##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 ANNUAL REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For
the fiscal year ended December 31, 2006
 Commission File Number: 1-13820
 SOVRAN SELF STORAGE, INC.
  Maryland
    
    16-1194043(State of incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 (Address of principal executive offices) (Zip code)
 (Registrants telephone number including area code)
  Title of Securities
    
    Exchanges on which RegisteredCommon Stock, $.01 Par Value
    
    New York Stock Exchange
  þ o
 o þ
 þ o
 þ
  þ o o
 o þ




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TABLE OF CONTENTS  Part IItem 1. BusinessItem 1A. Risk FactorsItem 1B. Unresolved Staff CommentsItem 2. PropertiesItem 3. Legal ProceedingsItem 4. Submission of Matters to a Vote of Security HoldersPart IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesItem 6. Selected Financial DataItem 7. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 7A. Quantitative and Qualitative Disclosures About Market RiskItem 8. Financial Statements and Supplementary DataItem 9. Changes in and Disagreements With Accountants on Accounting and Financial DisclosureItem 9a. Controls and ProceduresPart IIIItem 10. Directors, Executive Officers and Corporate GovernanceItem 11. Executive CompensationItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersItem 13. Certain Relationships and Related Transactions, and Director IndependenceItem 14. Principal Accountant Fees and ServicesPart IVItem 15. Exhibits, Financial Statement SchedulesSIGNATURESEX-10.6EX-10.21EX-12.1EX-21EX-23EX-31.1EX-31.2EX-32    Table of Contents  
 Part I
  
 Item 1. Business
 ®
  www.sovranss.com
  2




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Industry Overview
   Property Management
  Personnel:
  Marketing and Sales:
  -
    
    A Customer Care Center (call center) that services new and existing
customers inquiries and facilitates the capture of sales leads that
were previously lost;-
    
    Internet marketing, which provides customers information about all of
our stores via numerous portals and e-mail;-
    
    A rate management system, that matches product availability with
market demand for each type of storage unit at each store, and
determines appropriate pricing. The Company credits this program in
achieving higher yields and controlling discounting;-
    
    Dri-guard, providing humidity-controlled spaces. We became the first
self-storage operator to utilize this humidity protection technology.
These environmental control systems are a premium storage feature
intended to protect metal, electronics, furniture, fabrics and paper
from moisture; and-
    
    Uncle Bobs trucks, that provide customers with convenient, affordable
access to vehicles to help move-in their goods, while serving as
moving billboards to help advertise our storage facilities.
 Ancillary Income:
  3




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Information Systems:
  Property Maintenance:
  Environmental and Other Regulations
   Insurance
  Federal Income Tax
  Competition
  4




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Investment Policy
   Disposition Policy
   Distribution Policy
  Borrowing Policy
   5




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Employees
  Available Information
 http://www.sovranss.com http://www.sovranss.com
  
 Item 1A. Risk Factors
 You should carefully consider the risks described below, together with all of the other
information included in or incorporated by reference into our Form 10-K, as part of your evaluation
of the Company. If any of the following risks actually occur, our business could be harmed. In such
case, the trading price of our securities could decline, and you may lose all or part of your
investment
 Our Acquisitions May Not Perform as Anticipated
  6




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We May Incur Problems with Our Real Estate Financing
 Unsecured Credit Facility.
 Rising Interest Rates.
 Refinancing May Not Be Available.
 Our Debt Levels May Increase
  We Are Subject to the Risks Posed by Fluctuating Demand and Significant Competition in the
Self-Storage Industry
  
    
    Decreases in demand for rental spaces in a particular locale;
    
    Changes in supply of, or demand for, similar or competing self-storage facilities in an area;
    
    Changes in market rental rates; and
    
    Inability to collect rents from customers.
  7




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Our Real Estate Investments Are Illiquid and Are Subject to Uninsurable Risks and Government
Regulation
 General Risks.
 
    
    Changes in national economic conditions;
    
    Changes in general or local economic conditions and neighborhood characteristics;
    
    Competition from other self-storage facilities;
    
    Changes in interest rates and in the availability, cost and terms of mortgage funds;
    
    The impact of present or future environmental legislation and compliance with environmental laws;
    
    The ongoing need for capital improvements, particularly in older facilities;
    
    Changes in real estate tax rates and other operating expenses;
    
    Adverse changes in governmental rules and fiscal policies;
    
    Uninsured losses resulting from casualties associated with civil unrest, acts of God,
including natural disasters, and acts of war;
    
    Adverse changes in zoning laws; and
    
    Other factors that are beyond our control.
 Illiquidity of Real Estate May Limit its Value.
 Uninsured and Underinsured Losses Could Reduce the Value of our Self Storage Facilities.
 Possible Liability Relating to Environmental Matters.
 8




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Americans with Disabilities Act.
 There Are Limitations on the Ability to Change Control of Sovran
 Limitation on Ownership and Transfer of Shares.
  
    
    Have the effect of precluding an acquisition of control of Sovran by a third party
without consent of our Board of Directors even if the change in control would be in the
interest of shareholders; and
    
    Limit the opportunity for shareholders to receive a premium for shares of our common
stock they hold that might otherwise exist if an investor were attempting to assemble a
block of common stock in excess of 9.8% or 15%, as the case may be, of the outstanding
shares of our stock or to otherwise effect a change in control of Sovran.
  Other Limitations.
 9




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Our Failure to Qualify as a REIT Would Have Adverse Consequences
    Market Interest Rates May Influence the Price of Our Common Stock
  Regional Concentration of Our Business May Subject Us to Economic Downturns in the States of Texas
and Florida.
  Changes in Taxation of Corporate Dividends May Adversely Affect the Value of Our Common Stock
  10




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Terrorist Attacks and the Possibility of Armed Conflict May Have an Adverse Effect on Our Business,
Financial Condition and Operating Results and Could Decrease the Value of Our Assets
  
 Item 1B. Unresolved Staff Comments
  11




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Item 2. Properties
   ®
  Number ofStores at
    
    
    
    
    
    
    
    
    
    PercentageDecember 31,
    
    Square
    
    Number of
    
    of Store2006
    
    Feet
    
    Spaces
    
    RevenueAlabama
    
    
    12
    
    
    
    747,153
    
    
    
    5,812
    
    
    
    2.8
    %Arizona
    
    
    9
    
    
    
    505,880
    
    
    
    4,489
    
    
    
    2.9
    %Connecticut
    
    
    5
    
    
    
    303,989
    
    
    
    2,863
    
    
    
    2.5
    %Florida
    
    
    52
    
    
    
    3,266,913
    
    
    
    29,902
    
    
    
    20.2
    %Georgia
    
    
    26
    
    
    
    1,552,621
    
    
    
    12,582
    
    
    
    6.5
    %Louisiana
    
    
    14
    
    
    
    749,210
    
    
    
    6,568
    
    
    
    3.6
    %Maine
    
    
    2
    
    
    
    115,400
    
    
    
    1,012
    
    
    
    0.6
    %Maryland
    
    
    4
    
    
    
    173,307
    
    
    
    2,039
    
    
    
    1.2
    %Massachusetts
    
    
    14
    
    
    
    758,424
    
    
    
    6,874
    
    
    
    4.5
    %Michigan
    
    
    7
    
    
    
    450,521
    
    
    
    4,270
    
    
    
    1.8
    %Mississippi
    
    
    4
    
    
    
    200,191
    
    
    
    1,548
    
    
    
    1.1
    %Missouri
    
    
    7
    
    
    
    437,118
    
    
    
    3,798
    
    
    
    1.2
    %New Hampshire
    
    
    4
    
    
    
    234,148
    
    
    
    2,150
    
    
    
    0.7
    %New York
    
    
    19
    
    
    
    1,064,012
    
    
    
    10,050
    
    
    
    7.2
    %North Carolina
    
    
    15
    
    
    
    796,731
    
    
    
    6,955
    
    
    
    3.6
    %Ohio
    
    
    16
    
    
    
    1,024,693
    
    
    
    8,524
    
    
    
    4.7
    %Pennsylvania
    
    
    6
    
    
    
    498,885
    
    
    
    2,880
    
    
    
    1.7
    %Rhode Island
    
    
    4
    
    
    
    168,146
    
    
    
    1,562
    
    
    
    1.1
    %South Carolina
    
    
    8
    
    
    
    426,733
    
    
    
    3,584
    
    
    
    2.1
    %Tennessee
    
    
    4
    
    
    
    281,424
    
    
    
    2,361
    
    
    
    1.1
    %Texas
    
    
    77
    
    
    
    5,396,943
    
    
    
    43,473
    
    
    
    23.2
    %Virginia
    
    
    18
    
    
    
    1,063,000
    
    
    
    9,822
    
    
    
    5.7
    %Total
    
    
    327
    
    
    
    20,215,442
    
    
    
    173,118
    
    
    
    100.0
    %
 
 Item 3. Legal Proceedings
  12




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Item 4. Submission of Matters to a Vote of Security Holders
  
 Part II
 
 Item 5. Market for Registrants Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities
  Quarter
    
    High
    
    Low20051st
    
    
    43.2400
    
    
    
    37.80002nd
    
    
    46.9300
    
    
    
    38.56003rd
    
    
    49.7000
    
    
    
    44.09004th
    
    
    50.5200
    
    
    
    43.5000
 Quarter
    
    High
    
    
    Low20061st
    
    
    55.7100
    
    
    
    46.39002nd
    
    
    55.2000
    
    
    
    45.71003rd
    
    
    56.3500
    
    
    
    49.00004th
    
    
    60.0000
    
    
    
    54.6300
    History of Dividends Declared on Common Stock1st Quarter, 2005
    
    $0.6050 per share2nd Quarter, 2005
    
    $0.6050 per share3rd Quarter, 2005
    
    $0.6150 per share4th Quarter, 2005
    
    $0.6150 per share1st Quarter, 2006
    
    $0.6150 per share2nd Quarter, 2006
    
    $0.6150 per share3rd Quarter, 2006
    
    $0.6200 per share4th Quarter, 2006
    
    $0.6200 per share
 13




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EQUITY COMPENSATION PLAN INFORMATION
  Number ofsecurities to beissued upon
    
    Weighted average
    
    Number ofexercise of
    
    exercise price of
    
    securitiesoutstanding
    
    outstanding
    
    remaining availableoptions, warrants
    
    options, warrants
    
    for future issuancePlan Category
    
    and rights (#)
    
    and rights ($)
    
    (#)Equity compensation plans approved by
shareholders:2005 Award and Option Plan
    
    
    30,000
    
    
    $
    48.58
    
    
    
    1,429,9451995 Award and Option Plan
    
    
    61,225
    
    
    $
    26.78
    
    
    
    01995 Outside Directors Stock Option Plan
    
    
    22,000
    
    
    $
    43.34
    
    
    
    18,724Deferred Compensation Plan for Directors (1)
    
    
    30,246
    
    
    
    N/A
    
    
    
    14,754Equity compensation plans not approved by
shareholders:
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A
 
 (1)
    
    Under the Deferred Compensation Plan for Directors, non-employee Directors may defer all
or part of their Directors fees that are otherwise payable in cash. Directors fees that are
deferred under the Plan will be credited to each Directors account under the Plan in the form of
Units. The number of Units credited is determined by dividing the amount of Directors fees
deferred by the closing price of the Companys Common Stock on the New York Stock Exchange on the
day immediately preceding the day upon which Directors fees otherwise would be paid by the
Company. A Director is credited with additional Units for dividends on the shares of Common Stock
represented by Units in such Directors Account. A Director may elect to receive the shares in a
lump sum on a date specified by the Director or in quarterly or annual installments over a
specified period and commencing on a specified date. 14




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CORPORATE PERFORMANCE GRAPH
  
 CUMULATIVE TOTAL SHAREHOLDER RETURN
SOVRAN SELF STORAGE, INC.
DECEMBER 31, 2001  DECEMBER 31, 2006
 Dec. 31,
    
    Dec. 31,
    
    Dec. 31,
    
    Dec. 31,
    
    Dec. 31,
    
    Dec. 31,2001
    
    2002
    
    2003
    
    2004
    
    2005
    
    2006S&P
    
    
    100.00
    
    
    
    77.89
    
    
    
    100.24
    
    
    
    111.14
    
    
    
    116.60
    
    
    
    135.01NAREIT
    
    
    100.00
    
    
    
    103.82
    
    
    
    142.37
    
    
    
    187.33
    
    
    
    210.10
    
    
    
    283.76SSS
    
    
    100.00
    
    
    
    98.25
    
    
    
    137.06
    
    
    
    164.37
    
    
    
    193.78
    
    
    
    247.84
  15




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Item 6. Selected Financial Data
  At or For Year Ended December 31,(dollars in thousands, except per share data)
    
    2006
    
    2005
    
    2004
    
    2003
    
    2002Operating DataOperating revenues
    
    $
    166,295
    
    
    $
    138,305
    
    
    $
    123,286
    
    
    $
    111,414
    
    
    $
    100,507Income from continuing operations
    
    
    36,610
    
    
    
    34,790
    
    
    
    30,698
    
    
    
    27,586
    
    
    
    25,526Income from discontinued operation (1)
    
    
    
    
    
    
    
    
    
    
    1,306
    
    
    
    837
    
    
    
    775Net income
    
    
    36,610
    
    
    
    34,790
    
    
    
    32,004
    
    
    
    28,423
    
    
    
    26,301Income from continuing operations per
common share  diluted
    
    
    1.89
    
    
    
    1.84
    
    
    
    1.44
    
    
    
    1.40
    
    
    
    1.58Net income per common share  basic
    
    
    1.90
    
    
    
    1.86
    
    
    
    1.54
    
    
    
    1.47
    
    
    
    1.66Net income per common share  diluted
    
    
    1.89
    
    
    
    1.84
    
    
    
    1.53
    
    
    
    1.46
    
    
    
    1.64Dividends declared per common share
    
    
    2.47
    
    
    
    2.44
    
    
    
    2.42
    
    
    
    2.41
    
    
    
    2.38Balance Sheet DataInvestment in storage facilities at cost
    
    $
    1,143,904
    
    
    $
    893,980
    
    
    $
    811,516
    
    
    $
    727,289
    
    
    $
    698,334Total assets
    
    
    1,053,210
    
    
    
    784,376
    
    
    
    719,573
    
    
    
    683,336
    
    
    
    652,213Total debt
    
    
    462,027
    
    
    
    339,144
    
    
    
    289,075
    
    
    
    255,819
    
    
    
    252,452Total liabilities
    
    
    495,352
    
    
    
    365,037
    
    
    
    315,108
    
    
    
    285,755
    
    
    
    278,631Series B preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,585
    
    
    
    28,585Series C preferred stock
    
    
    26,613
    
    
    
    26,613
    
    
    
    53,227
    
    
    
    67,129
    
    
    
    67,129Other DataNet cash provided by operating
activities
    
    $
    64,533
    
    
    $
    60,234
    
    
    $
    53,914
    
    
    $
    51,003
    
    
    $
    44,544Net cash provided by operating
activities  discontinued operations
    
    
    
    
    
    
    
    
    
    
    287
    
    
    
    1,124
    
    
    
    1,066Net cash used in investing activities
    
    
    (176,567
    )
    
    
    (79,156
    )
    
    
    (71,034
    )
    
    
    (31,284
    )
    
    
    (99,065
    )Net cash used in investing activities 
discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (41
    )
    
    
    (179
    )Net cash provided by (used in)
financing activities
    
    
    154,853
    
    
    
    20,728
    
    
    
    (163
    )
    
    
    (2,764
    )
    
    
    53,814
 
 (1)
    
    In 2004 we sold five stores whose operations and gain are classified as discontinued operations
for all previous years presented. 16




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Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Disclosure Regarding Forward-Looking Statements
  Business and Overview
  Operating Strategy:
  A.
    
    Increasing operating performance and cash flow through aggressive management of our
stores:
 -
    
    Operating performance continues to improve as a result of revenue drivers
implemented by us over the past five years, including:
 -
    
    The formation of our Customer Care Center, which answers
sales inquiries and makes reservations for all of our properties on a centralized
basis,-
    
    The rollout of the Uncle Bobs truck move-in program, under which,
at present, 248 of our stores offer a free Uncle Bobs truck to assist our
customers in moving into their spaces, and-
    
    An increase in internet marketing and sales.
 -
    
    In addition to increasing revenue, we have worked to improve services and
amenities at our stores. While this has caused operating expenses to increase over the
past five years, it has resulted in a superior storage experience for our customers.
Our managers are better qualified and receive a significantly higher level of training
than they did five years ago, customer access and security are greatly enhanced as a
result of advances in technology, and property appearance and functionality have been
improved.-
    
    Our customized property management systems enable us to improve our ability to
track trends, set optimal pricing levels, enjoy considerable economies of scale in
vendor and supply pricing, and control collections and accounts receivable.
 17




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B.
    
    Acquiring additional stores:
 -
    
    In markets where we already operate facilities, we seek to acquire new stores
one or two at a time from independent operators. By so doing, we can add to our
existing base, which should improve market penetration in those areas, and contribute
to the benefits achieved from economies of scale.-
    
    We will seek to enter new markets if we can do so by acquiring a group of
stores in those markets. We feel that our marketing efforts and control systems would
enhance even those portfolios that have been managed efficiently by independent
operators, and that attractive returns can be generated by such acquisitions.
 C.
    
    Expanding and enhancing our existing stores:
 -
    
    We intend to continue to install climate controlled and Dri-guard space at
select stores, providing our customers with better storage solutions and improving
yields on our portfolio.-
    
    We intend to add buildings to a number of our stores, providing additional
rental units of a size and type to meet existing demand.-
    
    We will seek to acquire parcels of land contiguous to some of our stores and
add to the available rental space at those stores.-
    
    We intend to modify existing buildings to better match size and type of rental
units to existing demand. At some stores, this may be as simple as reconfiguring walls
and doors; at others, it may entail rebuilding in a configuration more in tune with
market conditions.-
    
    As announced in 2004, we have begun to implement a program that will add
450,000 to 600,000 square feet of rentable space at existing stores and convert up to
an additional 250,000 to 300,000 square feet to premium (climate and humidity
controlled) space. The projected cost of these revenue enhancing improvements is
estimated at between $32 and $40 million. During 2006 we spent approximately $12.6
million on revenue enhancing improvements. Funding is expected to be provided
primarily from borrowings on the Companys line of credit, and issuance of common
shares in our Dividend Reinvestment Program and Stock Purchase Plan.
 Supply and Demand
  Operating Trends
  18




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Critical Accounting Policies and Estimates
     YEAR ENDED DECEMBER 31, 2006 COMPARED TO
YEAR ENDED DECEMBER 31, 2005
  19




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YEAR ENDED DECEMBER 31, 2005 COMPARED TO
YEAR ENDED DECEMBER 31, 2004
     20




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FUNDS FROM OPERATIONS
    Reconciliation of Net Income to Funds From Operations
 For Year Ended December 31,(dollars in thousands)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002Net income
    
    $
    36,610
    
    
    $
    34,790
    
    
    $
    32,004
    
    
    $
    28,423
    
    
    $
    26,301Minority interest in income
    
    
    2,434
    
    
    
    1,529
    
    
    
    1,542
    
    
    
    1,790
    
    
    
    1,990Depreciation of real estate and
amortization of intangible assets
exclusive of deferred financing fees
    
    
    25,305
    
    
    
    21,222
    
    
    
    19,175
    
    
    
    17,856
    
    
    
    16,207Depreciation of real estate
included in discontinued operations
    
    
    
    
    
    
    
    
    
    
    90
    
    
    
    293
    
    
    
    290Depreciation and amortization from
unconsolidated joint ventures
    
    
    168
    
    
    
    484
    
    
    
    473
    
    
    
    460
    
    
    
    400Gain on sale of real estate
    
    
    
    
    
    
    
    
    
    
    (1,137
    )
    
    
    
    
    
    
    Preferred stock dividends
    
    
    (2,512
    )
    
    
    (4,123
    )
    
    
    (7,168
    )
    
    
    (8,818
    )
    
    
    (4,863
    )Redemption amount in excess of
carrying value of Series B
Preferred Stock
    
    
    
    
    
    
    
    
    
    
    (1,415
    )
    
    
    
    
    
    
    
 21




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For Year Ended December 31,(dollars in thousands)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002Funds from operations allocable to
minority interest in Operating
Partnership
    
    
    (1,450
    )
    
    
    (1,519
    )
    
    
    (1,333
    )
    
    
    (1,563
    )
    
    
    (1,647
    )Funds from operations allocable to
minority interest in Locke Sovran
I and Locke Sovran II
    
    
    (1,785
    )
    
    
    (1,499
    )
    
    
    (1,475
    )
    
    
    (1,539
    )
    
    
    (1,645
    )Funds from operations available to
common shareholders
    
    $
    58,770
    
    
    $
    50,884
    
    
    $
    40,756
    
    
    $
    36,902
    
    
    $
    37,033
 LIQUIDITY AND CAPITAL RESOURCES
         22




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*
    
    7.80% mortgage note due December 2011, secured by 11 self-storage facilities
(Locke Sovran I) with an aggregate net book value of $41.6 million, principal
and interest paid monthly. The outstanding balance at December 31, 2006 on
this mortgage was $29.5 million.*
    
    7.19% mortgage note due March 2012, secured by 27 self-storage facilities
(Locke Sovran II) with an aggregate net book value of $78.4 million, principal
and interest paid monthly. The outstanding balance at December 31, 2006 on
this mortgage was $44.6 million.*
    
    7.25% mortgage note due December 2011, secured by 1 self-storage facility
with an aggregate net book value of $6.0 million, principal and interest paid
monthly. Estimated market rate at time of acquisition 5.40%. The outstanding
balance at December 31, 2006 on this mortgage was $3.8 million.*
    
    6.76% mortgage note due September 2013, secured by 1 self-storage facility
with an aggregate net book value of $2.1 million, principal and interest paid
monthly. The outstanding balance at December 31, 2006 on this mortgage was
$1.0 million.*
    
    6.35% mortgage note due March 2014, secured by 1 self-storage facility with
an aggregate net book value of $1.9 million, principal and interest paid
monthly. The outstanding balance at December 31, 2006 on this mortgage was
$1.1 million.*
    
    5.55% mortgage notes due November 2009, secured by 8 self-storage facilities
with an aggregate net book value of $36.2 million, interest only paid monthly.
Estimated market rate at time of acquisition 6.44%. The outstanding balance at
December 31, 2006 on this mortgage was $25.5 million.*
    
    7.50% mortgage notes due August 2011, secured by 3 self-storage facilities
with an aggregate net book value of $14.9 million, principal and interest paid
monthly. Estimated market rate at time of acquisition 6.42%. The outstanding
balance at December 31, 2006 on this mortgage was $6.5 million.
       23




---



##### Table of Contents



CONTRACTUAL OBLIGATIONS
  Payments due by periodContractual obligations
    
    Total
    
    
    2007
    
    
    2008-2009
    
    
    2010-2011
    
    
    2012 and thereafterLine of credit
    
    
    

    
    
    
    
    
    
    
    

    
    
    
    Term notes
    
    $
    350.0 million
    
    

     
    $
    100.0 million

    
    
        
    $
    250.0 millionMortgages payable
    
    $
    112.0 million

    
    $
    1.6 million

    
    $
    29.1 million

    
    $
    40.2 million

    
    $
    41.1 millionInterest payments
    
    $
    179.4 million

    
    $
    30.5 million

    

    $
    52.7 million
    
    $
    43.2 million

    
    $
    53.0 millionLand lease
    
    $
    1.2 million

    
    $
    0.1 million

    
    $
    0.1 million

    

    $
    0.1 million
    
    $
    0.9 millionBuilding lease
    
    $
    1.5 million

    
    $
    0.5 million

    
    $
    1.0 million

    
    
        
    
    Total
    
    $
    644.1 million

    
    $
    32.7 million

    
    $
    182.9 million

    
    $
    83.5 million

    
    $
    345.0 million
 ACQUISITION OF PROPERTIES
  FUTURE ACQUISITION AND DEVELOPMENT PLANS
     24




---



##### Table of Contents



DISPOSITION OF PROPERTIES
    OFF-BALANCE SHEET ARRANGEMENTS
     Iskalo Office(dollars in thousands)
    
    Holdings, LLCBalance Sheet Data:Investment in office building
    
    $
    5,842Other assets
    
    
    808Total Assets
    
    $
    6,650Mortgage payable
    
    $
    7,410Other liabilities
    
    
    253Total Liabilities
    
    
    7,663Unaffiliated partners deficiency
    
    
    (592
    )Company deficiency
    
    
    (421
    )Total Liabilities and Partners Deficiency
    
    $
    6,650
 25




---



##### Table of Contents



Iskalo Office(dollars in thousands)
    
    Holdings, LLCIncome Statement Data:Total revenues
    
    $
    1,351Total expenses
    
    
    1,189Net income
    
    $
    162
  Year ended December 31,(dollars in thousands)
    
    2006
    
    2005
    
    2004Statement of OperationsOther income (management fees income)
    
    $
    85
    
    
    $
    332
    
    
    $
    322General and administrative expenses (corporate
office rent)
    
    
    583
    
    
    
    445
    
    
    
    426Equity in income of joint ventures
    
    
    172
    
    
    
    202
    
    
    
    207Investing activitiesReimbursement of advances to (advances to)
joint ventures
    
    
    17
    
    
    
    (187
    )
    
    
    958Financing activitiesDistributions from unconsolidated joint ventures
    
    
    123
    
    
    
    490
    
    
    
    602
 REIT QUALIFICATION AND DISTRIBUTION REQUIREMENTS
   INTEREST RATE RISK
  Fixed
    
    Floating RateNotional Amount
    
    Effective Date
    
    Expiration Date
    
    Rate Paid
    
    Received$50 Million
    
    
    11/14/05
    
    
    
    9/1/09
    
    
    
    5.590
    %
    
    1 month LIBOR$20 Million
    
    
    9/4/05
    
    
    
    9/4/13
    
    
    
    5.935
    %
    
    6 month LIBOR$50 Million
    
    
    10/10/06
    
    
    
    9/1/09
    
    
    
    5.680
    %
    
    1 month LIBOR
 26




---



##### Table of Contents



Expected Maturity Date Including Discount(dollars in thousands)
    
    2007
    
    2008
    
    2009
    
    2010
    
    2011
    
    Thereafter
    
    Total
    

Fair ValueLine of credit  variable rate LIBOR
+ 0.9%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Notes Payable:Term note  variable rate LIBOR+1.20%
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    100,000
    
    
    
    
    
    
    
    
    
    
    $
    100,000
    
    
    $
    100,000Term note  variable rate LIBOR+1.50%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    20,000
    
    
    $
    20,000
    
    
    $
    20,000Term note  fixed rate 6.26%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    80,000
    
    
    $
    80,000
    
    
    $
    78,334Term note  fixed rate 6.38%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    150,000
    
    
    $
    150,000
    
    
    $
    147,688Mortgage note  fixed rate 7.80%
    
    $
    342
    
    
    $
    363
    
    
    $
    400
    
    
    $
    433
    
    
    $
    27,948
    
    
    
    
    
    
    $
    29,486
    
    
    $
    30,858Mortgage note  fixed rate 7.19%
    
    $
    937
    
    
    $
    998
    
    
    $
    1,083
    
    
    $
    1,164
    
    
    $
    1,252
    
    
    $
    39,189
    
    
    $
    44,623
    
    
    $
    45,874Mortgage note  fixed rate 7.25%
    
    $
    126
    
    
    $
    133
    
    
    $
    141
    
    
    $
    149
    
    
    $
    3,220
    
    
    
    
    
    
    $
    3,769
    
    
    $
    3,620Mortgage note  fixed rate 6.76%
    
    $
    20
    
    
    $
    22
    
    
    $
    23
    
    
    $
    25
    
    
    $
    27
    
    
    $
    926
    
    
    $
    1,043
    
    
    $
    1,062Mortgage note  fixed rate 6.35%
    
    $
    23
    
    
    $
    24
    
    
    $
    26
    
    
    $
    28
    
    
    $
    30
    
    
    $
    1,013
    
    
    $
    1,144
    
    
    $
    1,141Mortgage notes  fixed rate 5.55%
    
    
    
    
    
    
    
    
    
    $
    25,496
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    25,496
    
    
    $
    26,138Mortgage notes  fixed rate 7.50%
    
    $
    183
    
    
    $
    194
    
    
    $
    208
    
    
    $
    222
    
    
    $
    5,659
    
    
    
    
    
    
    $
    6,466
    
    
    $
    6,471Interest rate derivatives  asset
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,128
 INFLATION
  SEASONALITY
  27




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##### Table of Contents



RECENT ACCOUNTING PRONOUNCEMENTS
 Accounting for Stock-Based Compensation Accounting for Stock Issued to Employees Statement of Cash Flows requires
  Accounting for Conditional Asset
Retirement Obligations. Accounting for Asset Retirement Obligations
   28




---



##### Table of Contents



Item 7A. Quantitative and Qualitative Disclosures About Market Risk
  
 Item 8. Financial Statements and Supplementary Data
 Report of Independent Registered Public Accounting Firm
       /s/ Ernst & Young LLP 
 29




---



##### Table of Contents



SOVRAN SELF STORAGE, INC. CONSOLIDATED BALANCE SHEETS
 December 31,(dollars in thousands, except share data)
    
    2006
    
    
    2005AssetsInvestment in storage facilities:Land
    
    $
    208,644
    
    
    $
    162,900Building, equipment, and construction in progress
    
    
    935,260
    
    
    
    731,0801,143,904
    
    
    
    893,980Less: accumulated depreciation
    
    
    (155,843
    )
    
    
    (130,550
    )Investment in storage facilities, net
    
    
    988,061
    
    
    
    763,430Cash and cash equivalents
    
    
    47,730
    
    
    
    4,911Accounts receivable
    
    
    2,166
    
    
    
    1,643Receivable from related parties
    
    
    37
    
    
    
    75Receivable from joint ventures
    
    
    
    
    
    
    2,780Investment in joint ventures
    
    
    
    
    
    
    825Prepaid expenses
    
    
    5,336
    
    
    
    3,075Fair value of interest rate swap agreements
    
    
    2,274
    
    
    
    1,411Other assets
    
    
    7,606
    
    
    
    6,226Total Assets
    
    $
    1,053,210
    
    
    $
    784,376LiabilitiesLine of credit
    
    $
    
    
    
    $
    90,000Term notes
    
    
    350,000
    
    
    
    200,000Accounts payable and accrued liabilities
    
    
    15,358
    
    
    
    10,865Deferred revenue
    
    
    5,292
    
    
    
    4,227Accrued dividends
    
    
    12,675
    
    
    
    10,801Mortgages payable
    
    
    112,027
    
    
    
    49,144Total Liabilities
    
    
    495,352
    
    
    
    365,037Minority interest  Operating Partnership
    
    
    10,164
    
    
    
    11,132Minority interest  consolidated joint venture
    
    
    16,783
    
    
    
    14,122Shareholders Equity8.375% Series C Convertible Cumulative Preferred
Stock, $.01 par value, 1,200,000 shares issued
and outstanding at December 31, 2006 and
December 31, 2005, $30,000 liquidation value
    
    
    26,613
    
    
    
    26,613Common stock $.01 par value, 100,000,000 shares
authorized, 20,443,529 shares outstanding
(17,563,046 at December 31, 2005)
    
    
    216
    
    
    
    187Additional paid-in capital
    
    
    612,738
    
    
    
    466,839Non-vested stock
    
    
    
    
    
    
    (1,838
    )Dividends in excess of net income
    
    
    (83,609
    )
    
    
    (71,995
    )Accumulated other comprehensive income
    
    
    2,128
    
    
    
    1,454Treasury stock at cost, 1,171,886 shares
    
    
    (27,175
    )
    
    
    (27,175
    )Total Shareholders Equity
    
    
    530,911
    
    
    
    394,085Total Liabilities and Shareholders Equity
    
    $
    1,053,210
    
    
    $
    784,376
  30




---



##### Table of Contents



SOVRAN SELF STORAGE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
 Year Ended December 31,(dollars in thousands, except per share data)
    
    2006
    
    
    2005
    
    
    2004RevenuesRental income
    
    $
    160,924
    
    
    $
    133,856
    
    
    $
    119,605Other operating income
    
    
    5,371
    
    
    
    4,449
    
    
    
    3,681Total operating revenues
    
    
    166,295
    
    
    
    138,305
    
    
    
    123,286ExpensesProperty operations and maintenance
    
    
    44,034
    
    
    
    35,954
    
    
    
    32,166Real estate taxes
    
    
    15,260
    
    
    
    12,407
    
    
    
    11,014General and administrative
    
    
    14,095
    
    
    
    12,863
    
    
    
    11,071Depreciation and amortization
    
    
    25,347
    
    
    
    21,222
    
    
    
    19,175Total operating expenses
    
    
    98,736
    
    
    
    82,446
    
    
    
    73,426Income from operations
    
    
    67,559
    
    
    
    55,859
    
    
    
    49,860Other income (expenses)Interest expense
    
    
    (29,494
    )
    
    
    (20,229
    )
    
    
    (18,128
    )Interest income
    
    
    807
    
    
    
    487
    
    
    
    301Minority interest  Operating Partnership
    
    
    (905
    )
    
    
    (1,039
    )
    
    
    (1,043
    )Minority interest  consolidated joint ventures
    
    
    (1,529
    )
    
    
    (490
    )
    
    
    (499
    )Equity in income of joint ventures
    
    
    172
    
    
    
    202
    
    
    
    207Income from continuing operations
    
    
    36,610
    
    
    
    34,790
    
    
    
    30,698Income from discontinued operations (including
gain on disposal in 2004 of $1,083)
    
    
    
    
    
    
    
    
    
    
    1,306Net Income
    
    
    36,610
    
    
    
    34,790
    
    
    
    32,004Redemption amount in excess of carrying
value of Series B Preferred Stock
    
    
    
    
    
    
    
    
    
    
    (1,415
    )Preferred stock dividends
    
    
    (2,512
    )
    
    
    (4,123
    )
    
    
    (7,168
    )Net income available to common shareholders
    
    $
    34,098
    
    
    $
    30,667
    
    
    $
    23,421Per Common Share  basic:Continuing operations
    
    $
    1.90
    
    
    $
    1.86
    
    
    $
    1.45Discontinued operations
    
    $
    
    
    
    $
    
    
    
    $
    0.09Earnings per common share  basic
    
    $
    1.90
    
    
    $
    1.86
    
    
    $
    1.54Per Common Share  diluted:Continuing operations
    
    $
    1.89
    
    
    $
    1.84
    
    
    $
    1.44Discontinued operations
    
    $
    
    
    
    $
    
    
    
    $
    0.09Earnings per common share  diluted
    
    $
    1.89
    
    
    $
    1.84
    
    
    $
    1.53Dividends declared per common share
    
    $
    2.47
    
    
    $
    2.44
    
    
    $
    2.42
  31




---



##### Table of Contents



SOVRAN SELF STORAGE, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
 9.85%
    
    
    
    
    
    
    8.375%Series B
    
    
    9.85%
    
    
    Series C
    
    
    8.375%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    AccumulatedPreferred
    
    
    Series B
    
    
    Preferred
    
    
    Series C
    
    
    Common
    
    
    
    
    
    
    Additional
    
    
    Non-
    
    
    Dividends in
    
    
    OtherStock
    
    
    Preferred
    
    
    Stock
    
    
    Preferred
    
    
    Stock
    
    
    Common
    
    
    Paid-in
    
    
    vested
    
    
    Excess of
    
    
    Comprehensive
    
    
    Treasury
    
    
    Total(dollars in thousands, except share data)
    
    Shares
    
    
    Stock
    
    
    Shares
    
    
    Stock
    
    
    Shares
    
    
    Stock
    
    
    Capital
    
    
    Stock
    
    
    Net Income
    
    
    Income (loss)
    
    
    Stock
    
    
    EquityBalance January 1, 2004
    
    
    1,200,000
    
    
    $
    28,585
    
    
    
    2,800,000
    
    
    $
    67,129
    
    
    
    14,259,863
    
    
    $
    154
    
    
    $
    356,875
    
    
    $
    (1,722
    )
    
    $
    (48,069
    )
    
    $
    (7,580
    )
    
    $
    (27,175
    )
    
    $
    368,197Net proceeds from issuance of
stock through Dividend
Reinvestment and Stock Purchase
Plan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,163,651
    
    
    
    12
    
    
    
    43,482
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    43,494Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    225,750
    
    
    
    2
    
    
    
    5,500
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,502Issuance of non-vested stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,058
    
    
    
    
    
    
    
    463
    
    
    
    (463
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Earned portion of non-vested stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    411
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    411Deferred compensation outside
directors
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    129
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    129Conversion of Series C Preferred
Stock to common stock and exercise
of related stock warrants
    
    
    
    
    
    
    
    
    
    
    (400,000
    )
    
    
    (8,871
    )
    
    
    310,905
    
    
    
    3
    
    
    
    8,868
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercise of Series C Preferred
Stock placement certificate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,031
    )
    
    
    
    
    
    
    
    
    
    
    2,958
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,073
    )Carrying value less than
redemption value on redeemed
partnership units
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (268
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (268
    )Redemption of 9.85% Series B
Preferred Stock
    
    
    (1,200,000
    )
    
    
    (28,585
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (28,585
    )Redemption amount in excess of
carrying value of 9.85% Series B
Preferred Stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,415
    )
    
    
    
    
    
    
    
    
    
    
    (1,415
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    32,004
    
    
    
    
    
    
    
    
    
    
    
    32,004Change in fair value of derivatives
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,326
    
    
    
    
    
    
    
    4,326Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    36,330Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (44,271
    )
    
    
    
    
    
    
    
    
    
    
    (44,271
    )Balance December 31, 2004
    
    
    
    
    
    
    
    
    
    
    2,400,000
    
    
    
    53,227
    
    
    
    15,972,227
    
    
    
    171
    
    
    
    418,007
    
    
    
    (1,774
    )
    
    
    (61,751
    )
    
    
    (3,254
    )
    
    
    (27,175
    )
    
    
    377,451Net proceeds from issuance of
stock through Dividend
Reinvestment and Stock Purchase
Plan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    283,379
    
    
    
    3
    
    
    
    11,929
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,932Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    129,015
    
    
    
    1
    
    
    
    3,238
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,239Issuance of non-vested stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,778
    
    
    
    
    
    
    
    582
    
    
    
    (582
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Earned portion of non-vested stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    518
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    518Deferred compensation outside
directors
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    125
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    125Conversion of Series C Preferred
Stock to common stock and exercise
of related stock warrants
    
    
    
    
    
    
    
    
    
    
    (1,200,000
    )
    
    
    (26,614
    )
    
    
    1,164,647
    
    
    
    12
    
    
    
    32,958
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,356Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34,790
    
    
    
    
    
    
    
    
    
    
    
    34,790Change in fair value of derivatives
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,708
    
    
    
    
    
    
    
    4,708Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39,498Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (45,034
    )
    
    
    
    
    
    
    
    
    
    
    (45,034
    )Balance December 31, 2005
    
    
    
    
    
    
    
    
    
    
    1,200,000
    
    
    
    26,613
    
    
    
    17,563,046
    
    
    
    187
    
    
    
    466,839
    
    
    
    (1,838
    )
    
    
    (71,995
    )
    
    
    1,454
    
    
    
    (27,175
    )
    
    
    394,085Net proceeds from the issuance of
common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,300,000
    
    
    
    23
    
    
    
    122,388
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    122,411Net proceeds from issuance of
stock through Dividend
Reinvestment and Stock Purchase
Plan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    501,089
    
    
    
    5
    
    
    
    24,862
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24,867Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    37,675
    
    
    
    
    
    
    
    1,142
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,142
 32




---



##### Table of Contents



9.85%
    
    
    
    
    
    
    8.375%Series B
    
    
    9.85%
    
    
    Series C
    
    
    8.375%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    AccumulatedPreferred
    
    
    Series B
    
    
    Preferred
    
    
    Series C
    
    
    Common
    
    
    
    
    
    
    Additional
    
    
    Non-
    
    
    Dividends in
    
    
    OtherStock
    
    
    Preferred
    
    
    Stock
    
    
    Preferred
    
    
    Stock
    
    
    Common
    
    
    Paid-in
    
    
    vested
    
    
    Excess of
    
    
    Comprehensive
    
    
    Treasury
    
    
    Total(dollars in thousands, except share data)
    
    Shares
    
    
    Stock
    
    
    Shares
    
    
    Stock
    
    
    Shares
    
    
    Stock
    
    
    Capital
    
    
    Stock
    
    
    Net Income
    
    
    Income (loss)
    
    
    Stock
    
    
    EquityReclass of unearned non-vested
stock to additional paid in
capital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,838
    )
    
    
    1,838
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Issuance of non-vested stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,719
    
    
    
    1
    
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Earned portion of non-vested stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    876
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    876Stock option expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    119
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    119Deferred compensation outside
directors
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    181
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    181Carrying value less than
redemption value on redeemed
partnership units
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,830
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,830
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    36,610
    
    
    
    
    
    
    
    
    
    
    
    36,610Change in fair value of derivatives
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    674
    
    
    
    
    
    
    
    674Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    37,284Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (48,224
    )
    
    
    
    
    
    
    
    
    
    
    (48,224
    )Balance December 31, 2006
    
    
    
    
    
    $
    
    
    
    
    1,200,000
    
    
    $
    26,613
    
    
    
    20,443,529
    
    
    $
    216
    
    
    $
    612,738
    
    
    $
    
    
    
    $
    (83,609
    )
    
    $
    2,128
    
    
    $
    (27,175
    )
    
    $
    530,911
  33




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##### Table of Contents



SOVRAN SELF STORAGE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
 Year Ended December 31,(dollars in thousands)
    
    2006
    
    
    2005
    
    
    2004Operating ActivitiesNet income from continuing operations
    
    $
    36,610
    
    
    $
    34,790
    
    
    $
    30,698Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    26,340
    
    
    
    22,012
    
    
    
    19,895Equity in income of joint ventures
    
    
    (172
    )
    
    
    (202
    )
    
    
    (207
    )Minority interest
    
    
    2,434
    
    
    
    1,529
    
    
    
    1,542Non-vested stock earned
    
    
    876
    
    
    
    518
    
    
    
    411Stock option expense
    
    
    119
    
    
    
    
    
    
    
    Changes in assets and liabilities:Accounts receivable
    
    
    (407
    )
    
    
    (74
    )
    
    
    103Prepaid expenses
    
    
    (2,029
    )
    
    
    183
    
    
    
    (124
    )Accounts payable and other liabilities
    
    
    1,011
    
    
    
    1,445
    
    
    
    1,644Deferred revenue
    
    
    (249
    )
    
    
    33
    
    
    
    (48
    )Net cash provided by operating activities  continuing operations
    
    
    64,533
    
    
    
    60,234
    
    
    
    53,914Net cash provided by operating activities  discontinued operations
    
    
    
    
    
    
    
    
    
    
    287Investing ActivitiesAcquisition of storage facilities
    
    
    (130,251
    )
    
    
    (60,681
    )
    
    
    (65,629
    )Improvements, equipment additions, and construction in progress
    
    
    (37,021
    )
    
    
    (17,885
    )
    
    
    (17,961
    )Additional investment in consolidated joint ventures net of cash acquired
    
    
    (8,181
    )
    
    
    
    
    
    
    Net proceeds from the sale of storage facilities
    
    
    
    
    
    
    
    
    
    
    11,640Reimbursement of advances to (advances to) joint ventures
    
    
    17
    
    
    
    (187
    )
    
    
    958Other assets
    
    
    (1,169
    )
    
    
    (418
    )
    
    
    (47
    )Receipts from related parties
    
    
    38
    
    
    
    15
    
    
    
    5Net cash used in investing activities
    
    
    (176,567
    )
    
    
    (79,156
    )
    
    
    (71,034
    )Financing ActivitiesNet proceeds from sale of common stock
    
    
    148,601
    
    
    
    21,652
    
    
    
    49,125Proceeds from line of credit
    
    
    94,000
    
    
    
    56,000
    
    
    
    74,000Paydown of line of credit
    
    
    (184,000
    )
    
    
    (9,000
    )
    
    
    (40,000
    )Proceeds from term notes
    
    
    150,000
    
    
    
    
    
    
    
    Financing costs
    
    
    (632
    )
    
    
    (352
    )
    
    
    (735
    )Dividends paid  common stock
    
    
    (43,837
    )
    
    
    (39,773
    )
    
    
    (36,032
    )Dividends paid  preferred stock
    
    
    (2,513
    )
    
    
    (4,123
    )
    
    
    (7,168
    )Distributions from unconsolidated joint venture
    
    
    123
    
    
    
    490
    
    
    
    602Minority interest distributions
    
    
    (2,815
    )
    
    
    (2,567
    )
    
    
    (2,422
    )Redemption of operating partnership units
    
    
    (2,788
    )
    
    
    (722
    )
    
    
    (1,758
    )Redemption of Series B Preferred Stock
    
    
    
    
    
    
    
    
    
    
    (30,000
    )Series C Preferred Stock placement certificate payment
    
    
    
    
    
    
    
    
    
    
    (5,031
    )Mortgage principal and capital lease payments
    
    
    (1,286
    )
    
    
    (877
    )
    
    
    (744
    )Net cash provided by (used in) financing activities
    
    
    154,853
    
    
    
    20,728
    
    
    
    (163
    )Net increase (decrease) in cash
    
    
    42,819
    
    
    
    1,806
    
    
    
    (16,996
    )Cash at beginning of period
    
    
    4,911
    
    
    
    3,105
    
    
    
    20,101Cash at end of period
    
    $
    47,730
    
    
    $
    4,911
    
    
    $
    3,105Supplemental
cash flow informationCash paid for interest
    
    $
    26,647
    
    
    $
    19,097
    
    
    $
    17,403Fair value of net liabilities assumed on the acquisition of storage facilities
    
    
    65,650
    
    
    
    4,320
    
    
    
    744
   34




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##### Table of Contents



SOVRAN SELF STORAGE, INC.  DECEMBER 31, 2006
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1. ORGANIZATION
 ®
 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Basis of Presentation
   35




---



##### Table of Contents



Locke Sovran I,(dollars in thousands)
    
    LLCInvestment in storage facilities, net
    
    $
    38,000Other assets
    
    
    1,240Total Assets
    
    $
    39,240Due to the Company
    
    $
    2,763Mortgage payable
    
    
    29,379Other liabilities
    
    
    579Total Liabilities
    
    
    32,721Unaffiliated partners equity
    
    
    3,521Company equity
    
    
    2,998Total Liabilities and Partners Equity
    
    $
    39,240
 Cash and Cash Equivalents
 Revenue and Expense Recognition
 Other Income
 Investment in Storage Facilities
  Other Assets
 36




---



##### Table of Contents



Accounts Payable and Accrued Liabilities
 Minority Interest
 Income Taxes
 Comprehensive Income
 Derivative Financial Instruments
 Recent Accounting Pronouncements Accounting for Conditional Asset Retirement Obligations. Accounting for Asset
Retirement Obligations
  37




---



##### Table of Contents



Stock-Based Compensation Accounting for
Stock-Based Compensation Accounting for Stock
Issued to Employees Statement of Cash Flows requires
   Weighted Average
    
    RangeExpected life (years)
    
    
    6.87
    
    
    
    5.00 - 7.00Risk free interest rate
    
    
    4.23
    %
    
    
    4.00 - 5.03
    %Expected volatility
    
    
    20.61
    %
    
    
    19.40% - 21.00
    %Expected dividend yield
    
    
    6.72
    %
    
    
    4.55% - 8.00
    %Fair value
    
    $
    3.70
    
    
    $
    1.93-$8.47
  38




---



##### Table of Contents



Pro Forma(dollars in thousands, except per share data)
    
    2005
    
    
    2004Net income available to common shareholders as reported
    
    $
    30,667
    
    
    $
    23,421Add: Total stock-based compensation expense recorded
    
    
    518
    
    
    
    411Deduct: Total stock-based employee compensation
expense determined under fair value method for all
awards
    
    
    (657
    )
    
    
    (566
    )Pro forma net income available to common shareholders
    
    $
    30,528
    
    
    $
    23,266Earnings per common shareBasic  as reported
    
    $
    1.86
    
    
    $
    1.54Basic  pro forma
    
    $
    1.85
    
    
    $
    1.53Diluted  as reported
    
    $
    1.85
    
    
    $
    1.53Diluted  pro forma
    
    $
    1.84
    
    
    $
    1.52
 Use of Estimates
 Reclassification
 3. EARNINGS PER SHARE
  Year Ended December 31,(Amounts in thousands, except per share data)
    
    2006
    
    
    2005
    
    
    2004Numerator:Net income available to common shareholders
    
    $
    34,098
    
    
    $
    30,667
    
    
    $
    23,421Denominator:Denominator for basic earnings per share - weighted
average shares
    
    
    17,951
    
    
    
    16,506
    
    
    
    15,161Effect of Dilutive Securities:Stock options and warrants and non-vested stock
    
    
    70
    
    
    
    127
    
    
    
    134Denominator for diluted earnings per share - adjusted
weighted average shares and assumed
conversion
    
    
    18,021
    
    
    
    16,633
    
    
    
    15,295Basic Earnings per Common Share
    
    $
    1.90
    
    
    $
    1.86
    
    
    $
    1.54Diluted Earnings per Common Share
    
    $
    1.89
    
    
    $
    1.84
    
    
    $
    1.53
 39




---



##### Table of Contents



4. INVESTMENT IN STORAGE FACILITIES
  (Dollars in thousands)
    
    2006
    
    
    2005Cost:Beginning balance
    
    $
    893,980
    
    
    $
    811,516Acquisition of storage facilities
    
    
    166,310
    
    
    
    65,001Consolidation of Locke Sovran I, LLC as of April 1, 2006
    
    
    38,000
    
    
    
    Additional investment in consolidated joint ventures
    
    
    8,647
    
    
    
    Improvements and equipment additions
    
    
    30,480
    
    
    
    18,236Construction in progress
    
    
    6,586
    
    
    
    Dispositions
    
    
    (99
    )
    
    
    (773
    )Ending balance
    
    $
    1,143,904
    
    
    $
    893,980Accumulated Depreciation:Beginning balance
    
    $
    130,550
    
    
    $
    109,750Additions during the year
    
    
    25,347
    
    
    
    21,222Dispositions
    
    
    (54
    )
    
    
    (422
    )Ending balance
    
    $
    155,843
    
    
    $
    130,550
  5. DISCONTINUED OPERATIONS
    Year Ended December 31,(dollars in thousands)
    
    2006
    
    
    2005
    
    
    2004Total revenue
    
    $
    
    
    
    $
    
    
    
    $
    544Property operations and maintenance expense
    
    
    
    
    
    
    
    
    
    
    (193
    )Real estate tax expense
    
    
    
    
    
    
    
    
    
    
    (38
    )Depreciation and amortization expense
    
    
    
    
    
    
    
    
    
    
    (90
    )Net realized gain on properties sold
    
    
    
    
    
    
    
    
    
    
    1,083Total income from discontinued operations
    
    $
    
    
    
    $
    
    
    
    $
    1,306
 40




---



##### Table of Contents



6. PRO FORMA FINANCIAL INFORMATION (UNAUDITED)
  Year Ended December 31,(dollars in thousands, except share data)
    
    2006
    
    
    2005Pro forma total operating revenues
    
    $
    177,123
    
    
    $
    165,952Pro forma net income
    
    $
    32,293
    
    
    $
    24,957Pro forma earnings per common share  diluted
    
    $
    1.79
    
    
    $
    1.46
 7. UNSECURED LINE OF CREDIT AND TERM NOTES
   8. MORTGAGES PAYABLE
  December 31,
    
    
    December 31,(dollars in thousands)
    
    2006
    
    
    20057.80% mortgage note due December 2011,
secured by 11 self-storage facilities
(Locke Sovran I) with an aggregate net book
value of $41.6 million, principal and
interest paid monthly
    
    $
    29,486
    
    
    $
    7.19% mortgage note due March 2012, secured
by 27 self-storage facilities (Locke Sovran
II) with an aggregate net book value of
$78.4 million, principal and interest paid
monthly
    
    
    44,623
    
    
    
    45,2557.25% mortgage note due December 2011,
secured by 1 self-storage facility with an
aggregate net book value of $6.0 million,
principal and interest paid monthly.
Estimated market rate at time of
acquisition 5.40%
    
    
    3,769
    
    
    
    3,889
 41




---



##### Table of Contents



December 31,
    
    
    December 31,(dollars in thousands)
    
    2006
    
    
    20056.76% mortgage note due September 2013,
secured by 1 self-storage facility with an
aggregate net book value of $2.1 million,
principal and interest paid monthly
    
    
    1,043
    
    
    
    6.35% mortgage note due March 2014, secured
by 1 self-storage facility with an
aggregate net book value of $1.9 million,
principal and interest paid monthly
    
    
    1,144
    
    
    
    5.55% mortgage notes due November 2009,
secured by 8 self-storage facilities with
an aggregate net book value of $36.2
million, interest only paid monthly.
Estimated market rate at time of
acquisition 6.44%
    
    
    25,496
    
    
    
    7.50% mortgage notes due August 2011,
secured by 3 self-storage facilities with
an aggregate net book value of $14.9
million, principal and interest paid
monthly. Estimated market rate at time of
acquisition 6.42%
    
    
    6,466
    
    
    
    Total mortgages payable
    
    $
    112,027
    
    
    $
    49,144
   Expected Maturity Date Including Discount
    
    
    
    
    
    Fair(dollars in thousands)
    
    2007
    
    2008
    
    2009
    
    2010
    
    2011
    
    Thereafter
    
    Total
    
    ValueLine of credit  variable rate
LIBOR + 0.9%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Notes Payable:Term note  variable rate LIBOR+1.20%
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    100,000
    
    
    
    
    
    
    
    
    
    
    $
    100,000
    
    
    $
    100,000Term note  variable rate LIBOR+1.50%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    20,000
    
    
    $
    20,000
    
    
    $
    20,000Term note  fixed rate 6.26%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    80,000
    
    
    $
    80,000
    
    
    $
    78,334Term note  fixed rate 6.38%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    150,000
    
    
    $
    150,000
    
    
    $
    147,688Mortgage note  fixed rate 7.80%
    
    $
    342
    
    
    $
    363
    
    
    $
    400
    
    
    $
    433
    
    
    $
    27,948
    
    
    
    
    
    
    $
    29,486
    
    
    $
    30,858Mortgage note  fixed rate 7.19%
    
    $
    937
    
    
    $
    998
    
    
    $
    1,083
    
    
    $
    1,164
    
    
    $
    1,252
    
    
    $
    39,189
    
    
    $
    44,623
    
    
    $
    45,874Mortgage note  fixed rate 7.25%
    
    $
    126
    
    
    $
    133
    
    
    $
    141
    
    
    $
    149
    
    
    $
    3,220
    
    
    
    
    
    
    $
    3,769
    
    
    $
    3,620Mortgage note  fixed rate 6.76%
    
    $
    20
    
    
    $
    22
    
    
    $
    23
    
    
    $
    25
    
    
    $
    27
    
    
    $
    926
    
    
    $
    1,043
    
    
    $
    1,062Mortgage note  fixed rate 6.35%
    
    $
    23
    
    
    $
    24
    
    
    $
    26
    
    
    $
    28
    
    
    $
    30
    
    
    $
    1,013
    
    
    $
    1,144
    
    
    $
    1,141Mortgage notes  fixed rate 5.55%
    
    
    
    
    
    
    
    
    
    $
    25,496
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    25,496
    
    
    $
    26,138Mortgage notes  fixed rate 7.50%
    
    $
    183
    
    
    $
    194
    
    
    $
    208
    
    
    $
    222
    
    
    $
    5,659
    
    
    
    
    
    
    $
    6,466
    
    
    $
    6,471Interest rate derivatives  asset
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,128
 42




---



##### Table of Contents



9. DERIVATIVE FINANCIAL INSTRUMENTS
    Fixed
    
    Floating RateNotional Amount
    
    Effective Date
    
    Expiration Date
    
    Rate Paid
    
    Received$50 Million
    
    11/14/05
    
    9/1/09
    
    
    5.590
    %
    
    1 month LIBOR$20 Million
    
    9/4/05
    
    9/4/13
    
    
    5.935
    %
    
    6 month LIBOR$50 Million
    
    10/10/06
    
    9/1/09
    
    
    5.680
    %
    
    1 month LIBOR
  10. STOCK OPTIONS AND NON-VESTED STOCK
   43




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##### Table of Contents



2006
    
    
    2005
    
    
    2004Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weightedaverage
    
    
    
    
    
    
    average
    
    
    
    
    
    
    averageexercise
    
    
    
    
    
    
    exercise
    
    
    
    
    
    
    exerciseOptions
    
    
    price
    
    
    Options
    
    
    price
    
    
    Options
    
    
    priceOutstanding at beginning
of year:
    
    
    142,900
    
    
    $
    32.68
    
    
    
    247,415
    
    
    $
    27.00
    
    
    
    443,665
    
    
    $
    24.71Granted
    
    
    14,000
    
    
    
    51.78
    
    
    
    38,000
    
    
    
    45.26
    
    
    
    38,000
    
    
    
    37.43Exercised
    
    
    (37,675
    )
    
    
    30.33
    
    
    
    (129,015
    )
    
    
    25.11
    
    
    
    (225,750
    )
    
    
    24.18Forfeited
    
    
    (6,000
    )
    
    
    33.05
    
    
    
    (13,500
    )
    
    
    36.39
    
    
    
    (8,500
    )
    
    
    29.12Outstanding at end of year
    
    
    113,225
    
    
    $
    35.77
    
    
    
    142,900
    
    
    $
    32.68
    
    
    
    247,415
    
    
    $
    27.00Exercisable at end of year
    
    
    74,225
    
    
    $
    31.14
    
    
    
    72,650
    
    
    $
    27.26
    
    
    
    91,940
    
    
    $
    25.25
  Outstanding
    
    
    ExercisableWeighted
    
    
    
    
    
    
    Weightedaverage
    
    
    
    
    
    
    averageexercise
    
    
    
    
    
    
    exerciseExercise Price Range
    
    Options
    
    
    price
    
    
    Options
    
    
    price$19.06  29.99
    
    
    38,625
    
    
    $
    21.66
    
    
    
    37,125
    
    
    $
    21.43$30.00  39.99
    
    
    25,600
    
    
    $
    34.55
    
    
    
    15,100
    
    
    $
    32.22$40.00  48.11
    
    
    49,000
    
    
    $
    47.53
    
    
    
    22,000
    
    
    $
    46.77Total
    
    
    113,225
    
    
    $
    35.77
    
    
    
    74,225
    
    
    $
    31.14Intrinsic value of outstanding stock options at December 31, 2006
    
    $
    2,435,000Intrinsic value of exercisable stock options at December 31, 2006
    
    $
    1,940,000Intrinsic value of stock options exercised in 2006
    
    $
    824,536
  Non-vested Stock
  44




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##### Table of Contents



2006
    
    
    2005
    
    
    2004Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weightedaverage
    
    
    Non-
    
    
    average
    
    
    
    
    
    
    averageNon-vested
    
    
    grant date
    
    
    vested
    
    
    grant date
    
    
    Non-vested
    
    
    grant dateShares
    
    
    fair value
    
    
    Shares
    
    
    fair value
    
    
    Shares
    
    
    fair valueUnvested at beginning
of year:
    
    
    71,411
    
    
    $
    30.39
    
    
    
    71,904
    
    
    $
    27.83
    
    
    
    74,094
    
    
    $
    25.40Granted
    
    
    41,719
    
    
    
    53.86
    
    
    
    13,778
    
    
    
    42.24
    
    
    
    12,058
    
    
    
    38.40Vested
    
    
    (16,677
    )
    
    
    32.29
    
    
    
    (14,271
    )
    
    
    28.94
    
    
    
    (14,248
    )
    
    
    24.11Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Unvested at end of year
    
    
    96,453
    
    
    $
    40.21
    
    
    
    71,411
    
    
    $
    30.39
    
    
    
    71,904
    
    
    $
    27.83
  11. RETIREMENT PLAN
  12. INVESTMENT IN JOINT VENTURES
   45




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##### Table of Contents



Iskalo Office(dollars in thousands)
    
    Holdings, LLCBalance Sheet Data:Investment in office building
    
    $
    5,842Other assets
    
    
    808Total Assets
    
    $
    6,650Mortgage payable
    
    $
    7,410Other liabilities
    
    
    253Total Liabilities
    
    
    7,663Unaffiliated partners deficiency
    
    
    (592
    )Company deficiency
    
    
    (421
    )Total Liabilities and Partners Deficiency
    
    $
    6,650Income Statement Data:Total revenues
    
    $
    1,351Total expenses
    
    
    1,189Net income
    
    $
    162
    13. PREFERRED STOCK
     46




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##### Table of Contents



14. SUPPLEMENTARY QUARTERLY FINANCIAL DATA (UNAUDITED)
  2006 Quarter EndedMarch 31
    
    June 30
    
    Sept. 30
    
    Dec. 31Operating revenue
    
    $
    36,657
    
    
    $
    40,296
    
    
    $
    44,784
    
    
    $
    44,558Net Income
    
    $
    8,595
    
    
    $
    9,386
    
    
    $
    9,465
    
    
    $
    9,165Net income available to common
shareholders
    
    $
    7,967
    
    
    $
    8,758
    
    
    $
    8,837
    
    
    $
    8,537Net Income Per Common ShareBasic
    
    $
    0.45
    
    
    $
    0.50
    
    
    $
    0.49
    
    
    $
    0.46Diluted
    
    $
    0.45
    
    
    $
    0.50
    
    
    $
    0.49
    
    
    $
    0.45
 2005 Quarter EndedMarch 31
    
    June 30
    
    Sept. 30
    
    Dec. 31Operating revenue
    
    $
    32,149
    
    
    $
    34,007
    
    
    $
    36,003
    
    
    $
    36,147Net Income
    
    $
    7,768
    
    
    $
    8,878
    
    
    $
    9,611
    
    
    $
    8,533Net income available to common
shareholders
    
    $
    6,512
    
    
    $
    7,622
    
    
    $
    8,628
    
    
    $
    7,905Net Income Per Common ShareBasic
    
    $
    0.41
    
    
    $
    0.47
    
    
    $
    0.52
    
    
    $
    0.46Diluted
    
    $
    0.40
    
    
    $
    0.47
    
    
    $
    0.52
    
    
    $
    0.46
 47




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##### Table of Contents



15. COMMITMENTS AND CONTINGENCIES
   48




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##### Table of Contents



Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
  
 Item 9A. Controls and Procedures
 Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
  Managements Report on Internal Control Over Financial Reporting
    /S/ Robert J. Attea
    
    /S/ David L. RogersChief Executive Officer
    
    Chief Financial Officer
 49




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##### Table of Contents



Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting
         
 50




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##### Table of Contents



Part III
 
 Item 10. Directors, Executive Officers and Corporate Governance
   
 Item 11. Executive Compensation
  
 Item 12. Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters
  
 Item 13. Certain Relationships and Related Transactions, and Director Independence
  
 Item 14. Principal Accountant Fees and Services
  
 Part IV
 
 Item 15. Exhibits, Financial Statement Schedules
  1.
    
    The following consolidated financial statements of Sovran Self Storage, Inc. are included in Item 8.
 (i)
    
    Consolidated Balance Sheets as of December 31, 2006 and 2005.(ii)
    
    Consolidated Statements of Operations for Years Ended December 31, 2006, 2005, and 2004.(iii)
    
    Consolidated Statements of Shareholders Equity for Years Ended December 31, 2006,
2005, and 2004.(iv)
    
    Consolidated Statements of Cash Flows for Years Ended December 31, 2006, 2005, and 2004.(v)
    
    Notes to Consolidated Financial Statements.
 2.
    
    The following financial statement Schedule as of the period ended December 31, 2006 is included in this Annual Report on Form 10-K.Schedule III Real Estate and Accumulated Depreciation.
 51




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##### Table of Contents



3.
    
    Exhibits
  3.1
    
    Amended and Restated Articles of Incorporation of the Registrant. (incorporated by
reference to Exhibit 3.1 (a) to the Registrants Registration Statement on Form S-11
(File No. 33-91422) filed June 19, 1995).3.2
    
    Articles Supplementary to the Amended and Restated Articles of Incorporation of the
Registrant classifying and designating the series A Junior Participating Cumulative
Preferred Stock. (incorporated by reference to Exhibit 3.1 to the Registrants Form
8-A filed December 3, 1996.)3.3
    
    Articles Supplementary to the Amended and Restated Articles of Incorporation of the
Registrant classifying and designating the 8.375% Series C Convertible Cumulative
Preferred Stock. (incorporated by reference to Exhibit 4.1 to Registrants Current
Report on Form 8-K filed July 12, 2002).3.4
    
    Bylaws, as amended, of the Registrant (incorporated by reference to Exhibit 3.2 to
Registrants Current Report on Form 8-K filed April 7, 2004).4.1
    
    Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to
Registrants Registration Statement on Form S-11 (File No. 33-91422) filed June 19,
1995).4.2
    
    Form of Series C Convertible Cumulative Preferred Stock Certificate (incorporated by
reference to Exhibit 4.2 to Registrants Current Report on Form 8-K filed July 12,
2002).4.3
    
    Shareholder Rights Plan. (incorporated by reference to Exhibit 4.1 to the
Registrants Form 8-A filed December 3, 1996.)4.4
    
    Registration Rights Agreement (incorporated by reference to Exhibit 10.3 to
Registrants Current Report on Form 8-K filed July 12, 2002).4.5
    
    Amendment No. 1 to Shareholders Rights Agreement (incorporated by reference to
Exhibit 4.5 to Registrants Current Report on Form 8-K filed July 12, 2002).4.6
    
    Amendment to Shareholders Rights Agreement (incorporated by reference to Exhibit 4.4
to Registrants Current Report on Form 8-K filed May 4, 2006).4.7
    
    Amendment to Shareholders Rights Agreement (incorporated by reference to Exhibit 4.5
to Registrants Current Report on Form 8-K filed September 1, 2006).10.1+
    
    Sovran Self Storage, Inc. 2005 Award and Option Plan, as amended (incorporated by
reference to the Registrants Proxy Statement filed April 11, 2005).10.2+
    
    Sovran Self Storage, Inc. 1995 Outside Directors Stock Option Plan, as amended
(incorporated by reference to the Registrants Proxy Statement filed April 8, 2004)10.3+
    
    Employment Agreement between the Registrant and Robert J. Attea (incorporated by
reference to Exhibit 10.19 as filed in the Companys Annual Report on Form 10-K/A,
filed June 27, 2002).10.4+
    
    Employment Agreement between the Registrant and Kenneth F. Myszka (incorporated by
reference to Exhibit 10.20 as filed in the Companys Annual Report on Form 10-K/A,
filed June 27, 2002).10.5+
    
    Employment Agreement between the Registrant and David L. Rogers (incorporated by
reference to
 52




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##### Table of Contents



Exhibit 10.21 as filed in the Companys Annual Report on Form 10-K/A,
filed June 27, 2002).10.6*+
    
    Standard form of Employment Agreement to which Andrew J. Gregoire, Edward F.
Killeen, and Paul T. Powell employees are parties10.7+
    
    Form of restricted stock grant pursuant to Sovran Self Storage, Inc. 2005 Award and
Option Plan (incorporated by reference to Exhibit 10.1 to Registrants Quarterly
Report on Form 10-Q/A filed November 24, 2006).10.8+
    
    Form of stock option grant pursuant to Sovran Self Storage, Inc. 2005 Award and
Option Plan (incorporated by reference to Exhibit 10.2 to Registrants Quarterly
Report on Form 10-Q/A filed November 24, 2006).10.9+
    
    Form of restricted stock grant pursuant to Sovran Self Storage, Inc. 1995 Award and
Option Plan (incorporated by reference to Exhibit 10.3 to Registrants Quarterly
Report on Form 10-Q/A filed November 24, 2006).10.10+
    
    Form of stock option grant pursuant to Sovran Self Storage, Inc. 1995 Award and
Option Plan (incorporated by reference to Exhibit 10.4 to Registrants Quarterly
Report on Form 10-Q/A filed November 24, 2006).10.11+
    
    Deferred Compensation Plan for Directors (incorporated by reference to Schedule 14A
Proxy Statement filed April 8, 2004).10.12
    
    Amended Indemnification Agreements with members of the Board of Directors and
Executive Officers (incorporated by reference to Exhibit 10.35 and 10.36 to
Registrants Current Report on Form 8-K filed July 20, 2006).10.13
    
    Securities Purchase Agreement among Registrant, Sovran Acquisition Limited
Partnership, The Prudential Insurance Company of America, Teachers Insurance and
Annuity Association of America and other institutional investors (incorporated by
reference to Exhibit 10.1 as filed in the Companys Current Report on Form 8-K,
filed July 12, 2002).10.14
    
    Amendments to Agreement of Limited Partnership of Sovran Acquisition Limited
Partnership (incorporated by reference to Exhibit 10.2 filed in the Companys
Current Report on Form 8-K, filed July 12, 2002).10.15
    
    Promissory Note between Locke Sovran II, LLC and PNC Bank, National Association
(incorporated by reference to Exhibit 10.22 to Registrants Form 10-K filed March
27, 2003).10.16
    
    Second Amended and Restated Revolving Credit and Term Loan Agreement among
Registrant, the Partnership, Fleet National Bank and other lenders named therein
(incorporated by reference to Exhibit 10.25 filed in the Companys Current Report on
Form 8-K, filed December 21, 2004).10.17
    
    Note Purchase Agreement among Registrant, the Partnership and the purchaser named
therein (incorporated by reference to Exhibit 10.24 filed in the Companys Quarterly
Report on Form 10-Q, filed November 12, 2003).10.18
    
    Amendment to Note Purchase Agreement dated September 3, 2003 (incorporated by
reference to Exhibit 10.26 of Registrants Current Report on Form 8-K filed May 20,
2005).10.19
    
    Cornerstone Acquisition Agreement and Amendments to Certain Loan Agreements
(incorporated by reference to Exhibits 10.30, 10.31, 10.32, 10.33 and 10.34 of
Registrants Current Report on Form 8-K filed June 26, 2006).10.20
    
    $150 million, 6.38% Senior Guaranteed Notes, Series C due April 26, 2016, and
Amendments to Second
 53




---



##### Table of Contents



Amendment Restated Revolving Credit and Term Loan Agreement
dated December 16, 2004 and Amendment to Note Purchase Agreement dated September 4,
2003 (incorporated by reference to Exhibits 10.27, 10.28, and 10.29 of the
Registrants Current Report on Form 8-K filed May 1, 2006).10.21*
    
    Promissory Note between Locke Sovran I, LLC and GMAC Commercial Mortgage Corporation.12.1*
    
    Statement Re: Computation of Earnings to Fixed Charges.21*
    
    Subsidiary of the Company.23*
    
    Consent of Independent Registered Public Accounting Firm.24.1*
    
    Powers of Attorney (included on signature pages).31.1*
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule
15d-14(a) of the Securities Exchange Act, as amended.31.2*
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule
15d-14(a) of the Securities Exchange Act, as amended.32*
    
    Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18
U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
 
 *
    
    Filed herewith.+
    
    Management contract or compensatory plan or arrangement required to be filed as an
exhibit to this Form 10-K.
 54




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##### Table of Contents



SOVRAN SELF STORAGE, INC.March 1, 2007
    
    By:
    
    /s/ David L. RogersDavid L. Rogers,Chief Financial Officer,
Secretary
  Signature
    
    Title
    
    Date/s/ Robert J. Attea
    
    Chairman of the Board of Directors
    
    March 1, 2007Robert J. Attea
    
    Chief
Executive Officer and Director
(Principal Executive Officer)/s/ Kenneth F. Myszka
    
    President, Chief Operating
    
    March 1, 2007Kenneth F. Myszka
    
    Officer
and Director/s/ David L. Rogers
    
    Chief Financial Officer (Principal
    
    March 1, 2007David L. Rogers
    
    Financial
and Accounting Officer)/s/ John Burns
    
    Director
    
    March 1, 2007John Burns/s/ Michael A. Elia
    
    Director
    
    March 1, 2007Michael A. Elia/s/ Anthony P. Gammie
    
    Director
    
    March 1, 2007Anthony P. Gammie/s/ Charles E. Lannon
    
    Director
    
    March 1, 2007Charles E. Lannon
 55




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##### Table of Contents



Sovran Self Storage, Inc.
Schedule III
Combined Real Estate and Accumulated Depreciation
(in thousands)
December 31, 2006
 CostCapitalizedSubsequent to
    
    
    Gross Amount at WhichInitial Cost to Company
    
    
    Acquisition
    
    
    Carried at Close of Period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on whichBuilding,
    
    
    Building,
    
    
    
    
    
    
    Building,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    depreciationEquipment
    
    
    Equipment
    
    
    
    
    
    
    Equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in latestEncum-
    
    
    
    
    
    
    and
    
    
    and
    
    
    
    
    
    
    and
    
    
    
    
    
    
    Accumulated
    
    
    Date of
    
    
    Date
    
    
    income statementDescription
    
    State
    
    
    brance
    
    
    Land
    
    
    Improvements
    
    
    Improvements
    
    
    Land
    
    
    Improvements
    
    
    Total
    
    
    Depreciation
    
    
    Construction
    
    
    Acquired
    
    
    is computedBoston-Metro I
    
    MA
    
    
    
    
    
    $
    363
    
    
    $
    1,679
    
    
    $
    356
    
    
    $
    363
    
    
    $
    2,035
    
    
    $
    2,398
    
    
    $
    586
    
    
    
    1980
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsBoston-Metro II
    
    MA
    
    
    
    
    
    
    680
    
    
    
    1,616
    
    
    
    319
    
    
    
    680
    
    
    
    1,935
    
    
    
    2,615
    
    
    
    568
    
    
    
    1986
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsE. Providence
    
    RI
    
    
    
    
    
    
    345
    
    
    
    1,268
    
    
    
    373
    
    
    
    345
    
    
    
    1,641
    
    
    
    1,986
    
    
    
    463
    
    
    
    1984
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsCharleston l
    
    SC
    
    
    
    
    
    
    416
    
    
    
    1,516
    
    
    
    435
    
    
    
    416
    
    
    
    1,951
    
    
    
    2,367
    
    
    
    584
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsLakeland I
    
    FL
    
    
    
    
    
    
    397
    
    
    
    1,424
    
    
    
    283
    
    
    
    397
    
    
    
    1,707
    
    
    
    2,104
    
    
    
    515
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsCharlotte
    
    NC
    
    
    
    
    
    
    308
    
    
    
    1,102
    
    
    
    889
    
    
    
    747
    
    
    
    1,552
    
    
    
    2,299
    
    
    
    453
    
    
    
    1986
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsTallahassee I
    
    FL
    
    
    
    
    
    
    770
    
    
    
    2,734
    
    
    
    1,789
    
    
    
    770
    
    
    
    4,523
    
    
    
    5,293
    
    
    
    1,220
    
    
    
    1973
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsYoungstown
    
    OH
    
    
    
    
    
    
    239
    
    
    
    1,110
    
    
    
    1,195
    
    
    
    239
    
    
    
    2,305
    
    
    
    2,544
    
    
    
    480
    
    
    
    1980
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsCleveland-Metro II
    
    OH
    
    
    
    
    
    
    701
    
    
    
    1,659
    
    
    
    669
    
    
    
    701
    
    
    
    2,328
    
    
    
    3,029
    
    
    
    619
    
    
    
    1987
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsTallahassee II
    
    FL
    
    
    
    
    
    
    204
    
    
    
    734
    
    
    
    853
    
    
    
    198
    
    
    
    1,593
    
    
    
    1,791
    
    
    
    391
    
    
    
    1975
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsPt. St. Lucie
    
    FL
    
    
    
    
    
    
    395
    
    
    
    1,501
    
    
    
    416
    
    
    
    395
    
    
    
    1,917
    
    
    
    2,312
    
    
    
    627
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsDeltona
    
    FL
    
    
    
    
    
    
    483
    
    
    
    1,752
    
    
    
    1,788
    
    
    
    483
    
    
    
    3,540
    
    
    
    4,023
    
    
    
    707
    
    
    
    1984
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsMiddletown
    
    NY
    
    
    
    
    
    
    224
    
    
    
    808
    
    
    
    736
    
    
    
    224
    
    
    
    1,544
    
    
    
    1,768
    
    
    
    438
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsBuffalo I
    
    NY
    
    
    
    
    
    
    423
    
    
    
    1,531
    
    
    
    1,584
    
    
    
    497
    
    
    
    3,041
    
    
    
    3,538
    
    
    
    827
    
    
    
    1981
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsRochester I
    
    NY
    
    
    
    
    
    
    395
    
    
    
    1,404
    
    
    
    355
    
    
    
    395
    
    
    
    1,759
    
    
    
    2,154
    
    
    
    491
    
    
    
    1981
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsSalisbury
    
    MD
    
    
    
    
    
    
    164
    
    
    
    760
    
    
    
    363
    
    
    
    164
    
    
    
    1,123
    
    
    
    1,287
    
    
    
    313
    
    
    
    1979
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsNew Bedford
    
    MA
    
    
    
    
    
    
    367
    
    
    
    1,325
    
    
    
    363
    
    
    
    367
    
    
    
    1,688
    
    
    
    2,055
    
    
    
    540
    
    
    
    1982
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsFayetteville
    
    NC
    
    
    
    
    
    
    853
    
    
    
    3,057
    
    
    
    498
    
    
    
    853
    
    
    
    3,555
    
    
    
    4,408
    
    
    
    993
    
    
    
    1980
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsJacksonville I
    
    FL
    
    
    
    
    
    
    152
    
    
    
    728
    
    
    
    854
    
    
    
    687
    
    
    
    1,047
    
    
    
    1,734
    
    
    
    349
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsColumbia I
    
    SC
    
    
    
    
    
    
    268
    
    
    
    1,248
    
    
    
    407
    
    
    
    268
    
    
    
    1,655
    
    
    
    1,923
    
    
    
    511
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsRochester II
    
    NY
    
    
    
    
    
    
    230
    
    
    
    847
    
    
    
    314
    
    
    
    234
    
    
    
    1,157
    
    
    
    1,391
    
    
    
    338
    
    
    
    1980
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsSavannah l
    
    GA
    
    
    
    
    
    
    463
    
    
    
    1,684
    
    
    
    1,754
    
    
    
    816
    
    
    
    3,085
    
    
    
    3,901
    
    
    
    829
    
    
    
    1981
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsGreensboro
    
    NC
    
    
    
    
    
    
    444
    
    
    
    1,613
    
    
    
    447
    
    
    
    444
    
    
    
    2,060
    
    
    
    2,504
    
    
    
    654
    
    
    
    1986
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsRaleigh I
    
    NC
    
    
    
    
    
    
    649
    
    
    
    2,329
    
    
    
    708
    
    
    
    649
    
    
    
    3,037
    
    
    
    3,686
    
    
    
    859
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 years
 56




---



##### Table of Contents



CostCapitalizedSubsequent to
    
    
    Gross Amount at WhichInitial Cost to Company
    
    
    Acquisition
    
    
    Carried at Close of Period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on whichBuilding,
    
    
    Building,
    
    
    
    
    
    
    Building,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    depreciationEquipment
    
    
    Equipment
    
    
    
    
    
    
    Equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in latestEncum-
    
    
    
    
    
    
    and
    
    
    and
    
    
    
    
    
    
    and
    
    
    
    
    
    
    Accumulated
    
    
    Date of
    
    
    Date
    
    
    income statementDescription
    
    State
    
    
    brance
    
    
    Land
    
    
    Improvements
    
    
    Improvements
    
    
    Land
    
    
    Improvements
    
    
    Total
    
    
    Depreciation
    
    
    Construction
    
    
    Acquired
    
    
    is computedNew Haven
    
    CT
    
    
    
    
    
    
    387
    
    
    
    1,402
    
    
    
    644
    
    
    
    387
    
    
    
    2,046
    
    
    
    2,433
    
    
    
    525
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAtlanta-Metro I
    
    GA
    
    
    
    
    
    
    844
    
    
    
    2,021
    
    
    
    621
    
    
    
    844
    
    
    
    2,642
    
    
    
    3,486
    
    
    
    741
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAtlanta-Metro II
    
    GA
    
    
    
    
    
    
    302
    
    
    
    1,103
    
    
    
    304
    
    
    
    303
    
    
    
    1,406
    
    
    
    1,709
    
    
    
    447
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsBuffalo II
    
    NY
    
    
    
    
    
    
    315
    
    
    
    745
    
    
    
    1,075
    
    
    
    315
    
    
    
    1,820
    
    
    
    2,135
    
    
    
    394
    
    
    
    1984
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsRaleigh II
    
    NC
    
    
    
    
    
    
    321
    
    
    
    1,150
    
    
    
    424
    
    
    
    321
    
    
    
    1,574
    
    
    
    1,895
    
    
    
    443
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsColumbia II
    
    SC
    
    
    
    
    
    
    361
    
    
    
    1,331
    
    
    
    461
    
    
    
    374
    
    
    
    1,779
    
    
    
    2,153
    
    
    
    526
    
    
    
    1987
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsColumbia III
    
    SC
    
    
    
    
    
    
    189
    
    
    
    719
    
    
    
    729
    
    
    
    189
    
    
    
    1,448
    
    
    
    1,637
    
    
    
    386
    
    
    
    1989
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsColumbia IV
    
    SC
    
    
    
    
    
    
    488
    
    
    
    1,188
    
    
    
    358
    
    
    
    488
    
    
    
    1,546
    
    
    
    2,034
    
    
    
    485
    
    
    
    1986
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAtlanta-Metro III
    
    GA
    
    
    
    
    
    
    430
    
    
    
    1,579
    
    
    
    493
    
    
    
    602
    
    
    
    1,900
    
    
    
    2,502
    
    
    
    611
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsOrlando I
    
    FL
    
    
    
    
    
    
    513
    
    
    
    1,930
    
    
    
    402
    
    
    
    513
    
    
    
    2,332
    
    
    
    2,845
    
    
    
    727
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsSharon
    
    PA
    
    
    
    
    
    
    194
    
    
    
    912
    
    
    
    321
    
    
    
    194
    
    
    
    1,233
    
    
    
    1,427
    
    
    
    371
    
    
    
    1975
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsFt. Lauderdale
    
    FL
    
    
    
    
    
    
    1,503
    
    
    
    3,619
    
    
    
    577
    
    
    
    1,503
    
    
    
    4,196
    
    
    
    5,699
    
    
    
    1,295
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsWest Palm l
    
    FL
    
    
    
    
    
    
    398
    
    
    
    1,035
    
    
    
    225
    
    
    
    398
    
    
    
    1,260
    
    
    
    1,658
    
    
    
    426
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAtlanta-Metro IV
    
    GA
    
    
    
    
    
    
    423
    
    
    
    1,015
    
    
    
    346
    
    
    
    424
    
    
    
    1,360
    
    
    
    1,784
    
    
    
    422
    
    
    
    1989
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAtlanta-Metro V
    
    GA
    
    
    
    
    
    
    483
    
    
    
    1,166
    
    
    
    256
    
    
    
    483
    
    
    
    1,422
    
    
    
    1,905
    
    
    
    447
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAtlanta-Metro VI
    
    GA
    
    
    
    
    
    
    308
    
    
    
    1,116
    
    
    
    443
    
    
    
    308
    
    
    
    1,559
    
    
    
    1,867
    
    
    
    505
    
    
    
    1986
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAtlanta-Metro VII
    
    GA
    
    
    
    
    
    
    170
    
    
    
    786
    
    
    
    444
    
    
    
    174
    
    
    
    1,226
    
    
    
    1,400
    
    
    
    375
    
    
    
    1981
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAtlanta-Metro VIII
    
    GA
    
    
    
    
    
    
    413
    
    
    
    999
    
    
    
    571
    
    
    
    413
    
    
    
    1,570
    
    
    
    1,983
    
    
    
    498
    
    
    
    1975
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsBaltimore I
    
    MD
    
    
    
    
    
    
    154
    
    
    
    555
    
    
    
    1,287
    
    
    
    306
    
    
    
    1,690
    
    
    
    1,996
    
    
    
    309
    
    
    
    1984
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsBaltimore II
    
    MD
    
    
    
    
    
    
    479
    
    
    
    1,742
    
    
    
    1,074
    
    
    
    479
    
    
    
    2,816
    
    
    
    3,295
    
    
    
    706
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAugusta I
    
    GA
    
    
    
    
    
    
    357
    
    
    
    1,296
    
    
    
    654
    
    
    
    357
    
    
    
    1,950
    
    
    
    2,307
    
    
    
    531
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsMacon I
    
    GA
    
    
    
    
    
    
    231
    
    
    
    1,081
    
    
    
    355
    
    
    
    231
    
    
    
    1,436
    
    
    
    1,667
    
    
    
    426
    
    
    
    1989
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsMelbourne I
    
    FL
    
    
    
    
    
    
    883
    
    
    
    2,104
    
    
    
    1,494
    
    
    
    883
    
    
    
    3,598
    
    
    
    4,481
    
    
    
    953
    
    
    
    1986
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsNewport News
    
    VA
    
    
    
    
    
    
    316
    
    
    
    1,471
    
    
    
    684
    
    
    
    316
    
    
    
    2,155
    
    
    
    2,471
    
    
    
    624
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsPensacola I
    
    FL
    
    
    
    
    
    
    632
    
    
    
    2,962
    
    
    
    865
    
    
    
    651
    
    
    
    3,808
    
    
    
    4,459
    
    
    
    1,167
    
    
    
    1983
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAugusta II
    
    GA
    
    
    
    
    
    
    315
    
    
    
    1,139
    
    
    
    504
    
    
    
    315
    
    
    
    1,643
    
    
    
    1,958
    
    
    
    466
    
    
    
    1987
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsHartford-Metro I
    
    CT
    
    
    
    
    
    
    715
    
    
    
    1,695
    
    
    
    704
    
    
    
    715
    
    
    
    2,399
    
    
    
    3,114
    
    
    
    635
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAtlanta-Metro IX
    
    GA
    
    
    
    
    
    
    304
    
    
    
    1,118
    
    
    
    2,318
    
    
    
    619
    
    
    
    3,121
    
    
    
    3,740
    
    
    
    536
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAlexandria
    
    VA
    
    
    
    
    
    
    1,375
    
    
    
    3,220
    
    
    
    993
    
    
    
    1,376
    
    
    
    4,212
    
    
    
    5,588
    
    
    
    1,187
    
    
    
    1984
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsPensacola II
    
    FL
    
    
    
    
    
    
    244
    
    
    
    901
    
    
    
    361
    
    
    
    244
    
    
    
    1,262
    
    
    
    1,506
    
    
    
    437
    
    
    
    1986
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsMelbourne II
    
    FL
    
    
    
    
    
    
    834
    
    
    
    2,066
    
    
    
    1,023
    
    
    
    1,591
    
    
    
    2,332
    
    
    
    3,923
    
    
    
    787
    
    
    
    1986
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsHartford-Metro II
    
    CT
    
    
    
    
    
    
    234
    
    
    
    861
    
    
    
    1,665
    
    
    
    612
    
    
    
    2,148
    
    
    
    2,760
    
    
    
    437
    
    
    
    1992
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsAtlanta-Metro X
    
    GA
    
    
    
    
    
    
    256
    
    
    
    1,244
    
    
    
    1,627
    
    
    
    256
    
    
    
    2,871
    
    
    
    3,127
    
    
    
    571
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsNorfolk I
    
    VA
    
    
    
    
    
    
    313
    
    
    
    1,462
    
    
    
    742
    
    
    
    313
    
    
    
    2,204
    
    
    
    2,517
    
    
    
    617
    
    
    
    1984
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsNorfolk II
    
    VA
    
    
    
    
    
    
    278
    
    
    
    1,004
    
    
    
    274
    
    
    
    278
    
    
    
    1,278
    
    
    
    1,556
    
    
    
    417
    
    
    
    1989
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsBirmingham I
    
    AL
    
    
    
    
    
    
    307
    
    
    
    1,415
    
    
    
    451
    
    
    
    384
    
    
    
    1,789
    
    
    
    2,173
    
    
    
    549
    
    
    
    1990
    
    
    
    6/26/1995
    
    
    
    5 to 40 years
 57




---



##### Table of Contents



CostCapitalizedSubsequent to
    
    
    Gross Amount at WhichInitial Cost to Company
    
    
    Acquisition
    
    
    Carried at Close of Period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on whichBuilding,
    
    
    Building,
    
    
    
    
    
    
    Building,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    depreciationEquipment
    
    
    Equipment
    
    
    
    
    
    
    Equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in latestEncum-
    
    
    
    
    
    
    and
    
    
    and
    
    
    
    
    
    
    and
    
    
    
    
    
    
    Accumulated
    
    
    Date of
    
    
    Date
    
    
    income statementDescription
    
    State
    
    
    brance
    
    
    Land
    
    
    Improvements
    
    
    Improvements
    
    
    Land
    
    
    Improvements
    
    
    Total
    
    
    Depreciation
    
    
    Construction
    
    
    Acquired
    
    
    is computedBirmingham II
    
    AL
    
    
    
    
    
    
    730
    
    
    
    1,725
    
    
    
    477
    
    
    
    730
    
    
    
    2,202
    
    
    
    2,932
    
    
    
    681
    
    
    
    1990
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsMontgomery l
    
    AL
    
    
    
    
    
    
    863
    
    
    
    2,041
    
    
    
    535
    
    
    
    863
    
    
    
    2,576
    
    
    
    3,439
    
    
    
    768
    
    
    
    1982
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsJacksonville II
    
    FL
    
    
    
    
    
    
    326
    
    
    
    1,515
    
    
    
    373
    
    
    
    326
    
    
    
    1,888
    
    
    
    2,214
    
    
    
    547
    
    
    
    1987
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsPensacola III
    
    FL
    
    
    
    
    
    
    369
    
    
    
    1,358
    
    
    
    1,553
    
    
    
    369
    
    
    
    2,911
    
    
    
    3,280
    
    
    
    701
    
    
    
    1986
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsPensacola IV
    
    FL
    
    
    
    
    
    
    244
    
    
    
    1,128
    
    
    
    638
    
    
    
    719
    
    
    
    1,291
    
    
    
    2,010
    
    
    
    422
    
    
    
    1990
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsPensacola V
    
    FL
    
    
    
    
    
    
    226
    
    
    
    1,046
    
    
    
    518
    
    
    
    226
    
    
    
    1,564
    
    
    
    1,790
    
    
    
    463
    
    
    
    1990
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsTampa I
    
    FL
    
    
    
    
    
    
    1,088
    
    
    
    2,597
    
    
    
    813
    
    
    
    1,088
    
    
    
    3,410
    
    
    
    4,498
    
    
    
    1,028
    
    
    
    1989
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsTampa II
    
    FL
    
    
    
    
    
    
    526
    
    
    
    1,958
    
    
    
    622
    
    
    
    526
    
    
    
    2,580
    
    
    
    3,106
    
    
    
    800
    
    
    
    1985
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsTampa III
    
    FL
    
    
    
    
    
    
    672
    
    
    
    2,439
    
    
    
    481
    
    
    
    672
    
    
    
    2,920
    
    
    
    3,592
    
    
    
    873
    
    
    
    1988
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsJackson I
    
    MS
    
    
    
    
    
    
    343
    
    
    
    1,580
    
    
    
    717
    
    
    
    796
    
    
    
    1,844
    
    
    
    2,640
    
    
    
    575
    
    
    
    1990
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsJackson II
    
    MS
    
    
    
    
    
    
    209
    
    
    
    964
    
    
    
    529
    
    
    
    209
    
    
    
    1,493
    
    
    
    1,702
    
    
    
    474
    
    
    
    1990
    
    
    
    6/26/1995
    
    
    
    5 to 40 yearsRichmond
    
    VA
    
    
    
    
    
    
    443
    
    
    
    1,602
    
    
    
    601
    
    
    
    443
    
    
    
    2,203
    
    
    
    2,646
    
    
    
    639
    
    
    
    1987
    
    
    
    8/25/1995
    
    
    
    5 to 40 yearsOrlando II
    
    FL
    
    
    
    
    
    
    1,161
    
    
    
    2,755
    
    
    
    810
    
    
    
    1,162
    
    
    
    3,564
    
    
    
    4,726
    
    
    
    1,044
    
    
    
    1986
    
    
    
    9/29/1995
    
    
    
    5 to 40 yearsBirmingham III
    
    AL
    
    
    
    
    
    
    424
    
    
    
    1,506
    
    
    
    606
    
    
    
    424
    
    
    
    2,112
    
    
    
    2,536
    
    
    
    696
    
    
    
    1970
    
    
    
    1/16/1996
    
    
    
    5 to 40 yearsMacon II
    
    GA
    
    
    
    
    
    
    431
    
    
    
    1,567
    
    
    
    613
    
    
    
    431
    
    
    
    2,180
    
    
    
    2,611
    
    
    
    592
    
    
    
    1989/94
    
    
    
    12/1/1995
    
    
    
    5 to 40 yearsHarrisburg I
    
    PA
    
    
    
    
    
    
    360
    
    
    
    1,641
    
    
    
    502
    
    
    
    360
    
    
    
    2,143
    
    
    
    2,503
    
    
    
    602
    
    
    
    1983
    
    
    
    12/29/1995
    
    
    
    5 to 40 yearsHarrisburg II
    
    PA
    
    
    (1
    )
    
    
    627
    
    
    
    2,224
    
    
    
    815
    
    
    
    692
    
    
    
    2,974
    
    
    
    3,666
    
    
    
    774
    
    
    
    1985
    
    
    
    12/29/1995
    
    
    
    5 to 40 yearsSyracuse I
    
    NY
    
    
    
    
    
    
    470
    
    
    
    1,712
    
    
    
    1,145
    
    
    
    472
    
    
    
    2,855
    
    
    
    3,327
    
    
    
    650
    
    
    
    1987
    
    
    
    12/27/1995
    
    
    
    5 to 40 yearsFt. Myers
    
    FL
    
    
    
    
    
    
    205
    
    
    
    912
    
    
    
    233
    
    
    
    206
    
    
    
    1,144
    
    
    
    1,350
    
    
    
    434
    
    
    
    1988
    
    
    
    12/28/1995
    
    
    
    5 to 40 yearsFt. Myers II
    
    FL
    
    
    
    
    
    
    412
    
    
    
    1,703
    
    
    
    393
    
    
    
    413
    
    
    
    2,095
    
    
    
    2,508
    
    
    
    763
    
    
    
    1991/94
    
    
    
    12/28/1995
    
    
    
    5 to 40 yearsNewport News II
    
    VA
    
    
    
    
    
    
    442
    
    
    
    1,592
    
    
    
    234
    
    
    
    442
    
    
    
    1,826
    
    
    
    2,268
    
    
    
    520
    
    
    
    1988/93
    
    
    
    1/5/1996
    
    
    
    5 to 40 yearsMontgomery II
    
    AL
    
    
    
    
    
    
    353
    
    
    
    1,299
    
    
    
    261
    
    
    
    353
    
    
    
    1,560
    
    
    
    1,913
    
    
    
    494
    
    
    
    1984
    
    
    
    1/23/1996
    
    
    
    5 to 40 yearsCharleston II
    
    SC
    
    
    
    
    
    
    237
    
    
    
    858
    
    
    
    506
    
    
    
    232
    
    
    
    1,369
    
    
    
    1,601
    
    
    
    394
    
    
    
    1985
    
    
    
    3/1/1996
    
    
    
    5 to 40 yearsTampa IV
    
    FL
    
    
    
    
    
    
    766
    
    
    
    1,800
    
    
    
    598
    
    
    
    766
    
    
    
    2,398
    
    
    
    3,164
    
    
    
    623
    
    
    
    1985
    
    
    
    3/28/1996
    
    
    
    5 to 40 yearsArlington I
    
    TX
    
    
    
    
    
    
    442
    
    
    
    1,767
    
    
    
    247
    
    
    
    442
    
    
    
    2,014
    
    
    
    2,456
    
    
    
    560
    
    
    
    1987
    
    
    
    3/29/1996
    
    
    
    5 to 40 yearsArlington II
    
    TX
    
    
    
    
    
    
    408
    
    
    
    1,662
    
    
    
    527
    
    
    
    408
    
    
    
    2,189
    
    
    
    2,597
    
    
    
    649
    
    
    
    1986
    
    
    
    3/29/1996
    
    
    
    5 to 40 yearsFt. Worth
    
    TX
    
    
    
    
    
    
    328
    
    
    
    1,324
    
    
    
    250
    
    
    
    328
    
    
    
    1,574
    
    
    
    1,902
    
    
    
    445
    
    
    
    1986
    
    
    
    3/29/1996
    
    
    
    5 to 40 yearsSan Antonio I
    
    TX
    
    
    
    
    
    
    436
    
    
    
    1,759
    
    
    
    1,091
    
    
    
    436
    
    
    
    2,850
    
    
    
    3,286
    
    
    
    689
    
    
    
    1986
    
    
    
    3/29/1996
    
    
    
    5 to 40 yearsSan Antonio II
    
    TX
    
    
    
    
    
    
    289
    
    
    
    1,161
    
    
    
    356
    
    
    
    289
    
    
    
    1,517
    
    
    
    1,806
    
    
    
    451
    
    
    
    1986
    
    
    
    3/29/1996
    
    
    
    5 to 40 yearsSyracuse II
    
    NY
    
    
    
    
    
    
    481
    
    
    
    1,559
    
    
    
    2,106
    
    
    
    671
    
    
    
    3,475
    
    
    
    4,146
    
    
    
    691
    
    
    
    1983
    
    
    
    6/5/1996
    
    
    
    5 to 40 yearsMontgomery III
    
    AL
    
    
    
    
    
    
    279
    
    
    
    1,014
    
    
    
    989
    
    
    
    433
    
    
    
    1,849
    
    
    
    2,282
    
    
    
    428
    
    
    
    1988
    
    
    
    5/21/1996
    
    
    
    5 to 40 yearsWest Palm II
    
    FL
    
    
    
    
    
    
    345
    
    
    
    1,262
    
    
    
    247
    
    
    
    345
    
    
    
    1,509
    
    
    
    1,854
    
    
    
    438
    
    
    
    1986
    
    
    
    5/29/1996
    
    
    
    5 to 40 yearsFt. Myers III
    
    FL
    
    
    
    
    
    
    229
    
    
    
    884
    
    
    
    285
    
    
    
    229
    
    
    
    1,169
    
    
    
    1,398
    
    
    
    310
    
    
    
    1986
    
    
    
    5/29/1996
    
    
    
    5 to 40 yearsPittsburgh
    
    PA
    
    
    
    
    
    
    545
    
    
    
    1,940
    
    
    
    381
    
    
    
    545
    
    
    
    2,321
    
    
    
    2,866
    
    
    
    610
    
    
    
    1990
    
    
    
    6/19/1996
    
    
    
    5 to 40 yearsLakeland II
    
    FL
    
    
    
    
    
    
    359
    
    
    
    1,287
    
    
    
    987
    
    
    
    359
    
    
    
    2,274
    
    
    
    2,633
    
    
    
    603
    
    
    
    1988
    
    
    
    6/26/1996
    
    
    
    5 to 40 yearsSpringfield
    
    MA
    
    
    
    
    
    
    251
    
    
    
    917
    
    
    
    2,073
    
    
    
    297
    
    
    
    2,944
    
    
    
    3,241
    
    
    
    607
    
    
    
    1986
    
    
    
    6/28/1996
    
    
    
    5 to 40 years
 58




---



##### Table of Contents



CostCapitalizedSubsequent to
    
    
    Gross Amount at WhichInitial Cost to Company
    
    
    Acquisition
    
    
    Carried at Close of Period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on whichBuilding,
    
    
    Building,
    
    
    
    
    
    
    Building,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    depreciationEquipment
    
    
    Equipment
    
    
    
    
    
    
    Equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in latestEncum-
    
    
    
    
    
    
    and
    
    
    and
    
    
    
    
    
    
    and
    
    
    
    
    
    
    Accumulated
    
    
    Date of
    
    
    Date
    
    
    income statementDescription
    
    State
    
    
    brance
    
    
    Land
    
    
    Improvements
    
    
    Improvements
    
    
    Land
    
    
    Improvements
    
    
    Total
    
    
    Depreciation
    
    
    Construction
    
    
    Acquired
    
    
    is computedFt. Myers IV
    
    FL
    
    
    
    
    
    
    344
    
    
    
    1,254
    
    
    
    219
    
    
    
    310
    
    
    
    1,507
    
    
    
    1,817
    
    
    
    428
    
    
    
    1987
    
    
    
    6/28/1996
    
    
    
    5 to 40 yearsCincinnati
    
    OH
    
    
    (2
    )
    
    
    557
    
    
    
    1,988
    
    
    
    495
    
    
    
    652
    
    
    
    2,388
    
    
    
    3,040
    
    
    
    56
    
    
    
    1988
    
    
    
    7/23/1996
    
    
    
    5 to 40 yearsDayton
    
    OH
    
    
    (2
    )
    
    
    667
    
    
    
    2,379
    
    
    
    121
    
    
    
    646
    
    
    
    2,521
    
    
    
    3,167
    
    
    
    66
    
    
    
    1988
    
    
    
    7/23/1996
    
    
    
    5 to 40 yearsBaltimore III
    
    MD
    
    
    
    
    
    
    777
    
    
    
    2,770
    
    
    
    240
    
    
    
    777
    
    
    
    3,010
    
    
    
    3,787
    
    
    
    797
    
    
    
    1990
    
    
    
    7/26/1996
    
    
    
    5 to 40 yearsJacksonville III
    
    FL
    
    
    
    
    
    
    568
    
    
    
    2,028
    
    
    
    879
    
    
    
    568
    
    
    
    2,907
    
    
    
    3,475
    
    
    
    769
    
    
    
    1987
    
    
    
    8/23/1996
    
    
    
    5 to 40 yearsJacksonville IV
    
    FL
    
    
    
    
    
    
    436
    
    
    
    1,635
    
    
    
    427
    
    
    
    436
    
    
    
    2,062
    
    
    
    2,498
    
    
    
    601
    
    
    
    1985
    
    
    
    8/26/1996
    
    
    
    5 to 40 yearsPittsburgh II
    
    PA
    
    
    
    
    
    
    627
    
    
    
    2,257
    
    
    
    933
    
    
    
    631
    
    
    
    3,186
    
    
    
    3,817
    
    
    
    880
    
    
    
    1983
    
    
    
    8/28/1996
    
    
    
    5 to 40 yearsJacksonville V
    
    FL
    
    
    
    
    
    
    535
    
    
    
    2,033
    
    
    
    246
    
    
    
    538
    
    
    
    2,276
    
    
    
    2,814
    
    
    
    701
    
    
    
    1987/92
    
    
    
    8/30/1996
    
    
    
    5 to 40 yearsCharlotte II
    
    NC
    
    
    
    
    
    
    487
    
    
    
    1,754
    
    
    
    309
    
    
    
    487
    
    
    
    2,063
    
    
    
    2,550
    
    
    
    501
    
    
    
    1995
    
    
    
    9/16/1996
    
    
    
    5 to 40 yearsCharlotte III
    
    NC
    
    
    
    
    
    
    315
    
    
    
    1,131
    
    
    
    273
    
    
    
    315
    
    
    
    1,404
    
    
    
    1,719
    
    
    
    359
    
    
    
    1995
    
    
    
    9/16/1996
    
    
    
    5 to 40 yearsOrlando III
    
    FL
    
    
    
    
    
    
    314
    
    
    
    1,113
    
    
    
    817
    
    
    
    314
    
    
    
    1,930
    
    
    
    2,244
    
    
    
    495
    
    
    
    1975
    
    
    
    10/30/1996
    
    
    
    5 to 40 yearsRochester III
    
    NY
    
    
    
    
    
    
    704
    
    
    
    2,496
    
    
    
    1,049
    
    
    
    707
    
    
    
    3,542
    
    
    
    4,249
    
    
    
    733
    
    
    
    1990
    
    
    
    12/20/1996
    
    
    
    5 to 40 yearsYoungstown ll
    
    OH
    
    
    
    
    
    
    600
    
    
    
    2,142
    
    
    
    421
    
    
    
    693
    
    
    
    2,470
    
    
    
    3,163
    
    
    
    614
    
    
    
    1988
    
    
    
    1/10/1997
    
    
    
    5 to 40 yearsCleveland lll
    
    OH
    
    
    
    
    
    
    751
    
    
    
    2,676
    
    
    
    1,465
    
    
    
    751
    
    
    
    4,141
    
    
    
    4,892
    
    
    
    906
    
    
    
    1986
    
    
    
    1/10/1997
    
    
    
    5 to 40 yearsCleveland lV
    
    OH
    
    
    
    
    
    
    725
    
    
    
    2,586
    
    
    
    1,074
    
    
    
    725
    
    
    
    3,660
    
    
    
    4,385
    
    
    
    867
    
    
    
    1978
    
    
    
    1/10/1997
    
    
    
    5 to 40 yearsCleveland V
    
    OH
    
    
    (1
    )
    
    
    637
    
    
    
    2,918
    
    
    
    1,494
    
    
    
    701
    
    
    
    4,348
    
    
    
    5,049
    
    
    
    1,106
    
    
    
    1979
    
    
    
    1/10/1997
    
    
    
    5 to 40 yearsCleveland Vl
    
    OH
    
    
    
    
    
    
    495
    
    
    
    1,781
    
    
    
    672
    
    
    
    495
    
    
    
    2,453
    
    
    
    2,948
    
    
    
    597
    
    
    
    1979
    
    
    
    1/10/1997
    
    
    
    5 to 40 yearsCleveland Vll
    
    OH
    
    
    
    
    
    
    761
    
    
    
    2,714
    
    
    
    903
    
    
    
    761
    
    
    
    3,617
    
    
    
    4,378
    
    
    
    920
    
    
    
    1977
    
    
    
    1/10/1997
    
    
    
    5 to 40 yearsCleveland Vlll
    
    OH
    
    
    
    
    
    
    418
    
    
    
    1,921
    
    
    
    1,375
    
    
    
    418
    
    
    
    3,296
    
    
    
    3,714
    
    
    
    794
    
    
    
    1970
    
    
    
    1/10/1997
    
    
    
    5 to 40 yearsCleveland lX
    
    OH
    
    
    
    
    
    
    606
    
    
    
    2,164
    
    
    
    518
    
    
    
    606
    
    
    
    2,682
    
    
    
    3,288
    
    
    
    657
    
    
    
    1982
    
    
    
    1/10/1997
    
    
    
    5 to 40 yearsGrand Rapids l
    
    MI
    
    
    (2
    )
    
    
    455
    
    
    
    1,631
    
    
    
    690
    
    
    
    591
    
    
    
    2,185
    
    
    
    2,776
    
    
    
    56
    
    
    
    1976
    
    
    
    1/17/1997
    
    
    
    5 to 40 yearsGrand Rapids ll
    
    MI
    
    
    
    
    
    
    219
    
    
    
    790
    
    
    
    784
    
    
    
    219
    
    
    
    1,574
    
    
    
    1,793
    
    
    
    376
    
    
    
    1983
    
    
    
    1/17/1997
    
    
    
    5 to 40 yearsKalamazoo
    
    MI
    
    
    (2
    )
    
    
    516
    
    
    
    1,845
    
    
    
    720
    
    
    
    657
    
    
    
    2,424
    
    
    
    3,081
    
    
    
    62
    
    
    
    1978
    
    
    
    1/17/1997
    
    
    
    5 to 40 yearsLansing
    
    MI
    
    
    (2
    )
    
    
    327
    
    
    
    1,332
    
    
    
    1,286
    
    
    
    513
    
    
    
    2,432
    
    
    
    2,945
    
    
    
    58
    
    
    
    1987
    
    
    
    1/17/1997
    
    
    
    5 to 40 yearsHolland
    
    MI
    
    
    
    
    
    
    451
    
    
    
    1,830
    
    
    
    1,256
    
    
    
    451
    
    
    
    3,086
    
    
    
    3,537
    
    
    
    808
    
    
    
    1978
    
    
    
    1/17/1997
    
    
    
    5 to 40 yearsSan Antonio lll
    
    TX
    
    
    (1
    )
    
    
    474
    
    
    
    1,686
    
    
    
    352
    
    
    
    504
    
    
    
    2,008
    
    
    
    2,512
    
    
    
    475
    
    
    
    1981
    
    
    
    1/30/1997
    
    
    
    5 to 40 yearsUniversal
    
    TX
    
    
    
    
    
    
    346
    
    
    
    1,236
    
    
    
    201
    
    
    
    346
    
    
    
    1,437
    
    
    
    1,783
    
    
    
    378
    
    
    
    1985
    
    
    
    1/30/1997
    
    
    
    5 to 40 yearsSan Antonio lV
    
    TX
    
    
    
    
    
    
    432
    
    
    
    1,560
    
    
    
    1,562
    
    
    
    432
    
    
    
    3,122
    
    
    
    3,554
    
    
    
    625
    
    
    
    1995
    
    
    
    1/30/1997
    
    
    
    5 to 40 yearsHouston-Eastex
    
    TX
    
    
    
    
    
    
    634
    
    
    
    2,565
    
    
    
    1,091
    
    
    
    634
    
    
    
    3,656
    
    
    
    4,290
    
    
    
    807
    
    
    
    1993/95
    
    
    
    3/26/1997
    
    
    
    5 to 40 yearsHouston-Nederland
    
    TX
    
    
    
    
    
    
    566
    
    
    
    2,279
    
    
    
    219
    
    
    
    566
    
    
    
    2,498
    
    
    
    3,064
    
    
    
    617
    
    
    
    1995
    
    
    
    3/26/1997
    
    
    
    5 to 40 yearsHouston-College
    
    TX
    
    
    
    
    
    
    293
    
    
    
    1,357
    
    
    
    252
    
    
    
    293
    
    
    
    1,609
    
    
    
    1,902
    
    
    
    408
    
    
    
    1995
    
    
    
    3/26/1997
    
    
    
    5 to 40 yearsLynchburg-Lakeside
    
    VA
    
    
    
    
    
    
    335
    
    
    
    1,342
    
    
    
    1,009
    
    
    
    335
    
    
    
    2,351
    
    
    
    2,686
    
    
    
    500
    
    
    
    1982
    
    
    
    3/31/1997
    
    
    
    5 to 40 yearsLynchburg-Timberlake
    
    VA
    
    
    
    
    
    
    328
    
    
    
    1,315
    
    
    
    691
    
    
    
    328
    
    
    
    2,006
    
    
    
    2,334
    
    
    
    502
    
    
    
    1985
    
    
    
    3/31/1997
    
    
    
    5 to 40 yearsLynchburg-Amherst
    
    VA
    
    
    
    
    
    
    155
    
    
    
    710
    
    
    
    267
    
    
    
    152
    
    
    
    980
    
    
    
    1,132
    
    
    
    266
    
    
    
    1987
    
    
    
    3/31/1997
    
    
    
    5 to 40 yearsChristiansburg
    
    VA
    
    
    
    
    
    
    245
    
    
    
    1,120
    
    
    
    395
    
    
    
    245
    
    
    
    1,515
    
    
    
    1,760
    
    
    
    332
    
    
    
    1985/90
    
    
    
    3/31/1997
    
    
    
    5 to 40 yearsChesapeake
    
    VA
    
    
    
    
    
    
    260
    
    
    
    1,043
    
    
    
    1,032
    
    
    
    260
    
    
    
    2,075
    
    
    
    2,335
    
    
    
    404
    
    
    
    1988/95
    
    
    
    3/31/1997
    
    
    
    5 to 40 years
 59




---



##### Table of Contents



CostCapitalizedSubsequent to
    
    
    Gross Amount at WhichInitial Cost to Company
    
    
    Acquisition
    
    
    Carried at Close of Period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on whichBuilding,
    
    
    Building,
    
    
    
    
    
    
    Building,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    depreciationEquipment
    
    
    Equipment
    
    
    
    
    
    
    Equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in latestEncum-
    
    
    
    
    
    
    and
    
    
    and
    
    
    
    
    
    
    and
    
    
    
    
    
    
    Accumulated
    
    
    Date of
    
    
    Date
    
    
    income statementDescription
    
    State
    
    
    brance
    
    
    Land
    
    
    Improvements
    
    
    Improvements
    
    
    Land
    
    
    Improvements
    
    
    Total
    
    
    Depreciation
    
    
    Construction
    
    
    Acquired
    
    
    is computedDanville
    
    VA
    
    
    
    
    
    
    326
    
    
    
    1,488
    
    
    
    151
    
    
    
    326
    
    
    
    1,639
    
    
    
    1,965
    
    
    
    391
    
    
    
    1988
    
    
    
    3/31/1997
    
    
    
    5 to 40 yearsOrlando-W 25th St
    
    FL
    
    
    
    
    
    
    289
    
    
    
    1,160
    
    
    
    687
    
    
    
    616
    
    
    
    1,520
    
    
    
    2,136
    
    
    
    365
    
    
    
    1984
    
    
    
    3/31/1997
    
    
    
    5 to 40 yearsDelray l-Mini
    
    FL
    
    
    
    
    
    
    491
    
    
    
    1,756
    
    
    
    542
    
    
    
    491
    
    
    
    2,298
    
    
    
    2,789
    
    
    
    623
    
    
    
    1969
    
    
    
    4/11/1997
    
    
    
    5 to 40 yearsSavannah ll
    
    GA
    
    
    
    
    
    
    296
    
    
    
    1,196
    
    
    
    244
    
    
    
    296
    
    
    
    1,440
    
    
    
    1,736
    
    
    
    365
    
    
    
    1988
    
    
    
    5/8/1997
    
    
    
    5 to 40 yearsDelray ll-Safeway
    
    FL
    
    
    
    
    
    
    921
    
    
    
    3,282
    
    
    
    344
    
    
    
    921
    
    
    
    3,626
    
    
    
    4,547
    
    
    
    938
    
    
    
    1980
    
    
    
    5/21/1997
    
    
    
    5 to 40 yearsCleveland X-Avon
    
    OH
    
    
    
    
    
    
    301
    
    
    
    1,214
    
    
    
    1,166
    
    
    
    304
    
    
    
    2,377
    
    
    
    2,681
    
    
    
    463
    
    
    
    1989
    
    
    
    6/4/1997
    
    
    
    5 to 40 yearsDallas-Skillman
    
    TX
    
    
    
    
    
    
    960
    
    
    
    3,847
    
    
    
    1,023
    
    
    
    960
    
    
    
    4,870
    
    
    
    5,830
    
    
    
    1,251
    
    
    
    1975
    
    
    
    6/30/1997
    
    
    
    5 to 40 yearsDallas-Centennial
    
    TX
    
    
    
    
    
    
    965
    
    
    
    3,864
    
    
    
    1,087
    
    
    
    943
    
    
    
    4,973
    
    
    
    5,916
    
    
    
    1,233
    
    
    
    1977
    
    
    
    6/30/1997
    
    
    
    5 to 40 yearsDallas-Samuell
    
    TX
    
    
    (1
    )
    
    
    570
    
    
    
    2,285
    
    
    
    680
    
    
    
    611
    
    
    
    2,924
    
    
    
    3,535
    
    
    
    761
    
    
    
    1975
    
    
    
    6/30/1997
    
    
    
    5 to 40 yearsDallas-Hargrove
    
    TX
    
    
    
    
    
    
    370
    
    
    
    1,486
    
    
    
    371
    
    
    
    370
    
    
    
    1,857
    
    
    
    2,227
    
    
    
    541
    
    
    
    1975
    
    
    
    6/30/1997
    
    
    
    5 to 40 yearsHouston-Antoine
    
    TX
    
    
    
    
    
    
    515
    
    
    
    2,074
    
    
    
    427
    
    
    
    515
    
    
    
    2,501
    
    
    
    3,016
    
    
    
    653
    
    
    
    1984
    
    
    
    6/30/1997
    
    
    
    5 to 40 yearsAtlanta-Alpharetta
    
    GA
    
    
    
    
    
    
    1,033
    
    
    
    3,753
    
    
    
    381
    
    
    
    1,033
    
    
    
    4,134
    
    
    
    5,167
    
    
    
    1,066
    
    
    
    1994
    
    
    
    7/24/1997
    
    
    
    5 to 40 yearsAtlanta-Marietta
    
    GA
    
    
    (1
    )
    
    
    769
    
    
    
    2,788
    
    
    
    414
    
    
    
    825
    
    
    
    3,146
    
    
    
    3,971
    
    
    
    757
    
    
    
    1996
    
    
    
    7/24/1997
    
    
    
    5 to 40 yearsAtlanta-Doraville
    
    GA
    
    
    
    
    
    
    735
    
    
    
    3,429
    
    
    
    228
    
    
    
    735
    
    
    
    3,657
    
    
    
    4,392
    
    
    
    888
    
    
    
    1995
    
    
    
    8/21/1997
    
    
    
    5 to 40 yearsGreensboroHilltop
    
    NC
    
    
    
    
    
    
    268
    
    
    
    1,097
    
    
    
    200
    
    
    
    268
    
    
    
    1,297
    
    
    
    1,565
    
    
    
    312
    
    
    
    1995
    
    
    
    9/25/1997
    
    
    
    5 to 40 yearsGreensboroStgCch
    
    NC
    
    
    
    
    
    
    89
    
    
    
    376
    
    
    
    1,276
    
    
    
    89
    
    
    
    1,652
    
    
    
    1,741
    
    
    
    288
    
    
    
    1997
    
    
    
    9/25/1997
    
    
    
    5 to 40 yearsBaton Rouge-Airline
    
    LA
    
    
    (1
    )
    
    
    396
    
    
    
    1,831
    
    
    
    515
    
    
    
    421
    
    
    
    2,321
    
    
    
    2,742
    
    
    
    549
    
    
    
    1982
    
    
    
    10/9/1997
    
    
    
    5 to 40 yearsBaton Rouge-Airline2
    
    LA
    
    
    
    
    
    
    282
    
    
    
    1,303
    
    
    
    191
    
    
    
    282
    
    
    
    1,494
    
    
    
    1,776
    
    
    
    389
    
    
    
    1985
    
    
    
    11/21/1997
    
    
    
    5 to 40 yearsHarrisburg-Peiffers
    
    PA
    
    
    
    
    
    
    635
    
    
    
    2,550
    
    
    
    382
    
    
    
    637
    
    
    
    2,930
    
    
    
    3,567
    
    
    
    633
    
    
    
    1984
    
    
    
    12/3/1997
    
    
    
    5 to 40 yearsChesapeake-Military
    
    VA
    
    
    
    
    
    
    542
    
    
    
    2,210
    
    
    
    196
    
    
    
    542
    
    
    
    2,406
    
    
    
    2,948
    
    
    
    584
    
    
    
    1996
    
    
    
    2/5/1998
    
    
    
    5 to 40 yearsChesapeake-Volvo
    
    VA
    
    
    
    
    
    
    620
    
    
    
    2,532
    
    
    
    818
    
    
    
    620
    
    
    
    3,350
    
    
    
    3,970
    
    
    
    727
    
    
    
    1995
    
    
    
    2/5/1998
    
    
    
    5 to 40 yearsVirginia Beach-Shell
    
    VA
    
    
    
    
    
    
    540
    
    
    
    2,211
    
    
    
    186
    
    
    
    540
    
    
    
    2,397
    
    
    
    2,937
    
    
    
    583
    
    
    
    1991
    
    
    
    2/5/1998
    
    
    
    5 to 40 yearsVirginia Beach-Central
    
    VA
    
    
    
    
    
    
    864
    
    
    
    3,994
    
    
    
    652
    
    
    
    864
    
    
    
    4,646
    
    
    
    5,510
    
    
    
    1,067
    
    
    
    1993/95
    
    
    
    2/5/1998
    
    
    
    5 to 40 yearsNorfolk-Naval Base
    
    VA
    
    
    
    
    
    
    1,243
    
    
    
    5,019
    
    
    
    632
    
    
    
    1,243
    
    
    
    5,651
    
    
    
    6,894
    
    
    
    1,288
    
    
    
    1975
    
    
    
    2/5/1998
    
    
    
    5 to 40 yearsTampa-E.Hillsborough
    
    FL
    
    
    
    
    
    
    709
    
    
    
    3,235
    
    
    
    693
    
    
    
    709
    
    
    
    3,928
    
    
    
    4,637
    
    
    
    987
    
    
    
    1985
    
    
    
    2/4/1998
    
    
    
    5 to 40 yearsNorthbridge
    
    MA
    
    
    (2
    )
    
    
    441
    
    
    
    1,788
    
    
    
    743
    
    
    
    657
    
    
    
    2,315
    
    
    
    2,972
    
    
    
    51
    
    
    
    1988
    
    
    
    2/9/1998
    
    
    
    5 to 40 yearsHarriman
    
    NY
    
    
    
    
    
    
    843
    
    
    
    3,394
    
    
    
    344
    
    
    
    843
    
    
    
    3,738
    
    
    
    4,581
    
    
    
    889
    
    
    
    1989/95
    
    
    
    2/4/1998
    
    
    
    5 to 40 yearsGreensboro-High Point
    
    NC
    
    
    
    
    
    
    397
    
    
    
    1,834
    
    
    
    388
    
    
    
    397
    
    
    
    2,222
    
    
    
    2,619
    
    
    
    517
    
    
    
    1993
    
    
    
    2/10/1998
    
    
    
    5 to 40 yearsLynchburg-Timberlake
    
    VA
    
    
    
    
    
    
    488
    
    
    
    1,746
    
    
    
    398
    
    
    
    488
    
    
    
    2,144
    
    
    
    2,632
    
    
    
    465
    
    
    
    1990/96
    
    
    
    2/18/1998
    
    
    
    5 to 40 yearsTitusville
    
    FL
    
    
    (2
    )
    
    
    492
    
    
    
    1,990
    
    
    
    543
    
    
    
    652
    
    
    
    2,373
    
    
    
    3,025
    
    
    
    53
    
    
    
    1986/90
    
    
    
    2/25/1998
    
    
    
    5 to 40 yearsSalem
    
    MA
    
    
    
    
    
    
    733
    
    
    
    2,941
    
    
    
    707
    
    
    
    733
    
    
    
    3,648
    
    
    
    4,381
    
    
    
    874
    
    
    
    1979
    
    
    
    3/3/1998
    
    
    
    5 to 40 yearsChattanooga-Lee Hwy
    
    TN
    
    
    
    
    
    
    384
    
    
    
    1,371
    
    
    
    482
    
    
    
    384
    
    
    
    1,853
    
    
    
    2,237
    
    
    
    430
    
    
    
    1987
    
    
    
    3/27/1998
    
    
    
    5 to 40 yearsChattanooga-Hwy 58
    
    TN
    
    
    
    
    
    
    296
    
    
    
    1,198
    
    
    
    995
    
    
    
    414
    
    
    
    2,075
    
    
    
    2,489
    
    
    
    423
    
    
    
    1985
    
    
    
    3/27/1998
    
    
    
    5 to 40 yearsFt. Oglethorpe
    
    GA
    
    
    
    
    
    
    349
    
    
    
    1,250
    
    
    
    431
    
    
    
    349
    
    
    
    1,681
    
    
    
    2,030
    
    
    
    387
    
    
    
    1989
    
    
    
    3/27/1998
    
    
    
    5 to 40 yearsBirmingham-Walt
    
    AL
    
    
    
    
    
    
    544
    
    
    
    1,942
    
    
    
    733
    
    
    
    544
    
    
    
    2,675
    
    
    
    3,219
    
    
    
    670
    
    
    
    1984
    
    
    
    3/27/1998
    
    
    
    5 to 40 yearsEast Greenwich
    
    RI
    
    
    
    
    
    
    702
    
    
    
    2,821
    
    
    
    842
    
    
    
    702
    
    
    
    3,663
    
    
    
    4,365
    
    
    
    783
    
    
    
    1984/88
    
    
    
    3/26/1998
    
    
    
    5 to 40 years
 60




---



##### Table of Contents



CostCapitalizedSubsequent to
    
    
    Gross Amount at WhichInitial Cost to Company
    
    
    Acquisition
    
    
    Carried at Close of Period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on whichBuilding,
    
    
    Building,
    
    
    
    
    
    
    Building,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    depreciationEquipment
    
    
    Equipment
    
    
    
    
    
    
    Equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in latestEncum-
    
    
    
    
    
    
    and
    
    
    and
    
    
    
    
    
    
    and
    
    
    
    
    
    
    Accumulated
    
    
    Date of
    
    
    Date
    
    
    income statementDescription
    
    State
    
    
    brance
    
    
    Land
    
    
    Improvements
    
    
    Improvements
    
    
    Land
    
    
    Improvements
    
    
    Total
    
    
    Depreciation
    
    
    Construction
    
    
    Acquired
    
    
    is computedDurham-Hillsborough
    
    NC
    
    
    
    
    
    
    775
    
    
    
    3,103
    
    
    
    562
    
    
    
    775
    
    
    
    3,665
    
    
    
    4,440
    
    
    
    810
    
    
    
    1988/91
    
    
    
    4/9/1998
    
    
    
    5 to 40 yearsDurham-Cornwallis
    
    NC
    
    
    
    
    
    
    940
    
    
    
    3,763
    
    
    
    549
    
    
    
    940
    
    
    
    4,312
    
    
    
    5,252
    
    
    
    939
    
    
    
    1990/96
    
    
    
    4/9/1998
    
    
    
    5 to 40 yearsSalem-Policy
    
    NH
    
    
    
    
    
    
    742
    
    
    
    2,977
    
    
    
    403
    
    
    
    742
    
    
    
    3,380
    
    
    
    4,122
    
    
    
    687
    
    
    
    1980
    
    
    
    4/7/1998
    
    
    
    5 to 40 yearsWarren-Elm
    
    OH
    
    
    (1
    )
    
    
    522
    
    
    
    1,864
    
    
    
    977
    
    
    
    569
    
    
    
    2,794
    
    
    
    3,363
    
    
    
    537
    
    
    
    1986
    
    
    
    4/22/1998
    
    
    
    5 to 40 yearsWarren-Youngstown
    
    OH
    
    
    
    
    
    
    512
    
    
    
    1,829
    
    
    
    1,497
    
    
    
    675
    
    
    
    3,163
    
    
    
    3,838
    
    
    
    464
    
    
    
    1986
    
    
    
    4/22/1998
    
    
    
    5 to 40 yearsWaterford-Highland
    
    MI
    
    
    
    
    
    
    1,487
    
    
    
    5,306
    
    
    
    1,059
    
    
    
    1,487
    
    
    
    6,365
    
    
    
    7,852
    
    
    
    1,395
    
    
    
    1978
    
    
    
    4/28/1998
    
    
    
    5 to 40 yearsIndian Harbor Beach
    
    FL
    
    
    
    
    
    
    662
    
    
    
    2,654
    
    
    
    279
    
    
    
    662
    
    
    
    2,933
    
    
    
    3,595
    
    
    
    676
    
    
    
    1985
    
    
    
    6/2/1998
    
    
    
    5 to 40 yearsJackson 3 - I55
    
    MS
    
    
    
    
    
    
    744
    
    
    
    3,021
    
    
    
    103
    
    
    
    744
    
    
    
    3,124
    
    
    
    3,868
    
    
    
    710
    
    
    
    1995
    
    
    
    5/13/1998
    
    
    
    5 to 40 yearsKaty-N.Fry
    
    TX
    
    
    
    
    
    
    419
    
    
    
    1,524
    
    
    
    854
    
    
    
    419
    
    
    
    2,378
    
    
    
    2,797
    
    
    
    434
    
    
    
    1994
    
    
    
    5/20/1998
    
    
    
    5 to 40 yearsHollywood-Sheridan
    
    FL
    
    
    
    
    
    
    1,208
    
    
    
    4,854
    
    
    
    254
    
    
    
    1,208
    
    
    
    5,108
    
    
    
    6,316
    
    
    
    1,141
    
    
    
    1988
    
    
    
    7/1/1998
    
    
    
    5 to 40 yearsPompano Beach-Atlantic
    
    FL
    
    
    
    
    
    
    944
    
    
    
    3,803
    
    
    
    234
    
    
    
    944
    
    
    
    4,037
    
    
    
    4,981
    
    
    
    920
    
    
    
    1985
    
    
    
    7/1/1998
    
    
    
    5 to 40 yearsPompano Beach-Sample
    
    FL
    
    
    
    
    
    
    903
    
    
    
    3,643
    
    
    
    335
    
    
    
    903
    
    
    
    3,978
    
    
    
    4,881
    
    
    
    884
    
    
    
    1988
    
    
    
    7/1/1998
    
    
    
    5 to 40 yearsBoca Raton-18th St
    
    FL
    
    
    
    
    
    
    1,503
    
    
    
    6,059
    
    
    
    635
    
    
    
    1,503
    
    
    
    6,694
    
    
    
    8,197
    
    
    
    1,476
    
    
    
    1991
    
    
    
    7/1/1998
    
    
    
    5 to 40 yearsVero Beach
    
    FL
    
    
    
    
    
    
    489
    
    
    
    1,813
    
    
    
    81
    
    
    
    489
    
    
    
    1,894
    
    
    
    2,383
    
    
    
    451
    
    
    
    1997
    
    
    
    6/12/1998
    
    
    
    5 to 40 yearsHumble
    
    TX
    
    
    
    
    
    
    447
    
    
    
    1,790
    
    
    
    916
    
    
    
    740
    
    
    
    2,413
    
    
    
    3,153
    
    
    
    529
    
    
    
    1986
    
    
    
    6/16/1998
    
    
    
    5 to 40 yearsHouston-Old Katy
    
    TX
    
    
    (1
    )
    
    
    659
    
    
    
    2,680
    
    
    
    306
    
    
    
    698
    
    
    
    2,947
    
    
    
    3,645
    
    
    
    586
    
    
    
    1996
    
    
    
    6/19/1998
    
    
    
    5 to 40 yearsWebster
    
    TX
    
    
    
    
    
    
    635
    
    
    
    2,302
    
    
    
    108
    
    
    
    635
    
    
    
    2,410
    
    
    
    3,045
    
    
    
    531
    
    
    
    1997
    
    
    
    6/19/1998
    
    
    
    5 to 40 yearsCarrollton
    
    TX
    
    
    
    
    
    
    548
    
    
    
    1,988
    
    
    
    267
    
    
    
    548
    
    
    
    2,255
    
    
    
    2,803
    
    
    
    484
    
    
    
    1997
    
    
    
    6/19/1998
    
    
    
    5 to 40 yearsHollywood-N.21st
    
    FL
    
    
    
    
    
    
    840
    
    
    
    3,373
    
    
    
    274
    
    
    
    840
    
    
    
    3,647
    
    
    
    4,487
    
    
    
    832
    
    
    
    1987
    
    
    
    8/3/1998
    
    
    
    5 to 40 yearsSan Marcos
    
    TX
    
    
    
    
    
    
    324
    
    
    
    1,493
    
    
    
    586
    
    
    
    324
    
    
    
    2,079
    
    
    
    2,403
    
    
    
    444
    
    
    
    1994
    
    
    
    6/30/1998
    
    
    
    5 to 40 yearsAustin-McNeil
    
    TX
    
    
    
    
    
    
    492
    
    
    
    1,995
    
    
    
    227
    
    
    
    510
    
    
    
    2,204
    
    
    
    2,714
    
    
    
    528
    
    
    
    1994
    
    
    
    6/30/1998
    
    
    
    5 to 40 yearsAustin-FM
    
    TX
    
    
    
    
    
    
    484
    
    
    
    1,951
    
    
    
    382
    
    
    
    481
    
    
    
    2,336
    
    
    
    2,817
    
    
    
    504
    
    
    
    1996
    
    
    
    6/30/1998
    
    
    
    5 to 40 yearsJacksonville-Center
    
    NC
    
    
    
    
    
    
    327
    
    
    
    1,329
    
    
    
    599
    
    
    
    327
    
    
    
    1,928
    
    
    
    2,255
    
    
    
    332
    
    
    
    1995
    
    
    
    8/6/1998
    
    
    
    5 to 40 yearsJacksonville-Gum Branch
    
    NC
    
    
    
    
    
    
    508
    
    
    
    1,815
    
    
    
    1,166
    
    
    
    508
    
    
    
    2,981
    
    
    
    3,489
    
    
    
    475
    
    
    
    1989
    
    
    
    8/17/1998
    
    
    
    5 to 40 yearsJacksonville-N.Marine
    
    NC
    
    
    
    
    
    
    216
    
    
    
    782
    
    
    
    453
    
    
    
    216
    
    
    
    1,235
    
    
    
    1,451
    
    
    
    330
    
    
    
    1985
    
    
    
    9/24/1998
    
    
    
    5 to 40 yearsEuless
    
    TX
    
    
    
    
    
    
    550
    
    
    
    1,998
    
    
    
    613
    
    
    
    550
    
    
    
    2,611
    
    
    
    3,161
    
    
    
    493
    
    
    
    1996
    
    
    
    9/29/1998
    
    
    
    5 to 40 yearsN. Richland Hills
    
    TX
    
    
    
    
    
    
    670
    
    
    
    2,407
    
    
    
    821
    
    
    
    670
    
    
    
    3,228
    
    
    
    3,898
    
    
    
    601
    
    
    
    1996
    
    
    
    10/9/1998
    
    
    
    5 to 40 yearsBatavia
    
    OH
    
    
    
    
    
    
    390
    
    
    
    1,570
    
    
    
    257
    
    
    
    390
    
    
    
    1,827
    
    
    
    2,217
    
    
    
    427
    
    
    
    1988
    
    
    
    11/19/1998
    
    
    
    5 to 40 yearsJackson-N.West
    
    MS
    
    
    
    
    
    
    460
    
    
    
    1,642
    
    
    
    376
    
    
    
    460
    
    
    
    2,018
    
    
    
    2,478
    
    
    
    526
    
    
    
    1984
    
    
    
    12/1/1998
    
    
    
    5 to 40 yearsKaty-Franz
    
    TX
    
    
    
    
    
    
    507
    
    
    
    2,058
    
    
    
    153
    
    
    
    507
    
    
    
    2,211
    
    
    
    2,718
    
    
    
    458
    
    
    
    1993
    
    
    
    12/15/1998
    
    
    
    5 to 40 yearsW.Warwick
    
    RI
    
    
    
    
    
    
    447
    
    
    
    1,776
    
    
    
    673
    
    
    
    447
    
    
    
    2,449
    
    
    
    2,896
    
    
    
    476
    
    
    
    1986/94
    
    
    
    2/2/1999
    
    
    
    5 to 40 yearsLafayette-Pinhook 1
    
    LA
    
    
    
    
    
    
    556
    
    
    
    1,951
    
    
    
    795
    
    
    
    556
    
    
    
    2,746
    
    
    
    3,302
    
    
    
    702
    
    
    
    1980
    
    
    
    2/17/1999
    
    
    
    5 to 40 yearsLafayette-Pinhook2
    
    LA
    
    
    
    
    
    
    708
    
    
    
    2,860
    
    
    
    202
    
    
    
    708
    
    
    
    3,062
    
    
    
    3,770
    
    
    
    631
    
    
    
    1992/94
    
    
    
    2/17/1999
    
    
    
    5 to 40 yearsLafayette-Ambassador
    
    LA
    
    
    
    
    
    
    314
    
    
    
    1,095
    
    
    
    579
    
    
    
    314
    
    
    
    1,674
    
    
    
    1,988
    
    
    
    457
    
    
    
    1975
    
    
    
    2/17/1999
    
    
    
    5 to 40 yearsLafayette-Evangeline
    
    LA
    
    
    
    
    
    
    188
    
    
    
    652
    
    
    
    1,394
    
    
    
    188
    
    
    
    2,046
    
    
    
    2,234
    
    
    
    423
    
    
    
    1977
    
    
    
    2/17/1999
    
    
    
    5 to 40 yearsLafayette-Guilbeau
    
    LA
    
    
    
    
    
    
    963
    
    
    
    3,896
    
    
    
    747
    
    
    
    963
    
    
    
    4,643
    
    
    
    5,606
    
    
    
    853
    
    
    
    1994
    
    
    
    2/17/1999
    
    
    
    5 to 40 years
 61




---



##### Table of Contents



CostCapitalizedSubsequent to
    
    
    Gross Amount at WhichInitial Cost to Company
    
    
    Acquisition
    
    
    Carried at Close of Period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on whichBuilding,
    
    
    Building,
    
    
    
    
    
    
    Building,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    depreciationEquipment
    
    
    Equipment
    
    
    
    
    
    
    Equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in latestEncum-
    
    
    
    
    
    
    and
    
    
    and
    
    
    
    
    
    
    and
    
    
    
    
    
    
    Accumulated
    
    
    Date of
    
    
    Date
    
    
    income statementDescription
    
    State
    
    
    brance
    
    
    Land
    
    
    Improvements
    
    
    Improvements
    
    
    Land
    
    
    Improvements
    
    
    Total
    
    
    Depreciation
    
    
    Construction
    
    
    Acquired
    
    
    is computedGilbert-Elliot Rd
    
    AZ
    
    
    
    
    
    
    651
    
    
    
    2,600
    
    
    
    652
    
    
    
    772
    
    
    
    3,131
    
    
    
    3,903
    
    
    
    584
    
    
    
    1995
    
    
    
    5/18/1999
    
    
    
    5 to 40 yearsGlendale-59th Ave
    
    AZ
    
    
    
    
    
    
    565
    
    
    
    2,596
    
    
    
    447
    
    
    
    565
    
    
    
    3,043
    
    
    
    3,608
    
    
    
    569
    
    
    
    1997
    
    
    
    5/18/1999
    
    
    
    5 to 40 yearsMesa-Baseline
    
    AZ
    
    
    
    
    
    
    330
    
    
    
    1,309
    
    
    
    172
    
    
    
    326
    
    
    
    1,485
    
    
    
    1,811
    
    
    
    293
    
    
    
    1986
    
    
    
    5/18/1999
    
    
    
    5 to 40 yearsMesa-E.Broadway
    
    AZ
    
    
    
    
    
    
    339
    
    
    
    1,346
    
    
    
    400
    
    
    
    339
    
    
    
    1,746
    
    
    
    2,085
    
    
    
    318
    
    
    
    1986
    
    
    
    5/18/1999
    
    
    
    5 to 40 yearsMesa-W.Broadway
    
    AZ
    
    
    
    
    
    
    291
    
    
    
    1,026
    
    
    
    517
    
    
    
    291
    
    
    
    1,543
    
    
    
    1,834
    
    
    
    254
    
    
    
    1976
    
    
    
    5/18/1999
    
    
    
    5 to 40 yearsMesa-Greenfield
    
    AZ
    
    
    
    
    
    
    354
    
    
    
    1,405
    
    
    
    198
    
    
    
    354
    
    
    
    1,603
    
    
    
    1,957
    
    
    
    323
    
    
    
    1986
    
    
    
    5/18/1999
    
    
    
    5 to 40 yearsPhoenix-Camelback
    
    AZ
    
    
    
    
    
    
    453
    
    
    
    1,610
    
    
    
    502
    
    
    
    453
    
    
    
    2,112
    
    
    
    2,565
    
    
    
    405
    
    
    
    1984
    
    
    
    5/18/1999
    
    
    
    5 to 40 yearsPhoenix-Bell
    
    AZ
    
    
    
    
    
    
    872
    
    
    
    3,476
    
    
    
    647
    
    
    
    872
    
    
    
    4,123
    
    
    
    4,995
    
    
    
    834
    
    
    
    1984
    
    
    
    5/18/1999
    
    
    
    5 to 40 yearsPhoenix-35th Ave
    
    AZ
    
    
    
    
    
    
    849
    
    
    
    3,401
    
    
    
    616
    
    
    
    849
    
    
    
    4,017
    
    
    
    4,866
    
    
    
    734
    
    
    
    1996
    
    
    
    5/21/1999
    
    
    
    5 to 40 yearsWestbrook
    
    ME
    
    
    
    
    
    
    410
    
    
    
    1,626
    
    
    
    1,571
    
    
    
    410
    
    
    
    3,197
    
    
    
    3,607
    
    
    
    429
    
    
    
    1988
    
    
    
    8/2/1999
    
    
    
    5 to 40 yearsCocoa
    
    FL
    
    
    
    
    
    
    667
    
    
    
    2,373
    
    
    
    594
    
    
    
    667
    
    
    
    2,967
    
    
    
    3,634
    
    
    
    565
    
    
    
    1982
    
    
    
    9/29/1999
    
    
    
    5 to 40 yearsCedar Hill
    
    TX
    
    
    
    
    
    
    335
    
    
    
    1,521
    
    
    
    231
    
    
    
    335
    
    
    
    1,752
    
    
    
    2,087
    
    
    
    380
    
    
    
    1985
    
    
    
    11/9/1999
    
    
    
    5 to 40 yearsMonroe
    
    NY
    
    
    
    
    
    
    276
    
    
    
    1,312
    
    
    
    1,080
    
    
    
    276
    
    
    
    2,392
    
    
    
    2,668
    
    
    
    297
    
    
    
    1998
    
    
    
    2/2/2000
    
    
    
    5 to 40 yearsN.Andover
    
    MA
    
    
    
    
    
    
    633
    
    
    
    2,573
    
    
    
    123
    
    
    
    633
    
    
    
    2,696
    
    
    
    3,329
    
    
    
    474
    
    
    
    1989
    
    
    
    2/15/2000
    
    
    
    5 to 40 yearsSeabrook
    
    TX
    
    
    
    
    
    
    633
    
    
    
    2,617
    
    
    
    276
    
    
    
    633
    
    
    
    2,893
    
    
    
    3,526
    
    
    
    517
    
    
    
    1996
    
    
    
    3/1/2000
    
    
    
    5 to 40 yearsPlantation
    
    FL
    
    
    
    
    
    
    384
    
    
    
    1,422
    
    
    
    142
    
    
    
    384
    
    
    
    1,564
    
    
    
    1,948
    
    
    
    312
    
    
    
    1994
    
    
    
    5/2/2000
    
    
    
    5 to 40 yearsBirmingham-Bessemer
    
    AL
    
    
    
    
    
    
    254
    
    
    
    1,059
    
    
    
    1,098
    
    
    
    254
    
    
    
    2,157
    
    
    
    2,411
    
    
    
    234
    
    
    
    1998
    
    
    
    11/15/2000
    
    
    
    5 to 40 yearsBrewster
    
    NY
    
    
    (2
    )
    
    
    1,716
    
    
    
    6,920
    
    
    
    286
    
    
    
    1,876
    
    
    
    7,046
    
    
    
    8,922
    
    
    
    155
    
    
    
    1991/97
    
    
    
    12/27/2000
    
    
    
    5 to 40 yearsAustin-Lamar
    
    TX
    
    
    (2
    )
    
    
    837
    
    
    
    2,977
    
    
    
    154
    
    
    
    914
    
    
    
    3,054
    
    
    
    3,968
    
    
    
    76
    
    
    
    1996/99
    
    
    
    2/22/2001
    
    
    
    5 to 40 yearsHouston-E.Main
    
    TX
    
    
    (2
    )
    
    
    733
    
    
    
    3,392
    
    
    
    217
    
    
    
    796
    
    
    
    3,546
    
    
    
    4,342
    
    
    
    82
    
    
    
    1993/97
    
    
    
    3/2/2001
    
    
    
    5 to 40 yearsFt.Myers-Abrams
    
    FL
    
    
    (2
    )
    
    
    787
    
    
    
    3,249
    
    
    
    89
    
    
    
    854
    
    
    
    3,271
    
    
    
    4,125
    
    
    
    79
    
    
    
    1997
    
    
    
    3/13/2001
    
    
    
    5 to 40 yearsDracut
    
    MA
    
    
    (1
    )
    
    
    1,035
    
    
    
    3,737
    
    
    
    498
    
    
    
    1,104
    
    
    
    4,166
    
    
    
    5,270
    
    
    
    527
    
    
    
    1986
    
    
    
    12/1/2001
    
    
    
    5 to 40 yearsMethuen
    
    MA
    
    
    (1
    )
    
    
    1,024
    
    
    
    3,649
    
    
    
    485
    
    
    
    1,091
    
    
    
    4,067
    
    
    
    5,158
    
    
    
    505
    
    
    
    1984
    
    
    
    12/1/2001
    
    
    
    5 to 40 yearsColumbia 5
    
    SC
    
    
    (1
    )
    
    
    883
    
    
    
    3,139
    
    
    
    500
    
    
    
    942
    
    
    
    3,580
    
    
    
    4,522
    
    
    
    482
    
    
    
    1985
    
    
    
    12/1/2001
    
    
    
    5 to 40 yearsMyrtle Beach
    
    SC
    
    
    (1
    )
    
    
    552
    
    
    
    1,970
    
    
    
    606
    
    
    
    589
    
    
    
    2,539
    
    
    
    3,128
    
    
    
    345
    
    
    
    1984
    
    
    
    12/1/2001
    
    
    
    5 to 40 yearsKingsland
    
    GA
    
    
    (1
    )
    
    
    470
    
    
    
    1,902
    
    
    
    624
    
    
    
    501
    
    
    
    2,495
    
    
    
    2,996
    
    
    
    356
    
    
    
    1989
    
    
    
    12/1/2001
    
    
    
    5 to 40 yearsSaco
    
    ME
    
    
    (1
    )
    
    
    534
    
    
    
    1,914
    
    
    
    230
    
    
    
    570
    
    
    
    2,108
    
    
    
    2,678
    
    
    
    266
    
    
    
    1988
    
    
    
    12/3/2001
    
    
    
    5 to 40 yearsPlymouth
    
    MA
    
    
    
    
    
    
    1,004
    
    
    
    4,584
    
    
    
    141
    
    
    
    1,004
    
    
    
    4,725
    
    
    
    5,729
    
    
    
    600
    
    
    
    1996
    
    
    
    12/19/2001
    
    
    
    5 to 40 yearsSandwich
    
    MA
    
    
    (1
    )
    
    
    670
    
    
    
    3,060
    
    
    
    392
    
    
    
    714
    
    
    
    3,408
    
    
    
    4,122
    
    
    
    438
    
    
    
    1984
    
    
    
    12/19/2001
    
    
    
    5 to 40 yearsSyracuse
    
    NY
    
    
    (1
    )
    
    
    294
    
    
    
    1,203
    
    
    
    330
    
    
    
    313
    
    
    
    1,514
    
    
    
    1,827
    
    
    
    218
    
    
    
    1987
    
    
    
    2/5/2002
    
    
    
    5 to 40 yearsHouston-Westward
    
    TX
    
    
    (1
    )
    
    
    853
    
    
    
    3,434
    
    
    
    750
    
    
    
    912
    
    
    
    4,125
    
    
    
    5,037
    
    
    
    523
    
    
    
    1976
    
    
    
    2/13/2002
    
    
    
    5 to 40 yearsHouston-Boone
    
    TX
    
    
    (1
    )
    
    
    250
    
    
    
    1,020
    
    
    
    455
    
    
    
    268
    
    
    
    1,457
    
    
    
    1,725
    
    
    
    177
    
    
    
    1983
    
    
    
    2/13/2002
    
    
    
    5 to 40 yearsHouston-Cook
    
    TX
    
    
    (1
    )
    
    
    285
    
    
    
    1,160
    
    
    
    253
    
    
    
    306
    
    
    
    1,392
    
    
    
    1,698
    
    
    
    182
    
    
    
    1986
    
    
    
    2/13/2002
    
    
    
    5 to 40 yearsHouston-Harwin
    
    TX
    
    
    (1
    )
    
    
    449
    
    
    
    1,816
    
    
    
    557
    
    
    
    480
    
    
    
    2,342
    
    
    
    2,822
    
    
    
    285
    
    
    
    1981
    
    
    
    2/13/2002
    
    
    
    5 to 40 yearsHouston-Hempstead
    
    TX
    
    
    (1
    )
    
    
    545
    
    
    
    2,200
    
    
    
    738
    
    
    
    583
    
    
    
    2,900
    
    
    
    3,483
    
    
    
    324
    
    
    
    1974/78
    
    
    
    2/13/2002
    
    
    
    5 to 40 yearsHouston-Kuykendahl
    
    TX
    
    
    (1
    )
    
    
    517
    
    
    
    2,090
    
    
    
    614
    
    
    
    553
    
    
    
    2,668
    
    
    
    3,221
    
    
    
    346
    
    
    
    1979/83
    
    
    
    2/13/2002
    
    
    
    5 to 40 years
 62




---



##### Table of Contents



CostCapitalizedSubsequent to
    
    
    Gross Amount at WhichInitial Cost to Company
    
    
    Acquisition
    
    
    Carried at Close of Period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on whichBuilding,
    
    
    Building,
    
    
    
    
    
    
    Building,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    depreciationEquipment
    
    
    Equipment
    
    
    
    
    
    
    Equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in latestEncum-
    
    
    
    
    
    
    and
    
    
    and
    
    
    
    
    
    
    and
    
    
    
    
    
    
    Accumulated
    
    
    Date of
    
    
    Date
    
    
    income statementDescription
    
    State
    
    
    brance
    
    
    Land
    
    
    Improvements
    
    
    Improvements
    
    
    Land
    
    
    Improvements
    
    
    Total
    
    
    Depreciation
    
    
    Construction
    
    
    Acquired
    
    
    is computedHouston-Hwy 249
    
    TX
    
    
    (1
    )
    
    
    299
    
    
    
    1,216
    
    
    
    877
    
    
    
    320
    
    
    
    2,072
    
    
    
    2,392
    
    
    
    218
    
    
    
    1983
    
    
    
    2/13/2002
    
    
    
    5 to 40 yearsMesquite-Hwy 80
    
    TX
    
    
    (1
    )
    
    
    463
    
    
    
    1,873
    
    
    
    490
    
    
    
    496
    
    
    
    2,330
    
    
    
    2,826
    
    
    
    278
    
    
    
    1985
    
    
    
    2/13/2002
    
    
    
    5 to 40 yearsMesquite-Franklin
    
    TX
    
    
    (1
    )
    
    
    734
    
    
    
    2,956
    
    
    
    638
    
    
    
    784
    
    
    
    3,544
    
    
    
    4,328
    
    
    
    398
    
    
    
    1984
    
    
    
    2/13/2002
    
    
    
    5 to 40 yearsDallas-Plantation
    
    TX
    
    
    (1
    )
    
    
    394
    
    
    
    1,595
    
    
    
    247
    
    
    
    421
    
    
    
    1,815
    
    
    
    2,236
    
    
    
    225
    
    
    
    1985
    
    
    
    2/13/2002
    
    
    
    5 to 40 yearsSan Antonio-Hunt
    
    TX
    
    
    (1
    )
    
    
    381
    
    
    
    1,545
    
    
    
    319
    
    
    
    408
    
    
    
    1,837
    
    
    
    2,245
    
    
    
    223
    
    
    
    1980
    
    
    
    2/13/2002
    
    
    
    5 to 40 yearsHumble-5250 FM
    
    TX
    
    
    
    
    
    
    919
    
    
    
    3,696
    
    
    
    270
    
    
    
    919
    
    
    
    3,966
    
    
    
    4,885
    
    
    
    450
    
    
    
    1998/02
    
    
    
    6/19/2002
    
    
    
    5 to 40 yearsPasadena
    
    TX
    
    
    
    
    
    
    612
    
    
    
    2,468
    
    
    
    75
    
    
    
    612
    
    
    
    2,543
    
    
    
    3,155
    
    
    
    295
    
    
    
    1999
    
    
    
    6/19/2002
    
    
    
    5 to 40 yearsLeague City-E.Main
    
    TX
    
    
    
    
    
    
    689
    
    
    
    3,159
    
    
    
    228
    
    
    
    689
    
    
    
    3,387
    
    
    
    4,076
    
    
    
    378
    
    
    
    1994/97
    
    
    
    6/19/2002
    
    
    
    5 to 40 yearsMontgomery
    
    TX
    
    
    
    
    
    
    817
    
    
    
    3,286
    
    
    
    52
    
    
    
    817
    
    
    
    3,338
    
    
    
    4,155
    
    
    
    381
    
    
    
    1998
    
    
    
    6/19/2002
    
    
    
    5 to 40 yearsTexas City
    
    TX
    
    
    
    
    
    
    817
    
    
    
    3,286
    
    
    
    96
    
    
    
    817
    
    
    
    3,382
    
    
    
    4,199
    
    
    
    389
    
    
    
    1999
    
    
    
    6/19/2002
    
    
    
    5 to 40 yearsHouston-Hwy 6
    
    TX
    
    
    
    
    
    
    407
    
    
    
    1,650
    
    
    
    120
    
    
    
    407
    
    
    
    1,770
    
    
    
    2,177
    
    
    
    205
    
    
    
    1997
    
    
    
    6/19/2002
    
    
    
    5 to 40 yearsLumberton
    
    TX
    
    
    
    
    
    
    817
    
    
    
    3,287
    
    
    
    141
    
    
    
    817
    
    
    
    3,428
    
    
    
    4,245
    
    
    
    395
    
    
    
    1996
    
    
    
    6/19/2002
    
    
    
    5 to 40 yearsThe Hamptons l
    
    NY
    
    
    
    
    
    
    2,207
    
    
    
    8,866
    
    
    
    386
    
    
    
    2,207
    
    
    
    9,252
    
    
    
    11,459
    
    
    
    938
    
    
    
    1989/95
    
    
    
    12/16/2002
    
    
    
    5 to 40 yearsThe Hamptons 2
    
    NY
    
    
    
    
    
    
    1,131
    
    
    
    4,564
    
    
    
    416
    
    
    
    1,131
    
    
    
    4,980
    
    
    
    6,111
    
    
    
    500
    
    
    
    1998
    
    
    
    12/16/2002
    
    
    
    5 to 40 yearsThe Hamptons 3
    
    NY
    
    
    
    
    
    
    635
    
    
    
    2,918
    
    
    
    213
    
    
    
    635
    
    
    
    3,131
    
    
    
    3,766
    
    
    
    315
    
    
    
    1997
    
    
    
    12/16/2002
    
    
    
    5 to 40 yearsThe Hamptons 4
    
    NY
    
    
    
    
    
    
    1,251
    
    
    
    5,744
    
    
    
    235
    
    
    
    1,252
    
    
    
    5,978
    
    
    
    7,230
    
    
    
    606
    
    
    
    1994/98
    
    
    
    12/16/2002
    
    
    
    5 to 40 yearsDuncanville
    
    TX
    
    
    
    
    
    
    1,039
    
    
    
    4,201
    
    
    
    29
    
    
    
    1,039
    
    
    
    4,230
    
    
    
    5,269
    
    
    
    364
    
    
    
    1995/99
    
    
    
    8/26/2003
    
    
    
    5 to 40 yearsDallas-Harry Hines
    
    TX
    
    
    
    
    
    
    827
    
    
    
    3,776
    
    
    
    189
    
    
    
    827
    
    
    
    3,965
    
    
    
    4,792
    
    
    
    316
    
    
    
    1998/01
    
    
    
    10/1/2003
    
    
    
    5 to 40 yearsStamford
    
    CT
    
    
    
    
    
    
    2,713
    
    
    
    11,013
    
    
    
    51
    
    
    
    2,713
    
    
    
    11,064
    
    
    
    13,777
    
    
    
    784
    
    
    
    1998
    
    
    
    3/17/2004
    
    
    
    5 to 40 yearsHouston-Tomball
    
    TX
    
    
    
    
    
    
    773
    
    
    
    3,170
    
    
    
    1,723
    
    
    
    773
    
    
    
    4,893
    
    
    
    5,666
    
    
    
    250
    
    
    
    2000
    
    
    
    5/19/2004
    
    
    
    5 to 40 yearsHouston-Conroe
    
    TX
    
    
    
    
    
    
    1,195
    
    
    
    4,877
    
    
    
    32
    
    
    
    1,195
    
    
    
    4,909
    
    
    
    6,104
    
    
    
    334
    
    
    
    2001
    
    
    
    5/19/2004
    
    
    
    5 to 40 yearsHouston-Spring
    
    TX
    
    
    
    
    
    
    1,103
    
    
    
    4,550
    
    
    
    193
    
    
    
    1,103
    
    
    
    4,743
    
    
    
    5,846
    
    
    
    327
    
    
    
    2001
    
    
    
    5/19/2004
    
    
    
    5 to 40 yearsHouston-Bissonnet
    
    TX
    
    
    
    
    
    
    1,061
    
    
    
    4,427
    
    
    
    34
    
    
    
    1,061
    
    
    
    4,461
    
    
    
    5,522
    
    
    
    318
    
    
    
    2003
    
    
    
    5/19/2004
    
    
    
    5 to 40 yearsHouston-Alvin
    
    TX
    
    
    
    
    
    
    388
    
    
    
    1,640
    
    
    
    25
    
    
    
    388
    
    
    
    1,665
    
    
    
    2,053
    
    
    
    123
    
    
    
    2003
    
    
    
    5/19/2004
    
    
    
    5 to 40 yearsClearwater
    
    FL
    
    
    
    
    
    
    1,720
    
    
    
    6,986
    
    
    
    14
    
    
    
    1,720
    
    
    
    7,000
    
    
    
    8,720
    
    
    
    472
    
    
    
    2001
    
    
    
    6/3/2004
    
    
    
    5 to 40 yearsHouston-Missouri City
    
    TX
    
    
    
    
    
    
    1,167
    
    
    
    4,744
    
    
    
    434
    
    
    
    1,566
    
    
    
    4,779
    
    
    
    6,345
    
    
    
    312
    
    
    
    1998
    
    
    
    6/23/2004
    
    
    
    5 to 40 yearsChattanooga-Hixson
    
    TN
    
    
    
    
    
    
    1,365
    
    
    
    5,569
    
    
    
    642
    
    
    
    1,365
    
    
    
    6,211
    
    
    
    7,576
    
    
    
    397
    
    
    
    1998/02
    
    
    
    8/4/2004
    
    
    
    5 to 40 yearsAustin-Round Rock
    
    TX
    
    
    
    
    
    
    2,047
    
    
    
    5,857
    
    
    
    586
    
    
    
    2,051
    
    
    
    6,439
    
    
    
    8,490
    
    
    
    381
    
    
    
    2000
    
    
    
    8/5/2004
    
    
    
    5 to 40 yearsEast Falmouth
    
    MA
    
    
    
    
    
    
    1,479
    
    
    
    5,978
    
    
    
    86
    
    
    
    1,479
    
    
    
    6,064
    
    
    
    7,543
    
    
    
    286
    
    
    
    1998
    
    
    
    2/23/2005
    
    
    
    5 to 40 yearsCicero
    
    NY
    
    
    
    
    
    
    527
    
    
    
    2,121
    
    
    
    278
    
    
    
    527
    
    
    
    2,399
    
    
    
    2,926
    
    
    
    107
    
    
    
    1988/02
    
    
    
    3/16/2005
    
    
    
    5 to 40 yearsBay Shore
    
    NY
    
    
    
    
    
    
    1,131
    
    
    
    4,609
    
    
    
    26
    
    
    
    1,131
    
    
    
    4,635
    
    
    
    5,766
    
    
    
    223
    
    
    
    2003
    
    
    
    3/15/2005
    
    
    
    5 to 40 yearsSpringfield-Congress
    
    MA
    
    
    
    
    
    
    612
    
    
    
    2,501
    
    
    
    17
    
    
    
    612
    
    
    
    2,518
    
    
    
    3,130
    
    
    
    117
    
    
    
    1965/75
    
    
    
    4/12/2005
    
    
    
    5 to 40 yearsStamford-Hope
    
    CT
    
    
    
    
    
    
    1,612
    
    
    
    6,585
    
    
    
    44
    
    
    
    1,612
    
    
    
    6,629
    
    
    
    8,241
    
    
    
    306
    
    
    
    2002
    
    
    
    4/14/2005
    
    
    
    5 to 40 yearsHouston-Jones
    
    TX
    
    $
    3,769
    
    
    
    1,214
    
    
    
    4,949
    
    
    
    35
    
    
    
    1,215
    
    
    
    4,983
    
    
    
    6,198
    
    
    
    205
    
    
    
    1997/99
    
    
    
    6/6/2005
    
    
    
    5 to 40 yearsMontgomery-Richard
    
    AL
    
    
    
    
    
    
    1,906
    
    
    
    7,726
    
    
    
    29
    
    
    
    1,906
    
    
    
    7,755
    
    
    
    9,661
    
    
    
    318
    
    
    
    1997
    
    
    
    6/1/2005
    
    
    
    5 to 40 yearsOxford
    
    MA
    
    
    
    
    
    
    470
    
    
    
    1,902
    
    
    
    48
    
    
    
    470
    
    
    
    1,950
    
    
    
    2,420
    
    
    
    77
    
    
    
    2002
    
    
    
    6/23/2005
    
    
    
    5 to 40 years
 63




---



##### Table of Contents



CostCapitalizedSubsequent to
    
    
    Gross Amount at WhichInitial Cost to Company
    
    
    Acquisition
    
    
    Carried at Close of Period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on whichBuilding,
    
    
    Building,
    
    
    
    
    
    
    Building,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    depreciationEquipment
    
    
    Equipment
    
    
    
    
    
    
    Equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in latestEncum-
    
    
    
    
    
    
    and
    
    
    and
    
    
    
    
    
    
    and
    
    
    
    
    
    
    Accumulated
    
    
    Date of
    
    
    Date
    
    
    income statementDescription
    
    State
    
    
    brance
    
    
    Land
    
    
    Improvements
    
    
    Improvements
    
    
    Land
    
    
    Improvements
    
    
    Total
    
    
    Depreciation
    
    
    Construction
    
    
    Acquired
    
    
    is computedAustin-290E
    
    TX
    
    
    
    
    
    
    537
    
    
    
    2,183
    
    
    
    71
    
    
    
    537
    
    
    
    2,254
    
    
    
    2,791
    
    
    
    88
    
    
    
    2003
    
    
    
    7/12/2005
    
    
    
    5 to 40 yearsSanAntonio-Marbach
    
    TX
    
    
    
    
    
    
    556
    
    
    
    2,265
    
    
    
    38
    
    
    
    556
    
    
    
    2,303
    
    
    
    2,859
    
    
    
    90
    
    
    
    2003
    
    
    
    7/12/2005
    
    
    
    5 to 40 yearsAustin-South 1st
    
    TX
    
    
    
    
    
    
    754
    
    
    
    3,065
    
    
    
    34
    
    
    
    754
    
    
    
    3,099
    
    
    
    3,853
    
    
    
    121
    
    
    
    2003
    
    
    
    7/12/2005
    
    
    
    5 to 40 yearsPinehurst
    
    TX
    
    
    
    
    
    
    484
    
    
    
    1,977
    
    
    
    55
    
    
    
    484
    
    
    
    2,032
    
    
    
    2,516
    
    
    
    80
    
    
    
    2002/04
    
    
    
    7/12/2005
    
    
    
    5 to 40 yearsMarietta-Austell
    
    GA
    
    
    
    
    
    
    811
    
    
    
    3,397
    
    
    
    416
    
    
    
    811
    
    
    
    3,813
    
    
    
    4,624
    
    
    
    132
    
    
    
    2003
    
    
    
    9/15/2005
    
    
    
    5 to 40 yearsBaton Rouge-Florida
    
    LA
    
    
    
    
    
    
    719
    
    
    
    2,927
    
    
    
    53
    
    
    
    719
    
    
    
    2,980
    
    
    
    3,699
    
    
    
    91
    
    
    
    1984/94
    
    
    
    11/15/2005
    
    
    
    5 to 40 yearsCypress
    
    TX
    
    
    
    
    
    
    721
    
    
    
    2,994
    
    
    
    998
    
    
    
    721
    
    
    
    3,992
    
    
    
    4,713
    
    
    
    89
    
    
    
    2003
    
    
    
    1/13/2006
    
    
    
    5 to 40 yearsTexas City
    
    TX
    
    
    
    
    
    
    867
    
    
    
    3,499
    
    
    
    43
    
    
    
    867
    
    
    
    3,542
    
    
    
    4,409
    
    
    
    92
    
    
    
    2003
    
    
    
    1/10/2006
    
    
    
    5 to 40 yearsSan Marcos-Hwy 35S
    
    TX
    
    
    
    
    
    
    628
    
    
    
    2,532
    
    
    
    394
    
    
    
    982
    
    
    
    2,572
    
    
    
    3,554
    
    
    
    67
    
    
    
    2001
    
    
    
    1/10/2006
    
    
    
    5 to 40 yearsBaytown
    
    TX
    
    
    
    
    
    
    596
    
    
    
    2,411
    
    
    
    53
    
    
    
    596
    
    
    
    2,464
    
    
    
    3,060
    
    
    
    64
    
    
    
    2002
    
    
    
    1/10/2006
    
    
    
    5 to 40 yearsWebster
    
    NY
    
    
    
    
    
    
    937
    
    
    
    3,779
    
    
    
    30
    
    
    
    937
    
    
    
    3,809
    
    
    
    4,746
    
    
    
    90
    
    
    
    2002/06
    
    
    
    2/1/2006
    
    
    
    5 to 40 yearsHouston-Jones Rd 2
    
    TX
    
    
    
    
    
    
    707
    
    
    
    2,933
    
    
    
    17
    
    
    
    707
    
    
    
    2,950
    
    
    
    3,657
    
    
    
    67
    
    
    
    2000
    
    
    
    3/9/2006
    
    
    
    5 to 40 yearsCameron-Scott
    
    LA
    
    
    1,043
    
    
    
    411
    
    
    
    1,665
    
    
    
    31
    
    
    
    411
    
    
    
    1,696
    
    
    
    2,107
    
    
    
    33
    
    
    
    1997
    
    
    
    4/13/2006
    
    
    
    5 to 40 yearsLafayette-Westgate
    
    LA
    
    
    
    
    
    
    463
    
    
    
    1,887
    
    
    
    18
    
    
    
    463
    
    
    
    1,905
    
    
    
    2,368
    
    
    
    37
    
    
    
    2001/04
    
    
    
    4/13/2006
    
    
    
    5 to 40 yearsBroussard
    
    LA
    
    
    
    
    
    
    601
    
    
    
    2,481
    
    
    
    33
    
    
    
    601
    
    
    
    2,514
    
    
    
    3,115
    
    
    
    51
    
    
    
    2002
    
    
    
    4/13/2006
    
    
    
    5 to 40 yearsCongress-Lafayette
    
    LA
    
    
    1,144
    
    
    
    542
    
    
    
    1,354
    
    
    
    52
    
    
    
    542
    
    
    
    1,406
    
    
    
    1,948
    
    
    
    29
    
    
    
    1997/99
    
    
    
    4/13/2006
    
    
    
    5 to 40 yearsManchester
    
    NH
    
    
    
    
    
    
    832
    
    
    
    3,346
    
    
    
    21
    
    
    
    832
    
    
    
    3,367
    
    
    
    4,199
    
    
    
    57
    
    
    
    2000
    
    
    
    4/26/2006
    
    
    
    5 to 40 yearsNashua
    
    NH
    
    
    
    
    
    
    617
    
    
    
    2,478
    
    
    
    89
    
    
    
    617
    
    
    
    2,567
    
    
    
    3,184
    
    
    
    33
    
    
    
    1989
    
    
    
    6/29/2006
    
    
    
    5 to 40 yearsLargo 2
    
    FL
    
    
    2,436
    
    
    
    1,270
    
    
    
    5,094
    
    
    
    45
    
    
    
    1,270
    
    
    
    5,139
    
    
    
    6,409
    
    
    
    65
    
    
    
    1998
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsPinellas Park
    
    FL
    
    
    
    
    
    
    929
    
    
    
    3,750
    
    
    
    28
    
    
    
    929
    
    
    
    3,778
    
    
    
    4,707
    
    
    
    48
    
    
    
    2000
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsTarpon Springs
    
    FL
    
    
    2,262
    
    
    
    696
    
    
    
    2,818
    
    
    
    13
    
    
    
    696
    
    
    
    2,831
    
    
    
    3,527
    
    
    
    36
    
    
    
    1999
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsNew Orleans
    
    LA
    
    
    4,126
    
    
    
    1,220
    
    
    
    4,956
    
    
    
    41
    
    
    
    1,220
    
    
    
    4,997
    
    
    
    6,217
    
    
    
    65
    
    
    
    2000
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsSt Louis-Meramec
    
    MO
    
    
    4,761
    
    
    
    1,113
    
    
    
    4,490
    
    
    
    38
    
    
    
    1,113
    
    
    
    4,528
    
    
    
    5,641
    
    
    
    58
    
    
    
    1999
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsSt Louis-Charles Rock
    
    MO
    
    
    
    
    
    
    766
    
    
    
    3,092
    
    
    
    24
    
    
    
    766
    
    
    
    3,116
    
    
    
    3,882
    
    
    
    40
    
    
    
    1999
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsSt Louis-Shackelford
    
    MO
    
    
    2,393
    
    
    
    828
    
    
    
    3,348
    
    
    
    20
    
    
    
    828
    
    
    
    3,368
    
    
    
    4,196
    
    
    
    43
    
    
    
    1999
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsSt Louis-W.Washington
    
    MO
    
    
    3,808
    
    
    
    734
    
    
    
    2,980
    
    
    
    73
    
    
    
    734
    
    
    
    3,053
    
    
    
    3,787
    
    
    
    40
    
    
    
    1980/01
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsSt Louis-Howdershell
    
    MO
    
    
    
    
    
    
    899
    
    
    
    3,640
    
    
    
    80
    
    
    
    899
    
    
    
    3,720
    
    
    
    4,619
    
    
    
    47
    
    
    
    2000
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsSt Louis-Lemay Ferry
    
    MO
    
    
    
    
    
    
    890
    
    
    
    3,616
    
    
    
    24
    
    
    
    890
    
    
    
    3,640
    
    
    
    4,530
    
    
    
    47
    
    
    
    1999
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsSt Louis-Manchester
    
    MO
    
    
    3,596
    
    
    
    697
    
    
    
    2,817
    
    
    
    38
    
    
    
    697
    
    
    
    2,855
    
    
    
    3,552
    
    
    
    37
    
    
    
    2000
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsArlington-Little Rd
    
    TX
    
    
    2,146
    
    
    
    1,256
    
    
    
    5,074
    
    
    
    24
    
    
    
    1,256
    
    
    
    5,098
    
    
    
    6,354
    
    
    
    65
    
    
    
    1998/03
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsDallas-Goldmark
    
    TX
    
    
    
    
    
    
    605
    
    
    
    2,473
    
    
    
    24
    
    
    
    605
    
    
    
    2,497
    
    
    
    3,102
    
    
    
    32
    
    
    
    2004
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsDallas-Manana
    
    TX
    
    
    
    
    
    
    607
    
    
    
    2,472
    
    
    
    23
    
    
    
    607
    
    
    
    2,495
    
    
    
    3,102
    
    
    
    32
    
    
    
    2004
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsDallas-Manderville
    
    TX
    
    
    
    
    
    
    1,073
    
    
    
    4,369
    
    
    
    38
    
    
    
    1,073
    
    
    
    4,407
    
    
    
    5,480
    
    
    
    57
    
    
    
    2003
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsFt. Worth-Granbury
    
    TX
    
    
    1,925
    
    
    
    549
    
    
    
    2,227
    
    
    
    34
    
    
    
    549
    
    
    
    2,261
    
    
    
    2,810
    
    
    
    29
    
    
    
    1998
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsFt. Worth-Grapevine
    
    TX
    
    
    2,114
    
    
    
    644
    
    
    
    2,609
    
    
    
    21
    
    
    
    644
    
    
    
    2,630
    
    
    
    3,274
    
    
    
    34
    
    
    
    1999
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsSan Antonio-Blanco
    
    TX
    
    
    
    
    
    
    963
    
    
    
    3,923
    
    
    
    24
    
    
    
    963
    
    
    
    3,947
    
    
    
    4,910
    
    
    
    52
    
    
    
    2004
    
    
    
    6/22/2006
    
    
    
    5 to 40 years
 64




---



##### Table of Contents



CostCapitalizedSubsequent to
    
    
    Gross Amount at WhichInitial Cost to Company
    
    
    Acquisition
    
    
    Carried at Close of Period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on whichBuilding,
    
    
    Building,
    
    
    
    
    
    
    Building,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    depreciationEquipment
    
    
    Equipment
    
    
    
    
    
    
    Equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    in latestEncum-
    
    
    
    
    
    
    and
    
    
    and
    
    
    
    
    
    
    and
    
    
    
    
    
    
    Accumulated
    
    
    Date of
    
    
    Date
    
    
    income statementDescription
    
    State
    
    
    brance
    
    
    Land
    
    
    Improvements
    
    
    Improvements
    
    
    Land
    
    
    Improvements
    
    
    Total
    
    
    Depreciation
    
    
    Construction
    
    
    Acquired
    
    
    is computedSan Antonio-Broadway
    
    TX
    
    
    
    
    
    
    773
    
    
    
    3,134
    
    
    
    27
    
    
    
    773
    
    
    
    3,161
    
    
    
    3,934
    
    
    
    41
    
    
    
    2000
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsSan Antonio-Huebner
    
    TX
    
    
    2,395
    
    
    
    1,175
    
    
    
    4,723
    
    
    
    24
    
    
    
    1,175
    
    
    
    4,747
    
    
    
    5,922
    
    
    
    60
    
    
    
    1998
    
    
    
    6/22/2006
    
    
    
    5 to 40 yearsChattanooga-Lee Hwy II
    
    TN
    
    
    
    
    
    
    619
    
    
    
    2,512
    
    
    
    18
    
    
    
    619
    
    
    
    2,530
    
    
    
    3,149
    
    
    
    27
    
    
    
    2002
    
    
    
    8/7/2006
    
    
    
    5 to 40 yearsLafayette-Evangeline
    
    LA
    
    
    
    
    
    
    699
    
    
    
    2,847
    
    
    
    24
    
    
    
    699
    
    
    
    2,871
    
    
    
    3,570
    
    
    
    31
    
    
    
    1995/99
    
    
    
    8/1/2006
    
    
    
    5 to 40 yearsMontgomery-E.S.Blvd
    
    AL
    
    
    
    
    
    
    1,158
    
    
    
    4,691
    
    
    
    33
    
    
    
    1,158
    
    
    
    4,724
    
    
    
    5,882
    
    
    
    30
    
    
    
    1996/97
    
    
    
    9/28/2006
    
    
    
    5 to 40 yearsAuburn-Pepperell Pkwy
    
    AL
    
    
    
    
    
    
    590
    
    
    
    2,401
    
    
    
    6
    
    
    
    590
    
    
    
    2,407
    
    
    
    2,997
    
    
    
    15
    
    
    
    1998
    
    
    
    9/28/2006
    
    
    
    5 to 40 yearsAuburn-Gatewood Dr
    
    AL
    
    
    
    
    
    
    694
    
    
    
    2,806
    
    
    
    6
    
    
    
    694
    
    
    
    2,812
    
    
    
    3,506
    
    
    
    17
    
    
    
    2002/03
    
    
    
    9/28/2006
    
    
    
    5 to 40 yearsColumbus-Williams Rd
    
    GA
    
    
    
    
    
    
    736
    
    
    
    3,015
    
    
    
    42
    
    
    
    736
    
    
    
    3,057
    
    
    
    3,793
    
    
    
    19
    
    
    
    2002/04/06
    
    
    
    9/28/2006
    
    
    
    5 to 40 yearsColumbus-Miller Rd
    
    GA
    
    
    
    
    
    
    975
    
    
    
    3,941
    
    
    
    22
    
    
    
    975
    
    
    
    3,963
    
    
    
    4,938
    
    
    
    24
    
    
    
    1995
    
    
    
    9/28/2006
    
    
    
    5 to 40 yearsColumbus-Armour Rd
    
    GA
    
    
    
    
    
    
    0
    
    
    
    3,751
    
    
    
    29
    
    
    
    0
    
    
    
    3,780
    
    
    
    3,780
    
    
    
    24
    
    
    
    2004/05
    
    
    
    9/28/2006
    
    
    
    5 to 40 yearsColumbus-Amber Dr
    
    GA
    
    
    
    
    
    
    439
    
    
    
    1,785
    
    
    
    4
    
    
    
    439
    
    
    
    1,789
    
    
    
    2,228
    
    
    
    11
    
    
    
    1998
    
    
    
    9/28/2006
    
    
    
    5 to 40 yearsConcord
    
    NH
    
    
    
    
    
    
    813
    
    
    
    3,264
    
    
    
    10
    
    
    
    820
    
    
    
    3,267
    
    
    
    4,087
    
    
    
    13
    
    
    
    2000
    
    
    
    10/31/2006
    
    
    
    5 to 40 yearsConstruction in progress
    
    
    
    
    
    
    
    
    
    
    0
    
    
    
    0
    
    
    
    6,586
    
    
    
    0
    
    
    
    6,586
    
    
    
    6,586
    
    
    
    0
    
    
    
    2006Corporate Office
    
    NY
    
    
    
    
    
    
    0
    
    
    
    68
    
    
    
    10,399
    
    
    
    1,608
    
    
    
    8,859
    
    
    
    10,467
    
    
    
    4,411
    
    
    
    2000
    
    
    
    5/1/2000
    
    
    
    5 to 40 years$
    198,211
    
    
    $
    765,728
    
    
    $
    179,965
    
    
    $
    208,644
    
    
    $
    935,260
    
    
    $
    1,143,904
    
    
    $
    155,843
 
 (1)
    
    These properties are encumbered through one mortgage loan with an outstanding balance of
$44.6 million at December 31, 2006.(2)
    
    These properties are encumbered through one mortgage loan with an outstanding balance of $29.5
million at December 31, 2006. 65




---



##### Table of Contents



December 31, 2006
    
    
    December 31, 2005
    
    
    December 31, 2004Cost:Balance at beginning of period
    
    
    
    
    
    $
    893,980
    
    
    
    
    
    
    $
    811,516
    
    
    
    
    
    
    $
    739,836Additions during period:Acquisitions through foreclosure
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    Other acquisitions
    
    
    212,957
    
    
    
    
    
    
    
    65,001
    
    
    
    
    
    
    
    66,373Improvements, etc.
    
    
    37,066
    
    
    
    
    
    
    
    18,236
    
    
    
    
    
    
    
    18,075250,023
    
    
    
    
    
    
    
    83,237
    
    
    
    
    
    
    
    84,448Deductions during period:Cost of real estate sold
    
    
    (99
    )
    
    
    (99
    )
    
    
    (773
    )
    
    
    (773
    )
    
    
    (12,768
    )
    
    
    (12,768
    )Balance at close of period
    
    
    
    
    
    $
    1,143,904
    
    
    
    
    
    
    $
    893,980
    
    
    
    
    
    
    $
    811,516Accumulated Depreciation:Balance at beginning of period
    
    
    
    
    
    $
    130,550
    
    
    
    
    
    
    $
    109,750
    
    
    
    
    
    
    $
    92,498Additions during period:Depreciation expense
    
    $
    25,347
    
    
    
    
    
    
    $
    21,222
    
    
    
    
    
    
    $
    19,17525,347
    
    
    
    
    
    
    
    21,222
    
    
    
    
    
    
    
    19,175Deductions during period:Accumulated depreciation of real
estate sold
    
    
    (54
    )
    
    
    (54
    )
    
    
    (422
    )
    
    
    (422
    )
    
    
    (1,923
    )
    
    
    (1,923
    )Balance at close of period
    
    
    
    
    
    $
    155,843
    
    
    
    
    
    
    $
    130,550
    
    
    
    
    
    
    $
    109,750
 66