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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549FORM 10-Q



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

For the quarterly period ended March 31, 2002

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 May 14, 2002: 73,899

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TABLE OF CONTENTS



|                              |                                                                                               |                                            |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------ |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | Item 1. Financial Statements                                                                 
|                              |                                                                                               | Consolidated Balance Sheets               
|                              |                                                                                               | Consolidated Statements of Operations     
|                              |                                                                                               | Consolidated Statement of Partners Equity
|                              |                                                                                               | Consolidated Statements of Cash Flows     
|                              |                                                                                               | Notes to Consolidated Financial Statements
|                              | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|Part II. OTHER INFORMATION   
|                              | Item 1. Legal Proceedings                                                                    
|                              | Item 2. Changes in Securities and Use of Proceeds                                            
|                              | Item 3. Defaults Upon Senior Securities                                                      
|                              | Item 4. Submission of Matters to a Vote of Security Holders                                  
|                              | Item 5. Other Information                                                                    
|                              | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES                   



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##### Table of Contents






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)

|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |         |        | 
|----------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------- | - | --------- | ------ | ------------ | - | ------- | ------ | 
|                                                |                                                                                                                                                     |                                        |   | March 31, |        | December 31,
|                                                |                                                                                                                                                     |                                        |   | 2002      |        | 2001        
|                                                |                                                                                                                                                     |                                        |   |           |        |             
|Assets                                          |                                                                                                                                                     |                                        |   |           |        |              |   |        
|Investments in real estate:                     |                                                                                                                                                     |                                        |   |           |        |              |   |        
|                                                | Rental property, gross                                                                                                                              |                                        | $ | 41,934    |        |              | $ | 41,720  |       
|                                                | Accumulated depreciation                                                                                                                            |                                        |   | (13,114   | )      |              |   | (12,806 | )     
|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |        
|                                                | Rental property, net                                                                                                                                |                                        |   | 28,820    |        |              |   | 28,914  |       
|                                                | Assets related to discontinued operations, gross                                                                                                    |                                        |   |          |        |              | $ | 7,624   |       
|                                                | Accumulated depreciation related to discontinued operations                                                                                         |                                        |   |          |        |              |   | (4,311  | )     
|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |        
|                                                | Assets related to discontinued operations, net                                                                                                      |                                        |   |          |        |              |   | 3,313   |       
|                                                | Land held for development                                                                                                                           |                                        |   | 1,214     |        |              |   | 1,214   |       
|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |        
|                                                |                                                                                                                                                     | Total real estate investments          |   |           | 30,034 |              |   |         | 33,441 | 
|                                                | Cash and cash equivalents                                                                                                                           |                                        |   | 5,551     |        |              |   | 1,462   |       
|                                                | Accounts receivable                                                                                                                                 |                                        |   | 155       |        |              |   | 150     |       
|                                                | Deferred financing costs and other fees, net of
accumulated amortization of $1,840 and $2,121
at March 31, 2002 and December 31, 2001, respectively |                                        |   | 1,043     |        |              |   | 1,123   |       
|                                                | Prepaid expenses and other assets                                                                                                                   |                                        |   | 1,104     |        |              |   | 1,048   |       
|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |        
|                                                |                                                                                                                                                     | Total assets                           |   | $         | 37,887 |              |   | $       | 37,224 | 
|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |        
|Liabilities and Partners Equity                |                                                                                                                                                     |                                        |   |           |        |              |   |        
|Liabilities:                                    |                                                                                                                                                     |                                        |   |           |        |              |   |        
|                                                | Notes payable                                                                                                                                       |                                        | $ | 8,101     |        |              | $ | 12,342  |       
|                                                | Accounts payable and other liabilities                                                                                                              |                                        |   | 505       |        |              |   | 671     |       
|                                                | Liabilities related to discontinued operations                                                                                                      |                                        |   |          |        |              |   | 65      |       
|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |        
|                                                |                                                                                                                                                     | Total liabilities                      |   |           | 8,606  |              |   |         | 13,078 | 
|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |        
|Commitments and contingent liabilities (Note 5) |                                                                                                                                                     |                                        |   |           |        |              |   |        
|Partners Equity:                               |                                                                                                                                                     |                                        |   |           |        |              |   |        
|                                                | General Partner                                                                                                                                     |                                        |   | (535      | )      |              |   | (798    | )     
|                                                | Limited partners, 73,978 and 74,034 limited partnership
units outstanding at March 31, 2002 and December 31,
2001, respectively                     |                                        |   | 29,816    |        |              |   | 24,944  |       
|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |        
|                                                |                                                                                                                                                     | Total partners equity                 |   |           | 29,281 |              |   |         | 24,146 | 
|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |        
|                                                |                                                                                                                                                     | Total liabilities and partners equity |   | $         | 37,887 |              |   | $       | 37,224 | 
|                                                |                                                                                                                                                     |                                        |   |           |        |              |   |        

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

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RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP




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

|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |      |       |       |       |  
|-------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | ----------------------------------------- | ------------- | ------------------------------------------------ | ----- | ------------------ | ------ | ---- | ----- | ----- | ----- | -
|                                                                                                                                                   |                                |                                           |               |                                                  |       | Three months ended
|                                                                                                                                                   |                                |                                           |               |                                                  |       | March 31,         
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                   
|                                                                                                                                                   |                                |                                           |               |                                                  |       | 2002               |        | 2001
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |     
|Revenues:                                                                                                                                          |                                |                                           |               |                                                  |       |                    |        |     
|                                                                                                                                                   |                                | Rental income                             |               | $                                                | 1,472 |                    |        | $    | 1,391 |      
|                                                                                                                                                   |                                | Interest and other income                 |               |                                                  | 4     |                    |        |      | 51    |      
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |     
|                                                                                                                                                   |                                |                                           | Total revenue |                                                  |       | 1,476              |        |      |       | 1,442 |      
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |     
|Expenses:                                                                                                                                          |                                |                                           |               |                                                  |       |                    |        |     
|                                                                                                                                                   |                                | Operating                                 |               |                                                  | 577   |                    |        |      | 552   |      
|                                                                                                                                                   |                                | Interest expense                          |               |                                                  | 248   |                    |        |      | 385   |      
|                                                                                                                                                   |                                | Depreciation and amortization             |               |                                                  | 348   |                    |        |      | 355   |      
|                                                                                                                                                   |                                | Expenses associated with undeveloped land |               |                                                  | 109   |                    |        |      | 110   |      
|                                                                                                                                                   |                                | General and administrative                |               |                                                  | 234   |                    |        |      | 271   |      
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |     
|                                                                                                                                                   |                                |                                           |               | Total expenses                                   |       |                    | 1,516  |      |       |       | 1,673 |  
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |     
|Net loss from operations                                                                                                                           |                                |                                           | (40           | )                                                |       |                    | (231   | )   
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |     
|Net income from discontinued operations for all periods
(including gain on sale of $5,120 in 2002)                                                 |                                |                                           | 5,192         |                                                  |       |                    | 21     |     
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |     
|                                                                                                                                                   |                                |                                           |               | Net income (loss)                                |       | $                  | 5,152  |      |       | $     | (210  | )
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |     
|Net income (loss) per limited partnership unit                                                                                                     |                                | $                                         | 66.13         |                                                  |       | $                  | (2.82  | )   
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |     
|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 income (loss) per limited
partnership unit |                                |                                           | 73,991        |                                                  |       |                    | 74,365 |     
|                                                                                                                                                   |                                |                                           |               |                                                  |       |                    |        |     

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

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RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP




Consolidated Statement of Partners EquityFor the three months ended March 31, 2002
(in thousands)
(Unaudited)

|                                        |  |                 |      |                  |  |       |        |   |  |   |        |  
|--------------------------------------- |  | --------------- | ---- | ---------------- |  | ----- | ------ | - |  | - | ------ | -
|                                        |  | General Partner |      | Limited Partners |  | Total
|                                        |  |                 |      |                  |  |      
|Balance at December 31, 2001            |  | $               | (798 | )                |  | $     | 24,944 |   |  | $ | 24,146 |  
|Retirement of limited partnership units |  |                 |     |                  |  |       | (17    | ) |  |   | (17    | )
|Gain on sale of real estate             |  |                 | 256  |                  |  |       | 4,864  |   |  |   | 5,120  |  
|Net income from operations              |  |                 |     |                  |  |       | (40    | ) |  |   | (40    | )
|Net income from discontinued operations |  |                 | 7    |                  |  |       | 65     |   |  |   | 72     |  
|                                        |  |                 |      |                  |  |       |        |   |  |   |        |  
|Balance at March 31, 2002               |  | $               | (535 | )                |  | $     | 29,816 |   |  | $ | 29,281 |  
|                                        |  |                 |      |                  |  |       |        |   |  |   |        |  

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

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RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP




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

|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |      |     |     |      |  
|------------------------------------------------- | ---------------------------------------------------------------------------------------- | ---------------------- | ------------------------------------------------------- | ----------------------------------------- | --- | ------------------ | ------ | ---- | --- | --- | ---- | -
|                                                  |                                                                                          |                        |                                                         |                                           |     | Three months ended
|                                                  |                                                                                          |                        |                                                         |                                           |     | March 31,         
|                                                  |                                                                                          |                        |                                                         |                                           |     |                   
|                                                  |                                                                                          |                        |                                                         |                                           |     | 2002               |        | 2001
|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|Cash flows from operating activities:             |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|                                                  | Net income (loss)                                                                        |                        | $                                                       | 5,152                                     |     |                    | $      | (210 | )  
|                                                  | Adjustments to reconcile net income (loss)
to net cash provided by operating activities: |                        |                                                         |                                           |     |                    |        |      |    
|                                                  |                                                                                          |                        | Gain on sale of real estate                             |                                           |     | (5,120             | )      |      |     |    |     
|                                                  |                                                                                          |                        | Depreciation and amortization                           |                                           |     | 424                |        |      |     | 444 |     
|                                                  |                                                                                          |                        | Amortization of loan fees, included in
interest expense |                                           |     | 26                 |        |      |     | 29  |     
|                                                  |                                                                                          |                        | Changes in certain assets and liabilities:              |                                           |     |                    |        |      |     |     |     
|                                                  |                                                                                          |                        |                                                         | Accounts and interest receivable          |     |                    | (5     | )    |     |     | 125  |  
|                                                  |                                                                                          |                        |                                                         | Deferred financing costs and other fees   |     |                    | (6     | )    |     |     | (34  | )
|                                                  |                                                                                          |                        |                                                         | Prepaid expenses and other assets         |     |                    | (56    | )    |     |     | (103 | )
|                                                  |                                                                                          |                        |                                                         | Accounts payable and other liabilities    |     |                    | (231   | )    |     |     | 198  |  
|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|                                                  |                                                                                          |                        |                                                         | Net cash provided by operating activities |     |                    | 184    |      |     |     | 449  |  
|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|Cash flows from investing activities:             |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|                                                  | Net proceeds from sales of real estate                                                   |                        |                                                         | 8,382                                     |     |                    |        | 179  |    
|                                                  | Net additions to real estate investments                                                 |                        |                                                         | (219                                      | )   |                    |        | (68  | )  
|                                                  | Increase in restricted cash                                                              |                        |                                                         |                                          |     |                    |        | (42  | )  
|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|                                                  |                                                                                          |                        |                                                         | Net cash provided by investing activities |     |                    | 8,163  |      |     |     | 69   |  
|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|Cash flows from financing activities:             |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|                                                  | Notes payable principal payments                                                         |                        |                                                         | (4,241                                    | )   |                    |        | (98  | )  
|                                                  | Distributions to General Partner                                                         |                        |                                                         |                                          |     |                    |        | (58  | )  
|                                                  | Retirement of limited partnership units                                                  |                        |                                                         | (17                                       | )   |                    |        | (87  | )  
|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|                                                  |                                                                                          |                        |                                                         | Net cash used for financing activities    |     |                    | (4,258 | )    |     |     | (243 | )
|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|Net increase in cash and cash equivalents         |                                                                                          |                        | 4,089                                                   |                                           |     |                    | 275    |     
|Cash and cash equivalents at beginning of period  |                                                                                          |                        | 1,462                                                   |                                           |     |                    | 4,604  |     
|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|Cash and cash equivalents at end of period        |                                                                                          | $                      | 5,551                                                   |                                           |     | $                  | 4,879  |     
|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|Supplemental disclosure of cash flow information: |                                                                                          |                        |                                                         |                                           |     |                    |        |     
|                                                  |                                                                                          | Cash paid for interest |                                                         | $                                         | 241 |                    |        | $    | 356 |    
|                                                  |                                                                                          |                        |                                                         |                                           |     |                    |        |     

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

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RANCON REALTY FUND IV
A California Limited Partnership




Notes to Consolidated Financial Statements

March 31, 2002
(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. In 2001, a total of 574
Units were redeemed. During the three months ended March 31, 2002, a total of
56 Units were repurchased. As of March 31, 2002, there were 73,978 Units
outstanding.

In the opinion of RFC, the General Partner and Glenborough Realty Trust
Incorporated (Glenborough), the Partnerships asset and property manager, the
accompanying unaudited consolidated financial statements contain all
adjustments (consisting of only normal accruals) necessary to present fairly
the consolidated financial position of the Partnership as of March 31, 2002 and
December 31, 2001, and the related consolidated statements of operations and
cash flows for the three months ended March 31, 2002 and 2001.

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 income from operations is allocated 90%
to the limited partners and 10% to the General Partner. Net losses from
operations are allocated 99% to the limited partners and 1% to the General
Partner 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 Partner be allocated more than 5%
of the net income other than net income from operations until the earlier of
sale or disposition of substantially all of the assets or the distribution of
cash (other than cash from operations) equal to the Unitholders original
invested capital; (ii) second, to the limited partners in proportion to and to
the extent of the amounts to increase their capital accounts to an amount equal
to the sum of the adjusted invested capital of their units plus an additional
cumulative non-compounded 6% return per annum (plus additional amounts
depending on the date Units were purchased); (iii) third, to the partners in
the minimum amount required to first equalize their capital account in
proportion to the number of units owned, and then, to bring the sum of the
balances of the capital accounts of the limited partners and the General
Partner into the ratio of 4 to 1; and (iv) the balance, if any, 80% to the
limited partners and 20% to the General Partner. In no event shall the General
Partner 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 Partner.

The terms of the Partnership agreement call for the General Partner to restore
any deficit 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

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RANCON REALTY FUND IV
A California Limited Partnership

Notes to Consolidated Financial Statements

March 31, 2002
(Unaudited)

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 ($175,000 and $169,000 in the first quarter
of 2002 and 2001, respectively); (ii) sales fees of 2% for improved properties
and 4% for land ($175,000 and $8,000 in the first quarter of 2002 and 2001,
respectively); (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.

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

New Accounting Pronouncements

In June 2001, the FASB approved for issuance SFAS No. 143, Accounting for
Asset Retirement Obligations. SFAS No. 143 requires that the fair value of a
liability for an asset retirement obligation be recognized in the period in
which it is incurred and that the associated asset retirement costs be
capitalized as part of the carrying value of the related long-lived asset. SFAS
No. 143 will be effective January 1, 2003 for the Partnership. Management does
not expect this standard to have a material impact on the Partnerships
consolidated financial position or results of operations.

In August 2001, the FASB approved for issuance SFAS No. 144, Accounting for
the Impairment or Disposal of Long-Lived Assets. SFAS No. 144 broadens the
presentation of discontinued operations to include more transactions and
eliminates the need to accrue for future operating losses. Additionally, SFAS
No. 144 prohibits the retroactive classification of assets as held for sale and
requires revisions to the depreciable lives of long-lived assets to be
abandoned. SFAS No. 144 was effective January 1, 2002 for the Partnership, and
resulted in the presentation of sold real estate as discontinued operation for
all periods.

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

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RANCON REALTY FUND IV
A California Limited Partnership

Notes to Consolidated Financial Statements

March 31, 2002
(Unaudited)

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
depreciated cost unless events or circumstances indicate that depreciated 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.

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 when purchased 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.

Revenues  All leases are classified as operating leases. Rental revenue is recognized as
earned over the terms of the related leases.

Reimbursements from tenants for real estate taxes and other recoverable
operating expenses are recognized as revenue in the period the applicable
expenses are incurred. Differences between estimated and actual amounts are
recognized in the subsequent year.

The Partnerships portfolio of leases turns over continuously, with the number
and value of expiring leases varying from year to year. The Partnerships
ability to re-lease the space to existing or new tenants at rates equal to or
greater than those realized historically is impacted by, among other things,
the economic conditions of the market in which a property is located, the
availability of competing space, and the level of improvements which may be
required at the property. No assurance can be given that the rental rates that
the Partnership will obtain in the future will be equal to or greater than
those obtained under existing contractual commitments.

8



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##### Table of Contents



RANCON REALTY FUND IV
A California Limited Partnership

Notes to Consolidated Financial Statements

March 31, 2002
(Unaudited)

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  One tenant represented 21 percent of rental income for the
three months ended March 31, 2002. Two tenants represented 28 percent of rental
income for the three months ended March 31, 2001.

Reference to 2001 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, 2001
audited consolidated financial statements on Form 10-K.

Note 3. INVESTMENTS IN REAL ESTATE

Rental property consisted of the following at March 31, 2002 and December 31, 2001 (in thousands):

|                                                            |  |      |         |      |  |   |         |  
|----------------------------------------------------------- |  | ---- | ------- | ---- |  | - | ------- | -
|                                                            |  | 2002 |         | 2001
|                                                            |  |      |         |     
|Land                                                        |  | $    | 4,236   |      |  | $ | 4,236   |  
|Buildings                                                   |  |      | 28,368  |      |  |   | 29,850  |  
|Leasehold and other improvements                            |  |      | 9,330   |      |  |   | 7,652   |  
|                                                            |  |      |         |      |  |   |         |  
|                                                            |  |      | 41,934  |      |  |   | 41,720  |  
|Less: accumulated depreciation                              |  |      | (13,114 | )    |  |   | (12,806 | )
|                                                            |  |      |         |      |  |   |         |  
|Total rental property, net                                  |  | $    | 28,820  |      |  | $ | 28,914  |  
|                                                            |  |      |         |      |  |   |         |  
|Assets related to discontinued operations, gross            |  | $    |        |      |  | $ | 7,624   |  
|Accumulated depreciation related to discontinued operations |  |      |        |      |  |   | (4,311  | )
|                                                            |  |      |         |      |  |   |         |  
|Assets related to discontinued operations, net              |  | $    |        |      |  | $ | 3,313   |  
|                                                            |  |      |         |      |  |   |         |  

On March 20, 2002, the Partnership sold the Two Vanderbilt property to an
anchor tenant, Inland Empire Health Plan, who occupied 78% of the property for
a sales price of $8,750,000. The sale generated net proceeds of approximately
$8,382,000 and a gain on sale of approximately $5,120,000. The Partnership
made a pay down on the line of credit of $4,200,000 from the sales proceeds and
added the remaining cash to its cash reserves.

At March 31, 2002, the Partnerships rental property included seven retail and
four office/R & D projects at the Tri-City Corporate Centre in San Bernardino,
California.

Land held for development consists of the following at March 31, 2002 and
December 31, 2001 (in thousands):

|                                                            |  |      |       |      |  |   |       | 
|----------------------------------------------------------- |  | ---- | ----- | ---- |  | - | ----- | 
|                                                            |  | 2002 |       | 2001
|                                                            |  |      |       |     
|22.5 acres at Tri-City Corporate Centre,
San Bernardino, CA |  | $    | 1,214 |      |  | $ | 1,214 | 
|                                                            |  |      |       |      |  |   |       | 

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RANCON REALTY FUND IV
A California Limited Partnership

Notes to Consolidated Financial Statements

March 31, 2002
(Unaudited)

Note 4. NOTES PAYABLE

Notes payable as of March 31, 2002 and December 31, 2001 were as follows (in thousands):

|                                                                                                                                                                                                                                                                                                                                                                     |                     |   |       |       |      |   |       |        | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------- | - | ----- | ----- | ---- | - | ----- | ------ | 
|                                                                                                                                                                                                                                                                                                                                                                     |                     |   | 2002  |       | 2001
|                                                                                                                                                                                                                                                                                                                                                                     |                     |   |       |       |     
|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                                                             |                     | $ | 5,950 |       |      | $ | 5,980 |       
|                                                                                                                                                                                                                                                                                                                                                                    
|Note payable secured by first deed of trust on
the One Vanderbilt building. The note bears a
fixed interest rate of 9%. Monthly payments of
principal and interest totaling $20 are due
until the maturity date of January 1, 2005                                                                                                                                   |                     |   | 2,151 |       |      |   | 2,162 |       
|                                                                                                                                                                                                                                                                                                                                                                    
|Line of credit with a total availability of
$7.2 million 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, monthly interest-only payments,
and a maturity date of April 15, 2004. The
balance of this line of credit was paid down in
March 2002 (as discussed in Note 3 above) |                     |   |      |       |      |   | 4,200 |       
|                                                                                                                                                                                                                                                                                                                                                                     |                     |   |       |       |      |   |       |       
|                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                     | Total notes payable |   | $     | 8,101 |      |   | $     | 12,342 | 
|                                                                                                                                                                                                                                                                                                                                                                     |                     |   |       |       |      |   |       |       

Note 5. 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.

Approximately 15 acres of the Tri-City Corporate Centre land owned by the
Partnership was part of a landfill operated by the City of San Bernardino (the
City) from approximately 1950 to 1960. There are no records of which the
Partnership is aware disclosing that hazardous wastes exist at the landfill.
The Partnerships landfill monitoring program currently meets or exceeds all
regulatory requirements and no material capital expenditures have been
incurred. The Partnership is working with the Santa Ana Region of the
California Regional Water Quality Control Board and the City to determine the
need and responsibility for any further testing. There is no current
requirement to ultimately clean up the site; however, no assurance can be made
that circumstances will not arise which could impact the Partnerships
responsibility related to the property.

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 March 31, 2002, for sales that transpired in previous years. The
10Table of Contents

RANCON REALTY FUND IV
A California Limited Partnership

Notes to Consolidated Financial Statements

March 31, 2002
(Unaudited)

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.

11



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

New Accounting Pronouncements

During 2001, the Financial Accounting Standards Board (FASB) approved for
issuance a number of new accounting standards. Management does not expect
these new accounting standards to have a material impact on the Partnerships
consolidated financial position or results of operations other than to modify
the presentation of the operating results of sold property to recognize such
activity as discontinued operation. These new accounting standards are
discussed in more detail in the notes to the accompanying consolidated
financial statements.

Liquidity and Capital Resources

The following discussion should be read in conjunction with the Partnerships
December 31, 2001 audited consolidated financial statements and the notes
thereto.

At March 31, 2002, the Partnership had cash of $5,551,000. The remainder of the
Partnerships assets consist primarily of its net investments in real estate,
totaling approximately $30,034,000, which includes $28,820,000 in rental
properties and $1,214,000 of land held for development.

The Partnerships liabilities at March 31, 2002, include notes payable totaling
approximately $8,101,000, which consist of two secured loans encumbering
properties with an aggregate net book value of approximately $13,690,000, and
with maturity dates ranging from January 1, 2005 through May 1, 2006. These
two notes bear fixed interest rates of 8.74% and 9.00%, respectively, and
require monthly principal and interest payments ranging from $20,000 to
$53,000.

On March 20, 2002, the Partnership sold the Two Vanderbilt property to an
anchor tenant, Inland Empire Health Plan, who occupied 78% of the property for
a sales price of $8,750,000. The sale generated net proceeds of approximately
$8,382,000 and a gain on sale of approximately $5,120,000. The Partnership made
a pay down on the line of credit of $4,200,000 from the sales proceeds and
added the remaining cash to its cash reserves.

The Partnership is contingently liable for subordinated real estate commissions
payable to the Sponsors in the aggregate amount of $643,000 at March 31, 2002,
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.

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 March 31, 2002,
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 three months ended March 31, 2002, the Partnerships cash provided
by operating activities totaled $184,000.

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The $56,000 increase in prepaid expenses and other assets at March 31, 2002,
compared to December 31, 2001, was primarily due to an increase in the mortgage
impound accounts and the prepayment of second quarter investor service fees.

The $231,000 decrease in accounts payable and other liabilities at March 31,
2002, compared to December 31, 2001, was primarily due to the payment of
accrued operating expenses, as well as the refund of security deposits related
to the sale of the Two Vanderbilt property.

Investing Activities

During the three months ended March 31, 2002, the Partnerships cash provided
by investing activities totaled $8,163,000, which included $8,382,000 of net
cash proceeds from the sale of the Two Vanderbilt property, and $219,000 of
cash used for additions to real estate.

Financing Activities

During the three months ended March 31, 2002, the Partnerships cash used for
financing activities totaled $4,258,000, which consisted of $4,241,000 in
principal payments on the line of credit and other notes payable and $17,000
paid to redeem 56 limited partnership units (Units).

Results of Operations

Revenues

Rental income for the three months ended March 31, 2002 increased $81,000,
compared to the three months ended March 31, 2001, primarily due to an increase
in occupancy at Carnegie Business Center I, and the lease-up of Palm Court
Retail #1.

Occupancy rates at the Partnerships Tri-City properties as of March 31, 2002
and 2001 were as follows:

|                           |  |      |     |      |  |  |     |  
|-------------------------- |  | ---- | --- | ---- |  |  | --- | -
|                           |  | 2002 |     | 2001
|                           |  |      |     |     
|One Vanderbilt             |  |      | 87  | %    |  |  | 88  | %
|Service Retail Center      |  |      | 93  | %    |  |  | 92  | %
|Carnegie Business Center I |  |      | 97  | %    |  |  | 82  | %
|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 Café                |  |      | 100 | %    |  |  | 100 | %
|Palm Court Retail #1       |  |      | 60  | %    |  |  | 30  | %
|Palm Court Retail #2       |  |      | 100 | %    |  |  | 100 | %

As of March 31, 2002, tenants at Tri-City occupying substantial portions of
leased rental space included: (i) CompUSA with a lease through August 2003;
(ii) ITT Educational Services with a lease through December 2004; (iii)
PetsMart with a lease through January 2009; (iv) Inland Regional Center with a
lease through July 2009; (v) Circuit City with a lease through January 2018;
and (vi) Office Max with a lease through October 2013. These six tenants, in
the aggregate, occupied approximately 229,000 square feet of the 395,000 total
leasable square feet at Tri-City and accounted for approximately 50% of the
rental income of the Partnership during the first quarter of 2002.

The 15% increase in occupancy from March 31, 2001 to March 31, 2002 at Carnegie
Business Center I was due to leasing 9,726 square feet to a new tenant.

The 30% increase in occupancy from March 31, 2001 to March 31, 2002 at Palm
Court Retail #1 was due to leasing 1,500 square feet to a new tenant.

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##### Table of Contents



Interest and other income decreased $47,000 for the three months ended March
31, 2002, compared to the three months ended March 31, 2001, due to a lower
average invested cash balance resulting from distributions to the General and
Limited Partners in November 2001.

Expenses

Operating expenses increased $25,000, or 5%, for the three months ended March
31, 2002, compared to the three months ended March 31, 2001, primarily due to
an increase in utility costs.

Interest expense decreased $137,000, or 36%, for the three months ended March
31, 2002, compared to the three months ended March 31, 2001, primarily due to
the replacement of two higher rate loans with a line of credit with a lower
variable rate in April 2001.

Depreciation and amortization decreased $7,000, or 2%, for the three months
ended March 31, 2002, compared to the three months ended March 31, 2001,
primarily due to the sale of the Two Vanderbilt property, offset by additions
to real estate.

General and administrative expenses decreased $37,000, or 14%, for the three
months ended March 31, 2002, compared to the three months ended March 31, 2001,
primarily due to a decrease in investor service expenses related to the
redemption of Partnership Units.

Net income from discontinued operations

Net income from discontinued operations totaled $5,192,000, which included
$5,120,000 of gain on sale from the sale of the Two Vanderbilt property, and
$72,000 of net operating income from the Two Vanderbilt property for the three
months ended March 31, 2002. The increase in net operating income for the
three months ended March 31, 2002, compared to the three months ended March 31,
2001, was primarily due to an increase in rental income.

Critical Accounting Policies

Revenue recognized on a straight-line
basis

The Partnership recognizes rental revenue on a straight-line basis at amounts
that it believes it will collect on a tenant by tenant basis. The estimation
process may result in higher or lower levels from period to period as the
Partnerships collection experience and the credit quality of the Partnerships
tenants changes. Actual amounts collected could be lower or higher than the
amounts recognized on a straight-line basis if specific tenants are unable to
pay rent that the Partnership has previously recognized as revenue, or if other
tenants remain whom the Partnership previously believed would not.

Carrying value of rental properties and land
held for development

The Partnerships rental properties, including the related land, are stated at
depreciated cost unless events or circumstances indicate that depreciated cost
cannot be recovered, in which case, the carrying value of the property is
reduced to its estimated fair value. Estimated fair value is based upon (i)
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.

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.

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##### Table of Contents



The actual value of the Partnerships portfolio of properties and land held for
development could be significantly higher or lower than their carrying amounts.

Provision for income taxes

No provision for income taxes is included in the 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.

The Partnerships tax returns, the qualification of the Partnership as a
partnership for federal income tax purposes, and the amount of income or loss
are subject to examination by federal and state taxing authorities. If such
examinations result in changes to the Partnerships taxable income or loss, the
tax liability of the partners could change accordingly.

15



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##### Table of Contents






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
|
| |  | None                     

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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 14, 2002 |  | By:                                                     |  | /s/ DANIEL L. STEPHENSON
Daniel L. Stephenson, President                  
|                  
|Date: May 14, 2002 |  | By:                                                     |  | /s/ DANIEL L. STEPHENSON
Daniel L. Stephenson, General Partner            

17