<PAGE>   1


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

                  For the quarterly period ended June 30, 2001

                                       OR

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


                         Commission file number: 0-14207


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

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

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

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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.


                                Yes  [X]   No  [ ]

         Total number of units outstanding as of August 9, 2001: 74,231


                                  Page 1 of 16
<PAGE>   2


PART I.          FINANCIAL INFORMATION

ITEM 1.          FINANCIAL STATEMENTS

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

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

<TABLE>
<CAPTION>
                                                                         June 30,        December 31,
                                                                           2001             2000
                                                                        ----------       -----------
<S>                                                                     <C>              <C>
        Assets
        Investments in real estate:
            Rental property, net of accumulated depreciation of
              $16,400 and $15,644 at June 30, 2001 and December
              31, 2000, respectively                                    $   32,664       $   33,261
            Land held for development                                        1,214            1,216
            Land held for sale                                                  --              179
                                                                        ----------       ----------

                Total real estate investments                               33,878           34,656

            Cash and cash equivalents                                        1,600            4,604
            Restricted cash                                                     --              284
            Accounts receivable                                                120              191
            Deferred financing costs and other fees, net of
              accumulated amortization of $1,945 and $1,780
              at June 30, 2001 and December 31, 2000, respectively           1,272            1,142
            Prepaid expenses and other assets                                1,084              975
                                                                        ----------       ----------

                Total assets                                            $   37,954       $   41,852
                                                                        ==========       ==========

        Liabilities and Partners' Equity
        Liabilities:
            Notes payable                                               $   12,423       $   15,551
            Distributions payable-General Partners                              --               58
            Accounts payable and other liabilities                             220              708
                                                                        ----------       ----------

                 Total liabilities                                          12,643           16,317
                                                                        ----------       ----------

        Commitments and contingent liabilities (Note 6)                         --               --

        Partners' Equity:
            General partners                                                  (703)            (703)
            Limited partners,74,257 and 74,608 limited partnership
              units outstanding at June 30, 2001 and December 31,
              2000, respectively                                            26,014           26,238
                                                                        ----------       ----------

                  Total partners' equity                                    25,311           25,535
                                                                        ----------       ----------

                 Total liabilities and partners' equity                 $   37,954       $   41,852
                                                                        ==========       ==========
</TABLE>

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


                                  Page 2 of 16
<PAGE>   3



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

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


<TABLE>
<CAPTION>
                                                           Three months ended              Six months ended
                                                                June 30,                        June 30,
                                                         ------------------------       -------------------------
                                                            2001           2000            2001            2000
                                                         ---------      ---------       ---------       ---------
<S>                                                      <C>            <C>             <C>             <C>
        Revenues:
           Rental income                                 $   1,898      $   1,811       $   3,594       $   3,459
           Interest and other income                            30             65              81             144
                                                         ---------      ---------       ---------       ---------

                       Total revenues                        1,928          1,876           3,675           3,603
                                                         ---------      ---------       ---------       ---------
        Expenses:
           Operating                                           678            726           1,366           1,360
           Interest expense                                    375            371             760             749
           Depreciation and amortization                       422            413             866             826
           Loss on sales of real estate                         --             23              --              23
           Expenses associated with
             undeveloped land                                   77             94             187             213
           General and administrative                          287            252             617             489
           Proposed dissolution costs                           --             15              --              32
                                                         ---------      ---------       ---------       ---------

                       Total expenses                        1,839          1,894           3,796           3,692
                                                         ---------      ---------       ---------       ---------

        Net income (loss)                                $      89      $     (18)      $    (121)      $     (89)
                                                         =========      =========       =========       =========

        Net income (loss) per limited
           partnership unit                              $    1.19      $   (0.22)      $   (1.63)      $   (1.16)
                                                         =========      =========       =========       =========

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

              Total distributions per limited
              partnership unit                           $      --      $      --       $      --       $      --
                                                         =========      =========       =========       =========
        Weighted average number of limited
           partnership units outstanding
           during each period used to
           compute net loss per limited
           partnership unit                                 74,262         76,748          74,314          76,756
                                                         =========      =========       =========       =========
</TABLE>


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


                                  Page 3 of 16
<PAGE>   4



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statement of Partners' Equity (Deficit)
                     For the six months ended June 30, 2001
                                 (in thousands)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                     General        Limited
                                                     Partners       Partners        Total
                                                     ---------      ---------      ---------
<S>                                                  <C>            <C>            <C>
        Balance at December 31, 2000                 $    (703)     $  26,238      $  25,535

        Retirement of limited partnership units             --           (103)          (103)

        Net loss                                            --           (121)          (121)
                                                     ---------      ---------      ---------

        Balance at June 30, 2001                     $    (703)     $  26,014      $  25,311
                                                     =========      =========      =========
</TABLE>



















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



                                  Page 4 of 16
<PAGE>   5




                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

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


<TABLE>
<CAPTION>
                                                                        Six months ended
                                                                            June 30,
                                                                   ---------------------------
                                                                      2001             2000
                                                                   ----------       ----------
<S>                                                                <C>              <C>
Cash flows from operating activities:
    Net loss                                                       $     (121)      $      (89)
    Adjustments to reconcile net loss to net cash provided
      by operating activities:
        Net loss on sales of real estate                                   --               23
        Depreciation and amortization                                     866              826
        Amortization of loan fees, included in
         interest expense                                                  55               49
        Changes in certain assets and liabilities:
         Accounts receivable                                               71               78
         Deferred financing costs and other fees                         (295)            (105)
         Prepaid expenses and other assets                               (109)              (8)
         Accounts payable and other liabilities                          (488)             (37)
                                                                   ----------       ----------

         Net cash (used for) provided by operating activities             (21)             737
                                                                   ----------       ----------

Cash flows from investing activities:
    Net proceeds from sales of land                                       179              290
    Net additions to real estate investments                             (157)            (527)
    Release of restricted cash                                            284               --
                                                                   ----------       ----------
         Net cash provided by (used for) investing activities             306             (237)
                                                                   ----------       ----------

Cash flows from financing activities:
    Notes payable principal payments                                   (3,128)            (119)
    Distributions to General Partner                                      (58)              --
    Retirement of limited partnership units                              (103)              (7)
                                                                   ----------       ----------

         Net cash used for financing activities                        (3,289)            (126)
                                                                   ----------       ----------

Net (decrease) increase in cash and cash equivalents                   (3,004)             374

Cash and cash equivalents at beginning of period                        4,604            6,133
                                                                   ----------       ----------

Cash and cash equivalents at end of period                         $    1,600       $    6,507
                                                                   ==========       ==========

Supplemental disclosure of cash flow information:
      Cash paid for interest                                       $      705       $      726
                                                                   ==========       ==========
      Interest capitalized                                        $        --       $       26
                                                                   ==========       ==========
      Non-cash activities resulting from refinancing of debt       $    7,200      $        --
                                                                   ==========       ==========
</TABLE>


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



                                  Page 5 of 16
<PAGE>   6



                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 2001
                                   (Unaudited)

Note 1. ORGANIZATION

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

In November 2000, the Partnership offered to redeem the units of limited
partnership interest (the "Units") in the Partnership held by investors who own
no more than four Units in total under any single registered title (the "Small
Investments") at a purchase price of $292 per Unit. During the six months ended
June 30, 2001, 351 Units were redeemed in connection with this offer. As of June
30, 2001, there were 74,257 Units outstanding.

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the "Sponsors" or "General Partner") and Glenborough Realty Trust Incorporated,
the Partnership's asset and property manager ("Glenborough"), the accompanying
unaudited financial statements contain all adjustments (consisting of only
normal accruals) necessary to present fairly the financial position of Rancon
Realty Fund IV, a California Limited Partnership (the "Partnership") as of June
30, 2001 and December 31, 2000, and the related statements of operations for the
three and six months ended June 30, 2001 and 2000, and cash flows for the six
months ended June 30, 2001 and 2000.

Allocation of Net Income and Net Loss

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

Net income other than net income from operations shall be allocated as follows:
(i) first, to the partners who have a deficit balance in their capital account,
provided that, in no event shall the general partners be allocated more than 5%
of the net income other than net income from operations until the earlier of
sale or disposition of substantially all of the assets or the distribution of
cash (other than cash from operations) equal to the limited partner's original
invested capital; (ii) second, to the limited partners in proportion to and to
the extent of the amounts required to increase their capital accounts to an
amount equal to the sum of the adjusted invested capital of their units plus an
additional cumulative non-compounded 6% return per annum (plus additional
amounts depending on the date units were purchased); (iii) third, to the
partners in the minimum amount required to first equalize their capital accounts
in proportion to the number of units owned, and then, to bring the sum of the
balances of the capital accounts of the limited partners and the general
partners into the ratio of 4 to 1; and (iv) the balance, if any, 80% to the
limited partners and 20% to the general partners. In no event shall the general
partners be allocated less than 1% of the net income other than net income from
operations for any period. Net loss other than net loss from operations shall be
allocated 99% to the limited partners and 1% to the general partners.

                                  Page 6 of 16
<PAGE>   7

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 2001
                                   (Unaudited)


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

The Partnership will pay Glenborough for its services as follows: (i) a
specified asset administration fee ($338,000 and $306,000 as of June 30, 2001
and 2000); (ii) sales fees of 2% for improved properties and 4% for land ($8,000
as of June 30, 2001); (iii) a refinancing fee of 1% ($200,000 as of June 30,
2001) and (iv) a management fee of 5% of gross rental receipts. As part of this
agreement, Glenborough will perform certain duties for the General Partner of
the Rancon Partnerships. RFC agreed to cooperate with Glenborough, should
Glenborough attempt to obtain a majority vote of the limited partners to
substitute itself as the Sponsor for the Rancon Partnerships. Glenborough is not
an affiliate of RFC or the Partnership.

Risks and Uncertainties

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

Note 2. SIGNIFICANT ACCOUNTING POLICES

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

Use of Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of

                                  Page 7 of 16
<PAGE>   8

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 2001
                                   (Unaudited)


the financial statements and the results of operations during the reporting
period. Actual results could differ from those estimates.

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

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

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

Land Held for Development - Land held for development is stated at cost unless
events or circumstances indicate that cost cannot be recovered, in which case,
the carrying value is reduced to estimated fair value. Estimated fair value: (i)
is based on the Partnership's plans for the development of each property; (ii)
is computed using estimated sales price, based upon market values for comparable
properties; and (iii) considers the cost to complete and the estimated fair
value of the completed project. The fulfillment of the Partnership's plans
related to each of its properties is dependent upon, among other things, the
presence of economic conditions which will enable the Partnership to either hold
the properties for eventual sale or obtain financing to further develop the
properties.

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

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

                                  Page 8 of 16
<PAGE>   9

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 2001
                                   (Unaudited)


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

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

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

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

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

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

Concentration Risk - Two tenants represented 29 percent of rental income for the
six months ended June 30, 2001.

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

Note 3. INVESTMENTS IN REAL ESTATE

Rental property consisted of the following at June 30, 2001 and December 31,
2000 (in thousands):


<TABLE>
<CAPTION>
                                                      2001            2000
                                                   ---------       ---------
<S>                                                <C>             <C>
Land                                               $   4,679       $   4,679
Buildings                                             33,891          32,390
Leasehold and other improvements                      10,494          11,836
                                                   ---------       ---------
                                                      49,064          48,905
Less: accumulated depreciation                       (16,400)        (15,644)
                                                   ---------       ---------
Total rental property, net                         $  32,664       $  33,261
                                                   =========       =========
</TABLE>


                                  Page 9 of 16
<PAGE>   10

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 2001
                                   (Unaudited)

At June 30, 2001, the Partnership's rental property included seven retail and
five office/R & D projects at the Tri-City Corporate Centre in San Bernardino,
California.

Land held for development consists of the following at June 30, 2001 and
December 31, 2000 (in thousands):
<TABLE>
<CAPTION>
                                                       2001            2000
                                                   ----------      ----------
<S>                                                <C>             <C>
22.5 acres at Tri-City Corporate Centre,
  San Bernardino, CA                               $    1,214      $    1,216
                                                   ==========      ==========
</TABLE>

Note 4. RESTRICTED CASH

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

Note 5. NOTES PAYABLE

Notes payable as of June 30, 2001 and December 31, 2000 were as follows (in
thousands):

<TABLE>
<CAPTION>
                                                 2001            2000
                                              ----------      ----------
<S>                                           <C>             <C>
Note payable secured by first deeds of
trust on Service Retail Center,
Promotional Retail Center and Carnegie
Business Center I. The note, which
matures May 1, 2006, is a 10-year,
8.744% fixed rate loan with a 25-year
amortization requiring monthly payments
of principal and interest totaling $53        $    6,037      $    6,093

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

Note payable secured by first deed of
trust on the One Vanderbilt building
with a fixed interest rate of 9%,
monthly payments of principal and
interest totaling $20, and a maturity
date of January 1, 2005                            2,186           2,211
</TABLE>



                                  Page 10 of 16
<PAGE>   11

                              RANCON REALTY FUND IV
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 2001
                                   (Unaudited)


<TABLE>
                                                 2001            2000
                                              ----------      ----------
<S>                                           <C>             <C>
Note payable secured by first deeds of
trust on Circuit City and TGI Friday's
with a variable interest rate of one
percent (1%) per annum in excess of the
lender's "Prime Rate" (8.5% and 10.50%
as of April 30, 2001 and December 31,
2000, respectively), monthly payments of
principal and interest totaling $60, and
a maturity date of April 30, 2001. This
note was paid off in April 2001. See
below for further discussion                          --           4,895

Line of credit secured by first deeds of
trust on IRC building, Circuit City and
TGI Friday's with a variable interest
rate of lender's "Prime Rate" (7% as of
June 30, 2001), monthly interest- only
payments, and a maturity date of April
15, 2004                                           4,200              --
                                              ----------      ----------

               Total notes payable                12,423      $   15,551
                                              ==========      ==========
</TABLE>


In April 2001, the Partnership obtained a $7,200,000 line of credit (note above)
from a bank to pay off the two notes secured by the IRC, Circuit City and TGI
Friday's properties. This line of credit was partially paid off in May 2001. As
of June 30, 2001, the remaining balance is $4,200,000.

Note 6. COMMITMENTS AND CONTINGENT LIABILITIES

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

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

Other Matters - The Partnership is contingently liable for subordinated real
estate commissions payable to the Sponsors in the aggregate amount of $643,000
at June 30, 2001, for sales that transpired in previous years. The subordinated
real estate commissions are payable only after the Limited Partners have
received distributions equal to their original invested capital plus a
cumulative non-compounded return of 6% per annum on their adjusted invested
capital. Since the circumstances under which these commissions would be payable
are limited, the liability has not been recognized in the accompanying
consolidated financial statements; however, the amount will be recorded when and
if it becomes payable.



                                 Page 11 of 16
<PAGE>   12



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

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

LIQUIDITY AND CAPITAL RESOURCES

At June 30, 2001, the Partnership had cash of $1,600,000. The remainder of the
Partnership's assets consist primarily of its net investments in real estate,
totaling approximately $33,878,000, which includes $32,664,000 in rental
properties and $1,214,000 of land held for development.

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

The Partnership's primary liabilities at June 30, 2001 include notes payable,
totaling approximately $12,423,000 which consist of three secured loans
encumbering properties with an aggregate net book value of approximately
$24,574,000 and maturity dates of April 30, 2004 to May 1, 2006. These notes
require monthly principal and interest payments ranging from $20,000 to $53,000.
Two notes bear fixed interest at rates between 8.744% and 9%, and a line of
credit bears interest at a variable rate of the lender's Prime Rate, which was
7% at June 30, 2001.

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

Management believes that the Partnership's cash balance as of June 30, 2001,
together with cash from operations, sales and financing, will be sufficient to
finance the Partnership's and the properties' continued operations and
development plans on a short-term basis and for the reasonably foreseeable
future. There can be no assurance that the Partnership's results of operations
will not fluctuate in the future and at times affect its ability to meet its
operating requirements.

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

Operating Activities

During the six months ended June 30, 2001, the Partnership's cash used for
operating activities totaled $21,000.

The $71,000 decrease in accounts receivable at June 30, 2001, compared to
December 31, 2000, was primarily due to the collection of tenant rents.

                                 Page 12 of 16
<PAGE>   13

The $295,000 increase in deferred financing costs and other fees at June 30,
2001, compared to December 31, 2000, was primarily due to the payments of loan
fees related to a new line of credit from a bank.

The $109,000 increase in prepaid expenses and other assets at June 30, 2001,
compared to December 31, 2000, was primarily due to an increase in the mortgage
impound accounts and the prepayment of third quarter investor service fees.

The $488,000 decrease in accounts payable and other liabilities at June 30,
2001, compared to December 31, 2000, was primarily due to the payments of
property taxes in the second quarter, and the release of a security deposit
(restricted cash) to the tenant at the IRC property.

Investing Activities

During the six months ended June 30, 2001, the Partnership's cash provided by
investing activities totaled $306,000, which included $179,000 of net cash
proceeds from the sale of land located in Temecula, Riverside County,
California, $157,000 of cash used for additions to real estate, and $284,000 of
restricted cash released for payment of IRC's security deposit.

Financing Activities

During the six months ended June 30, 2001, the Partnership's cash used for
financing activities totaled $3,289,000, which consisted of $3,128,000 in
principal payments on notes payable, $58,000 of distributions to the General
Partner, and $103,000 paid to redeem 351 limited partnership units ("Units").

Results of Operations

Revenues

Rental income increased $87,000, or 5%, and $135,000, or 4%, during the three
and six months ended June 30, 2001, compared to the three and six months ended
June 30, 2000, respectively, primarily due to the partial lease-up of Palm Court
#1 and #2 in September 2000 and January 2001, respectively.

Occupancy rates at the Partnership's Tri-City properties as of June 30, 2001 and
2000 were as follows:

<TABLE>
<CAPTION>
                                                           June 30,
                                                 ------------------------------
                                                     2001             2000
                                                 -------------    -------------
<S>                                              <C>              <C>
    One Vanderbilt                                    88%              88%
    Two Vanderbilt                                   100%             100%
    Service Retail Center                            100%             100%
    Carnegie Business Center I                        82%              88%
    Promotional Retail Center                        100%             100%
    Inland Regional Center                           100%             100%
    TGI Friday's                                     100%             100%
    Circuit City                                     100%             100%
    Office Max                                       100%             100%
    Mimi's Cafe                                      100%             100%
    Palm Court Retail #1                              60%              N/A
    Palm Court Retail #2                             100%              N/A
</TABLE>

As of June 30, 2001, tenants at Tri-City occupying substantial portions of
leased rental space included: (i) Inland Empire Health Plan with a lease through
March 2002; (ii) CompUSA with a lease through August

                                 Page 13 of 16
<PAGE>   14

2003; (iii) ITT Educational Services with a lease through December 2004; (iv)
PetsMart with a lease through January 2009; (v) Inland Regional Center with a
lease through July 2009; (vi) Circuit City with a lease through January 2018;
and (vii) Office Max with a lease through October 2013. These seven tenants, in
the aggregate, occupied approximately 283,000 square feet of the 464,000 total
leasable square feet at Tri-City and accounted for approximately 61% of the
rental income of the Partnership during the second quarter of 2001.

The 6% decrease in occupancy from June 30, 2000 to June 30, 2001 at Carnegie
Business Center I was due to two tenants occupying 3,873 square feet moving out
upon their lease expirations.

Palm Court Retail #1 was placed in service in September 2000, and 3,021 square
feet was leased to two new tenants by the end of 2000.

Palm Court Retail #2 was placed in service in January 2001, and 7,433 square
feet was leased to one tenant in May 2001.

Interest and other income decreased $35,000 and $63,000 for the three and six
months ended June 30, 2001, compared to the three and six months ended June 30,
2000, primarily due to a lower average invested cash balance resulting from
distributions to General and Limited Partners in November 2000 and the partial
payoff of the line of credit in May 2001.

Expenses

Operating expenses decreased $48,000, or 7%, for the three months ended June 30,
2001, compared to the three months ended June 30, 2000, primarily due to a
decrease in property taxes resulting from lower assessments on certain
properties from tax appeals. Operating expenses of $1,366,000 for the six months
ended June 30, 2001 increased slightly from $1,360,000, primarily due to the
commencement of operations at Palm Court Retail #1 and #2.

Depreciation and amortization increased $9,000, or 2%, and $40,000, or 5%, for
the three and six months ended June 30, 2001, compared to the three and six
months ended June 30, 2000, primarily due to the commencement of operations at
Palm Court Retail #1 and #2.

Interest expense increased slightly during the three and six months ended June
30, 2001, compared to the three and six months ended June 30, 2000,
respectively, due to amortization of loan fees from the refinancing.

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

Expenses associated with undeveloped land decreased $17,000, or 18%, and
$26,000, or 12%, for the three and six months ended June 30, 2001, compared to
the three and six months ended June 30, 2000, primarily due to the completion of
construction at Palm Court Pad #1 and #2.

General and administrative expenses increased $35,000, or 14%, and $128,000, or
26%, for the three and six months ended June 30, 2001, compared to the three and
six months ended June 30, 2000, primarily due to an increase in asset management
fees and investor service expenses for the redemption program.

The proposed dissolution costs of $15,000 and $32,000 for the three and six
months ended June 30, 2000, consisted of expenses incurred related to the
Partnership's plan to sell the properties and dissolve the Partnership. The plan
was discontinued in June 2000.


                                 Page 14 of 16
<PAGE>   15



PART II.       OTHER INFORMATION


ITEM 1.        LEGAL PROCEEDINGS

               None.

ITEM 2.        CHANGES IN SECURITIES AND USE OF PROCEEDS

               Not applicable.

ITEM 3.        DEFAULTS UPON SENIOR SECURITIES

               Not applicable.

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

               None.

ITEM 5.        OTHER INFORMATION

               None.

ITEM 6.        EXHIBITS AND REPORTS ON FORM 8-K

               (a)  Exhibits:

               None

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

               None.


                                 Page 15 of 16
<PAGE>   16



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

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



                                 Page 16 of 16