<PAGE>

                              SECURITIES AND EXCHANGE COMMISSION
                                          Washington, DC  20549
 

                                                  FORM 10-Q
                 
                      
           [X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                          OF THE SECURITIES EXCHANGE ACT OF 1934
                                       
                      For the quarterly period ended September 30, 1998
                                       
                                                           OR
                                       
           [ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                          OF THE SECURITIES EXCHANGE ACT OF 1934
                                       
                              Commission file number: 1-13462
                                       
     
                                              STORAGE TRUST REALTY
             (Exact name of Registrant as specified in its Charter)
                                                                
                  MARYLAND                           43-1689825
   (State or other jurisdiction           (I.R.S. employer 
 of incorporation or organization)       identification no.)
                     
     2407 RANGELINE STREET 
       COLUMBIA, MISSOURI                        65202
(Address of principal executive offices)       (Zip Code)

                              (573) 499-4799
           (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all 
reports required to be filed by Section 13 or 15(d) of the 
Securities Exchange Act of 1934 during the preceding 12 months (or 
for such shorter period that the registrant was required to file 
such reports), and (2) has been subject to such filing 
requirements for the past 90 days.    Yes  X         No       

Indicate the number of  shares outstanding of each of the issuer's 
classes of common stock, as of the latest practicable date:

16,076,291 common shares of Beneficial Interest, $.01 par value as 
of October 31, 1998. 

<PAGE>
<TABLE>
<CAPTION>
                     STORAGE TRUST REALTY
                 CONSOLIDATED BALANCE SHEETS
          AS OF SEPTEMBER 30, 1998 AND DECEMBER 31, 1997
        (amounts in thousands, except for share information)
                                                                  

                                                                                          Sept. 30,       Dec. 31,  
                                                                                     1998            1997   
<S>                                              <C>             <C>
ASSETS                                         (unaudited)
Investment in self-storage stores, net          $ 500,277      $ 386,574
Cash and cash equivalents                           3,025          4,909
Notes receivable                                    5,394          2,376
Accounts receivable, earnest deposits
  and other assets                                  1,764          5,201
Deferred financing costs, net of
  amortization of $417 and $1,085                   1,437            951
Investments in joint ventures                         219            284
  Total assets                                  $ 512,116      $ 400,295

LIABILITIES AND EQUITY
Liabilities:
  Mortgages and notes payable:
    Revolving line of credit                    $  83,470      $     -
    Senior Notes                                  100,000        100,000
  Accounts payable and accrued expenses             8,410          5,087
  Accrued hedging loss                              5,464            - 
  Accrued interest payable                          1,843          3,457
  Tenant prepayments                                4,134          3,242
  Dividends and distributions payable               7,936            -  
    Total liabilities                             211,257        111,786

Minority interests                                 23,426         15,905

Shareholders' equity:
  Common shares, $.01 par value, 
    150,000,000 shares authorized, 
    16,075,653 and 15,446,125 shares 
    issued and outstanding, respectively              161            155
  Additional paid-in capital                      294,740        280,324
  Distributions in excess of net income          (17,468)        (7,875)
    Total shareholders' equity                    277,433        272,604
    Total liabilities and shareholders' 
      equity                                    $ 512,116      $ 400,295

</TABLE>
The accompanying notes are an integral part of these statements.

<PAGE>
<TABLE>
<CAPTION>
                            STORAGE TRUST REALTY
                   CONSOLIDATED STATEMENTS OF OPERATIONS
           FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
           (amounts in thousands, except for share information)
                                 (unaudited)


                                                                                         1998            1997   
 <S>                                              <C>             <C>
 Revenues:
  Rental income                                 $ 20,554        $ 15,477
  Product sales and other property income            532             311
  Interest income                                    126              66
  Management income                                   53              80
  Equity in earnings of joint ventures                28              30
    Total revenues                                21,293          15,964  
                        
Expenses:
  Property operations and product sales            4,580           3,286
  Real estate taxes                                2,080           1,568
  General and administrative                       1,166             879
  Strategic evaluation costs                         212               -
  Hedging loss                                     5,464               - 
  Interest                                         3,184           2,196
  Depreciation                                     3,493           2,487
  Amortization                                        87             161
    Total expenses                                20,266          10,577

Net income before minority interests               1,027           5,387

Minority interests                                   (97)           (358)

Net income                                      $    930        $  5,029

Net income per share:
  Basic                                         $   0.06        $   0.39
  Diluted                                       $   0.06        $   0.39

Weighted-average number of shares
  outstanding during the period               16,074,875      12,909,775
                                                                 
Dividends declared per share 
  during the period                             $  0.460        $  0.435
                                                                 
</TABLE>
The accompanying notes are an integral part of these statements.


<PAGE>
<TABLE>
<CAPTION>

                             STORAGE TRUST REALTY
                   CONSOLIDATED STATEMENTS OF OPERATIONS
            FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
             (amounts in thousands, except for share information)
                                  (unaudited)

                                                                                        1998            1997   
<S>                                                <C>             <C>
Revenues:
  Rental income                                 $ 56,561        $ 42,623
  Product sales and other property income          1,423             766
  Interest income                                    327             161
  Management income                                  159             193
  Equity in earnings of joint ventures                65              69
    Total revenues                                58,535          43,812  
                        
Expenses:
  Property operations and product sales           12,294           9,025
  Real estate taxes                                5,757           3,995
  General and administrative                       3,094           2,302
  Strategic evaluation costs                         212               -
  Hedging loss                                     5,464               - 
  Interest                                         8,530           5,596
  Depreciation                                     9,724           6,812
  Amortization                                       261             467
    Total expenses                                45,336          28,197

Net income before minority interests              13,199          15,615

Minority interests                                  (893)         (1,011)

Net income                                      $ 12,306        $ 14,604

Net income per share:
  Basic                                         $   0.78        $   1.13
  Diluted                                       $   0.77        $   1.12

Weighted-average number of shares
  outstanding during the period               15,815,810      12,901,434
                                                                 
Dividends declared per share 
  during the period                             $  1.380        $  1.305

</TABLE>                                                                 

The accompanying notes are an integral part of these statements.

<PAGE>
<TABLE>
<CAPTION>
                              STORAGE TRUST REALTY
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
                            (amounts in thousands)
                                  (unaudited)

                                                                               1998       1997  
<S>                                             <C>         <C>
Cash flows from operating activities:
  Net income                                 $ 12,306    $14,604 
  Adjustments to reconcile net income to net
  cash provided by operating activities:
    Depreciation and amortization               9,985      7,279
    Hedging loss                                5,464          - 
    Equity in earnings of joint ventures          (65)       (69)
    Distributions from joint ventures             130          -
    Minority interests                            893      1,011
    Other changes in assets and liabilities     2,784      3,976 
  Net cash provided by operating activities    31,497     26,801 
Cash flows from investing activities:
  Acquisition of self-storage stores          (65,252)   (61,831)
  Other additions to self-storage stores      (13,062)    (2,360)
  Earnest money deposits for acquisitions       3,197          -
  Funding of notes receivable                  (4,593)    (2,031)
  Net cash used in investing activities       (79,710)   (66,222)
Cash flows from financing activities:
  Borrowings on revolving line of credit      107,980     53,570
  Payments on revolving line of credit        (24,510)   (90,423)
  Principal payments on other notes payable   (35,151)    (4,226)
  Funding of Senior Notes                           -    100,000
  Financing costs paid                           (747)    (1,026)
  Proceeds from sale of Common Shares          15,000          -
  Offering costs paid                            (833)         -
Disstributions to minority interests paid      (1,014)    (1,113)
  Dividends paid                              (14,503    (16,831)
  Other issuances of Common Shares                107        143 
  Net cash provided by financing activities    46,329     40,094 

Net change in cash and cash equivalents        (1,884)       673
Cash and cash equivalents at beginning 
  of period                                     4,909      2,317  
Cash and cash equivalents at end of period   $  3,025    $ 2,990

</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>
<TABLE>
<CAPTION>
                                       STORAGE TRUST REALTY
             CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
           FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
                           (amounts in thousands)
                                (unaudited)

                                                                                         1998           1997  
<S>                                                 <C>            <C>
Other changes in assets and liabilities:
  Accounts receivable and other assets           $   184        $    24
  Accounts payable, tenant prepayments and 
    accrued expenses                               2,600          3,952
  Total                                          $ 2,784        $ 3,976

Supplemental cash flow information:
  Cash paid for interest                         $10,459        $ 4,146  

Schedule of non-cash investing and 
  financing activities:
    Mortgages assumed in connection with the
      acquisition of self-storage stores         $35,151        $ 1,644 
    Issuance of Units in connection with the
      acquisition of self-storage stores         $ 8,387        $     -        
    Application of note receivable in
      connection with the acquisition of
      a self-storage store                       $ 1,575        $     -        
    Self-storage stores acquired (10 in 1997)
      in exchange for self-storage stores
      (16 in 1997)                               $    -         $23,683
    Issuance of Units in connection with the
      earnout provisions of contracts on
      previously acquired self-storage stores    $    -         $   293
    Conversion of Units of the Operating
      Partnership held by minority interests
      to Common Shares of the Company            $   204        $   545 

</TABLE>
The accompanying notes are an integral part of these statements.

<PAGE>

                  STORAGE TRUST REALTY  
      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                       (unaudited)

1.   Organization and Basis of Presentation

Organization 
Storage Trust Realty (the "Company") was formed as a Maryland 
real estate investment trust ("REIT") on July 12, 1994 to 
continue the self-storage business of Burnam Holding 
Companies Co. ("BHC") and certain of its affiliates 
(collectively, the "Predecessor Company") in owning, 
operating and managing self-storage stores.  The Company and 
its subsidiaries commenced operations effective with the 
completion of the Company's initial public offering ("IPO") 
of common shares of beneficial interest, par value $.01 per 
share ("Common Shares") on November 16, 1994.  As of 
September 30, 1998, the Company owned 222 self-storage stores 
in 16 states, and was a partner in two joint ventures that 
owned two operating self-storage stores.

Substantially all of the Company's assets and interests in 
self-storage stores are held by, and all of its operations 
are conducted through, Storage Trust Properties, L.P. (the 
"Operating Partnership").  The Company is the sole general 
partner of, and thereby controls the operations of, the 
Operating Partnership, holding a 93.18% ownership interest 
therein as of September 30, 1998.  The remaining ownership 
interests in the Operating Partnership (the "Units") are held 
by certain owners of the Predecessor Company, including BHC, 
and certain former owners of assets acquired by the Operating 
Partnership subsequent to the IPO.

Storage Realty Management Co. (the "Subsidiary Company") 
manages self-storage stores owned by unrelated third parties 
and conducts other business, such as the sale of locks and 
packaging supplies, the processing of customer property 
insurance and the rental of trucks, at various self-storage 
stores.  At September 30, 1998, 13 self-storage stores were 
managed by the Subsidiary Company, including one of the 
stores owned by a joint venture in which the Company has an 
ownership interest.  Through its ownership of the preferred 
stock of the Subsidiary Company, the Operating Partnership 
receives substantially all of the economic benefit of the 
businesses carried on by the Subsidiary Company.

<PAGE>

                  STORAGE TRUST REALTY
        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                     (unaudited)


1.   Organization and Basis of Presentation (continued)

Basis of Presentation:
The financial statements included herein have been prepared 
without audit pursuant to the rules and regulations of the 
Securities and Exchange Commission.  These financial 
statements reflect all adjustments which, in the opinion of 
management, are necessary to fairly present results for the 
interim periods and all such adjustments are of a normal 
recurring nature. 

Certain amounts from 1997 have been reclassified to conform 
to the presentation in 1998.

Certain information and footnote disclosures normally 
included in financial statements prepared in accordance with 
generally accepted accounting principles have been condensed 
or omitted pursuant to such rules and regulations, although 
the Company believes that the accompanying disclosures are 
adequate to make the information presented not misleading.  
The results for the interim periods are not necessarily 
indicative of the results for a full fiscal year.  These 
financial statements should be read in conjunction with the 
financial statements and notes thereto included in the 
Company's Annual Report on Form 10-K for the year ended 
December 31, 1997.

The accompanying consolidated financial statements include 
the accounts of the Company, the Operating Partnership, and 
the Subsidiary Company.   All significant intercompany 
transactions have been eliminated in the consolidated 
presentations.

<PAGE>


                        STORAGE TRUST REALTY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                            (unaudited)

2.   Summary of Significant Accounting Policies

Investment in Self-Storage Stores
Investment in self-storage stores is recorded at cost.  
Depreciation is computed using straight-line and accelerated 
methods over estimated useful lives ranging from 5 to 40 
years for buildings and improvements, and 3 to 10 years for 
furniture, fixtures and equipment.  Expenditures for 
significant renovations and improvements, which improve 
and/or extend the useful lives of fixed assets, are 
capitalized.  Maintenance and repairs are expensed as 
incurred.  

The purchase contracts on certain self-storage stores 
acquired included "earnout provisions" that call for 
additional payments to the sellers (in cash or Units) upon 
achievement of specified net operating income amounts.  These 
amounts are recorded when the terms of the purchase contract 
are met.

Accounting for Internal Acquisition Costs
On March 19, 1998, the Emerging Issues Task Force of the 
Financial Accounting Standards Board reached a consensus on 
Issue Number 97-11, "Accounting for Internal Costs Relating 
to Real Estate Property Acquisitions"("EITF 97-11").  EITF 97-
11 states that internal pre-acquisition costs (e.g. costs of 
an internal acquisition department) associated with the 
acquisition of a fully developed self-storage store should be 
expensed as incurred.  Internal costs incurred for non-
operating stores being developed or converted can be 
capitalized in specified circumstances.  Prior to the 
issuance of EITF 97-11, the Company capitalized certain 
costs, primarily payroll, directly related to the acquisition 
of operating self-storage stores.  The Company has adopted 
the accounting guidance from EITF 97-11.

<PAGE>

                          STORAGE TRUST REALTY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                             (unaudited)

2.   Summary of Significant Accounting Policies (continued)

Accounting for Internal Acquisition Costs (continued)
For the three months ended September 30, 1998 and 1997, the 
Company had total acquisition costs of $165,000 and $177,000, 
respectively, which include capitalized internal acquisition 
costs of $0 and $109,000, respectively.  For the nine months 
ended September 30, 1998 and 1997, the Company had total 
acquisition costs of $702,000 and $435,000, respectively, 
which include capitalized internal acquisition costs of 
$284,000 and $255,000, respectively.

Revenue Recognition
Rental income is recorded when due from tenants under 
operating lease agreements.

Federal Income Taxes
No provision has been made for Federal income taxes for the 
Company in the accompanying consolidated financial statements 
because the Company has operated and expects to continue 
operating in a manner to qualify as a REIT.  Under the 
applicable provisions of the Internal Revenue Code for a 
REIT, the Company is allowed to reduce taxable income by all 
or a portion of its distributions to shareholders so long as 
it distributes at least 95% of its taxable income to its 
shareholders and complies with certain other requirements.

Cash and Cash Equivalents
The Company considers all demand and money market accounts 
and repurchase agreements with a maturity of three months or 
less when purchased to be cash and cash equivalents.

<PAGE>

               STORAGE TRUST REALTY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                   (unaudited)

2.   Summary of Significant Accounting Policies (continued)

Notes Receivable
Interest income is recorded as earned under the terms of the 
notes.  Based on the substantial equity of the borrowers in 
these stores and the Company's option (at a fair market rate) 
to purchase these stores, the amounts funded are treated as 
notes receivable.

Hedging Transactions
The Company enters into hedging transactions (the sale of 
Treasury securities) with the objective of reducing its 
exposure to changes in interest rates associated with 
anticipated debt offerings.  The Company follows Statement of 
Financial Standards No. 80, "Accounting for Futures 
Contracts", which permits hedge accounting for anticipatory 
transactions meeting certain criteria.  Gains or losses, if 
any, on these transactions are deferred and amortized over 
the term of the related debt as an adjustment to interest 
expense.  Changes in the fair value of the hedging 
transaction are not recognized in the financial statements. 
In the event that the anticipatory transaction is no longer 
likely to occur, the Company would mark the derivative to 
market and would recognize any adjustment in the consolidated 
statement of operations.  The Company does not enter into 
transactions for trading or speculative purposes.

Deferred Financing Costs
Fees and related expenses incurred in connection with 
financing transactions are capitalized at cost and are 
amortized on a straight-line basis over the life of the 
related financing, which approximates the interest method.  
The unamortized balance is expensed upon termination or 
prepayment of the financing.

<PAGE>

                    STORAGE TRUST REALTY  
          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                       (unaudited)

2.   Summary of Significant Accounting Policies (continued)

Investments in Joint Ventures
Investments in joint ventures represent investments in self-
storage stores in which the Company does not have a 
controlling interest.  The Company exercises significant 
influence over the operating and financial policies of the 
joint ventures.

The equity method of accounting has been applied in the 
accompanying consolidated financial statements with respect 
to the Company's interests in joint ventures.

Net Income Per Common Share
In February 1997, the Financial Accounting Standards Board 
issued Statement No. 128, "Earnings per Share" ("FASB 128"), 
which the Company adopted on December 31, 1997.  FASB 128 
replaced the calculations of primary and fully diluted 
earnings per Common Share with basic and diluted earnings per 
Common Share.  Unlike primary earnings per Common Share, 
basic earnings per Common Share excludes any dilutive effects 
from options, warrants and convertible securities.  Diluted 
earnings per Common Share is very similar to the previous 
fully diluted earnings per Common Share.  The earnings per 
Common Share for the three and nine months ended September 
30, 1997 have been restated to conform to requirements of 
FASB 128.

Capitalized Interest
Interest is capitalized on accumulated expenditures relating 
to the development or conversion of qualifying self-storage 
stores.  During the three months and nine months ended 
September 30, 1998, the Company capitalized $149,000 and 
$315,000, respectively, of interest costs for qualifying 
self-storage stores.

<PAGE>

                  STORAGE TRUST REALTY  
       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                      (unaudited)

2.   Summary of Significant Accounting Policies (continued)

Minority Interests
The minority interests reflects the ownership interests of 
the limited partners of the Operating Partnership and the 
other shareholder of the Subsidiary Company.  Amounts 
allocated to these interests are reflected as an expense in 
the statement of operations and increase the Company's 
liability. Distributions to these limited partners and the 
other shareholder reduce this liability.  Minority interest 
of Unitholders in the Operating Partnership is calculated on 
the weighted-average Common Shares and Units outstanding for 
the period.

During the nine months ended September 30, 1998, 318,432 
Units (valued at $8,115,000) were issued in connection with 
the acquisition of self-storage stores and 11,151 Units 
(valued at $272,000) were issued to Burnam Family Co., L.P. 
in connection with the acquisition of an industrial property 
containing 13,000 net rentable square feet which is adjacent 
to the Company's Columbia, MO home office.

The Units in the Operating Partnership held by minority 
interests can be exchanged for Common Shares of the Company 
on a one-for-one basis or redeemed in cash at the Company's 
option.  During the nine months ended September 30, 1998 and 
1997, limited partners exchanged 10,566 and 27,829 Units, 
respectively, in the Operating Partnership for an equal 
number of Common Shares in the Company.

At September 30, 1998, minority interest ownership in the 
Operating Partnership was 1,176,701 Units or 6.82%.
     
Use of Estimates
     The preparation of financial statements in conformity with 
        generally accepted accounting principles requires management 
        to make estimates and assumptions that affect the amounts 
        reported in the financial statements and accompanying notes. 
        Actual results could differ from those estimates.

<PAGE>

                     STORAGE TRUST REALTY
          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                         (unaudited)

Earnings per Share

The following tables set forth the computation of basic and 
diluted earnings per share (amounts in thousands, except for 
share information):
<TABLE>
                                                   Three Months Ended
                                                      September 30,     
                                                      1998        1997      
<S>                                                   <C>         <C>
Numerator:
  Net income                                    $      930  $    5,029
  Effect of dilutive securities:
    Options on Common Shares                             -           - 
    Income allocated to Units of 
      the Operating Partnership
 owned by minority interests                            97         351
  Numerator for diluted earnings
    per Common Share-net income 
    after assumed conversions                   $    1,027  $    5,380

Denominator:
  Denominator for basic earnings
    per share - weighted-average
    Common Shares outstanding                   16,074,875   12,909,775
  Effect of dilutive securities:
    Options on Common Shares                        81,839      143,926 
    Weighted-average Units 
 outstanding in the 
      Operating Partnership
 owned by minority interests                     1,169,307      862,684   
  Dilutive potential Common Shares               1,251,146    1,006,610
  Denominator for diluted earnings
    per Common Shares-adjusted
    weighted-average Common Shares
    and assumed conversions                     17,326,021   13,916,385

Basic earnings per Common Share                      $0.06        $0.39  
Diluted earnings per Common Share                    $0.06        $0.39

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                          STORAGE TRUST REALTY
              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                              (unaudited)

Earnings per Share (continued)

                                                     Nine Months Ended
                                                       September 30,     

                                                                         1998       1997      
<S>                                                 <C>        <C>

Numerator:
  Net income                                    $   12,306  $  14,604
  Effect of dilutive securities:
    Options on Common Shares                             -          - 
    Income allocated to Units of 
      the Operating Partnership
 owned by minority interests                           885        998
  Numerator for diluted earnings
    per Common Share-net income 
    after assumed conversions                   $   13,191  $  15,602

Denominator:
  Denominator for basic earnings
    per share - weighted-average
    Common Shares outstanding                   15,815,810 12,901,434
  Effect of dilutive securities:
    Options on Common Shares                       103,136    134,232 
    Weighted-average Units 
 outstanding in the 
      Operating Partnership
 owned by minority interests                     1,108,167    861,178   
  Dilutive potential Common Shares               1,211,303    995,410
  Denominator for diluted earnings
    per Common Shares-adjusted
    weighted-average Common Shares
    and assumed conversions                     17,027,113  13,896,844

Basic earnings per Common Share                      $0.78       $1.13  
Diluted earnings per Common Share                    $0.77       $1.12

</TABLE>
<PAGE>

                   STORAGE TRUST REALTY  
       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                       (unaudited)

4.   Investment in Self-Storage Stores

     The following summarizes investment in self-storage stores 
        (amounts in thousands):
<TABLE>
<CAPTION>
  
                                                     Sept. 30,   December 31, 
                                                                                                        1998         1997    
                                                         (unaudited)
 <S>                                                   <C>          <C>

        Land                                                 $ 98,601     $ 77,620 
     Buildings                                         384,421      299,237
Developments and expansions
       in progress                                      10,061        3,107
     Furniture, fixtures and equipment                  35,310       25,002 
     Total cost                                        528,393      404,966
     Accumulated depreciation                          (28,116)     (18,392)
     Investment in self-storage
  stores, net                                         $500,277     $386,574 

</TABLE>
                                                       
5.   Mortgages and Notes Payable

Mortgages and notes payable consist of the following    
        (column amounts in thousands): 
<TABLE>
<CAPTION>
                                                       Sept. 30,   December 31, 
                                                                                                 1998         1997    
                                                            (unaudited)
<S>                                                      <C>          <C> 

Revolving line of credit:

Unsecured revolving line of credit with
an aggregate borrowing limit of $150
million, bearing interest at LIBOR plus
1.10% per annum at September 30, 1998 
(6.725%) and LIBOR plus 1.20% per 
annum at December 31, 1997, interest 
only payable monthly and a fee on the 
unused portion of .15% per annum.  
Expiration on January 25, 2001.                          $ 83,470     $    -    
       
During the second quarter of 1998, the interest rate on the 
revolving line of credit decreased from LIBOR plus 1.20% to 
LIBOR plus 1.10% based on the Company receiving ratings from 
two major rating agencies.
</TABLE>
<PAGE>

                    STORAGE TRUST REALTY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                        (unaudited)

5.   Mortgages and Notes Payable (continued)
<TABLE>
<CAPTION>
                                                      Sept. 30,   December 31, 
                                                                                             1998         1997    
                                                             (unaudited)
<S>                                                     <C>            <C>
Senior Notes:

Series A, bearing interest at a
fixed rate of 7.47% per annum,
interest payable semi-annually on 
January 15 and July 15,principal 
payments of $14,700,000 due on 
January 15, 2002 and 2003, with 
the remaining principal 
due January 15, 2004.                                 $ 44,000       $ 44,000

Series B, bearing interest at a
fixed rate of 7.66% per annum,
interest payable semi-annually on
January 15 and July 15, principal 
payments of $11,200,000 due on 
January 15, 2003, 2004, 2005 and 
2006, with the remaining 
principal due January 15, 2007.                         56,000         56,000 

Total                                                 $100,000       $100,000 

</TABLE>
In anticipation of the Senior Notes offering, the Company 
entered into a hedging transaction (the sale of Treasury 
securities) with the objective of reducing its exposure to 
changes in interest rates.  The hedge was closed upon 
receiving the commitments from the institutional investors in 
December 1996.  The Company realized net proceeds of $645,000 
from this transaction.  This hedging gain is being amortized 
against interest expense over the weighted-average term of 
the Senior Notes. The balance of the hedging gain, which is 
included in accrued liabilities, at September 30, 1998 and 
December 31, 1997 was $482,000 and $553,000, respectively.

<PAGE>

                STORAGE TRUST REALTY  
      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                    (unaudited)

5.   Mortgages and Notes Payable (continued)    

Proposed Securities Offering:

The Company and the Operating Partnership have filed a shelf 
registration statement on Form S-3 for the issuance of $150 
million in equity securities (either Common Shares or 
preferred shares) by the Company and/or debt securities by 
the Operating Partnership.  The shelf registration statement 
was not made effective in consideration of the strategic 
alternative evaluations. 

In anticipation of a potential debt offering, the Company entered 
into from March 13, 1998 through July 1, 1998 several hedging 
transactions (the sale of Treasury securities) with the objective 
of reducing its exposure to changes in interest rates.  Due to the 
exploration of strategic alternatives and the uncertainty created 
by overall market conditions, management determined that a debt 
offering in the near term was not probable and the Company 
discontinued accounting for these transactions as a hedge.  
Accordingly, a loss of $5,464,000 was recorded in the third 
quarter of 1998.  The hedging transactions were closed out on 
October 2, 1998.

<PAGE>

                     STORAGE TRUST REALTY  
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                          (unaudited)

5.   Mortgages and Notes Payable (continued)

Scheduled Maturities:

The scheduled maturities of mortgages and notes payable 
subsequent to September 30, 1998 are as follows (amounts in 
thousands):

<TABLE>
<CAPTION>
                  Revolving
Year Ending        Line of     Senior
December 31,        Credit      Notes     Total  
    <C>             <S>        <C>       <C>
 
           1998        $        -    $     -   $     -
           1999                 -          -         -
           2000                 -          -         -
           2001            83,470          -    83,470
           2002                 -     14,700    14,700
           2003                 -     25,900    25,900
           2004                 -     25,800    25,800
           2005                 -     11,200    11,200
           2006                 -     11,200    11,200
           2007                 -     11,200    11,200 
         Totals          $ 83,470   $100,000  $183,470 

</TABLE>
<PAGE>
             STORAGE TRUST REALTY
   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                 (unaudited)

6.      Sale of Common Shares

On April 24, 1998, the Company sold 613,811 Common Shares to 
an underwriter as part of the formation of an Unit Investment 
Trust.  The net proceeds of $14.2 million were used to repay 
indebtedness under the Company's revolving line of credit.

Notes Receivable

Included in Notes Receivable on July 24, 1998, the Company entered 
into an agreement to lend funds for the conversion of a warehouse into 
a self-storage store in Dallas, TX.  The total commitment under the 
note receivable is $5,575,000 and amounts outstanding will 
bear interest at 9% per annum.  The balance outstanding at 
September 30, 1998 was $3,243,000.  The note matures on 
January 24, 2002.  The Company has an option to purchase the 
store starting one month after the store receives its 
certificate of occupancy, with the purchase price based on 
the net operating income of the store and a capitalization 
rate of 10%.  The note is collateralized by a first mortgage 
on the store.

8.      Subsequent Events

On November 12, 1998, the Company declared a $.46 dividend 
on each Common Share for the fourth quarter of 1998.  The 
dividend is payable on January 15, 1999 to shareholders of 
record on December 15, 1998.

On November 12, 1998, the Company and Public Storage, Inc. 
entered into an Agreement and Plan of Merger (the "Merger 
Agreement").  Pursuant to the Merger Agreement, a subsidiary 
of Public Storage will be merged into the Company, and each 
common share of the Company will be converted into .86 shares 
of common stock of Public Storage.  The consummation of the 
transactions contemplated by the Merger Agreement is subject 
to certain conditions, including approval by the shareholders 
of the Company.

<PAGE>

                  STORAGE TRUST REALTY
      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                      (unaudited)

9.      Acquisitions and Pro Forma Information

During the first nine months of 1998, the Company has 
acquired 34 stores containing 1,820,000 net rentable square 
feet for consideration, with an aggregate value of 
$106,100,000.

The following presents the consolidated results of operations 
of the Company for the nine months ended September 30, 1998 
on a pro forma basis as if (a) these acquisitions during the 
first nine months of 1998 had been completed on January 1, 
1998 and (b) the sale of Common Shares in April 1998 occurred 
on January 1, 1998 (amounts in thousands, except for share 
information).

<TABLE>
<CAPTION>
<S>                                                      <C>
Revenues:
  Rental income                                         $ 59,169
  Product sales and other property income                  1,494
  Interest income                                            268
  Management income                                          151
  Equity in earnings of joint ventures                        65
    Total revenues                                        61,147
     Expenses:
  Property operations and product sales                   12,939
  Real estate taxes                                        5,976
  General and administrative                               3,094
  Strategic evaluation costs                                 212
  Hedging loss                                             5,464
  Interest                                                 9,481
  Depreciation                                            10,238
  Amortization                                               261
            Total expenses                                       47,665
Net income before minority interests                      13,482
Minority interests                                          (865)
Net income                                              $ 12,617

Net income per share-basic                              $   0.79
Net income per share-diluted                            $   0.78
Weighted-average number 
  of shares outstanding                               16,069,878

</TABLE>
<PAGE>

                  STORAGE TRUST REALTY
       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                      (unaudited)

Acquisitions and Pro Forma Information (continued)

The unaudited pro forma information is not necessarily 
        indicative of what actual results of operations of the 
        Company would have been assuming such transactions had been 
        completed as of January 1, 1998 nor does it purport to 
        represent the results of operations for future periods.

<PAGE>

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
                                        
The following discussions should be read in conjunction with the 
financial statements and notes thereto appearing elsewhere herein 
and in the Company's Annual Report on Form 10-K for the year ended 
December 31, 1997.

Storage Trust Realty (the "Company") was formed as a Maryland real 
estate investment trust ("REIT") on July 12, 1994 to continue the 
self-storage business of Burnam Holding Companies Co. ("BHC") and 
certain of its affiliates (collectively, the "Predecessor Company") 
in owning, operating and managing self-storage stores.  The 
Company and its subsidiaries commenced operations effective with 
the completion of the Company's initial public offering (the "IPO") 
of common shares of beneficial interest, par value $.01 per share 
("Common Shares") on November 16, 1994.  As of September 30, 1998, 
the Company owned 222 self-storage stores in 16 states and owned 
an interest in two joint ventures that owned two self-storage 
stores.

Substantially all of the Company's assets and interests in self- 
storage stores are held by, and all of its operations are 
conducted through, Storage Trust Properties, L.P. (the "Operating 
Partnership").  The Company is the sole general partner of, and 
thereby controls the operations of, the Operating Partnership, 
holding a 93.18% ownership interest therein as of September 30, 
1998. The remaining ownership interest in the Operating 
Partnership (the "Units") are held by certain owners of the 
Predecessor Company, including BHC, and certain former owners of 
assets acquired by the Operating Partnership subsequent to the 
IPO. 

Storage Realty Management Co. (the"Subsidiary Company") manages 
self-storage stores owned by unrelated third parties and conducts 
other business, such as the sale of locks, the processing of 
customer property insurance and the rental of trucks, at various 
facilities.  At September 30, 1998, 13 self-storage stores were 
managed by the Subsidiary Company, including one of the stores 
owned by a joint venture in which the Company has an ownership 
interest.  Through its ownership of the preferred stock of the 
Subsidiary Company, the Operating Partnership receives 
substantially all of the economic benefits of the business carried 
on by the Subsidiary Company.

<PAGE>

The Company derives its revenue principally from the Operating 
Partnership, which is generated primarily by (i) the Operating 
Partnership's rental of self-storage units at the Company's 
stores, (ii) revenues (for financial reporting purposes) of the 
Subsidiary Company, and (iii) earnings from joint ventures.  

The following discussion is based on the consolidated financial 
statements that include the accounts of the Company, the Operating 
Partnership and the Subsidiary Company.  Unless the context 
indicates otherwise, references to the Company are to Storage 
Trust Realty, Storage Trust Properties, L.P. and Storage Realty 
Management Co. on a consolidated basis.

The statements contained in this discussion that are not 
historical facts are forward-looking statements within the meaning 
of Section 27A of the Securities Act of 1933 and Section 21E of 
the Securities Exchange Act of 1934.  These forward-looking 
statements are based on current expectations, estimates and 
projections about the industry and markets in which the Company 
operates, management?s beliefs, and assumptions by management.  
Words such as "expects", "anticipates", "intends", "plans", 
"believes", "seeks", "estimates"; variations of such words and 
similar expressions are intended to identify such forward-looking 
statements.  These statements are not guarantees of future 
performance and involve certain risks, uncertainties and 
assumptions ("Future Factors") which are difficult to predict.  
Therefore, actual outcomes may differ materially for what is 
expressed or forecasted in such forward-looking statements.  
Future Factors include: (a) changes in general economic conditions 
in its target markets that could adversely affect demand for the 
Company's facilities, (b) changes in financial markets and 
interest rates that could adversely affect the Company's cost of 
capital and its ability to meet its financial needs and 
obligations, and those other factors discussed herein.  These 
are representations of Future Factors that could affect the 
outcome of the forward-looking statements.

<PAGE>

Proposed Merger Agreement

On November 12, 1998, the Company and Public Storage, Inc. entered 
into an Agreement and Plan of Merger (the "Merger Agreement").  
Pursuant to the Merger Agreement, a subsidiary of Public Storage 
will be merged into the Company, and each common share of the 
Company will be converted into .86 shares of common stock of 
Public Storage.  The consummation of the transactions contemplated 
by the Merger Agreement is subject to certain conditions, 
including approval by the shareholders of the Company.

Results of Operations: Three months ended September 30, 1998
compared to three months ended September 30, 1997

Rental income increased $5,077,000 (32.8%) in the third quarter of 
1998 compared to the third quarter of 1997 as a result of the net 
addition of four stores during the period from July 1, 1997 to 
December 31, 1997 and 34 stores during the nine months ended 
September 30, 1998 ($4,480,000) and increases in the average rent 
per square foot associated with those stores owned for all of the 
three months ended September 30, 1997 and 1998. Average annualized 
revenue per square foot for the portfolio increased 5.8% to $8.18 
in 1998 from $7.73 in 1997, while occupancy for the whole 
portfolio increased from 84.4% at September 30, 1997 to 86.9% at 
September 30, 1998.  

Product sales and other property income increased $221,000 (71.1%) 
primarily from increased sales of locks and packaging supplies and 
increased commissions from truck rentals, which are at many of the 
Company's stores.

Total revenues on a same store basis (175 stores) increased 
$598,000 or 3.9%. Revenues on a same store basis include rental 
income, administrative fees, late fees, product sales (locks and 
packaging supplies), commissions from truck rentals and other 
income.  On a same store basis, average annualized revenue per 
square foot increased 1.7% to $7.86 in 1998 from $7.73 in 1997, 
while occupancy increased from 84.4% at September 30, 1997 to 
87.0% at September 30, 1998.

<PAGE>

Results of Operations: Three months ended September 30, 1998
compared to three months ended September 30, 1997 (continued)

Property operating expenses and the cost of product sales 
increased $1,294,000 (39.4%) as a result of (a) acquisitions in 
1997 and 1998 ($915,000), (b) increases at those stores owned for 
all of the three months ended September 30, 1997 and 1998, ? 
additional costs due to more regional managers ($138,000) and (d) 
the expenses of the recently implemented telephone call center 
($122,000).  Direct property operating expenses increased on a 
same store basis by $119,000 or 4.0%, reflecting (a) additional 
payroll costs at the stores, due to higher base pay and incentive 
compensation and (b) higher costs due to increased product sales 
and commissions on truck rentals.  These increases were partially 
offset by (a) lower insurance costs, (b) reduced advertising 
expenses and lower maintenance costs.

Real estate taxes increased $494,000 (31.1%) as a result of 
acquisitions in 1997 and 1998 ($360,000) and increases at those 
stores owned for all of the three months ended September 30, 1997 
and 1998. Real estate taxes on a same store basis increased by 
$134,000 or 8.9%, reflecting higher tax assessments and higher tax 
rates on those stores, primarily on stores acquired during the 
fourth quarter of 1996 and the first quarter of 1997.

General and administrative expenses increased $287,000 (32.7%).  
Accounting for internal acquisition costs in accordance with the 
consensus reached by the Emerging Issues Task Force of the 
Financial Accounting Standards Board on Issue Number 97-11, 
"Accounting for Internal Costs Relating to Real Estate Property 
Acquisitions"("EITF 97-11"), the addition of personnel at the 
Company's headquarters in 1997, the costs of district managers, 
increased travel and higher professional fees accounted for the 
majority of this increase.  For the three months ended September 
30, 1998 and 1997, the Company recognized expenses related to its 
internal acquisitions department of $165,000 and $68,000, 
respectively, and capitalized internal acquisition costs of $0 and 
$109,000, respectively.  

The Company has incurred $212,000 of expenses in its evaluation of 
strategic alternatives.  See Note 8 to Consolidated Financial 
Statements for additional information.

<PAGE>

Results of Operations: Three months ended September 30, 1998
compared to three months ended September 30, 1997 (continued)

In anticipation of a potential debt offering, the Company entered 
into from March 13, 1998 through July 1, 1998 several hedging 
transactions (the sale of Treasury securities) with the objective 
of reducing its exposure to changes in interest rates.  Due to the 
exploration of strategic alternatives and the uncertainty created 
by overall market conditions, management determined that a debt 
offering in the near term was not probable and the Company 
discontinued accounting for these transactions as a hedge.  
Accordingly, a loss of $5,464,000 was recorded in the third 
quarter of 1998.  The hedging transactions were closed out on 
October 2, 1998.

Interest expense increased $988,000 (45.0%) due to (a) the 
increase in borrowings under the Company's revolving line of 
credit and (b) the effect of the issuance of the Senior Notes in 
1997.  These increases were offset by decrease in the average 
interest rate on the revolving line of credit.

Depreciation increased $1,006,000 (40.4%) due to the increased 
investment in storage stores.

Amortization decreased $74,000 (46.0%) due to lower costs of the 
new revolving line credit entered into during January 1998.

Net income decreased $4,099,000 (81.5%) as a result of the factors 
noted above.  Basic net income per share and diluted net income 
per share decreased $.33 (84.6%) due to the lower net income and 
the effect of the offerings of Common Shares in October 1997 and 
April 1998. 

<PAGE>

Results of Operations: Nine months ended September 30, 1998
compared to nine months ended September 30, 1997

Rental income increased $13,938,000 (32.7%) in the first nine 
months of 1998 compared to the first nine months of 1997 as a 
result of the net addition of 22 stores during the year ended 
December 31, 1997 and 34 stores during the nine months ended 
September 30, 1998 ($12,939,000) and increases in the average rent 
per square foot associated with those stores owned for all of the 
nine months ended September 30, 1997 and 1998. Average annualized 
revenue per square foot for the portfolio increased 10.2% to $7.81 
in 1998 from $7.09 in 1997.

Product sales and other property income increased $657,000 (85.8%) 
primarily from increased sales of locks and packaging supplies and 
increased commissions from truck rentals, which are at many of the 
Company's stores.

Total revenues on a same store basis (149 stores) increased 
$1,320,000 or 3.6%. Revenues on a same store basis include rental 
income, administrative fees, late fees, product sales (locks and 
packaging supplies), commissions from truck rentals and other 
income.  On a same store basis, average annualized revenue per 
square foot increased 3.1% to $7.40 in 1998 from $7.18 in 1997, 
while occupancy increased from 84.3% at September 30, 1997 to 
86.5% at September 30, 1998.

Property operating expenses and the cost of product sales 
increased $3,269,000 (36.2%) as a result of (a) acquisitions in 
1997 and 1998 ($2,725,000), (b) increases at those stores owned 
for all of the nine months ended September 30, 1997 and 1998, ? 
additional costs due to more regional managers ($408,000) and (d) 
the expenses of the recently implemented telephone call center 
($219,000).  Direct property operating expenses decreased on a 
same store basis by $83,000 or 1.2%, reflecting (a) lower 
insurance costs, (b) reduced advertising expenses and lower 
maintenance costs.  These decreases were partially offset by (a) 
additional payroll costs at the stores, due to higher base pay and 
incentive compensation and (b) higher costs due to increased 
product sales and commissions on truck rentals.

<PAGE>

Results of Operations: Nine months ended September 30, 1998
compared to nine months ended September 30, 1997 (continued)

Real estate taxes increased $1,762,000 (44.1%) as a result of 
acquisitions in 1997 and 1998 ($1,507,000) and increases at those 
stores owned for all of the nine months ended September 30, 1997 
and 1998.  Real estate taxes on a same store basis increased by 
$255,000 or 8.1%, reflecting higher tax assessments and higher tax 
rates on those stores, primarily on stores acquired during the 
fourth quarter of 1996 and the first quarter of 1997.

General and administrative expenses increased $792,000 (34.4%). 
Accounting for internal acquisition costs in accordance with EITF 
97-11, the addition of personnel at the Company's headquarters in 
1997, the costs of district managers, increased travel and higher 
professional fees accounted for the majority of this increase.  
For the nine months ended September 30, 1998 and 1997, the Company 
recognized expenses related to its internal acquisitions 
department of $418,000 and $180,000, respectively, and capitalized 
internal acquisition costs of $284,000 and $255,000, respectively. 
 
The Company has incurred $212,000 of expenses in its evaluation of 
strategic alternatives.  See Note 8 to Consolidated Financial 
Statements for additional information.

In anticipation of a potential debt offering, the Company entered 
into from March 13, 1998 through July 1, 1998 several hedging 
transactions (the sale of Treasury securities) with the objective 
of reducing its exposure to changes in interest rates.  Due to the 
exploration of strategic alternatives and the uncertainty created 
by overall market conditions, management determined that a debt 
offering in the near term was not probable and the Company 
discontinued accounting for these transactions as a hedge.  
Accordingly, a loss of $5,464,000 was recorded in the third 
quarter of 1998.  The hedging transactions were closed out on 
October 2, 1998.

Interest expense increased $2,934,000 (52.4%) due to (a) the 
increase in borrowings under the Company's revolving line of 
credit and (b) the effect of the issuance of the Senior Notes in 
1997.

<PAGE>

Results of Operations: Nine months ended September 30, 1998
compared to nine months ended September 30, 1997 (continued)

Depreciation increased $2,912,000 (42.7%) due to the increased 
investment in storage stores.

Amortization decreased $206,000 (44.1%) due to lower costs of the 
new revolving line credit entered into during January 1998.

Net income decreased $2,298,000 (15.7%) as a result of the factors 
noted above.  Basic net income per share decreased $.35 (31.0%) 
and diluted net income per share decreased $.35 (31.3%) due to the 
lower net income and the effect of the offerings of Common Shares 
in October 1997 and April 1998. 

<PAGE>

Funds from Operations

The Company believes that Funds from Operations ("FFO") is helpful 
to investors as a measure of the performance of an equity REIT 
because, along with cash flows from operating activities, 
financing activities and investing activities, it provides 
investors with an understanding of the ability of the Company to 
incur and service debt and to make capital expenditures.  FFO is 
defined by NAREIT as income (loss) before minority interest of the 
holders of Units (computed in accordance with GAAP), excluding 
gains or losses from debt restructuring and sales of property, 
provision for losses, and real estate related depreciation and 
amortization (excluding amortization of financing costs).  FFO is 
not to be considered as an alternative to net income or any other 
GAAP measurement as a measure of operating performance and is not 
necessarily indicative of cash available to fund all cash needs. 

Funds from Operations is determined as follows (amounts in 
thousands, except for share and unit amounts):
<TABLE>
                                                                           1998        1997     
<S>                                            <C>         <C>
Three Months Ended September 30,:
  Net income before minority interest      $ 1,027     $ 5,387
  Depreciation of revenue-producing
    assets                                   3,468       2,462
  Strategic evaluation costs                   212           - 
  Hedging loss                               5,464           -
  Company?s share of joint ventures?
    depreciation                                 4           4
  Funds from Operations                    $10,175     $ 7,853
  Weighted-average number of Common
    Shares and Units:
 Basic                                  17,244,182  13,772,459
 Diluted                                17,326,021  13,916,385                
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

Funds from Operations (continued)
                                              1998        1997     
 <S>                                           <C>         <C>
Nine Months Ended September 30,:
  Net income before minority interest      $13,198     $15,615
  Depreciation of revenue-producing
    assets                                   9,649       6,747
  Strategic evaluation costs                   212           - 
  Hedging loss                               5,464           -
  Company?s share of joint ventures?
    depreciation                                12          12
  Funds from Operations                    $28,535     $22,374
  Weighted-average number of Common
    Shares and Units:
 Basic                                  16,923,977  13,762,612
 Diluted                                17,027,113  13,896,844        
</TABLE>

The Company includes Units in these amounts as Units can be 
exchanged for Common Shares of the Company on a one-for-one basis 
or redeemed in cash at the Company's option.

FFO increased $2,322,000 (29.6%) for the three months ended 
September 30, 1998 over the three months ended September 30, 1997 
due (a) to the acquisition of stores in 1998 and 1997 and the 
effect of the issuance of 4,140,000 Common Shares in October and 
November 1997 and (b) the increased results from those stores 
owned for all of the three months ended September 30, 1998 and 
1997.  Net operating income, defined as revenues less direct 
property operating expenses and real estate taxes, increased on a 
same store basis by $345,000 or 3.2%.  These increases were 
partially offset by increases in general and administrative 
expenses and interest expense, as previously discussed.

FFO increased $6,161,000 (27.5%) for the nine months ended 
September 30, 1998 over the nine months ended September 30, 1997 
due (a) to the acquisition of stores in 1998 and 1997 and the 
effect of the issuance of 4,140,000 Common Shares in October and 
November 1997 and (b) the increased results from those stores 
owned for all of the nine months ended September 30, 1998 and 
1997. Net operating income, defined as revenues less direct 
property operating expenses and real estate taxes, increased on a 
same store basis by $848,000 or 3.3%.  These increases were 
partially offset by increases in general and administrative 
expenses and interest expense, as previously discussed.

Dispositions and Exchanges

Management constantly reviews the stores comprising the Company's 
portfolio and may dispose of any of the stores in the future.  Any 
decision to dispose of a particular store would be based on a 
number of factors, including, but not limited to, (a) the 
strategic fit with the rest of the Company's portfolio, (b) the 
potential to continue to increase cash flow and value in the 
particular market, at the current market value and (d) alternate 
uses of capital.

The Company has entered into a contract for the disposition of a 
store in Atlanta, GA.  Management expects to complete the 
disposition during the first quarter of 1999.  The disposition 
will be closed through an intermediary to allow the Company to 
complete a three-party like-kind exchange.

The Company may dispose of stores for cash or other consideration 
or may exchange them with other self-storage operators, including 
other publicly-held self-storage REITs.

<PAGE>

Liquidity and Capital Resources

Mortgages and Notes Payable

The Company's formal policy on the incurrence of debt is to limit 
Company debt (including the indebtedness of joint ventures) to 50% 
of total market capitalization, which is defined as the market 
value of the issued and outstanding Common Shares (including Units 
exchangeable for Common Shares) plus Company debt.  At September 
30, 1998 and December 31, 1997, the Company's debt-to-total market 
capitalization was 32.0% and 19.8%, respectively.  The Company 
does not believe that this limit will restrict its operations or 
have a material adverse effect on its financial condition or 
results of operations, although there can be no assurance that it 
will not do so in the future.  The Board of Trustees can change 
the policy at any time in light of then current economic 
conditions and other relevant factors.

The Company had outstanding borrowings of $183,470,000 at 
September 30, 1998.  This indebtedness consists of (a) 
$100,000,000 of Senior Notes and (b) $83,470,000 on the Company?s 
revolving line of credit.  The revolving line of credit may be 
used to fund the acquisition, development or conversion of 
additional stores. The revolving line of credit expires in January 
2001 and bears interest at a floating rate of LIBOR plus 1.10% 
(6.725% at September 30, 1998). During the second quarter of 1998, 
the interest rate on the revolving line of credit decreased from 
LIBOR plus 1.20% to LIBOR plus 1.10% based on the Company 
receiving ratings from two major rating agencies.

At September 30, 1998, the Company has joint and several liability 
but does not guarantee the $5,141,000 indebtedness of a joint 
venture in New Orleans, LA in which it has a 15% interest.  On 
June 15, 1998, the joint venture obtained a new mortgage loan of 
$5,150,000 to replace the former mortgage loan, which had a 
balance of $3,879,000.  The additional proceeds from the new 
mortgage loan are to be used to complete improvements at the 
store.

In 1996, the Company acquired a 25% interest in a joint venture 
that is operating a self-storage store in Kansas City, MO that was 
constructed in 1997.  The Company has guaranteed 25% of the joint 
venture's construction loan, which is for a total of $2,046,000. 
The balance outstanding under this construction loan as of 
September 30, 1998 was $1,954,000.

<PAGE>

Liquidity and Capital Resources (continued)

Proposed Securities Offering

The Company and the Operating Partnership have filed a shelf 
registration statement on Form S-3 for the issuance of $150 
million in equity securities (either Common Shares or preferred 
shares) by the Company and/or debt securities by the Operating 
Partnership.  The shelf registration statement was not made 
effective in consideration of the strategic alternative 
evaluation.

In anticipation of a potential debt offering, the Operating 
Partnership sought a rating from Standard & Poor's ("S&P") and 
Moody's Investors Service ("Moody's").  During the second quarter of 
1998, the Operating Partnership received a rating of "BBB-" from 
S&P and a rating of "Baa3" from Moody's.

In anticipation of a potential debt offering, the Company has 
entered into several hedging transactions (the sale of Treasury 
securities) with the objective of reducing its exposure to changes 
in interest rates.  Due to the exploration of strategic 
alternatives and the uncertainty created by overall market 
conditions, management determined that a debt offering in the near 
term was not probable and the Company discontinued accounting for 
these transactions as a hedge.  Accordingly, a loss of $5,464,000 
was recorded in the third quarter of 1998.  The hedging 
transactions were closed out on October 2, 1998.

Liquidity

The expansion of existing stores, the acquisition, conversion and 
development of additional self-storage stores and the repayment of 
indebtedness, including the Senior Notes and any amounts 
outstanding on the revolving line of credit, represent the 
Company's principal liquidity requirements.

The Company expects to meet its short-term liquidity requirements 
by (a) net cash provided by operating activities, (b) any portion 
of net cash flow not distributed currently and at borrowings under 
the revolving line of credit.

The Company believes that its future net cash flow will be 
adequate to meet operating requirements and provide for payment of 
distributions by the Company in accordance with tax requirements 
relating to a REIT in the short-term and in the long-term.  

<PAGE>
 
Liquidity (continued)

In order to maintain its status as a REIT, the Company will be 
required to make distributions to its shareholders of at least 95% 
of its taxable income, which is expected to consist primarily of 
its share of the income of the Operating Partnership.  Differences 
in timing between the recognition of taxable income and receipt of 
cash which would be available for distribution could require the 
Company to borrow to meet the 95% distribution requirement, 
although the Company does not currently anticipate the need to 
borrow as a result of any such differences in timing.

Capital Expenditures

During the three months ended September 30, 1998, the Company 
spent: (a) $1,321,000 on new facilities under development or 
conversion, (b) $719,000 for expansions of existing stores and 
climate-controlled conversions, at $99,000 for equipment used by 
home office and regional management and (d) $1,342,000 on other 
capital expenditures.  During the nine months ended September 30, 
1998, the Company spent: (a) $5,917,000 on new facilities under 
development or conversion, (b) $2,568,000 for expansions of 
existing stores and climate-controlled conversions, at $357,000 for 
equipment used by home office and regional management and (d) 
$4,212,000 on other capital expenditures.

For the remaining three months of 1998, the Company expects to 
spend (a) $1,725,000 on new facilities currently under development 
or conversion, (b) $2,128,000 for expansions and climate-
controlled conversions and at $984,000 on other capital 
expenditures.  The Company believes that it can fund any necessary 
capital expenditures through its operations or from the revolving 
line of credit.

Inflation 

Substantially all of the leases at the stores have one-month 
terms, which thereby provide the Company with the opportunity to 
achieve increases in rental income as each lease matures.  Such 
types of leases generally minimize the risk of inflation to the 
Company.

<PAGE>

Seasonality

The Company's revenues are expected to be higher during the latter 
part of the year because its stores experience greater occupancy 
from May through September (due to higher levels of residential 
moves during that period) and increases in rental rates, which 
occur throughout the year.  The Company does not expect 
seasonality to materially affect distributions to shareholders.  
The Company believes that its geographic diversity, tenant mix, 
and rental and expense structures provide adequate protection 
against significant fluctuations in cash flow and net income due 
to seasonality.   

New Accounting Pronouncements

In June 1997, the Financial Accounting Standards Board issued 
Statement No. 130, "Reporting Comprehensive Income" ("FASB 130"), 
which is effective for financial statements for periods beginning 
after December 15, 1997.  At that time, the Company will be 
required to report comprehensive income and its components in its 
financial statements. The Company will implement FASB 130 during 
the year ended December 31, 1998. The impact of FASB 130 on the 
Company's financial statements is not expected to be material.

In June 1997, the Financial Accounting Standards Board issued 
Statement No. 131, "Disclosures about Segments of an Enterprise 
and Related Information" ("FASB 131"), which is effective for 
financial statements for periods beginning after December 15, 
1997.  At the time of implementation, the Company will be required 
to report additional information (both financial and descriptive) 
about operating segments in annual and interim reports.  As FASB 
131 is not required to be applied to interim financial statements 
in the initial year of adoption, the Company is not required to 
disclose segment information in accordance with FASB 131 until the 
1998 Annual Report, at which time it will restate prior years' 
segment disclosures to conform to the FASB 131 segment 
presentations.  In the Company's first quarter 1999 report and in 
subsequent quarters, the Company will present the interim 
disclosures required by FASB 131 for both 1999 and 1998.

New Accounting Pronouncements (continued)

In February 1998, the American Institute of Certified Public 
Accountants' Accounting Standards Executive Committee issued 
Statement of Position 98-1, "Accounting for the Costs of Computer 
Software Developed or Obtained for Internal Use"("SOP 98-1"), which 
is effective for financial statements for periods beginning after 
December 15, 1998.  SOP 98-1 sets guidelines for the 
capitalization of costs related to internal-use software.  The 
Company has adopted SOP 98-1 during the year ending December 31, 
1998.  The adoption of SOP 98-1 is not expected to have a material 
impact on the financial statements of the Company.

On March 19, 1998, the Emerging Issues Task Force of the Financial 
Accounting Standards Board reached a consensus on Issue Number 97-
11, "Accounting for Internal Costs Relating to Real Estate 
Property Acquisitions" ("EITF 97-11"). Internal pre-acquisition 
costs (e.g. costs of an internal acquisitions departments) 
associated with the acquisition of a fully developed self-storage 
store should be expensed as incurred.  Internal costs incurred for 
non-operating stores being developed or converted can be 
capitalized in specified circumstances.  The Company has adopted 
the accounting guidance for acquisitions of operating self-storage 
stores.  For the three months ended September 30, 1998 and 1997, 
the Company recognized expenses from its internal acquisition 
department of $165,000 and $68,000, respectively, and capitalized 
internal acquisition costs of $0 and $109,000, respectively.  For 
the nine months ended September 30, 1998 and 1997, the Company 
recognized expenses from its internal acquisition department of 
$418,000 and $180,000, respectively, and capitalized internal 
acquisition costs of $284,000 and $255,000, respectively.

<PAGE>
New Accounting Pronouncements (continued)

In April 1998, the American Institute of Certified Public 
Accountants' Accounting Standards Executive Committee issued 
Statement of Position 98-5, "Accounting for the Costs of Start-Up 
Activities"("SOP 98-5"), which is effective for financial 
statements for periods beginning after December 15, 1998.  SOP 98-
5 requires that all costs of start-up activities be expensed as 
incurred.  The Company will adopt SOP 98-5 during the year ending 
December 31, 1999.  The adoption of SOP 98-5 is not expected to 
have a material impact on the financial statements of the Company.

In June 1998, the Financial Accounting Standards Board issued 
Statement No. 133, "Accounting for Derivative Instruments and 
Hedging Activities" ("FASB 133"), which is effective for fiscal 
years beginning after June 15, 1999.   FASB 133 establishes 
accounting and financial reporting standards for derivative 
instruments, including certain derivative instruments embedded in 
other contracts (collectively, referred to as "derivatives"), and 
for hedging activities.  FASB 133 requires that the Company 
recognize all derivatives as either assets or liabilities in the 
balance sheet and measure those instruments at fair value.  The 
accounting for changes in fair value of the derivative depends on 
the intended use of the derivative and the resulting designation. 
The Company will adopt FASB 133 during the year ending December 
31, 1999.  The adoption of FASB 133 is not expected to have a 
material impact on the financial statements of the Company.

<PAGE>

Information Systems and Year 2000 Compliance

Overview:

The Company uses individual computers at each store for the 
management of the facilities and a network of computers at the 
home office for centralized management and accounting functions. 
The company's management information systems ("MIS") department is 
responsible for the maintenance of the Company's computer hardware 
and software.

Phase I-Assessing the Company's Readiness and Phase II-Determining 
Cost of Achieving Readiness:

The Company's accounting system is not fully Year 2000 compliant. 
The Company has received a software update from the third-party 
vendor (at no cost to the Company) and will install the updated 
software during November 1998.

The Company's property management software is not fully Year 2000 
compliant.  The Company is experiencing problems related to the 
non-compliance, but they are minor and are overcome by the use of 
a 4-digit date (which is accepted by the software) instead of 
using a 2-digit date.  The Company expects to receive a software 
update from the third-party vendor (at no cost to the Company) in 
December 1999 and will install the updated software at each store 
during the first quarter of 1999.

The software that controls the operation of the gates at the 
Company's stores is Year 2000 compliant.

The inventory of hardware is currently in progress and is expected 
to be completed during the fourth quarter of 1998.

The Company has plans for the replacement of non-compliant 
hardware in place.

The Company uses a local bank for its normal banking services.  
Based on discussions with local bank, they are working on making 
the necessary modifications to their systems to be Year 2000 
compliant by the end of 1998.

The Company uses a national truck rental company for the 
scheduling of equipment to be rented at the Company's stores and 
for the purchasing of boxes and packaging supplies.  Based on 
discussion with the national truck rental company, their systems 
are represented to be Year 2000 compliant.

The Company uses a local company for the processing of payroll and 
other company benefits.  Based on discussion with the local 
company, they are working on making the necessary modifications to 
their systems to be Year 2000 compliant by the end of 1998.

<PAGE>

Phase III-Assessing Risks to the Company of Non-Compliance:

Based on these factors, management believes that the Company will 
not incur significant costs in order that all computer systems to 
be Year 2000 compliant and that the impact of any systems that are 
not Year 2000 compliant will not have a material adverse effect on 
the Company's financial condition and results of operations.  Such 
beliefs are based on our analysis of the risks to the Company 
related to the items discussed above and discussions with our 
third-party vendors.  However, there are no guarantees that the 
work to be performed by third-party vendors or the local bank will 
be completed on a timely basis and would not have an adverse 
effect on the Company's systems.

The failure of the property management software at an individual 
store will have a minimal effect on the Company's financial 
condition.  While certain of the reports in the property 
management software are not Year 2000 compliant, it can be 
remediated by the action of the MIS department at the home office.

The property management software will operate when 4-digit dates 
are entered.  The individual stores can be operated without the 
computers and the property management software for a short period 
of time.

The failure of the Company's accounting system software is not 
expected as the Company has received the software update.

The loss of utilities (primarily electricity) to the Company's 
stores could lead to the loss of revenues for those customers who 
rent climate-controlled space.

Phase IV - Contingency Plans

The Company has "workaround" plans for the property management 
system with respect to the reports that are not Year 2000 
compliant through use of 4-digit dates.

The contingency plan if the software that controls the gate at the 
Company's stores fails, is to reset the time in the software as 
though it was the year 1972.

<PAGE>

Part II
                                        
                       OTHER INFORMATION

Item 1.   Legal Proceedings

          None

Item 2.   Changes in Securities

          None

Item 3.   Defaults Upon Senior Securities

          None

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

          None

Item 5.   Other Information

          None
    
<PAGE>

Item 6. Exhibits and Reports on Form 8-K

(a.)    Exhibits   

27      Financial Data Schedules for the three months and 
        nine months ended September 30, 1998. 

(b.)    Reports on Form 8-K

A report on Form 8-K dated June 15, 1998, as amended by 
a report on Form 8-K/A, dated August 14, 1998, was filed 
to report that Storage Trust Properties, L.P. completed 
the acquisition of 16 self-storage stores during the 
period from March 30, 1998 to June 30, 1998.  Historical 
Summaries of Combined Gross Revenue and Direct Operating 
Expenses for the year ended December 31, 1997 were filed 
with the Form 8-K/A for 15 of the 16 stores acquired.  
In addition, an unaudited Pro Forma Combined Statement 
of Operations for the year ended December 31, 1997 and 
an unaudited Pro Forma Combined Statement of Operations 
for the six months ended June 30, 1998 were presented.

A report on Form 8-K dated November 12, 1998 was filed 
to report that the Company and Public Storage, Inc. 
entered into an Agreement and Plan of Merger.  See Note 
8 to the Consolidated Financial Statements for 
additional information.

<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 
1934, the Registrant has duly caused this report to be signed on 
its behalf by the undersigned thereunto duly authorized.

                   STORAGE TRUST REALTY


  November 13, 1998                     /s/ Michael G. Burnam  
      (Date)                              Michael G. Burnam
                                           Chief Executive Officer

  November 13, 1998                     /s/ Stephen M. Dulle   
      (Date)                              Stephen M. Dulle
                                           Chief Financial Officer

<PAGE>