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 June 30, 2000

                                       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 August 11, 2000: 76,674






                                  Page 1 of 19
<PAGE>


PART I.             FINANCIAL INFORMATION

Item 1.             Financial Statements

                                                  RANCON REALTY FUND IV,
                                             A CALIFORNIA LIMITED PARTNERSHIP

                                               Consolidated Balance Sheets
                                           (in thousands, except unit amounts)

<TABLE>
<CAPTION>
<S>                                                              <C>                <C>
                                                                   June 30,           December 31,
                                                                     2000                 1999
                                                                  (Unaudited)          (Audited)
                                                                 --------------     -------------
Assets
------
Investments in real estate:
     Rental property, net of accumulated depreciation of
       $14,879 and $14,144 at June 30, 2000 and December
       31, 1999, respectively                                    $      32,064      $      32,680
     Land held for development                                           2,076              1,655
     Land held for sale                                                    219                545
                                                                 -------------      -------------

         Total real estate investments                                  34,359             34,880

     Cash and cash equivalents                                           6,507              6,133
     Restricted cash                                                       269                269
     Deferred financing costs and other fees, net of
       accumulated amortization of $1,626 and $1,486
       at June 30, 2000 and December 31, 1999, respectively              1,232              1,267
     Prepaid expenses and other assets                                   1,150              1,220
                                                                 -------------      -------------

         Total assets                                            $      43,517      $      43,769
                                                                 =============      =============

Liabilities and Partners' Equity (Deficit)
------------------------------------------
Liabilities:
     Notes payable                                               $      15,715      $      15,834
     Accounts payable and other liabilities                                552                589
                                                                 -------------      -------------

          Total liabilities                                             16,267             16,423
                                                                 -------------      -------------

Commitments and contingent liabilities (see Note 4)                         --                 --

Partners' Equity (Deficit):
     General partners                                                     (645)              (645)
     Limited partners, 76,745 and 76,765 limited partnership
       units outstanding at June 30, 2000 and December 31,
       1999, respectively                                               27,895             27,991
                                                                 -------------      -------------

           Total partners' equity                                       27,250             27,346
                                                                 -------------      -------------

           Total liabilities and partners' equity                $      43,517      $      43,769
                                                                 =============      =============

          See accompanying notes to consolidated financial statements.

</TABLE>




                                  Page 2 of 19
<PAGE>


                                        RANCON REALTY FUND IV,
                                  A CALIFORNIA LIMITED PARTNERSHIP

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

<TABLE>
<CAPTION>
<S>                                                 <C>             <C>              <C>              <C>

                                                       Three months ended                  Six months ended
                                                             June 30,                          June 30,
                                                    --------------------------       ----------------------------
                                                       2000             1999             2000             1999
                                                    ----------      ----------       -----------      -----------
 Revenues
 --------
    Rental income                                   $    1,811      $    1,701       $     3,459      $     3,324
    Interest and other income                               65              34               144              110
                                                    ----------      ----------       -----------      -----------

                 Total revenues                          1,876           1,735             3,603            3,434
                                                    ----------      ----------       -----------      -----------

 Expenses
 --------
 Operating                                                 726             632             1,360            1,284
    Interest expense                                       371             385               749              759
    Depreciation and amortization                          413             406               826              795
    Loss on sales of real estate                            23              --                23                4
    Expenses  associated  with
       undeveloped land                                     94              94               213              218
    General and administrative                             252             256               489              499
    Proposed dissolution costs                              15             109                32              154
                                                    ----------      ----------       -----------      -----------

                 Total expenses                          1,894           1,882             3,692            3,713
                                                    ----------      ----------       -----------      -----------

 Net loss                                           $      (18)     $     (147)      $       (89)     $      (279)
                                                    ==========      ==========       ===========      ===========

 Net loss per limited partnership unit              $    (0.22)     $    (1.91)      $     (1.16)     $     (3.63)
                                                    ==========      ==========       ===========      ===========

 Distributions per limited partnership unit:
       From net income                              $       --      $       --       $        --      $        --
       Representing return of capital                       --              --                --               --
                                                    ----------      ----------       -----------      -----------

              Total distributions per limited
              partnershipb unit                     $       --      $       --       $        --      $        --
                                                    ==========     ===========       ===========      ===========

 Weighted average number of limited
    partnership units  outstanding during
    each period used to compute net loss
    per limited partnership unit                        76,748          76,765            76,756           76,765
                                                    ==========     ===========       ===========      ===========
</TABLE>





                See accompanying notes to consolidated financial statements.





                                  Page 3 of 19
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statement of Partners' Equity (Deficit)
                     For the six months ended June 30, 2000
                                 (in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                              <C>                  <C>                 <C>
                                                     General             Limited
                                                    Partners             Partners             Total
                                                 ----------------     ---------------     -------------

     Balance at December 31, 1999                $        (645)       $      27,991       $      27,346

     Retirement of limited partnership units                --                   (7)                 (7)

     Net loss                                               --                  (89)                (89)

                                                 --------------       --------------      -------------

     Balance at June 30, 2000                    $        (645)       $      27,895       $      27,250
                                                 ==============       ==============      =============
</TABLE>


































               See accompanying notes to consolidated financial statements.





                                  Page 4 of 19
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Cash Flows
                                 (in thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                                 <C>                     <C>
                                                                               Six months ended
                                                                                   June 30,
                                                                    ---------------------------------------
                                                                         2000                    1999
                                                                    ----------------        ---------------
Cash flows from operating activities:
     Net loss                                                       $         (89)          $        (279)
     Adjustments  to  reconcile  net  loss
       to net cash  provided  by  operating activities:
         Net loss on sales of real estate                                      23                       4
         Depreciation and amortization                                        826                     795
         Amortization of loan fees, included in
           interest expense                                                    49                      55
         Changes in certain assets and liabilities:
           Deferred financing costs and other fees                           (105)                   (223)
           Prepaid expenses and other assets                                   70                     242
           Accounts payable and other liabilities                             (37)                   (316)
                                                                    --------------          -------------
           Net cash provided by operating activities                          737                     278
                                                                    -------------           -------------
Cash flows from investing activities:
     Net proceeds from sales of land                                          290                     296
     Net additions to real estate investments                                (527)                   (290)
                                                                    --------------          -------------
           Net cash (used for) provided by investing activities              (237)                      6
                                                                    --------------          -------------
Cash flows from financing activities:
     Notes payable principal payments                                        (119)                    (83)
     Retirement of limited partnership units                                   (7)                     (1)
                                                                    --------------          -------------

           Net cash used for financing activities                            (126)                    (84)
                                                                    --------------          -------------

Net increase in cash and cash equivalents                                     374                     200

Cash and cash equivalents at beginning of period                            6,133                   4,297
                                                                    -------------           -------------

Cash and cash equivalents at end of period                          $       6,507           $       4,497
                                                                    =============           =============

Supplemental disclosure of cash flow information:
       Cash paid for interest                                       $         726           $         704
                                                                    =============           =============
       Interest capitalized                                         $          26           $          --
                                                                    =============           =============

</TABLE>



                See accompanying notes to consolidated financial statements.





                                  Page 5 of 19
<PAGE>

                              RANCON REALTY FUND IV
                        A California Limited Partnership

                   Notes to Consolidated Financial Statements

                                  June 30, 2000
                                   (Unaudited)

Note 1.      THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES
             -------------------------------------------------------

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the  "Sponsors"  or  "General  Partner")  and  Glenborough   Corporation,   the
Partnership's  asset and  property  manager  ("Glenborough"),  the  accompanying
unaudited consolidated 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 June 30, 2000 and December 31, 1999, and the related consolidated  statements
of operations and cash flows for the six months ended June 30, 2000 and 1999.

Asset Sale and Dissolution Proposal
-----------------------------------
At the beginning of 1999, the Partnership's  business strategy had been to focus
on the eventual disposition of its assets at the optimal time and sales price. A
Consent  Solicitation  Statement (the "Solicitation") was sent to the holders of
limited partnership units ("Unitholders" or "Limited Partners") on July 6, 1999.
The  Solicitation  (incorporated  by reference to the Schedule 14A - Preliminary
Proxy Statement filed with the United States Securities and Exchange  Commission
("Commission")  in the second quarter of 1999),  discussed the General Partner's
proposal to sell all of the  Partnership's  assets  ("Asset Sale") and liquidate
the  Partnership   thereafter   ("Dissolution   Proposal").   The  Partnership's
properties  consist  of ten  rental  properties  and  approximately  23 acres of
unimproved land (approximately  13,000 square feet in construction phase) in the
Tri-City   Corporate  Centre  in  San  Bernardino,   California  (the  "Tri-City
Properties") and approximately 1 acre of unimproved land in Temecula, California
(the "Remaining Property").

As of August 25, 1999,  the  expiration  of the voting  period,  76,765  limited
partnership  units ("Units") were  outstanding.  The holders of 61,429 Units, or
80% of the Units  outstanding,  had voted  ("Units  Voted") and no response  was
received  from the  remaining  20%.  A final  tabulation  of the  results of the
Solicitation  was made on August 25, 1999, with holders of 54,010 Units, or 88%,
of the Units Voted in favor,  holders of 5,783 Units, or 9%, against and holders
of 1,636 Units, or 3%,  abstaining.  A total of 20 and 2 Units in 2000 and 1999,
respectively,  were  repurchased  as a result of  Unitholders'  requests for the
Partnership  to take over such  Units.  As of June 30,  2000,  there were 76,745
Units outstanding.

Subsequent  to  obtaining  the consent of the majority of the  Unitholders,  the
General  Partner  grouped the Tri-City  Properties  into  packages of properties
(such  as  separate  packages  of  retail  properties,   office  properties  and
unimproved land) and included  properties in the Tri-City Corporate Centre which
are owned by Rancon  Realty Fund V ("Fund V"), a partnership  also  sponsored by
the General Partner.  Bidders for any package of properties  containing Tri-City
Properties  and Fund V properties  will be required to specify how their overall
bid is  allocated  among  the  individual  properties  in the  package,  and the
proceeds  and expenses  from the sales of any such  package will be  apportioned
between  the  Partnership  and Fund V based upon such  allocation.  The  General
Partner hired an  independent  real estate firm to market the  properties and to
prepare  marketing  materials


                                  Page 6 of 19
<PAGE>
and informational  brochures.  The  informational  brochures were presented to a
number of  prospective  buyers and at the end of  September  1999,  the  General
Partner had received 39 signed  confidentiality  agreements  requesting offering
memorandums.  The General  Partner  assessed all offers on the  properties in an
effort to achieve the  highest  possible  sales  price and return  value for the
properties.  The General  Partner closed the bidding  process with a request for
"best and final  offers" and received six final bids on the Tri-City  properties
in early November 1999. In November 1999, the General Partner entered into a due
diligence  period with a potential  buyer.  In January 2000,  this due diligence
period was terminated  largely due to the impact of rising interest rates on the
potential  buyer's  ability to fund the  purchase  price.  The  General  Partner
subsequently  received  three  written  offers from  prospective  buyers and had
selected  one.  In June 2000,  this  prospective  buyer was  completing  its due
diligence  on the Tri City  properties,  and the  Partnership  was  preparing  a
Purchase and Sale Agreement for signature. Interest rates continued to rise, and
the  buyer  determined  that it was  unable to fund the  acquisition  due to the
changing economic conditions.

After  extensive work on the potential sale of the Assets,  the General  Partner
has  determined  that,  at this time,  it is not  possible  to sell the Tri City
properties  to the most  qualified  bidders  primarily  due to the  increase  in
interest  rates.  The General Partner  currently  intends to retain the Tri City
properties  and has begun an  assessment  of  various  opportunities  to develop
additional  parcels of undeveloped  land. This aligns with the General Partner's
goals  of  increasing   revenues  at  the  Tri-City  Properties  and  increasing
distributions to Unitholders.

The Partnership  has not, as of the date of the filing of this Quarterly  Report
on Form 10-Q with the Commission, entered into any agreement for the sale of its
properties, although the Partnership has, in 1997, granted to Glenborough Realty
Trust Incorporated,  a Maryland corporation ("GLB"), a right to match offers for
the purchase of the Partnership's  properties ("GLB Matching Right"). GLB is not
an affiliate of the Partnership.

Pursuant to the GLB Matching Right and the right of first  refusal,  the General
Partner is required to give prompt  written notice to GLB of the price and other
terms and conditions of any offer received from an unaffiliated third party. GLB
has ten days after  receipt  of the  Partnership's  written  notice to accept or
reject the purchase  price and other terms and  conditions  of the sale.  If GLB
exercises  its  matching  right and agrees to  purchase  all or a portion of the
Partnership's  properties  at the specified  price,  terms and  conditions,  the
Partnership  and GLB must  promptly  execute a purchase  agreement,  which is to
contain a  reasonable  feasibility  study period for GLB. If, on the other hand,
GLB  notifies the  Partnership  that it does not intend to exercise its matching
right or fails to respond within the ten-day  period,  then the  Partnership has
the  right to sell  all or a  portion  of the  Partnership's  properties  to the
unaffiliated third party buyer as set forth in the Partnership's  notice to GLB.
The GLB Matching  Right  applies to the Tri-City  Properties  and the  Remaining
Property.

The General Partner  currently  intends,  but is not obligated,  to make interim
distributions to the Limited Partners, from time to time, of all or a portion of
the net proceeds from the sale of the

                                  Page 7 of 19
<PAGE>

properties. The General Partner will notreceive any of the net proceeds from the
sale of the properties or upon  dissolution of the  Partnership  with respect to
its general  partnership  interests.  In  November  1999,  the  General  Partner
distributed  $767,000  from the net  proceeds  of the  January  1999 sale of the
Perris land.

The  discussion  above  contains   forward-looking   statements   regarding  the
Partnership's plans, goals and expectations,  including statements regarding the
Partnership's  estimates of sales  proceeds and future  distributions  resulting
from the Asset Sale, estimates of the timing of the sale of the properties,  the
dissolution  of  the  Partnership  and  the   distribution  of  sales  proceeds.
Forward-looking  statements  are  necessarily  speculative,  there being certain
risks and  uncertainties  that could  cause  actual  events or results to differ
materially  from  those  referred  to in  the  forward-looking  statements.  All
forward-looking  statements  included in this document are based on  information
available to the  Partnership on the date hereof,  and reflect the best judgment
of the management of the Partnership.  The General  Partner's  current plans are
subject to change,  both as a result of changes in general business and economic
conditions  as well as  changes  in the  local  real  estate  markets  where the
Partnership's  properties are located.  There can be no assurance that the Asset
Sale and Dissolution Proposal will be consummated, or if and when the properties
will  be  sold  that  the  proceeds  will be  distributed,  and the  Partnership
liquidated.  The  timing  of any  sale  of  the  Partnership's  properties,  the
distribution of proceeds,  and the liquidation of the Partnership are subject to
various   and   significant   uncertainties,   many  of  which  are  beyond  the
Partnership's  control  and  which  could  delay  any sale of the  Partnership's
properties,  liquidation  of  the  Partnership,  and  distribution  of  proceeds
significantly  beyond the time periods estimated above. Among such uncertainties
are the demand for the  Partnership's  properties by potential  purchasers,  the
availability  of  capital  for  potential  purchasers,  the  actual  dates  when
properties  could be sold, and the duration of any  installment  sales of any of
the properties.

Allocation of Net Income and Net Loss
-------------------------------------
Allocation  of  profits  and  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 limited  partner's  original
invested  capital;  (ii) second, to the limited partners in proportion to and to
the extent of the amounts required to increase

                                  Page 8 of 19
<PAGE>

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  accounts 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
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 deficits 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 Agreement
----------------------------------------
Effective  January 1,  1995,  Glenborough  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 the Partnership 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
Glenborough's  responsibility  for  providing  investor  relations  services and
Preferred Partnership Services, Inc., a California Corporation unaffiliated with
the  Partnership,  contracted  to assume these  services.  In August  1998,  the
management agreement was further amended to provide Glenborough with a guarantee
of a specified amount of asset  management and property  management fees through
December 31, 1999,  regardless of whether the Partnership sold any or all of its
properties  prior to such  date.  In  exchange,  Glenborough  waived any and all
claims  related to  liquidated  damages under the agreement to which it may have
otherwise been entitled.

The  Partnership  will pay  Glenborough  for its  services  as  follows:  (i) an
specified  asset  management  fee ($306,000 and $299,000 as of June 30, 2000 and
1999); (ii) sales fees of 2% for improved properties and 4% for land ($13,000 as
of June 30, 2000 and 1999) (iii) a refinancing fee of 1% ($50,000 and $49,750 as
of June 30,  2000 and  1999)  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.

                                  Page 9 of 19
<PAGE>

Basis of Accounting
-------------------
The accompanying  unaudited consolidated financial statements have been prepared
on the  accrual  basis of  accounting  in  accordance  with  generally  accepted
accounting principles under the assumption that the Partnership will continue as
a going concern.

Consolidation
-------------
In April 1996,  the  Partnership  formed Rancon Realty Fund IV Tri-City  Limited
Partnership,  a Delaware limited partnership ("RRF IV Tri-City"). As required by
the lender (Bear,  Stearns  Funding,  Inc.) of a $6,400,000 loan obtained by the
Partnership  in  1996,  the  Partnership  contributed  three  of  its  operating
properties  to RRF IV Tri-City to provide a bankruptcy  remote  borrower for the
lender. The loan, secured by the properties in RRF IV Tri-City,  has a principal
balance  of  $6,145,000  at June 30,  2000,  and  matures on May 1, 2006 with an
8.744% fixed interest rate and a 25-year amortization of principal.  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.

Note 2.      REFERENCE TO 1999 AUDITED FINANCIAL STATEMENTS
             ----------------------------------------------

These unaudited  consolidated financial statements should be read in conjunction
with the Notes to Financial Statements included in the December 31, 1999 audited
consolidated financial statements.

Note 3.      SALES OF REAL ESTATE
             --------------------

On January 15, 1999, the Partnership sold approximately 17 acres of land located
in Perris, Riverside County,  California to an unaffiliated entity for $334,800.
The Partnership recognized a $4,000 loss on the sale, and the sale generated net
sale proceeds of $296,000.

On June 30, 2000,  the  Partnership  sold one of the two remaining  lots of land
(Lot 11) located in Temecula,  Riverside County,  California, to an unaffiliated
third party for $325,000. The Partnership recognized a $23,000 loss on sale, and
the sale generated net sales proceeds of $290,000.

In April 2000,  the  Partnership  entered into a contract to sell one of the two
remaining  lots  of  land  (Lot  10)  located  in  Temecula,  Riverside  County,
California,  to an  unaffiliated  third party.  The escrow was cancelled in June
2000 due to the buyer's inability to obtain parking  clearances from the City of
Temecula for the buyer's intended use.

                                Page 10 of 19
<PAGE>

Note 4.      COMMITMENTS AND CONTINGENT LIABILITIES
             --------------------------------------
The Partnership is contingently  liable for subordinated real estate commissions
payable to the Sponsors in the aggregate amount of $643,000 at June 30, 2000 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 six  percent  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 financial
statements; however, the amount will be recorded if and when it becomes payable.

The Partnership is also  contingently  liable for a subordinated note payable in
connection  with  the  land  in  Temecula,   California,  that  the  Partnership
reacquired in June 1992 through a deed in lieu of foreclosure in satisfaction of
a $2,276,000 note receivable. The subordinated note payable and accrued interest
total $566,000 as of June 30, 2000.  This amount is payable upon the sale of the
property only after the  Partnership  receives the full amount of the prior note
receivable  with accrued and unpaid  interest,  costs of  development,  costs of
sale,  and other amounts paid to obtain good title to the  property,  subject to
certain release  provisions.  Since the circumstances under which this liability
would be payable are  limited,  the note payable and accrued  interest  have not
been recorded in the accompanying  consolidated  financial statements;  however,
the amount will be  recognized  prior to  recording  any gain on the sale of the
related land.

Note 5.      NOTES PAYABLE
             -------------
Notes  payable as of June 30,  2000 and  December  31,  1999 were as follows (in
thousands):
<TABLE>
<CAPTION>
<S>                                                                              <C>                      <C>
                                                                                        2000                   1999
                                                                                  --------------         ---------------
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.
                                                                                 $        6,145           $        6,196

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.
                                                                                          2,372                    2,390

                                 Page 11 of 19
<PAGE>

                                                                                        2000                   1999
                                                                                  --------------         ---------------

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.
                                                                                          2,228                    2,248

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",  has a maturity date of April 30, 2001 and
requires monthly payments ofprincipal and interest totaling $15.                          4,970                    5,000
                                                                                  --------------         ---------------

                  Total notes payable
                                                                                  $      15,715          $        15,834
                                                                                  =============          ===============
</TABLE>















                                 Page 12 of 19
<PAGE>

Item 2.         Management's Discussion and Analysis of Financial Condition and
                Results of Operations

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The following discussion of the Partnership's financial condition and results of
operations should be read in conjunction with the audited consolidated financial
statements and the notes to the consolidated financial statements.

At June 30, 2000, the Partnership had cash of $6,507,000  (exclusive of $269,000
in restricted cash). The remainder of the Partnership's assets consist primarily
of its net  investments in real estate,  totaling  approximately  $34,359,000 at
June 30, 2000, which includes  $32,064,000 in rental  properties,  $2,076,000 of
land held for development, and $219,000 of undeveloped land held for sale.

The  Partnership's  restricted  cash at June 30,  2000  consists  of a  $269,000
certificate  of deposit ("CD") for Inland  Regional  Center's  security  deposit
("IRC CD").  Pursuant to the lease, the IRC CD will be converted to prepaid rent
after the 60th month of the lease  (July 17,  2001) and will be applied  towards
the IRC's monthly rent until  exhausted,  provided that IRC is not in default of
the lease and IRC receives a five-year  extension for its contract term with the
State of California.

The  Partnership's  liabilities at June 30, 2000 include notes payable  totaling
approximately  $15,715,000,  which  consist of four  secured  loans  encumbering
properties  with an aggregate net book value of  approximately  $25,390,000  and
maturity  dates of April 23, 2001 to May 1, 2006.  These notes  require  monthly
principal  and interest  payments  ranging from $15,000 to $53,000.  Three notes
bear fixed  interest rates between 8.744% and 9%, and one note bears interest at
a variable rate of 1% over the lender's Prime Rate.

On January 15, 1999, the Partnership sold approximately 17 acres of land located
in Perris, Riverside County,  California to an unaffiliated entity for $334,800.
The Partnership recognized a $4,000 loss on the sale, and the sale generated net
sale  proceeds  of  $296,000.   On  December  27,  1999,  the  Partnership  sold
approximately  24.8  acres  in  Lake  Elsinore,   Riverside  County,  California
(referred  to as  Lake  Elsinore  Plaza)  to an  unaffiliated  third  party  for
$2,450,000.  The  Partnership  recognized a $257,000 gain on sale,  and the sale
generated net sales  proceeds of $2,193,000.  On June 30, 2000, the  Partnership
sold  one of the two  remaining  lots of land  (Lot  11)  located  in  Temecula,
Riverside County,  California,  to an unaffiliated third party for $325,000. The
Partnership  recognized a $23,000 loss on sale, and the sale generated net sales
proceeds of $290,000

The Partnership is contingently  liable for subordinated real estate commissions
payable to the Sponsors in the aggregate amount of $643,000 at June 30, 2000 for
sales  that  transpired  in


                                 Page 13 of 19
<PAGE>
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 six percent 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.

The Partnership is also  contingently  liable for a subordinated note payable in
connection  with  the  land  in  Temecula,   California,  that  the  Partnership
reacquired in June 1992 through a deed in lieu of foreclosure in satisfaction of
a $2,276,000 note receivable. The subordinated note payable and accrued interest
totaled  $566,000 at June 30, 2000.  This amount is payable upon the sale of the
property only after the  Partnership  receives the full amount of the prior note
receivable  with accrued and unpaid  interest,  costs of  development,  costs of
sale,  and other amounts paid to obtain good title to the  property,  subject to
certain release  provisions.  Since the circumstances under which this liability
would be payable are  limited,  the note payable and accrued  interest  have not
been recorded in the accompanying  consolidated  financial statements;  however,
the amount will be  recognized  prior to  recording  any gain on the sale of the
related land.

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 from  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 is distributed to the partners.

Management  believes  that the  Partnership's  cash balance as of June 30, 2000,
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.

Aside from the foregoing and the current plan to discontinue the sale and retain
the Tri- City properties, and to begin an assessment of various opportunities to
develop the additional  parcels within the Project,  the Partnership knows of no
demands, commitments, events or uncertainties,  which might effect its liquidity
or 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>

Operating Activities
--------------------
During the six months ended June 30, 2000,  the  Partnership's  cash provided by
operating activities totaled $737,000.

The  $105,000  increase in deferred  financing  costs and other fees at June 30,
2000,  compared to December  31, 1999 was  primarily  due to the payment of loan
fees relating to the  refinancing of the note payable  secured by first deeds of
trust on  Circuit  City and TGI  Friday's,  and  payments  of lease  commissions
relative to new and renewal leases.

The $70,000  decrease in prepaid  expenses  and other  assets at June 30,  2000,
compared to December 31, 1999,  was  primarily  due to the  collection of tenant
receivables.

The $37,000 decrease in accounts payable and other liabilities at June 30, 2000,
compared to December 31, 1999, was primarily due to the payment of audit and tax
fees in the second quarter of 2000.

Investing Activities
--------------------
During  the six months  ended June 30,  2000,  the  Partnership's  cash used for
investing  activities  totaled $237,000,  which consisted of $540,000 of capital
additions to properties  offset by net proceeds of $290,000 from the sale of Lot
11 in Temecula, California.

Financing Activities
--------------------
During  the six months  ended June 30,  2000,  the  Partnership's  cash used for
financing activities totaled $126,000,  which consisted of $119,000 in principal
payments on its four notes  payable,  and $7,000 paid to redeem  twenty  limited
partnership units ("Units").

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

Revenues
--------

Rental income increased $135,000, or 4%, and $110,000, or 6%, during the six and
three  months  ended June 30,  2000,  compared to the six and three months ended
June 30, 1999, respectively, primarily due to an increase in pass-through income
resulting from an increase in property operating expenses as discussed below.


                                 Page 15 of 19
<PAGE>
Occupancy rates at the Partnership's Tri-City properties as of June 30, 2000 and
1999 were as follows:

                                               June 30,
                                  ------------------------------------
                                       2000                1999
                                  ---------------     ----------------

     One Vanderbilt                     88%                 95%
     Two Vanderbilt                    100%                100%
     Service Retail Center             100%                 84%
     Carnegie Business Center I         88%                 78%
     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%

As of June 30, 2000, tenants at the 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  275,000 square feet of the 452,000 total leasable  square feet at
Tri-City and accounted for  approximately  55% of the total rental income of the
Partnership during the second quarter of 2000.

The seven-percentage  point decrease in occupancy from June 30, 1999 to June 30,
2000 at One Vanderbilt was due to the expiration of a 6,699 square foot lease in
May 1999.  Management  continues  to  aggressively  market the  space.  Slightly
offsetting  this  decrease  was the leasing of 1,615  square feet of  previously
vacant space to a new tenant.

The  sixteen-percentage  point  increase in occupancy from June 30, 1999 to June
30, 2000 at Service  Retail  Center was  attributable  to an  expansion of 1,103
square feet for an  existing  tenant,  and the  leasing of 2,211  square feet of
previously vacant space to two new tenants.

The  ten-percentage  point  increase in occupancy from June 30, 1999 to June 30,
2000 at Carnegie  Business  Center I was  attributable  to an aggregate of 6,945
square feet of expansions for three existing tenants.

Interest and other income increased $34,000, or 31%, and $31,000, or 91%, during
the six and three  months  ended June 30,  2000,  compared  to the six and three
months  ended June 30,  1999,


                                 Page 16 of 19
<PAGE>
respectively,  primarily due to an increase in invested cash balances  resulting
from the increase in rental revenue discussed above.

Expenses
--------
Operating expenses increased  $76,000,  or 6%, and $94,000,  or 15%, for the six
and three months ended June 30, 2000, compared to the six and three months ended
June 30, 1999, respectively, primarily due to payments of supplementary property
taxes for the years of 1998 to 2000, which resulted from the higher  assessments
to the Circuit City and Mimi Cafe properties after construction was completed.

Interest expense remained consistent for the six and three months ended June 30,
2000, compared to the six and three months ended June 30, 1999, respectively.

Depreciation and amortization  increased $31,000,  or 4%, and $7,000, or 2%, for
the six and three  months  ended June 30,  2000,  compared  to the six and three
months ended June 30, 1999, respectively,  primarily due to depreciation related
to additions to rental properties.

The loss on sale of real  estate of $23,000 for the six and three  months  ended
June 30, 2000 resulted from the sale of Lot 11 in Temecula, California. The loss
on sale of real estate of $4,000 for the six months ended June 30, 1999 resulted
from the sale of the Perris property.

Expenses  associated with undeveloped land varied slightly for the six and three
months ended June 30, 2000,  compared to the six and three months ended June 30,
1999, respectively.

General and  administrative  expenses remained  consistent for the six and three
months ended June 30, 2000,  compared to the six and three months ended June 30,
1999, respectively.

The proposed  dissolution costs of $32,000 and $154,000 for the six months ended
June 30, 2000 and 1999, respectively,  consisted of expenses incurred related to
the  Solicitation  and the Asset Sale and  Dissolution as discussed in Note 1 of
the Notes to Consolidated Financial Statements in Part I.


                                 Page 17 of 19
<PAGE>

                              RANCON REALTY FUND IV
                        A California Limited Partnership

                   Notes to Consolidated Financial Statements

                                  June 30, 2000
                                   (Unaudited)

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

                  Incorporated  herein  by  reference  to Note 1 of the Notes to
                  Consolidated Financial Statements.

Item 5.           Other Information

                  None.

Item 6.           Exhibits and Reports on Form 8-K

                  (a)  Exhibits:

                  (27)  Financial Data Schedule

                  (b)  Reports on Form 8-K (incorporated herein by reference):

                  None.





                                 Page 18 of 19
<PAGE>

                                   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:    August 11, 2000     By:        /s/  DANIEL L. STEPHENSON
                                        --------------------------
                                        Daniel L. Stephenson, President

Date:    August 11, 2000     By:        /s/  DANIEL L. STEPHENSON
                                        --------------------------
                                        Daniel L. Stephenson, General Partner










                                 Page 19 of 19