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, 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 March 31, 2000: 76,763


                                  Page 1 of 18
<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>

                                                                     March 31,          December 31,
                                                                       2000                 1999
                                                                    (Unaudited)          (Audited)
                                                                   --------------     --------------
Assets
------
Investments in real estate:
     Rental property, net of accumulated depreciation of
       $14,510 and $14,144 at March 31, 2000 and December
       31, 1999, respectively                                      $      32,336      $      32,680
     Land held for development                                             1,706              1,655
     Land held for sale                                                      545                545
                                                                   -------------      -------------

         Total real estate investments                                    34,587             34,880

     Cash and cash equivalents                                             6,440              6,133
     Restricted cash                                                         269                269
     Deferred financing costs and other fees, net of
       accumulated amortization of $1,561 and $1,486
       at March 31, 2000 and December 31, 1999, respectively               1,278              1,267
     Prepaid expenses and other assets                                     1,208              1,220
                                                                   -------------      -------------

         Total assets                                              $      43,782      $      43,769
                                                                   =============      =============

Liabilities and Partners' Equity (Deficit)
------------------------------------------
Liabilities:
     Notes payable                                                 $      15,794      $      15,834
     Accounts payable and other liabilities                                  714                589
                                                                   -------------      -------------

          Total liabilities                                               16,508             16,423
                                                                   -------------      -------------

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

Partners' Equity (Deficit):
     General partners                                                       (646)              (645)
     Limited partners, 76,763 and 76,765 limited partnership
       units outstanding at March 31, 2000 and December 31,
       1999, respectively                                                 27,920              27,991
                                                                   -------------      --------------

          Total partners' equity                                          27,274             27,346
                                                                   -------------      -------------

         Total liabilities and partners' equity                    $      43,782      $      43,769
                                                                   =============      =============
</TABLE>


          See accompanying notes to consolidated financial statements.

                                  Page 2 of 18
<PAGE>

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statement of Operations
          (in thousands, except per unit amounts and units outstanding)
<TABLE>
<CAPTION>
<S>                                                           <C>                 <C>

                                                                      Three months ended
                                                                          March 31,
                                                              ---------------------------------
                                                                   2000               1999
                                                              ---------------     -------------
 Revenues:
      Rental income                                           $       1,648       $       1,623
      Interest and other income                                          79                  76
                                                              -------------       -------------

              Total revenue                                           1,727               1,699
                                                              -------------       -------------

 Expenses:
      Operating                                                         634                 652
      Interest expense                                                  378                 374
      Depreciation and amortization                                     413                 389
      Loss on sales of real estate                                       --                   4
      Expenses associated with undeveloped land                         119                 124
      General and administrative                                        237                 243
      Proposed dissolution costs                                         17                  45
                                                              -------------       -------------

          Total expenses                                              1,798               1,831
                                                              -------------       -------------

 Net loss                                                     $        (71)       $       (132)
                                                              =============       =============

 Net loss per limited partnership unit                        $      (0.92)       $      (1.72)
                                                              =============       =============

 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                             76,763             76,766
                                                              =============       ============
</TABLE>









          See accompanying notes to consolidated financial statements.


                                  Page 3 of 18
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statement of Partners' Equity (Deficit)
                    For the three months ended March 31, 2000
                                 (in thousands)


<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                --                   (1)                 (1)

     Net loss                                               (1)                 (70)                (71)
                                                 --------------       --------------      --------------

     Balance at March 31, 2000                   $        (646)       $      27,920       $      27,274
                                                 ==============       ==============      ==============
</TABLE>
































          See accompanying notes to consolidated financial statements.




                                  Page 4 of 18
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Cash Flows
                                 (in thousands)
<TABLE>
<CAPTION>
<S>                                                                        <C>                     <C>
                                                                                     Three months ended
                                                                                         March 31,
                                                                           --------------------------------------
                                                                                2000                    1999
                                                                           --------------------------------------
Cash flows from operating activities:
     Net loss                                                              $         (71)          $       (132)
     Adjustments  to  reconcile  net  loss
       to net  cash  provided  by  operating activities:
         Loss on sales of real estate                                                 --                      4
         depreciation and amortization                                               413                    389
         Amortization of loan fees, included in
           interest expense                                                           28                     23
         Changes in certain assets and liabilities:
           Deferred financing costs and other fees                                   (86)                  (166)
           Prepaid expenses and other assets                                          12                     (1)
           Accounts payable and other liabilities                                    125                    (84)
                                                                           -------------           -------------

           Net cash provided by (used for) operating activities                      421                     33
                                                                           -------------           -------------
ws from investing activities:
     Net proceeds from sales of land                                                  --                    296
     Net additions to real estate investments                                        (73)                  (220)
                                                                           --------------          -------------

           Net cash provided by (used for) investing activities                      (73)                    76
                                                                           --------------          -------------

Cash flows from financing activities:
     Notes payable principal payments                                                (40)                   (41)
     Retirement of limited partnership units                                          (1)                    (1)
                                                                           --------------          --------------

           Net cash provided by (used for) financing activities                      (41)                   (42)
                                                                           --------------          --------------

Net increase in cash and cash equivalents                                            307                     68

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

Cash and cash equivalents at end of period                                 $       6,440           $      4,365
                                                                           =============           =============

Supplemental disclosure of cash flow information:
       Cash paid for interest (exclusive of capitalized interest)          $         350           $        352
                                                                           =============           =============
       Interest Capitalized                                                $          10           $         --
                                                                           =============           =============
</TABLE>




          See accompanying notes to consolidated financial statements.


                                  Page 5 of 18
<PAGE>


                             RANCON REALTY FUND IV,
                        A California Limited Partnership

                   Notes to Consolidated Financial Statements

                                 March 31, 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  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, 2000 and December 31, 1999,  and the related  statements of  operations  and
cash flows for the three months ended March 31, 2000 and 1999.

Asset Sale and Dissolution Proposal
-----------------------------------
The  Partnership's   business  strategy  has  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 in the Tri-City  Corporate Centre in San Bernardino,  California
(the "Tri-City  Properties")  and  approximately  2 acres of unimproved  land in
Temecula,  California (the "Remaining Property").  The General Partner currently
intends to sell all of the Partnership's properties, distribute the proceeds and
liquidate  the  Partnership  after all of the  properties  are sold and the cash
proceeds thereof  received.  The General Partner does not expect the Dissolution
to occur until at least the second half of 2000 (and potentially not until 2001)
as some of the  properties  may be sold with the  purchase  price  payable on an
installment basis. The dissolution must be completed within 90 days of the final
receipt of cash proceeds from the sale of Partnership property.  The period over
which the sales  transactions and dissolution are to take place is not currently
known.

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,  have 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.

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

                                  Page 6 of 18
<PAGE>

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 and  informational  brochures.  The  informational
brochures were presented to a number of prospective  buyers and as of 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
General  Partner  subsequently  received three written  offers from  prospective
buyers and has selected one. Currently, this prospective buyer is completing its
due diligence on the Tri City  properties,  and the  Partnership  is preparing a
Purchase and Sale agreement for signature.

In March  2000,  the  Partnership  entered  into a  contract  to sell one of the
remaining  lots  of  land  (Lot  11)  located  in  Temecula,  Riverside  County,
California,  to an unaffiliated third party. Currently,  the buyer is completing
its due diligence. The contract price for the land is $325,000 and the estimated
date for close of escrow is June 16, 2000.

In April  2000,  the  Partnership  entered  into  another  contract  to sell the
remaining  lot  of  land  (Lot  10)  located  in  Temecula,   Riverside  County,
California,  to an unaffiliated third party. Currently,  the buyer is completing
its due diligence. The contract price for the land is $222,000 and the estimated
date for close of escrow is July 3, 2000.

In 1997, the Partnership  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.
The  General  Partner  is  willing  to accept  to sell all or a  portion  of the
Partnership's  properties.  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
and on the other 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

                                  Page 7 of 18
<PAGE>
portion of the Partnership's properties to the unaffiliated third party buyer as
set forth in the Partnership's  properties to the unaffiliated third party buyer
as set forth in  Partnership's  notice to GLB. The GLB Matching Right applies to
the Tri-City Properties and the Remaining Property.

Prior to the completion of the sale of all of the  Partnership's  properties and
the  receipt in cash of the  proceeds  thereof,  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  properties.  The  General  Partner  will not receive 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 of 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  are 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.


                                  Page 8 of 18
<PAGE>
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 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  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 Matters
--------------------------------------
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.

According to the contract, the Partnership will pay Glenborough for its services
as follows: (i) a specified asset administration fee ($149,000 in March 31, 2000
and 1999); (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

                                 Page 9 of 18
<PAGE>
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.

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

The  consent  of the  partners  to a proposal  to sell all of the  Partnership's
remaining   properties  and  liquidate  the  Partnership  will  not  impact  the
accounting  treatment  applied by the Partnership in its consolidated  financial
statements prepared in accordance with generally accepted accounting  principles
as the liquidation  proceeds and the timing thereof are not currently estimable.
The Partnership will classify as "held for use" or "held for  development",  all
of its operating  and  undeveloped  properties  until such time as an acceptable
buyer is identified and an offer which is reasonably  assured of consummation is
obtained. At that time, the Partnership will reclassify the appropriate portions
of its  assets  to "held  for sale" and  depreciation  of those  assets  will be
discontinued.

When the  timing  of the last  cash  receipt  from the sale of the  property  is
reasonably determinable, the Partnership will adopt liquidation basis accounting
in that quarter.  At that time, all assets and  liabilities  will be adjusted to
their  settlement  amounts and an amount to be  distributed to the partners upon
liquidation will be estimated.

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  $6,171,000  at March 31,  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 intercompany
balances and transactions have been eliminated in the consolidation.

Reclassifications
-----------------
Certain prior year balances have been  reclassified  to conform with the current
year presentation.

                                 Page 10 of 18
<PAGE>

Note 2.      REFERENCE TO 1999 AUDITED FINANCIAL STATEMENTS
             ----------------------------------------------
These unaudited  consolidated financial statements should be read in conjunction
with the notes to consolidated financial statements included in the December 31,
1999 audited consolidated financial statements.

Note 3.      SALE OF REAL ESTATE
             -------------------

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

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 March 31, 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
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
total $566,000 as of March 31, 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 financial statements; however, the amount will
be recognized prior to recording any gain on the sale of the related land.

                                 Page 11 of 18
<PAGE>

Note 4.           SUBSEQUENT EVENTS
                  -----------------
In March  2000,  the  Partnership  entered  into a  contract  to sell one of the
remaining lots of land (Lot 11) located in Perris, Riverside County, California,
to an  unaffiliated  third party.  Currently,  the buyer is  completing  its due
diligence.  The contract  price for the land is $325,000 and the estimated  date
for close of escrow is June 16, 2000.

In April  2000,  the  Partnership  entered  into  another  contract  to sell the
remaining lot of land (Lot 10) located in Perris, Riverside County,  California,
to an  unaffiliated  third party.  Currently,  the buyer is  completing  its due
diligence.  The contract  price for the land is $222,000 and the estimated  date
for close of escrow is July 3, 2000.






                                 Page 12 of 18
<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 March 31, 2000, the Partnership had cash of $6,440,000 (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 $34,587,000, which
includes  $32,336,000  in  rental  properties,   $1,706,000  of  land  held  for
development  and $545,000 of undeveloped  land held for sale. The  Partnership's
primary   liabilities  at  March  31,  2000  include  notes  payable,   totaling
approximately  $15,794,000,  which  consist of four  secured  loans  encumbering
properties  with an aggregate net book value of  approximately  $25,549,000  and
maturity  dates of April 30,  2001 to May 1,  2006.  Three of the  Partnership's
notes payable require monthly  principal and interest  payments,  and bear fixed
interest  rates  between  8.744% and 9%, and one note payable  requires  monthly
interest-only  payments  and bears  interest  at a variable  rate of 1% over the
lender's Prime Rate.

The  Partnership's  restricted  cash at March 31,  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 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 is contingently  liable for subordinated real estate commissions
payable to the  Sponsors in the  aggregate  amount of $643,000 at March 31, 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 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 March 31, 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

                                 Page 13 of 18
<PAGE>

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 on certificates of deposit and other
deposits of funds invested  temporarily.  Cash generated from property sales are
generally added to the Partnership's  cash reserves,  pending use in development
of other properties or distribution to the partners.

Management  believes  that the  Partnership's  cash balance as of March 31, 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  potentially  sell all of the
Partnership's   remaining   properties  and  liquidate  the   Partnership,   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.

Operating Activities
--------------------
During the period  ended March 31,  2000,  the  Partnership's  cash  provided by
operating activities totaled $421,000.

The $125,000,  or 22%,  increase in accounts  payable and other  liabilities  at
March 31, 2000,  compared to December 31, 1999, was due primarily to an increase
in property tax accruals  which prior to their payment in the second  quarter of
2000.

Investing Activities
--------------------
During the period ended March 31, 2000, the Partnership used $74,000 in cash for
investing  activities which consisted of capital  additions to the Partnership's
real estate properties.

                                 Page 14 of 18
<PAGE>

Financing Activities
--------------------
During  the  period  ended  March  31,  2000,  the  Partnership's  cash used for
financing  activities  totaled $41,000,  which consisted of $40,000 in principal
payments  on its four  notes  payable,  and $1,000  paid to redeem  two  limited
partnership units ("Units").

RESULTS OF OPERATIONS
---------------------
Revenues
--------
Rental  income of  $1,648,000  for the three  months ended March 31, 2000 varied
only slightly from $1,623,000 for the three months ended March 31, 1999.

Occupancy rates at the  Partnership's  Tri-City  properties as of March 31, 2000
and 1999 were as follows:

                                                      March 31,
                                         ------------------------------------
                                              2000                1999
                                         ---------------     ----------------

     One Vanderbilt                           88%                  91%
     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 March 31,  2000,  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 which expires in 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  269,000 square feet of the 452,000 total leasable  square feet at
Tri-City and accounted for  approximately  56% of the total rental income of the
Partnership during the first quarter of 2000.

The  three-percentage  point  decrease in occupancy from March 31, 1999 to March
31, 2000 at One  Vanderbilt  was due to the  expiration  of a 6,699  square feet
office lease in May 1999.  To date,  this space had not yet been  re-leased  but
management continues to aggressively market the

                                 Page 15 of 18
<PAGE>

space.  Slightly  offsetting this decrease in occupancy was the leasing of 3,987
square feet of previously vacant space to two new tenants.

The sixteen-percentage  point increase in occupancy from March 31, 1999 to March
31,  2000 at Service  Retail  Center was  attributable  to an 1,103  square feet
expansion of leased space to 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 March 31, 1999 to March 31, 2000 at Carnegie Business
Center I was  attributable to an aggregate of 6,945 square feet of expansions of
leased space to three existing tenants.

Interest  income  remained  consistent for the three months ended March 31, 2000
compared to the three months ended March 31, 1999.

Expenses
--------
Operating expenses  decreased  $18,000,  or 3%, for the three months ended March
31, 2000,  compared to the three months ended March 31, 1999  primarily due to a
property  tax refund  received in the first  quarter of 2000,  combined  with no
consulting  fees for  property  tax  appeals,  which were  incurred in the first
quarter of 1999.

Depreciation and  amortization  increased  $24,000,  or 6%, for the three months
ended  March 31,  2000  compared  to the three  months  ended March 31, 1999 due
primarily to depreciation related to additions to rental properties.

The loss on sale of real estate of $4,000 for the three  months  ended March 31,
1999 resulted from the sale of the Perris property.

Expenses associated with undeveloped land decreased $5,000, or 4%, for the three
months  ended March 31, 2000  compared to the three  months ended March 31, 1999
due to the  elimination of property taxes as a result of the sales of the Perris
property in January 1999 and the Lake Elsinore property in December 1999.

General  and  administrative  expenses  decreased  $6,000,  or 2%, for the three
months  ended March 31, 2000  compared to the three months ended March 31, 1999,
primarily due to a decrease in investor relations expenses.

The proposed dissolution costs of $17,000 and $45,000 for the three months ended
March 31, 2000 and 1999, respectively, consisted of expenses incurred related to
the Solicitation and the Asset Sale and Dissolution as discussed in Note 1.

                                 Page 16 of 18
<PAGE>

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:

                  (27)  Financial Data Schedule

                  (b)  Reports on Form 8-K

                  None






                                 Page 17 of 18
<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:    May 12, 2000               By:    /s/  DANIEL L. STEPHENSON
                                           --------------------------
                                           Daniel L. Stephenson, President

Date:    May 12, 2000               By:    /s/  DANIEL L. STEPHENSON
                                           -------------------------
                                           Daniel L. Stephenson, General Partner


                                 Page 18 of 18