FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


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

                  For the quarterly period ended June 30, 1999

                                       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 June 30, 1999: 76,765





                                  Page 1 of 19
<PAGE>


PART I.             FINANCIAL INFORMATION


Item 1.             Financial Statements
<TABLE>
<CAPTION>

                                       RANCON REALTY FUND IV,
                                  A CALIFORNIA LIMITED PARTNERSHIP

                                     Consolidated Balance Sheets
                                 (in thousands, except unit amounts)


                                                                      June 30,        December 31,
                                                                        1999              1998
                                                                    (Unaudited)         (Audited)
                                                                   -------------     -------------
<S>                                                                <C>               <C>
Assets
Investments in real estate:
     Rental property, net of accumulated depreciation of
       $13,427 and $12,723 at June 30, 1999 and December
       31, 1998, respectively                                      $      33,363     $      33,781
     Land held for development                                             1,579             1,575
     Land held for sale                                                    2,441             2,741
                                                                   -------------     -------------

         Total real estate investments                                    37,383            38,097
                                                                   -------------     -------------

     Cash and cash equivalents                                             4,497             4,297
     Restricted cash                                                         369               369
     Deferred financing costs and other fees, net of
       accumulated amortization of $1,340 and $1,195
       at June 30, 1999 and December 31, 1998, respectively                1,389             1,312
     Prepaid expenses and other assets                                     1,192             1,434
                                                                   -------------     -------------

         Total assets                                              $      44,830     $      45,509
                                                                   =============     =============

Liabilities and Partners' Equity (Deficit)
Liabilities:
     Notes payable                                                 $      15,922     $      16,005
     Accounts payable and other liabilities                                  613               929
                                                                   -------------     -------------
       Total liabilities                                                  16,535            16,934
                                                                   -------------     -------------

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

Partners' Equity (Deficit):
     General partners                                                       (658)             (658)
     Limited partners, 76,765 and 76,767 limited partnership
       units outstanding at June 30, 1999 and December 31,
       1998, respectively                                                 28,953            29,233
                                                                   -------------     -------------
       Total partners' equity                                             28,295            28,575
                                                                   -------------     -------------

           Total liabilities and partners' equity                  $      44,830     $      45,509
                                                                   =============     =============
</TABLE>


                           See accompanying notes to financial statements.



                                            Page 2 of 19
<PAGE>


<TABLE>
<CAPTION>

                                         RANCON REALTY FUND IV,
                                    A CALIFORNIA LIMITED PARTNERSHIP

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


                                               Three months ended                Six months ended
                                                     June 30,                        June 30,
                                            --------------------------     ---------------------------
                                               1999             1998           1999             1998
                                            ----------      ----------     -----------      ----------
<S>                                         <C>             <C>            <C>              <C>
Revenues:
  Rental income:                            $    1,701      $    1,784     $     3,324      $    3,694
  Interest and other income                         34              13             110              23
  Gain on sale of rental property                   --           5,468              --           5,468
                                            ----------      ----------     -----------      ----------
     Total revenues                              1,735           7,265           3,434           9,185
                                            ----------      ----------     -----------      ----------

Expenses:
  Operating                                        632             733           1,284           1,556
  Interest expense                                 385             475             759             983
  Depreciation and amortization                    406             346             795             693
  Loss on sales of real estate                      --              --               4              11
  Expenses  associated  with
     undeveloped land                               94             141             218             280
  General and administrative                       256             338             499             626
  Proposed dissolution costs                       109              --             154              22
                                            ----------      ----------     -----------      ----------
     Total expenses                              1,882           2,033           3,713           4,171
                                            ----------      ----------     -----------      ----------

  Net income (loss)                         $     (147)     $    5,232     $      (279)     $    5,014
                                            ==========      ==========     ===========      ==========

Net income (loss) per limited
  partnership unit                          $    (1.91)     $    64.55     $     (3.63)     $    61.67
                                            ==========      ==========     ===========      ==========

Weighted average number of limited
  partnership units outstanding during
  each period used to compute net loss
  per limited partnership unit                  76,765          76,821          76,765          76,881
                                            ==========      ==========     ===========      ==========
</TABLE>












                            See accompanying notes to 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, 1999
                                 (in thousands)
                                   (Unaudited)


                                             General     Limited
                                            Partners     Partners       Total
                                            --------    ----------   ----------

Balance at December 31, 1998                $   (658)   $   29,233   $   28,575

Retirement of limited partnership units           --            (1)          (1)

Net loss                                          --          (279)        (279)
                                            --------    ----------   ----------

Balance at June 30, 1999                    $   (658)   $   28,953   $   28,295
                                            ========    ==========   ==========


































                 See accompanying notes to financial statements.



                                  Page 4 of 19
<PAGE>



<TABLE>
<CAPTION>
                                RANCON REALTY FUND IV,
                           A CALIFORNIA LIMITED PARTNERSHIP

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


                                                               Six months ended
                                                                    June 30,
                                                         ---------------------------
                                                            1999             1998
                                                         ----------       ----------
<S>                                                      <C>              <C>
Cash flows from operating activities:
   Net income (loss)                                     $     (279)      $    5,014
   Adjustments to reconcile net income (loss)
     to net cash provided by operating activities:
       Net (gain) loss on sales of real estate                    4           (5,457)
       Depreciation and amortization                            795              693
       Amortization of loan fees, included in
         interest expense                                        55               52
       Changes in certain assets and liabilities:
         Deferred financing costs and other fees               (223)            (169)
         Prepaid expenses and other assets                      242                7
         Accounts payable and other liabilities                (316)              80
         Interest payable                                        --               (2)
                                                         ----------       ----------

         Net cash provided by operating activities              278              218
                                                         ----------       ----------

Cash flows from investing activities:
   Net proceeds from sales of land                              296           15,847
   Net additions to real estate investments                    (290)            (378)
                                                         ----------       ----------

         Net cash provided by investing activities                6           15,469
                                                         ----------       ----------

Cash flows from financing activities:
   Notes payable principal payments                             (83)          (5,922)
   Retirement of limited partnership units                       (1)             (89)
                                                         ----------       ----------

         Net cash used for financing activities                 (84)          (6,011)
                                                         ----------       ----------

Net increase in cash and cash equivalents                       200            9,676

Cash and cash equivalents at beginning of period              4,297              788
                                                         ----------       ----------

Cash and cash equivalents at end of period               $    4,497       $   10,464
                                                         ==========       ==========

Supplemental disclosure of cash flow information:
   Cash paid for interest                                $      704       $      933
                                                         ==========       ==========
</TABLE>



                    See accompanying notes to financial statements.



                                     Page 5 of 19
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 1999
                                   (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, 1999 and December 31, 1998, and the related consolidated  statements
of operations and cash flows for the six months ended June 30, 1999 and 1998.

Asset Sale and Dissolution  Proposal - The General Partner is currently  seeking
the  Limited  Partners'  consent to sell all of the  Partnership's  real  estate
assets ("Asset Sale") and liquidate the Partnership  ("Dissolution").  A Consent
Solicitation  Statement  was  sent to the  Limited  Partners  on  July 6,  1999,
detailing the Asset Sale and Dissolution Proposal  (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).  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 an aggregate of
approximately  27  acres  of  unimproved  land in Lake  Elsinore  and  Temecula,
California (the "Remaining Properties"). Assuming the Asset Sale and Dissolution
Proposal  is approved by the Limited  Partners,  the General  Partner  currently
intends to sell all of the  Partnership's  properties  within  approximately six
months after consent has been  obtained,  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  early  2000  (and  potentially  not  until  2001) as some of the
properties may be sold with the purchase price payable on an installment basis.

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").  The GLB
Matching Right applies to the Tri-City Properties and the Remaining  Properties.
GLB is not an affiliate of the Partnership.

If the Limited Partners consent to the Asset Sale and Dissolution Proposal,  the
General Partner currently intends to offer the Partnership's Tri-City Properties
for sale by soliciting  bids from various  potential  purchasers.  The Remaining
Properties  will not be sold  with  the  Tri-City  Properties,  but will be sold
separately  in a single or  multiple  sales.  If the Asset Sale and  Dissolution
Proposal is not approved by the Limited Partners,  the General Partner currently
intends  to  continue  to manage the  Partnership  and its  properties  and will


                                  Page 6 of 19
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 1999
                                   (Unaudited)


continue to entertain and consider indications of interest from third parties to
acquire all or a portion of the  properties.  The  Partnership  will continue to
operate the properties and attempt to sell such properties in single or multiple
sales and develop  properties it believes are  developable and would improve its
return on investment.

Allocation  of Net Income and Net Loss - Allocation of net income and net losses
are made  pursuant to the terms of the  Partnership  Agreement.  Generally,  net
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 from  operations is allocated 90% to the limited  partners and 10% to
the general partners.  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  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.

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 sells 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


                                  Page 7 of 19
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 1999
                                   (Unaudited)


fee which is fixed for five years subject to reduction in the year following the
sale of assets ($597,000 in 1999); (ii) sales fees of 2% for improved properties
and 4% for land;  (iii) a  refinancing  fee of 1%  ($49,750  in 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.

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 presumption that the
Partnership will continue as a going concern.

The  consent  of  the  Limited  Partners  to the  proposal  to  sell  all of the
Partnership's  properties  and  liquidate  the  Partnership  will not impact the
accounting  treatment  applied by the  Partnership  in its 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 sale  price and  timing of the last  property  disposal  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 $6,244,000 at June 30, 1999, 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 8 of 19
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 1999
                                   (Unaudited)


Note 2.      REFERENCE TO 1998 AUDITED FINANCIAL STATEMENTS

These unaudited  consolidated financial statements should be read in conjunction
with the Notes to Financial Statements included in the December 31, 1998 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 entity for $334,800.
The  Partnership  recognized  a $4,000 loss on the sale and the net  proceeds of
approximately $296,000 were added to the Partnership's operating cash reserves.

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, 1999 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,  which is not expected to be achieved as a result of the Asset Sale. As
a result,  such  subordinated  real estate  commissions  will not be paid to the
General Partner and will be eliminated.

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, 1999.  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.



                                  Page 9 of 19
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 1999
                                   (Unaudited)


Note 5.      NOTES PAYABLE

Notes  payable as of June 30,  1999 and  December  31,  1998 were as follows (in
thousands):
<TABLE>
<CAPTION>

                                                                           1999         1998
                                                                         --------     --------
<S>                                                                      <C>          <C>
Note  payable  secured by first  deed of trust on Service  Retail
Center, Promotional Retail Center and Carnegie Business Center I.
The loan,  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.                                  $  6,244     $  6,290

Note payable  secured by first deed of trust on the IRC building.
Interest  accrues  at a fixed  rate of 8.75% per  annum.  Monthly
payments of $21 of principal  and interest are due until the loan
matures on April 23, 2001.                                                  2,410        2,429

Note payable secured by first deed of trust on the One Vanderbilt
building.  The  note  bears  interest  at a fixed  rate of 9% per
annum.  Monthly installments of $20 of principal and interest are
due until January 1, 2005, at which time the unpaid principal and
interest are payable in full.                                               2,268        2,286

Note payable  secured by first deeds of trust on Circuit City and
TGI Friday's. Interest is payable monthly at one percent (1%) per
annum in  excess  of the  lender's  "Prime  Rate"  until the loan
matures on April 30, 2000 at which time the unpaid  principal and
interest are due.                                                           5,000        5,000
                                                                         --------     --------
Total notes payable                                                      $ 15,922     $ 16,005
                                                                         ========     ========
</TABLE>

On March 30,  1999,  the  Partnership extended  the  maturity  date of its note
payable to Wells Fargo Bank one year from April 30, 1999, to April 30, 2000, and
incurred approximately $75,000 in loan fees.

Note 6.      PROPOSED DISSOLUTION COSTS

The General Partner is currently  seeking the Limited  Partners'  consent to the
Asset Sale and  Dissolution  Proposal (see Note 1). Costs totaling  $154,000 and
$22,000  related to the proposal  have been  incurred  and are  reflected in the
accompanying consolidated statements of operations for the six months ended June
30, 1999 and 1998, respectively.


                                 Page 10 of 19
<PAGE>


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

LIQUIDITY AND CAPITAL RESOURCES

At June 30, 1999, the Partnership had cash of $4,497,000  (exclusive of $369,000
in restricted cash). The remainder of the Partnership's assets consist primarily
of its net  investments in real estate,  totaling  approximately  $37,383,000 at
June 30, 1999, which includes  $33,363,000 in rental  properties,  $1,579,000 of
land held for development and $2,441,000 of land held for sale.

The  Partnership's   business  strategy  has  been  to  focus  on  the  eventual
disposition  of its assets at the optimal time and sales price.  As discussed in
Note 1 of the Notes to Consolidated Financial Statements, the General Partner is
currently seeking the Limited Partners' consent to sell all of the Partnership's
real estate assets ("Asset Sale") and liquidate the Partnership ("Dissolution").
A Consent  Solicitation  Statement  was sent to the Limited  Partners on July 6,
1999,  detailing  the  Asset  Sale and  Dissolution  Proposal  (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). 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 an aggregate of
approximately  27  acres  of  unimproved  land in Lake  Elsinore  and  Temecula,
California (the "Remaining Properties"). Assuming the Asset Sale and Dissolution
Proposal  is approved by the Limited  Partners,  the General  Partner  currently
intends to sell all of the  Partnership's  properties  within  six months  after
consent has been obtained, 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 early
2000 (and potentially not until 2001) as some of the properties may be sold with
the purchase price payable on an installment basis.

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").  The GLB
Matching Right applies to the Tri-City Properties and the Remaining  Properties.
GLB is not an affiliate of the Partnership.

If the Limited Partners consent to the Asset Sale and Dissolution Proposal,  the
General Partner currently intends to offer the Partnership's Tri-City Properties
for sale by soliciting  bids from various  potential  purchasers.  The Remaining
Properties  will not be sold  with  the  Tri-City  Properties,  but will be sold
separately  in a single  or  multiple  sales.

If the Asset  Sale and  Dissolution  Proposal  is not  approved  by the  Limited
Partners, the  General  Partner  currently  intends to continue to manage the
Partnership  and its  properties  and will  continue to  entertain  and consider
indications  of interest  from third  parties to acquire all or a portion of the
properties.  The Partnership will continue to operate the properties and attempt
to sell such  properties in single or multiple  sales and develop  properties it
believes are developable and would improve its return on investment.

Assuming consummation of the Asset Sale and Dissolution,  prior to completion of
the sale of all of the  Partnership's  properties and the receipt in cash of the


                                 Page 11 of 19
<PAGE>


proceeds  thereof,  the  General  Partner  currently  intends  to,  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 sale of the  properties.  The
General  Partner  will not  receive  any of the net  proceeds  from  sale of the
properties  or  upon  dissolution  with  respect  to  its  general   partnership
interests.  The  General  Partner  also  intends to  distribute  in 1999 the net
proceeds  from the January 1999 sale of the Perris  property.  See Note 3 of the
Notes to Consolidated Financial Statements above for further details.

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,  including  in the event 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 approved by the Limited Partners, or
if and when the  properties  will be sold,  the  proceeds  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 date when  consent of the Limited  Partners is obtained  (assuming it is
obtained),  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.

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
are  generally  added to the  Partnership's  cash  reserves,  pending use in the
development of properties, or are distributed to the partners.

The majority of the Partnership's  assets are located in the Tri-City  Corporate
Centre,  in San Bernardino,  California.  Tri-City is in the heart of the Inland
Empire,  a submarket of Southern  California  and is the most densely  populated
area of San Bernardino and Riverside  counties.  Tri-City's  office space market
continues to improve  despite  recent  completion  of new  buildings  within the
neighboring area.  Tri-City's retail space market continued to experience strong
leasing activity,  benefiting from its excellent location affording good freeway
visibility and access, while the industrial space market appears to be improving
due to the  demand for space for both  warehouse  and  distribution  facilities.
Management  currently believes that the overall real estate market in the Inland
Empire will remain strong through 1999, with  conditions  beyond such time being
less predictable.


                                 Page 12 of 19
<PAGE>


Tri-City Properties

The  Partnership's  Tri-City  Properties  consist of  approximately  23 acres of
unimproved land and  approximately  451,903 square feet of improved  properties.
The Partnership's  improved  properties in the Tri-City  Corporate Centre are as
follows:

 Property                                     Type                   Square Feet
 --------------------------     ----------------------------------   -----------
 One Vanderbilt                 Four story office building              73,730
 Two Vanderbilt                 Four story office building              69,046
 Carnegie Business Center I     Two R & D buildings                     62,539
 Service Retail Center          Two retail buildings                    20,780
 Promotional Retail Center      Four strip center retail buildings      66,265
 Inland Regional Center         Two story office building               81,079
 TGI Friday's                   Restaurant                               9,386
 Circuit City                   Retail building                         39,123
 Office Max                     Retail building                         23,500
 Mimi's Cafe                    Restaurant                               6,455

Remaining Properties

The Partnership's  Remaining  Properties  consist of approximately 24.8 acres of
undeveloped,  commercially  zoned  land  in  Lake  Elsinore,  Riverside  County,
California  ("Lake Elsinore Plaza") and  approximately 1.8 acres of undeveloped,
commercially zoned land in Temecula,  Riverside County,  California (referred to
as Rancon Towne  Village).  The Lake Elsinore Plaza and the Rancon Towne Village
properties are reflected as land held for sale in the accompanying  consolidated
balance sheets.

General Matters

The $300,000 or 11% decrease in land held for sale at June 30, 1999  compared to
December  31,  1998 is due  primarily  to the  January  1999 sale of the  Perris
property.

The  $242,000 or 17%  decrease in prepaid  expenses and other assets at June 30,
1999  compared  to December  31,  1998 is due  primarily  to the  collection  of
approximately  $289,000 of December  31,  1998 tenant  receivables  in the first
quarter of 1999. This decrease in prepaid expenses and other assets was slightly
offset  by an  increase  due to the  prepayment  of the third  quarter  investor
relations fees in June 1999.

The $77,000 or 6% increase  in deferred  financing  costs and other fees at June
30,  1999  compared  to  December  31,  1998 is due to the  payment of loan fees
relating to the  refinancing of the note payable secured by first deeds of trust
in Circuit City and TGI Friday's.

The $316,000 or 34% decrease in accounts  payable and other  liabilities at June
30, 1999  compared to  December  31, 1998 is due to the payment of December  31,
1998 accounts payable related to tenant  improvements in the first half of 1999.
The construction of the tenant improvements was completed in May 1999.

Management  believes  that the  Partnership's  cash  balance  at June 30,  1999,
together with the cash from operations,  sales and financing, will be sufficient


                                 Page 13 of 19
<PAGE>


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 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.


RESULTS OF OPERATIONS


Revenues


Rental  income  decreased  $370,000  or 10% and $83,000 or 5% during the six and
three  months  ended June 30,  1999,  compared to the six and three months ended
June 30,  1998,  respectively,  primarily as a result of: (i) the loss of rental
income  due  to  the  June  1998  sale  of   Shadowridge   Woodbend   Apartments
("Shadowridge");  and (ii) the decrease in occupancy at Service  Retail  Center.
This decrease in rental  revenue was  partially  offset by the  commencement  of
operations  of Office Max and Mimi's  Cafe and the  increased  occupancy  at Two
Vanderbilt and Carnegie Business Center I.

Occupancy rates at the Partnership's Tri-City properties as of June 30, 1999 and
1998 were as follows:
                                                         June 30,
                                            --------------------------------
                                                 1999                1998
                                            ---------------     ------------

   One Vanderbilt                                 95%                 97%
   Two Vanderbilt                                100%                 93%
   Service Retail Center                          84%                 95%
   Carnegie Business Center I                     78%                 72%
   Promotional Retail Center                     100%                100%
   Inland Regional Center                        100%                100%
   TGI Friday's                                  100%                100%
   Circuit City                                  100%                100%
   Office Max (commenced October 1998)           100%                 N/A
   Mimi's Cafe (commenced January 1999)          100%                 N/A

As of June 30, 1999, 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 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 second quarter of 1999.


                                 Page 14 of 19
<PAGE>


The 7%  increase  in  occupancy  from  June  30,  1998 to June  30,  1999 at Two
Vanderbilt  is  attributed  to the  expansion of the leased space of an existing
tenant.

The 11%  decrease  in  occupancy  from June 30, 1998 to June 30, 1999 at Service
Retail Center resulted from three tenants,  occupying 3,314 square feet of space
in the aggregate, vacating their space upon their respective lease terminations.
Management has executed a lease  expansion for 1,103 square feet and has renewed
one tenant  occupying  3,001  square  feet to a five year lease.  Management  is
currently  negotiating  lease terms with a prospective  tenant for approximately
1,100 square feet of space and is  negotiating  lease renewals for three tenants
occupying a total of 2,140 square feet of space.

The 6%  increase  in  occupancy  from June 30, 1998 to June 30, 1999 at Carnegie
Business  Center I is attributed to the leasing of 4,122 square feet of space to
two new tenants.  Management is currently  negotiating a lease expansion with an
existing tenant for an additional 3,985 square feet of space.

The  construction  of Office Max and Mimi's  Cafe,  23,500 and 6,455 square feet
build-to-suit   retail   buildings,   was  completed  during  1998,  with  lease
commencements in October, 1998 and January, 1999, respectively.

Interest income increased $87,000 or 378% and $21,000 or 162% during the six and
three  months  ended June 30,  1999,  compared to the six and three months ended
June 30,  1998,  respectively,  as a result  of the  increase  in cash  reserves
resulting from the sale of Shadowridge.

The gain on sale of rental  property of $5,468,000  for the six and three months
ended June 30, 1998 resulted from the June 1998 sale of Shadowridge.

Expenses

Operating expenses decreased $272,000 or 17% and $101,000 or 14% for the six and
three  months  ended June 30,  1999,  compared to the six and three months ended
June 30, 1998, respectively, due primarily to the June 1998 sale of Shadowridge.
This decrease is partially offset by an increase in property  operating expenses
attributable to the commencement of operations of Office Max and Mimi's Cafe.

Interest  expense  decreased  $224,000 or 23% and $90,000 or 19% for the six and
three  months  ended June 30,  1999,  compared to the six and three months ended
June 30, 1998,  respectively,  due to the payoff of the $5,800,000,  7.95% fixed
rate loan secured by Shadowridge.

Depreciation and amortization  increased  $102,000 or 15% and $60,000 or 17% for
the six and three  months  ended June 30,  1999,  compared  to the six and three
months ended June 30, 1998,  respectively,  due primarily to the commencement of
operations of Office Max and Mimi's Cafe.

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.  The loss on sale of real estate
of $11,000 for the six months  ended June 30, 1998  resulted  from the sale of a
Rancon Towne Village parcel.

Expenses  associated with undeveloped land decreased  $62,000 or 22% and $47,000
or 33% for the six and three months ended June 30, 1999, compared to the six and


                                 Page 15 of 19
<PAGE>


three months ended June 30, 1998, respectively,  due to: (i) the receipt of real
estate tax refunds in May 1999; (ii) the reduction of property taxes as a result
of the sale of the Perris  property in January 1999;  and (iii) the reduction of
expenses upon  completion of  construction  of Office Max and Mimi's Cafe during
the last quarter of 1998.

General and administrative expenses decreased $127,000 or 20% and $82,000 or 24%
for the six and three months ended June 30, 1999,  compared to the six and three
months ended June 30, 1998,  respectively,  primarily due to a decrease in asset
management fees resulting from the 1998 sale of Shadowridge.

The proposed  dissolution costs of $154,000 and $22,000 for the six months ended
June 30, 1999 and 1998,  respectively,  represent charges for work performed and
expenses  incurred while exploring the  possibilities  of having the Partnership
sell all of its properties and liquidate  thereafter,  and costs relating to the
preparation of preliminary proxy materials in the quarter ended June 30, 1999.

Year 2000 Compliance

State of Readiness.  Glenborough Corporation ("Glenborough"),  the Partnership's
asset and property manager,  utilizes a number of computer software programs and
operating  systems.  These programs and systems primarily  comprise  information
technology  systems  ("IT  Systems")  (i.e.,   software  programs  and  computer
operating   systems)  that  serve  the  management   operations.   Although  the
Partnership  does not  utilize  any  significant  IT Systems of its own, it does

utilize embedded systems such as devices used to control,  monitor or assist the
operation  of equipment  and  machinery  systems  (e.g.,  HVAC,  fire safety and
security) at its properties  ("Property  Systems").  To the extent that software
applications contain a source code that is unable to appropriately interpret the
upcoming  calendar  year  "2000"  and  beyond,  some  level of  modification  or
replacement of these IT Systems and Property Systems will be necessary.

IT  Systems.  Employing  a team made up of internal  personnel  and  third-party
consultants,   Glenborough  has  completed  an  identification  of  IT  Systems,
including hardware components that are not yet Year 2000 compliant.  To the best
of Glenborough's knowledge based on available information and a reasonable level
of inquiry and  investigation,  such upgrading as appears to be called for under
the  circumstances  has been completed in accordance  with  prevailing  industry
practice.  Glenborough  has commenced a testing  program which will be completed
during 1999. In addition, the Partnership is currently  communicating with third
parties with whom it does significant business,  such as financial institutions,
tenants and vendors, to determine their readiness for Year 2000 compliance.

Property Systems.  An identification  of Property  Systems,  including  hardware
components,  that are not yet Year  2000  compliant,  has also  been  completed.
Upgrading  of such  systems as appears to be called for under the  circumstances
based  on  available   information  and  a  reasonable   level  of  inquiry  and
investigation,   and  in  accordance  with  prevailing   industry  practice  has
commenced.  Upon  completion  of  such  upgrading,  a  testing  program  will be
initiated and completed during 1999. To the best of Glenborough's knowledge, the
Partnership has no Property Systems,  the failure of which would have a material
effect on its operations.

Costs of Addressing Year 2000 issues.  Given the information  known at this time
about systems that are  non-compliant,  coupled with ongoing,  normal  course-of


                                 Page 16 of 19
<PAGE>


business  efforts to upgrade or replace  critical  systems,  as  necessary,  the
Partnership  does not  expect  Year  2000  compliance  costs to have a  material
adverse impact on its liquidity or ongoing  results of operations.  The costs of
assessment  and  remediation  of  the  Property  Systems  will  be  paid  by the
Partnership as an operating expense.

Risks of Year 2000 issues.  In light of the assessment and upgrading  efforts to
date, and assuming completion of the planned, normal course-of-business upgrades
and subsequent  testing,  the  Partnership  believes that any residual Year 2000
risk will be limited to non-critical business applications and support hardware,
and to short-term  interruptions affecting Property Systems which, if they occur
at  all,  will  not be  material  to  overall  operations.  Glenborough  and the
Partnership  believe that all IT Systems and Property  Systems will be Year 2000
compliant and that  compliance will not materially  adversely  affect its future
liquidity  or results of  operations  or its ability to service  debt.  However,
absolute assurance that this is the case cannot be given.

Contingency  Plans.  The Partnership is currently  developing a contingency plan
for all  operations  which will  address the most  reasonably  likely worst case
scenario regarding Year 2000 compliance.  Such a plan,  however,  will recognize
material  limitations  on the ability to respond to major regional or industrial
failures such as power outages or communications breakdowns.  Management expects
such a contingency plan to be completed during 1999.




                                 Page 17 of 19
<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

                  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 13, 1999                 By:     /s/  DANIEL L. STEPHENSON
                                                 --------------------------
                                                 Daniel L. Stephenson, President

Date:    August 13, 1999         By:     /s/  DANIEL L. STEPHENSON
                                         --------------------------
                                         Daniel L. Stephenson, General Partner










                                 Page 19 of 19
<PAGE>