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 March 31, 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 March 31, 1999: 76,765







                                  Page 1 of 17
<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)


                                                                       March 31,       December 31,
                                                                          1999             1998
                                                                      (Unaudited)       (Audited)
                                                                     ------------      ------------
<S>                                                                  <C>               <C>
Assets
Investments in real estate:
   Rental property, net of accumulated depreciation of
     $13,069 and $12,723 at March 31, 1999 and December
     31, 1998, respectively                                          $     33,651      $     33,781
   Land held for development                                                1,579             1,575
   Land held for sale                                                       2,441             2,741
                                                                     ------------      ------------

       Total real estate investments                                       37,671            38,097

   Cash and cash equivalents                                                4,365             4,297
   Restricted cash                                                            369               369
   Deferred financing costs and other fees, net of
     accumulated amortization of $1,261 and $1,195
     at March 31, 1999 and December 31, 1998, respectively                  1,412             1,312
   Prepaid expenses and other assets                                        1,435             1,434
                                                                     ------------       -----------

       Total assets                                                  $     45,252       $    45,509
                                                                     ============       ===========

Liabilities and Partners' Equity (Deficit)
Liabilities:
   Notes payable                                                     $     15,965       $    16,005
   Accounts payable and other liabilities                                     845               929
                                                                     ------------       -----------
     Total liabilities                                                     16,810            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 March 31, 1999 and December 31,
     1998, respectively                                                    29,100            29,233
                                                                     ------------       -----------
     Total partners' equity                                                28,442            28,575
                                                                     ------------       -----------

         Total liabilities and partners' equity                      $     45,252       $    45,509
                                                                     ============       ===========
</TABLE>


                           See accompanying notes to financial statements.





                                             Page 2 of 17
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

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



                                                        Three months ended
                                                             March 31,
                                                    ---------------------------
                                                        1999            1998
                                                    -----------     -----------
 Revenues:
    Rental income                                   $     1,623     $     1,910
    Interest and other income                                76              10
                                                    -----------     -----------
      Total revenues                                      1,699           1,920
                                                    -----------     -----------

 Expenses:
    Operating                                               652             823
    Interest expense                                        374             508
    Depreciation and amortization                           389             347
    Loss on sales of real estate                              4              11
    Expenses associated with undeveloped land               124             139
    General and administrative                              243             288
    Proposed dissolution costs                               45              22
                                                    -----------     -----------
      Total expenses                                      1,831           2,138
                                                    -----------     -----------

 Net loss                                           $      (132)    $      (218)
                                                    ===========     ===========

 Net loss per limited partnership unit              $     (1.72)    $     (2.83)
                                                    ===========     ===========

 Weighted average number of limited partnership
    units outstanding during each period used to
    compute net loss per limited partnership unit        76,766          76,940
                                                    ===========     ===========














                 See accompanying notes to financial statements.





                                  Page 3 of 17
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statement of Partners' Equity (Deficit)
                    For the three months ended March 31, 1999
                                 (in thousands)



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

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

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

 Net loss                                           --         (132)       (132)
                                             ---------    ---------   ---------

 Balance at March 31, 1999                   $    (658)   $  29,100   $  28,442
                                             =========    =========   =========
































                 See accompanying notes to financial statements.





                                  Page 4 of 17
<PAGE>


<TABLE>
<CAPTION>

                                  RANCON REALTY FUND IV,
                             A CALIFORNIA LIMITED PARTNERSHIP

                          Consolidated Statements of Cash Flows
                                      (in thousands)

                                                                 Three months ended
                                                                      March 31,
                                                            ---------------------------
                                                                 1999            1998
                                                            ----------       ----------
<S>                                                         <C>              <C>
Cash flows from operating activities:
   Net loss                                                 $     (132)      $     (218)
   Adjustments to reconcile net loss
     to net cash provided by operating activities:
       Loss on sales of real estate                                  4               11
       Depreciation and amortization                               389              347
       Amortization of loan fees, included in
         interest expense                                           23               28
       Changes in certain assets and liabilities:
         Accounts and interest receivable                           --              (75)
         Deferred financing costs and other fees                  (166)             (71)
         Prepaid expenses and other assets                          (1)             (51)
         Accounts payable and other liabilities                    (84)             263
         Interest payable                                           --               17
                                                            ----------       ----------

         Net cash provided by operating activities                  33              251
                                                            ----------       ----------

Cash flows from investing activities:
   Net proceeds from sales of land                                 296              241
   Net additions to real estate investments                       (220)            (174)
                                                            ----------       ----------

         Net cash provided by investing activities                  76               67
                                                            ----------       ----------

Cash flows from financing activities:
   Notes payable principal payments                                (40)             (63)
   Retirement of limited partnership units                          (1)             (86)
                                                            ----------       ----------

         Net cash used for financing activities                    (41)            (149)
                                                            ----------       ----------

Net increase in cash and cash equivalents                           68              169

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

Cash and cash equivalents at end of period                  $    4,365       $      957
                                                            ==========       ==========

Supplemental disclosure of cash flow information:
     Cash paid for interest                                 $      352       $      463
                                                            ==========       ==========
</TABLE>



                     See accompanying notes to financial statements.




                                  Page 5 of 17
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 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  financial  statements  contain all  adjustments  (consisting  of only
normal  accruals)  necessary to present fairly the financial  position of Rancon
Realty Fund IV, A California Limited Partnership (the "Partnership") as of March
31, 1999 and December 31, 1998,  and the related  statements of  operations  and
cash flows for the three months ended March 31, 1999 and 1998.

Proposed Asset Sale and  Dissolution - The General  Partner  currently  plans to
seek the Limited Partners'  consent to sell all of the  Partnership's  remaining
properties  and  liquidate the  Partnership  and has filed  preliminary  consent
solicitation materials with the United States Securities and Exchange Commission
(the  "Commission") with the goal of mailing consent  solicitation  materials to
the Limited Partners in the quarter ending June 30, 1999. Assuming a proposal to
sell all of the Partnership's remaining properties and liquidate the Partnership
is  submitted  to and  approved by the  Limited  Partners,  the General  Partner
currently intends to sell all of the Partnership's remaining properties in 1999,
distribute  the  proceeds  and  liquidate  the  Partnership  after  all  of  the
properties are sold and the cash proceeds  thereof  received,  which the General
Partner  does not expect to occur prior to 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
remaining properties. If the Limited Partners consent to the Partnership selling
all of its  remaining  properties  and then  liquidating,  the  General  Partner
currently  intends to offer the Partnership's  remaining  properties for sale by
soliciting bids from various potential purchasers.

If a proposal for the sale of the  Partnership's  properties and  liquidation of
the  Partnership  is submitted to the Limited  Partners,  but not approved,  the
Partnership  currently intends to 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,


                                  Page 6 of 17
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 1999
                                   (Unaudited)


to the partners who have a deficit  balance in their capital  account,  provided
that,  in no event shall the general  partners be allocated  more than 5% of the
net income  other than net income from  operations  until the earlier of sale or
disposition  of  substantially  all of the  assets or the  distribution  of cash
(other than cash from operations)  equal to the Unitholder's  original  invested
capital; (ii) second, to the limited partners in proportion to and to the extent
of the amounts 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  Matters - Effective  January 1, 1995,  Glenborough  entered  into an
agreement with the Partnership and other related Partnerships (collectively, the
"Rancon  Partnerships") to perform or contract on the Partnership's  behalf, for
financial,  accounting,  data processing,  marketing, legal, investor relations,
asset and development management and consulting services for the Partnership for
a period of ten years or until the  liquidation  of the  Partnership,  whichever
comes first.  Effective  January 1, 1998, the agreement was amended to eliminate
Glenborough's  responsibility  for  providing  investor  relations  services and
Preferred Partnership Services, Inc., a California Corporation unaffiliated with
the  Partnership,  contracted  to assume these  services.  In August  1998,  the
management agreement was further amended to provide Glenborough with a guarantee
of a specified amount of asset  management and property  management fees through
December 31, 1999, regardless of whether the Partnership 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
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% 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  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.


                                  Page 7 of 17
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 1999
                                   (Unaudited)


The  consent  of the  partners  to a proposal  to sell all of the  Partnership's
remaining   properties  and  liquidate  the  Partnership  will  not  impact  the
accounting  treatment  applied by the  Partnership  in its 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 $6,268,000 at March 31, 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  Partnership  considers  all
assets owned by RRF IV, Inc. and RRF IV Tri-City to be owned by the Partnership.

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

Note 2.      REFERENCE TO 1998 AUDITED FINANCIAL STATEMENTS

These  unaudited  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.


                                  Page 8 of 17
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 1999
                                   (Unaudited)


Note 4.      COMMITMENTS AND CONTINGENT LIABILITIES

The Partnership is contingently  liable for subordinated real estate commissions
payable to the  Sponsors in the  aggregate  amount of $643,000 at March 31, 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.  Since the circumstances under which these commissions would be payable
are limited, the liability has not been recognized in the accompanying financial
statements; however, the amount will be recorded when and if it becomes payable.

The Partnership is also  contingently  liable for a subordinated note payable in
connection  with  the  land  in  Temecula,   California,  that  the  Partnership
reacquired in June 1992 through a deed in lieu of foreclosure in satisfaction of
a $2,276,000 note receivable. The subordinated note payable and accrued interest
total $566,000 as of March 31, 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 financial statements; however, the amount will
be recognized prior to recording any gain on the sale of the related land.










                                  Page 9 of 17
<PAGE>


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

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 1999, the Partnership had cash of $4,365,000 (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  $37,671,000 at
March 31, 1999, which includes  $33,651,000 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 Item 1, the  General  Partner  currently  plans  to seek  the  Limited
Partners'  consent to sell all of the  Partnership's  remaining  properties  and
liquidate  the  Partnership  and  has  filed  preliminary  consent  solicitation
materials  with the  United  States  Securities  and  Exchange  Commission  (the
"Commission")  with the goal of mailing  consent  solicitation  materials to the
Limited  Partners in the quarter  ending June 30,  1999.  Assuming a proposal to
sell all of the Partnership's remaining properties and liquidate the Partnership
is  submitted  to and  approved by the  Limited  Partners,  the General  Partner
currently intends to sell all of the Partnership's remaining properties in 1999,
distribute  the  proceeds  and  liquidate  the  Partnership  after  all  of  the
properties are sold and the cash proceeds  thereof  received,  which the General
Partner  does not expect to occur prior to 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
remaining properties. If the Limited Partners consent to the Partnership selling
all of its  remaining  properties  and then  liquidating,  the  General  Partner
currently  intends to offer the Partnership's  remaining  properties for sale by
soliciting bids from various potential purchasers.

If a proposal for the sale of the  Partnership's  properties and  liquidation of
the  Partnership  is submitted to the Limited  Partners,  but not approved,  the
Partnership  currently intends to 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.

The  discussion  above  contains   forward-looking   statements   regarding  the
Partnership's plans, goals and expectations,  including statements regarding the
Partnership's estimate of the timing of the sale of the Partnership's  remaining
properties, the distribution of proceeds and the liquidation of the Partnership.
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. The General
Partners' 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  regulatory  approval  will be  obtained,  if and  when  consent
solicitation  materials will be mailed to Limited Partners,  that a proposal for
the sale of all of the Partnership's remaining properties and liquidation of the
Partnership  will be approved,  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  remaining properties,  the distribution of proceeds,  and the
liquidation  of  the   Partnership   are  subject  to  various  and  significant
uncertainties,  many of which 



                                 Page 10 of 17
<PAGE>


are beyond  the  Partnership's  control  and which  could  delay any sale of the
Partnership's  remaining  properties,   liquidation  of  the  Partnership,   and
distribution of proceeds  significantly beyond the time periods estimated above.
Among such  uncertainties are the date when any consent  solicitation  materials
are  mailed to the  Limited  Partners,  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  consist  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. The Partnership's Tri City "Class
A" office buildings such as One Vanderbilt and Two Vanderbilt experienced strong
leasing  activity over the past two quarters.  Tri City's retail space continued
to experience  strong leasing  activity during the first quarter ended March 31,
1999 even though the retail sector in general has been adversely affected by the
presence of outlet  retailers.  The market for  industrial  space  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 remains strong through 1999, with conditions  beyond such time
being less predictable.

Tri-City

The  Partnership  currently  owns  the  following  ten  properties  in  Tri-City
Corporate Center:

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

The  Partnership  also owns  approximately  23 acres of  unimproved  land in the
Tri-City area.

Lake Elsinore Property

The Partnership owns approximately 24.8 acres of undeveloped, commercially zoned
land in Lake Elsinore,  Riverside County, California. The Lake Elsinore property
is  reflected  as land held for sale in the  accompanying  consolidated  balance
sheets.


                                 Page 11 of 17
<PAGE>


Perris

On January 15, 1999, the Partnership sold approximately 17 acres of land located
in Perris,  Riverside  County,  California,  to an unaffiliated  third party for
$334,800. The Partnership realized a $4,000 loss on the sale and $296,000 of net
sales proceeds, which were added to cash reserves.

Temecula Property

The  Partnership  owns two parcels of  undeveloped,  commercially  zoned land in
Temecula,  Riverside County,  California  (referred to as Rancon Towne Village),
and is 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 March 31, 1999 compared to
December 31, 1998 was due to the sale of the Perris property.

The $100,000 or 8% increase in deferred  financing costs and other fees at March
31,  1999  compared  to  December  31,  1998  is  due to the  payment  of  lease
commissions  relating  to new tenants at One  Vanderbilt  and the new leases for
Office Max and Mimi's Cafe.

Management  believes  that the  Partnership's  cash  balance  at March 31,  1999
together with the cash from operations,  sales and financing, will be sufficient
to finance  the  Partnership's  and the  properties'  continued  operations  and
development  plans,  on a short- term basis and for the  reasonably  foreseeable
future.  There can be no assurance that the Partnership's  results of operations
will not  fluctuate  in the future and at times  affect its  ability to meet its
operating requirements.

Aside from the  foregoing  and the current plan to  potentially  sell all of the
Partnership's   remaining   properties  and  liquidate  the   Partnership,   the
Partnership knows of no demands,  commitments,  events or  uncertainties,  which
might effect its  liquidity or capital  resources  in any material  respect.  In
addition,  the  Partnership  is not  subject to any  covenants  pursuant  to its
secured debt that would constrain its ability to obtain additional capital.

RESULTS OF OPERATIONS

Revenues

Rental  income  decreased  $287,000 or 15% for the three  months ended March 31,
1999  compared to the three months  ended March 31, 1998,  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 One Vanderbilt, Two Vanderbilt and Carnegie Business Center I.



                                 Page 12 of 17
<PAGE>


Occupancy rates at the  Partnership's  Tri-City  properties as of March 31, 1999
and 1998 were as follows:

                                                             March 31,
                                                -------------------------------
                                                     1999                1998
                                                ---------------     -----------
   One Vanderbilt                                     91%                 75%
   Two Vanderbilt                                    100%                 93%
   Service Retail Center                              84%                100%
   Carnegie Business Center I                         78%                 69%
   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 March 31, 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 which expires in December 2004; (iv) PetsMart with a lease
through January 2009; (v) Inland Regional Center with a lease through July 2009;
(vi) Circuit City with a lease through January 2018; and (vii) Office Max with a
lease through  October 2013.  These seven tenants,  in the  aggregate,  occupied
approximately  269,000 square feet of the 452,000 total leasable  square feet at
Tri-City and accounted for  approximately  57% of the total rental income of the
Partnership during the first quarter of 1999.

The sixteen  percentage point increase in occupancy from March 31, 1998 to March
31, 1999 at One Vanderbilt is attributed to the expansion of the leased space of
two existing tenants.

The seven  percentage  point  increase in occupancy from March 31, 1998 to March
31, 1999 at Two Vanderbilt is attributed to the expansion of the leased space of
an existing tenant.

The sixteen  percentage point decrease in occupancy from March 31, 1998 to March
31, 1999 at Service Retail Center is a result of 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,  with  construction  to commence in May 1999.  Management  is
currently  negotiating  lease terms with a prospective  tenant for approximately
1,100  square  feet of  space,  and has been  marketing  other  vacant  space to
potential tenants.

The nine percentage point increase in occupancy from March 31, 1998 to March 31,
1999 at Carnegie  Business  Center is attributed to leasing of 5,730 square feet
of space to three new tenants.

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


                                 Page 13 of 17
<PAGE>


Interest  income  increased  $66,000 for the three  months  ended March 31, 1999
compared to the three months ended March 31, 1998 as a result of the increase in
cash reserves resulting from the sale of Shadowridge.

Expenses

Operating  expenses  decreased  $171,000 or 21% for the three months ended March
31, 1999, compared to the three months ended March 31, 1998 primarily due to the
sale of  Shadowridge.  This  increase  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  $134,000 or 26% for the three months ended March 31,
1999  compared to the three months ended March 31, 1998 due to the payoff of the
$5,800,000, 7.95% fixed rate loan secured by Shadowridge.

Depreciation  and  amortization  increased  $42,000 or 12% for the three  months
ended  March 31,  1999  compared  to the three  months  ended March 31, 1998 due
primarily to the  commencement  of  operations of Office Max and Mimi's Cafe and
depreciation of additions to rental properties.

The loss on sale of real estate of $4,000 for the three  months  ended March 31,
1999 resulted from the sale of Perris property.  The loss on sale of real estate
of $11,000 for the three months ended March 31, 1998 resulted from the sale of a
Rancon Towne Village parcel.

Expenses associated with undeveloped land decreased $15,000 or 11% for the three
months  ended March 31, 1999  compared to the three  months ended March 31, 1998
due to:  (i) the  reduction  of  property  taxes as a result  of the sale of the
Perris  property  in January  1999;  and (ii) 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  $45,000  or 16% for the three
months  ended March 31, 1999  compared to the three  months ended March 31, 1998
primarily due to a decrease in asset  management  fees  resulting  from the 1998
sale of Shadowridge.

The proposed dissolution costs of $45,000 and $22,000 for the three months ended
March 31, 1999 and 1998, respectively,  represent charges for work performed and
expenses  incurred while exploring the  possibilities  of having the Partnership
sell of all of its properties and then liquidate, and preparation of preliminary
proxy  materials in the quarter  ended March 31, 1999.  See Item 1 of Part I for
further details.

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

                                 Page 14 of 17
<PAGE>


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
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 15 of 17
<PAGE>


Part II.          OTHER INFORMATION


Item 1.           Legal Proceedings

                  None.

Item 2.           Changes in Securities and Use of Proceeds

                  Not applicable.

Item 3.           Defaults Upon Senior Securities

                  Not applicable.

Item 4.           Submission of Matters to a Vote of Security Holders

                  None.

Item 5.           Other Information

                  None.

Item 6.           Exhibits and Reports on Form 8-K

                  (a)  Exhibits:

                  (27)  Financial Data Schedule

                  (b) Reports on Form 8-K:

On                March 31, 1999, the Partnership  filed Amendment No. 1 on Form
                  8-K/A relating to its Current Report on Form 8-K dated July 6,
                  1998 and filed with the Commission on July 9, 1998 relating to
                  the  sale of the  Shadowridge  Woodbend  Apartments.  The Form
                  8-K/A: (i) amends Item 7 of the Form 8-K to incorporate  notes
                  to the pro forma  financial  statements  contained in the Form
                  8-K and amend certain pro forma adjustments; and (ii) restates
                  Items 2 and 7 of the Form 8-K in their entirety.






                                 Page 16 of 17
<PAGE>



                                   SIGNATURES


Pursuant to the  requirements  of Section 13 or Section 15(d) of the  Securities
Exchange Act of 1934, the  Partnership  has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


                                   RANCON REALTY FUND IV,
                                   a California limited partnership

                                   By:        Rancon Financial Corporation
                                              a California corporation,
                                              its General Partner



Date:    May  12, 1999                        By:      /s/  DANIEL L. STEPHENSON
                                                      --------------------------
                                                      Daniel L. Stephenson,
                                                      President

Date:    May 12, 1999                         By:     /s/   DANIEL L. STEPHENSON
                                                      --------------------------
                                                      Daniel L. Stephenson,
                                                      General Partner











                                 Page 17 of 17
<PAGE>