    33-0016355
                 ----------                                    ----------
        (State or other jurisdiction of                    (I.R.S. Employer
        incorporation or organization)                    Identification  No.)


   400 South El Camino Real, Suite 1100
           San Mateo, California                               94402-1708
           ---------------------                               ----------
           (Address of principal                               (Zip Code)
            executive offices)

                                 (650) 343-9300
                                 --------------
              (Registrant's telephone number, including area code)

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 [ ]

        Total number of units outstanding as of May 14, 2001: 74,257


<PAGE>   2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                           Consolidated Balance Sheets
                       (in thousands, except unit amounts)
                                   (Unaudited)



<TABLE>
<CAPTION>
                                                                         March 31,          December 31,
                                                                           2001                 2000
                                                                         ---------          ------------
<S>                                                                      <C>                  <C>
Assets
Investments in real estate:
      Rental property, net of accumulated depreciation of
        $16,032 and $15,644 at March 31, 2001 and
        December 31, 2000, respectively                                  $ 32,941             $ 33,261
      Land held for development                                             1,216                1,216
      Land held for sale                                                       --                  179
                                                                         --------             --------
           Total real estate investments                                   34,157               34,656
      Cash and cash equivalents                                             4,879                4,604
      Restricted cash                                                         326                  284
      Accounts receivable                                                      66                  191
      Deferred financing costs and other fees, net of
        accumulated amortization of $1,865 and $1,780
        at March 31, 2001 and December 31, 2000, respectively               1,091                1,142
      Prepaid expenses and other assets                                     1,078                  975
                                                                         --------             --------
           Total assets                                                  $ 41,597             $ 41,852
                                                                         ========             ========

Liabilities and Partners' Equity
Liabilities:
      Notes payable                                                      $ 15,453             $ 15,551
      Distributions payable-General Partners                                   --                   58
      Accounts payable and other liabilities                                  906                  708
                                                                         --------             --------
           Total liabilities                                               16,359               16,317
                                                                         --------             --------
Commitments and contingent liabilities (Note 6)                                --                   --
Partners' Equity:
      General partners                                                       (703)                (703)
      Limited partners, 74,309 and 74,608 limited partnership
        units outstanding at March 31, 2001 and December 31,
        2000, respectively                                                 25,941               26,238
                                                                         --------             --------
           Total partners' equity                                          25,238               25,535
                                                                         --------             --------
           Total liabilities and partners' equity                        $ 41,597             $ 41,852
                                                                         ========             ========
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements.



                                  Page 2 of 19
<PAGE>   3

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Operations
          (in thousands, except per unit amounts and units outstanding)
                                   (Unaudited)



<TABLE>
<CAPTION>
                                                                                              Three months ended
                                                                                                  March 31,
                                                                                        -----------------------------
                                                                                          2001                  2000
                                                                                        --------             --------
<S>                                                                                     <C>                  <C>
Revenues:
      Rental income                                                                     $  1,696             $  1,648
      Interest and other income                                                               51                   79
                                                                                        --------             --------
              Total revenue                                                                1,747                1,727
                                                                                        --------             --------
Expenses:
     Operating                                                                               688                  634
     Interest expense                                                                        385                  378
     Depreciation and amortization                                                           444                  413
     Expenses associated with undeveloped land                                               110                  119
     General and administrative                                                              330                  237
     Proposed dissolution costs                                                               --                   17
                                                                                        --------             --------
                 Total expenses                                                            1,957                1,798
                                                                                        --------             --------
Net loss                                                                                $   (210)            $    (71)
                                                                                        ========             ========
Net loss per limited partnership unit                                                   $  (2.82)            $  (0.92)
                                                                                        ========             ========
Distributions per limited partnership unit:
      From net income                                                                   $     --             $     --
      Representing return of capital                                                    $     --             $     --
                                                                                        --------             --------
                   Total distributions per limited partnership unit                     $     --             $     --
                                                                                        ========             ========
Weighted average number of limited partnership units outstanding during each
     period used to compute
     net loss per limited partnership unit                                                74,365               76,763
                                                                                        ========             ========
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements.



                                  Page 3 of 19
<PAGE>   4

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP


              Consolidated Statement of Partners' Equity (Deficit)
                    For the three months ended March 31, 2001
                                 (in thousands)
                                   (Unaudited)



<TABLE>
<CAPTION>
                                                   General              Limited
                                                   Partners             Partners              Total
                                                   --------             --------             --------
<S>                                                <C>                  <C>                  <C>
Balance at December 31, 2000                       $   (703)            $ 26,238             $ 25,535
Retirement of limited partnership units                  --                  (87)                 (87)
 Net loss                                                --                 (210)                (210)
                                                   --------             --------             --------
 Balance at March 31, 2001                         $   (703)            $ 25,941             $ 25,238
                                                   ========             ========             ========
</TABLE>




The accompanying notes are an integral part of these consolidated financial
statements.


                                  Page 4 of 19
<PAGE>   5

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Cash Flows
                                 (in thousands)
                                   (Unaudited)



<TABLE>
<CAPTION>
                                                                                  Three months ended
                                                                                      March 31,
                                                                              ---------------------------
                                                                               2001                2000
                                                                              -------             -------
<S>                                                                           <C>                 <C>
Cash flows from operating activities:
      Net loss                                                                $  (210)            $   (71)
      Adjustments to reconcile net loss
        to net cash provided by operating activities:
           Depreciation and amortization                                          444                 413
           Amortization of loan fees, included in
             interest expense                                                      29                  28
           Changes in certain assets and liabilities:
             Accounts & interest receivable                                       125                  86
             Deferred financing costs and other fees                              (34)                (86)
             Prepaid expenses and other assets                                   (103)                (74)
             Accounts payable and other liabilities                               198                 125
                                                                              -------             -------
             Net cash provided by operating activities                            449                 421
                                                                              -------             -------
Cash flows from investing activities:
      Net proceeds from sales of land                                             179                  --
      Net additions to real estate investments                                    (68)                (73)
      Increase in restricted cash                                                 (42)                 --
                                                                              -------             -------
             Net cash provided by (used for) investing activities                  69                 (73)
                                                                              -------             -------
Cash flows from financing activities:
      Notes payable principal payments                                            (98)                (40)
      Distributions to General Partner                                            (58)                 --
      Retirement of limited partnership units                                     (87)                 (1)
                                                                              -------             -------
             Net cash used for financing activities                              (243)                (41)
                                                                              -------             -------
Net increase in cash and cash equivalents                                         275                 307
Cash and cash equivalents at beginning of period                                4,604               6,133
                                                                              -------             -------
Cash and cash equivalents at end of period                                    $ 4,879             $ 6,440
                                                                              =======             =======
Supplemental disclosure of cash flow information:
        Cash paid for interest (exclusive of capitalized interest)            $   356             $   350
                                                                              =======             =======
        Interest Capitalized                                                  $    --             $    10
                                                                              =======             =======
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements.



                                  Page 5 of 19
<PAGE>   6

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 2001
                                   (Unaudited)



Note 1. ORGANIZATION

Rancon Realty Fund IV, a California Limited Partnership, ("the Partnership"),
was organized in accordance with the provisions of the California Uniform
Limited Partnership Act for the purpose of acquiring, developing, operating and
disposing of real property. The general partners of the Partnership are Daniel
L. Stephenson and Rancon Financial Corporation ("RFC"), hereinafter referred to
as the Sponsor or the General Partner. RFC is wholly-owned by Daniel L.
Stephenson. The Partnership reached final funding in July 1987.

In November 2000, the Partnership offered to redeem the units of limited
partnership interest (the "Units") in the Partnership held by investors who own
no more than four Units in total under any single registered title (the "Small
Investments") at a purchase price of $292 per Unit. During the three months
ended March 31, 2001, 299 Units were redeemed in connection with this offer. As
of March 31, 2001, there were 74,309 Units outstanding.

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the "Sponsors" or "General Partner") and Glenborough Realty Trust Incorporated,
the Partnership's asset and property manager ("Glenborough"), the accompanying
unaudited financial statements contain all adjustments (consisting of only
normal accruals) necessary to present fairly the financial position of Rancon
Realty Fund IV, a California Limited Partnership (the "Partnership") as of March
31, 2001 and December 31, 2000, and the related statements of operations and
cash flows for the three months ended March 31, 2001 and 2000.

Allocation of Net Income and Net Loss

Allocation of net income and net losses are made pursuant to the terms of the
Partnership Agreement. Generally, net income from operations is allocated 90% to
the limited partners and 10% to the general partners. Net losses from operations
are allocated 99% to the limited partners and 1% to the general partners until
such time as a partner's capital account is reduced to zero. Additional losses
will be allocated entirely to those partners with positive capital account
balances until such balances are reduced to zero.

Net income other than net income from operations shall be allocated as follows:
(i) first, to the partners who have a deficit balance in their capital account,
provided that, in no event, shall the general partners be allocated more than 5%
of the net income other than net income from operations until the earlier of
sale or disposition of substantially all of the assets or the distribution of
cash (other than cash from operations) equal to the Unitholder's original
invested capital; (ii) second, to the limited partners in proportion to and to
the extent of the amounts to increase their capital accounts to an amount equal
to the sum of the adjusted invested capital of their units plus an additional
cumulative non-compounded 6% return per annum (plus additional amounts depending
on the date Units were purchased); (iii) third, to the partners in the minimum
amount required to first equalize their capital account in proportion to the
number of units owned, and then, to bring the sum of the balances of the capital
accounts of the limited partners



                                  Page 6 of 19
<PAGE>   7

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 2001
                                   (Unaudited)


and the general partners into the ratio of 4 to 1; and (iv) the balance, if any,
80% to the limited partners and 20% to the general partners. In no event shall
the general partners be allocated less than 1% of the net income other than net
income from operations for any period. Net loss other than net loss from
operations shall be allocated 99% to the limited partners and 1% to the general
partners.

The terms of the Partnership agreement call for the general partner to restore
any deficit that may exist in its capital account after allocation of gains and
losses from the sale of the final property owned by the Partnership, but prior
to any liquidating distributions being made to the partners.

General Partner and Management Matters

Effective January 1, 1995, Glenborough Corporation ("GC") entered into an
agreement with the Partnership and other related Partnerships (collectively, the
"Rancon Partnerships") to perform or contract on the Partnership's behalf for
financial, accounting, data processing, marketing, legal, investor relations,
asset and development management and consulting services for a period of ten
years or until the liquidation of the Partnership, whichever comes first.
Effective January 1, 1998, the agreement was amended to eliminate GC's
responsibility for providing investor relation services and Preferred
Partnership Services, Inc., a California corporation unaffiliated with the
Partnership, contracted to assume the investor relations service. In October
2000, GC merged into Glenborough. The agreement expires upon the dissolution of
the Partnership.

The Partnership will pay Glenborough for its services as follows: (i) a
specified asset administration fee ($169,000 and $149,000 in the first quarter
of 2001 and 2000); (ii) sales fees of 2% for improved properties and 4% for
land; (iii) a refinancing fee of 1% and (iv) a management fee of 5% of gross
rental receipts. As part of this agreement, Glenborough will perform certain
duties for the General Partner of the Rancon Partnerships. RFC agreed to
cooperate with Glenborough, should Glenborough attempt to obtain a majority vote
of the limited partners to substitute itself as the Sponsor for the Rancon
Partnerships. Glenborough is not an affiliate of RFC or the Partnership.

Risks and Uncertainties

The Partnership's ability to (i) achieve positive cash flow from operations,
(ii) meet its debt obligations, (iii) provide distributions either from
operations or the ultimate disposition of the Partnership's properties or (iv)
continue as a going concern, may be impacted by changes in interest rates,
property values, local and regional economic conditions, or the entry of other
competitors into the market. The accompanying consolidated financial statements
do not provide for adjustments with regard to these uncertainties.



                                  Page 7 of 19
<PAGE>   8

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 2001
                                   (Unaudited)



Note 2. SIGNIFICANT ACCOUNTING POLICES

Basis of Accounting - The accompanying consolidated financial statements have
been prepared on the accrual basis of accounting in accordance with accounting
principles generally accepted in the United States. They include the accounts of
certain wholly owned subsidiaries. All significant intercompany transactions and
balances have been eliminated in consolidation.

Use of Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the results of operations during the
reporting period. Actual results could differ from those estimates.

Consolidation - In April 1996, the Partnership formed Rancon Realty Fund IV
Tri-City Limited Partnership, a Delaware limited partnership ("RRF IV
Tri-City"). The limited partner of RRF IV Tri-City is the Partnership and the
general partner is Rancon Realty Fund IV, Inc. ("RRF IV, Inc."), a corporation
wholly owned by the Partnership. Since the Partnership owns 100% of RRF IV, Inc.
and indirectly owns 100% of RRF IV Tri-City, the financial statements of RRF IV,
Inc. and RRF IV Tri-City have been consolidated with those of the Partnership.
All inter-company balances and transactions have been eliminated in the
consolidation.

Rental Property - Rental properties, including the related land, are stated at
cost unless events or circumstances indicate that cost cannot be recovered, in
which case, the carrying value of the property is reduced to its estimated fair
value. Estimated fair value: (i) is based upon the Partnership's plans for the
continued operations of each property; and (ii) is computed using estimated
sales price, as determined by prevailing market values for comparable properties
and/or the use of capitalization rates multiplied by annualized rental income
based upon the age, construction and use of the building. The fulfillment of the
Partnership's plans related to each of its properties is dependent upon, among
other things, the presence of economic conditions which will enable the
Partnership to continue to hold and operate the properties prior to their
eventual sale. Due to uncertainties inherent in the valuation process and in the
economy, it is reasonably possible that the actual results of operating and
disposing of the Partnership's properties could be materially different than
current expectations.

Depreciation is provided using the straight line method over five to forty years
of the useful lives of the respective assets.

Land Held for Development - Land held for development is stated at cost unless
events or circumstances indicate that cost cannot be recovered, in which case,
the carrying value is reduced to estimated fair value. Estimated fair value: (i)
is based on the Partnership's plans for the development of each property; (ii)
is computed using estimated sales price, based upon market values for comparable
properties; and (iii) considers the cost to complete and the estimated fair
value of the completed project. The fulfillment of the Partnership's plans
related to each of its



                                  Page 8 of 19
<PAGE>   9

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 2001
                                   (Unaudited)


properties is dependent upon, among other things, the presence of economic
conditions which will enable the Partnership to either hold the properties for
eventual sale or obtain financing to further develop the properties.

Interest and property taxes related to property constructed by the Partnership
are capitalized during periods of construction.

Land Held for Sale - Land held for sale is stated at the lower of cost or
estimated fair value less costs to sell. Estimated fair value is based upon
independent appraisals or prevailing market rates for comparable properties.
Appraisals are estimates of fair value based upon assumptions about the property
and the market in which it is located.

Cash and Cash Equivalents - The Partnership considers short-term investments
(including certificates of deposit and money market funds) with a maturity of
less than ninety days at the time of investment to be cash equivalents.

Fair Value of Financial Instruments - Statement of Financial Accounting
Standards No. 107 requires disclosure about fair value for all financial
instruments. Based on the borrowing rates currently available to the
Partnership, the carrying amount of debt approximates fair value. Cash and cash
equivalents consist of demand deposits, certificates of deposit and short-term
investments with financial institutions. The carrying amount of cash and cash
equivalents approximates fair value.

Deferred Financing Costs and Other Fees - Deferred loan fees are amortized on a
straight-line basis over the life of the related loan and deferred lease
commissions are amortized over the initial fixed term of the related lease
agreement.

Rental Income - Rental income is recognized as earned over the term of the
related lease.

Net Income/Loss Per Limited Partnership Unit - Net income or loss per limited
partnership unit is calculated using the weighted average number of limited
partnership units outstanding during the period and the Limited Partners'
allocable share of the net income or loss.

Income Taxes - No provision for income taxes is included in the accompanying
consolidated financial statements as the Partnership's results of operations are
allocated to the partners for inclusion in their respective income tax returns.
Net income (loss) and partners' equity (deficit) for financial reporting
purposes will differ from the Partnership income tax return because of different
accounting methods used for certain items, including depreciation expense,
provisions for impairment of investments in real estate, capitalization of
development period interest and rental income and loss recognition.

Concentration Risk - Two tenants represented 28 percent of rental income for the
three months ended March 31, 2001.



                                  Page 9 of 19
<PAGE>   10

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 2001
                                   (Unaudited)


Reference to 2000 audited consolidated financial statements - These unaudited
consolidated financial statements should be read in conjunction with the notes
to audited consolidated financial statements included in the December 31, 2000
audited consolidated financial statements on Form 10-K.

Note 3. INVESTMENTS IN REAL ESTATE

Rental property consisted of the following at March 31, 2001 and December 31,
2000 (in thousands):


<TABLE>
<CAPTION>
                                         2001            2000
                                       --------        --------
<S>                                    <C>             <C>
Land                                   $  4,679        $  4,679
Buildings                                32,390          32,390
Leasehold and other improvements         11,904          11,836
                                       --------        --------
                                         48,973          48,905
Less: accumulated depreciation          (16,032)        (15,644)
                                       --------        --------
Total rental property, net             $ 32,941        $ 33,261
                                       ========        ========
</TABLE>

At March 31, 2001, the Partnership's rental property included six retail and
four office/R & D projects at the Tri-City Corporate Centre in San Bernardino,
California.

Land held for development consists of the following at March 31, 2001 and
December 31, 2000 (in thousands):


<TABLE>
<CAPTION>
                                                        2001         2000
                                                       ------       ------
<S>                                                    <C>          <C>
22.5 acres at Tri-City Corporate Centre,
   San Bernardino, CA                                  $1,216       $1,216
                                                       ======       ======
Land held for sale consisted of the following at December 31, 2000
(in thousands):

 .80 acres in 2000 in Temecula, CA                      $  179
                                                       ======
</TABLE>

The decrease in land held for sale was due to the sale of the final parcel
located in Temecula, California in February 2001. In October 2000, the
Partnership entered into a contract to sell the final parcel to an unaffiliated
third party for $202,000. The Partnership expected a minimal loss on this
transaction, and recorded a provision for impairment of $39,600 in 2000. On
February 28, 2001, the sale transaction was completed, and the Partnership
received net proceeds of $179,000. No gain or loss was recorded on the sale.



                                 Page 10 of 19
<PAGE>   11

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 2001
                                   (Unaudited)


Note 4. RESTRICTED CASH

Restricted cash consists of a $250,000 certificate of deposit ("CD"), opened on
March 12, 1997, plus accrued interest, held pursuant to the Inland Regional
Center ("IRC") lease. The Partnership will retain the CD plus the accrued
interest in the event of default by IRC. Provisions in the lease allow for the
security deposit plus accrued interest to be converted to prepaid rent after the
60th month (July 2001) of the lease if the tenant is not in default. On April
27, 2001, IRC presented and warranted that it has extended its existing contract
with the State of California for an additional five-year term as required in the
lease. The Partnership then agreed to amend the lease to set forth that the
security deposit in the amount of $250,000 plus any accrued interest be returned
to IRC on May 1, 2001.

Note 5.              NOTES PAYABLE

Notes payable as of March 31, 2001 and December 31, 2000 were as follows (in
thousands):


<TABLE>
<CAPTION>
                                                                                             2001              2000
                                                                                            ------            ------
<S>                                                                                        <C>                <C>
Note payable secured by first deeds of trust on Service Retail Center,
Promotional Retail Center and Carnegie Business Center I. The note, which
matures May 1, 2006, is a 10-year, 8.744% fixed rate loan with a 25-year
amortization requiring monthly payments of principal and interest totaling $53.             $6,065            $6,093

Note payable secured by first deed of trust on the IRC building with a fixed
interest rate of 8.75%, monthly payments of principal and interest totaling $21
and a maturity date of April 23, 2001. This loan was paid off in April 2001. See
Note 7 for further discussion.                                                              $2,341            $2,352

Note payable secured by first deed of trust on the One Vanderbilt building. The
note bears a fixed interest rate of 9%. Monthly payments of principal and
interest totaling $20 are due until the maturity date of January 1, 2005.                    2,197             2,211
</TABLE>



                                 Page 11 of 19
<PAGE>   12

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 2001
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                            2001                2000
                                                                                           -------            -------
<S>                                                                                        <C>                <C>
Note payable secured by first deeds of trust on Circuit City and TGI Friday's
The note bears interest at a variable rate of one percent (1%) per annum in
excess of the lender's "Prime Rate" (9% and 10.50% as of March 31, 2001 and
December 31, 2000, respectively), has a maturity date of April 30, 2001 and
requires monthly payments of principal and interest totaling $60. This loan was
paid off in April 2001. See Note 7 for further discussion.                                   4,850              4,895
                                                                                           -------            -------
           Total notes payable                                                             $15,453            $15,551
                                                                                           =======            =======
</TABLE>


Note 6. COMMITMENTS AND CONTINGENT LIABILITIES

Environmental Matters - The Partnership follows a policy of monitoring its
properties for the presence of hazardous or toxic substances. The Partnership is
not aware of any environmental liability with respect to the properties that
would have a material adverse effect on the Partnership's business, assets or
results of operations. There can be no assurance that such a material
environmental liability does not exist. The existence of any such material
environmental liability could have an adverse effect on the Partnership's
results of operations and cash flows.

General Uninsured Losses - The Partnership carries comprehensive liability,
fire, flood, extended coverage and rental loss insurance with policy
specifications, limits and deductibles customarily carried for similar
properties. There are, however, certain types of extraordinary losses, which may
be either uninsurable, or not economically insurable. Further, certain of the
properties are located in areas that are subject to earthquake activity. Should
a property sustain damage as a result of an earthquake, the Partnership may
incur losses due to insurance deductibles, co-payments on insured losses or
uninsured losses. Should an uninsured loss occur, the Partnership could lose its
investment in, and anticipated profits and cash flows from, a property.

Other Matters - The Partnership is contingently liable for subordinated real
estate commissions payable to the Sponsors in the aggregate amount of $643,000
at March 31, 2001, for sales that transpired in previous years. The subordinated
real estate commissions are payable only after the Limited Partners have
received distributions equal to their original invested capital plus a
cumulative non-compounded return of 6% per annum on their adjusted invested
capital. Since the circumstances under which these commissions would be payable
are limited, the liability has not been recognized in the accompanying
consolidated financial statements; however, the amount will be recorded when and
if it becomes payable.



                                 Page 12 of 19
<PAGE>   13

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 2001
                                   (Unaudited)


Approximately 15 acres of the Tri-City Corporate Centre land owned by the
Partnership was part of a landfill operated by the City of San Bernardino ("the
City") from approximately 1950 to 1960. There are no records of which the
Partnership is aware disclosing that hazardous wastes exist at the landfill. The
Partnership's landfill monitoring program currently meets or exceeds all
regulatory requirements and no material capital expenditures have been incurred.
The Partnership is working with the Santa Ana Region of the California Regional
Water Quality Control Board and the City to determine the need and
responsibility for any further testing. There is no current requirement to
ultimately clean up the site; however, no assurance can be made that
circumstances will not arise which could impact the Partnership's responsibility
related to the property.

Note 7. SUBSEQUENT EVENTS

In April 2001, the Partnership obtained a $7,200,000 line of credit from a bank
to pay off the notes secured by the IRC, Circuit City and TGI Friday's
properties (as discussed in Note 5). The line of credit has a maturity date of
April 30, 2004, bears interest at the variable Prime rate (8% as of March 31,
2001) and is secured by the IRC, Circuit City and TGI Friday's properties.



                                 Page 13 of 19

<PAGE>   14



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

The following discussion should be read in conjunction with the Partnership's
December 31, 2000 audited consolidated financial statements and the notes
thereto.

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2001, the Partnership had cash of $4,879,000 (exclusive of $326,000
in restricted cash). The remainder of the Partnership's assets consist primarily
of its net investments in real estate, totaling approximately $34,157,000, which
includes $32,941,000 in rental properties and $1,216,000 of land held for
development.

The Partnership's restricted cash consists of a $250,000 certificate of deposit
("CD"), opened on March 12, 1997, plus accrued interest, held pursuant to the
Inland Regional Center ("IRC") lease. The Partnership will retain the CD plus
the accrued interest in the event of default by IRC. On April 27, 2001, IRC
presented and warranted that it has extended its existing contract with the
State of California for an additional five-year term as required in the lease.
The Partnership then agreed to amend the lease to set forth that the security
deposit in the amount of $250,000 plus any accrued interest be returned to IRC
on May 1, 2001.

The Partnership's primary liabilities at March 31, 2001 include notes payable,
totaling approximately $15,453,000, which consist of four secured loans
encumbering properties with an aggregate net book value of approximately
$24,737,000 and maturity dates of April 30, 2001 to May 1, 2006. These notes
require monthly principal and interest payments ranging from $20,000 to $60,000.
Three notes bear fixed interest at rates between 8.744% and 9%, and one note
bears interest at a variable rate of 1% over the lender's Prime Rate, which was
9% at March 31, 2001. In April 2001, the Partnership obtained a $7,200,000 line
of credit from a bank to pay off the notes secured by the IRC, Circuit City and
TGI Friday's properties. The line of credit has a maturity date of April 30,
2004, bears interest at the variable Prime rate (8% as of March 31, 2001) and is
secured by the IRC, Circuit City and TGI Friday's properties.

Operationally, the Partnership's primary source of funds consists of cash
provided by its rental activities. Other sources of funds may include permanent
financing, property sales, interest income on certificates of deposit and other
deposits of funds invested temporarily. Cash generated from property sales is
generally added to the Partnership's cash reserves, pending use in the
development of properties or distribution to the partners.

Management believes that the Partnership's cash balance as of March 31, 2001,
together with cash from operations, sales and financing, will be sufficient to
finance the Partnership's and the properties' continued operations and
development plans on a short-term basis and for the reasonably foreseeable
future. There can be no assurance that the Partnership's results of operations
will not fluctuate in the future and at times affect its ability to meet its
operating requirements.

The Partnership knows of no demands, commitments, events or uncertainties which
might effect its capital resources in any material respect. In addition, the
Partnership is not subject to any covenants pursuant to its secured debt that
would constrain its ability to obtain additional capital.



                                 Page 14 of 19
<PAGE>   15

Operating Activities

During the three months ended March 31, 2001, the Partnership's cash provided by
operating activities totaled $449,000.

The $125,000 decrease in accounts receivable at March 31, 2001, compared to
December 31, 2000, was primarily due to the collection of tenant rents.

The $34,000 increase in deferred financing costs and other fees at March 31,
2001, compared to December 31, 2000, was primarily due to the payments of lease
commissions related to new and renewal leases.

The $103,000 increase in prepaid expenses and other assets at March 31, 2001,
compared to December 31, 2000, was primarily due to an increase in the mortgage
impound accounts and the prepayment of second quarter investor service fees.

The $198,000 increase in accounts payable and other liabilities at March 31,
2001, compared to December 31, 2000, was primarily due to accruals for building
operating expenses and property taxes.

Investing Activities

During the period ended March 31, 2001, the Partnership's cash provided by
investing activities totaled $69,000, which included $179,000 of net cash
proceeds from the sale of land located in Temecula, Riverside County,
California, $68,000 of cash used for additions to real estate, and $42,000 of
accrued interest income on the restricted cash.

Financing Activities

During the period ended March 31, 2001, the Partnership's cash used for
financing activities totaled $243,000, which consisted of $98,000 in principal
payments on its four notes payable, $58,000 of distributions to the General
Partner, and $87,000 paid to redeem 299 limited partnership units ("Units").

RESULTS OF OPERATIONS

Revenues

Rental income of $1,696,000 for the three months ended March 31, 2001 varied
slightly from $1,648,000 for the three months ended March 31, 2000, primarily
due to the partial lease-up of Palm Court #1 in September 2000.



                                 Page 15 of 19
<PAGE>   16

Occupancy rates at the Partnership's Tri-City properties as of March 31, 2001
and 2000 were as follows:


<TABLE>
<CAPTION>
                                            March 31,
                                      -------------------
                                      2001            2000
                                      ----            ----
<S>                                   <C>             <C>
One Vanderbilt                         88%             88%
Two Vanderbilt                        100%            100%
Service Retail Center                  92%            100%
Carnegie Business Center I             82%             88%
Promotional Retail Center             100%            100%
Inland Regional Center                100%            100%
TGI Friday's                          100%            100%
Circuit City                          100%            100%
Office Max                            100%            100%
Mimi's Cafe                           100%            100%
Palm Court Retail #1                   30%            N/A
Palm Court Retail #2                  100%            N/A
</TABLE>

As of March 31, 2001, tenants at Tri-City occupying substantial portions of
leased rental space included: (i) Inland Empire Health Plan with a lease through
March 2002; (ii) CompUSA with a lease through August 2003; (iii) ITT Educational
Services with a lease through December 2004; (iv) PetsMart with a lease through
January 2009; (v) Inland Regional Center with a lease through July 2009; (vi)
Circuit City with a lease through January 2018; and (vii) Office Max with a
lease through October 2013. These seven tenants, in the aggregate, occupied
approximately 283,000 square feet of the 464,000 total leasable square feet at
Tri-City and accounted for approximately 61% of the rental income of the
Partnership during the first quarter of 2001.

The 8% decrease in occupancy from March 31, 2000 to March 31, 2001 at Service
Retail Center was due to a 1,732 square-foot tenant moving out upon its lease
expiration.

The 6% decrease in occupancy from March 31, 2000 to March 31, 2001 at Carnegie
Business Center I was due to two tenants occupying 3,873 square feet moving out
upon their lease expirations.

Palm Court Retail #1 was placed in service in September 2000, and 3,053 square
feet was leased to two new tenants by the end of 2000.

Palm Court Retail #2 was placed in service in January 2001 and 7,433 square feet
was leased to one tenant who began occupying the space in January 2001. Rent
commences in April 2001.

Interest and other income decreased $28,000 for the three months ended March 31,
2001, compared to the three months ended March 31, 2000, due to a lower average
invested cash balance resulting from distributions to General and Limited
Partners in November 2000.



                                 Page 16 of 19
<PAGE>   17

Expenses

Operating expenses increased $54,000, or 9%, for the three months ended March
31, 2001, compared to the three months ended March 31, 2000, primarily due to
the commencement of operations at Palm Court Retail #1.

Depreciation and amortization increased $31,000, or 8%, for the three months
ended March 31, 2001, compared to the three months ended March 31, 2000, due to
additions to the rental properties, including the commencement of operations at
Palm Court Retail #1.

Expenses associated with undeveloped land decreased $9,000, or 8%, for the three
months ended March 31, 2001, compared to the three months ended March 31, 2000,
due to the completion of construction of Palm Court Pad #1 and #2.

General and administrative expenses increased $93,000, or 39%, for the three
months ended March 31, 2001, compared to the three months ended March 31, 2000,
primarily due to an increase in asset management fees and investor service
expenses for the redemption program.

The proposed dissolution costs of $17,000 for the three months ended March 31,
2000, consisted of expenses incurred related to the Partnership's plan to sell
the properties and dissolve the Partnership. The plan was discontinued in June
2000.



                                 Page 17 of 19
<PAGE>   18

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

        None.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

        Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

        Not applicable.

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

        None.

ITEM 5. OTHER INFORMATION

        None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a) Exhibits:

        None

        (b) Reports on Form 8-K

        None



                                  Page 18 of 19
<PAGE>   19

                                   SIGNATURES

Pursuant to the requirements of Section 13 or Section 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.



                                          RANCON REALTY FUND IV,
                                          a California limited partnership

                                          By  Rancon Financial Corporation
                                              a California corporation,
                                              its General Partner

Date: May 14, 2001                             By: /s/  DANIEL L. STEPHENSON
                                                   ----------------------------
                                                   Daniel L. Stephenson,
                                                   President

Date: May 14, 2001                        By:  /s/  DANIEL L. STEPHENSON
                                               --------------------------------
                                               Daniel L. Stephenson,
                                               General Partner



                                 Page 19 of 19