<PAGE>

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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-KSB

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

                  FOR THE FISCAL YEAR ENDED DECEMBER 31, 2001

                                       OR

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

                          COMMISSION FILE NO. 0-30502

                            LIBERTY SELF-STOR, INC.
       (EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)

<Table>
<S>                                                <C>

                  MARYLAND                                          94-6542723
      (STATE OR OTHER JURISDICTION OF                  (I.R.S. EMPLOYER IDENTIFICATION NO.)
       INCORPORATION OR ORGANIZATION)

      8500 STATION STREET, SUITE 100,
                MENTOR, OHIO                                          44060
  (ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)                           (ZIP CODE)
</Table>

         ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE: (440) 974-3770

Securities registered pursuant to Section 12(b) of the Act:  NONE

Securities registered pursuant to Section 12(g) of the Act:  SHARES OF COMMON
STOCK

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act during the past 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 [ ]  No [X]

Check if there is no disclosure of delinquent filers in response to Item 405 of
regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of Issuer's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB.  [ ]

Issuer's revenues for its most recent fiscal year were $4,804,017

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates computed by reference to the price at which the common equity
was sold, or the average bid and asked price of such common equity, as of a
specified date within the past 60 days. $400,747

The Issuer had 3,082,668 shares of common stock outstanding on March 8, 2002.

Transitional Small Business Disclosure Format.  Yes [ ]  No [X]

Documents incorporated by reference: Portions of the 2002 Proxy Statement of
Liberty Self-Stor, Inc. are incorporated by reference into Part III of this
form.

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--------------------------------------------------------------------------------
<PAGE>

                            LIBERTY SELF-STOR, INC.

                             INDEX TO ANNUAL REPORT
                                 ON FORM 10-KSB

<Table>
<Caption>
                                                                         PAGE
                                                                         ----
<S>       <C>                                                            <C>
PART I

Item 1:   Business....................................................     3
Item 2:   Description of Property.....................................     4
Item 3:   Legal Proceedings...........................................    12
Item 4:   Submission of Matters to a Vote of Security Holders.........    12

PART II

Item 5:   Market for the Registrant's Common Equity and Related
          Matters.....................................................    13
Item 6:   Management's Discussion and Analysis of Plan of Operation...    14
Item 7:   Financial Statements........................................    19
Item 8:   Changes in and Disagreements with Accountants on Accounting
          and Financial Disclosure....................................    19

PART III

Item 9:   Directors and Executive Officers............................    20
Item 10:  Executive Compensation......................................    20
Item 11:  Security Ownership of Certain Beneficial Owners and
          Management..................................................    20
Item 12:  Certain Relationships and Related Transactions..............    20
Item 13:  Exhibits, List, and Reports on Form 8-K.....................    20
</Table>
<PAGE>

                                     PART I

ITEM 1.  BUSINESS.

     History.  On December 29, 1999, Liberty Self-Stor, Inc., a Maryland
corporation, succeeded to the business of Meridian Point Realty Trust '83.
Meridian was a business trust organized under the laws of the State of
California pursuant to a declaration of trust, dated June 24, 1982, and
commenced operation on April 12, 1983. Meridian was originally known as "Sierra
Real Estate Equity Trust '83." On October 11, 1991, the company changed its name
to "Meridian Point Realty Trust '83."

     At a special meeting of Meridian's shareholders in lieu of an annual
meeting of shareholders on December 28, 1999, Meridian's shareholders approved,
among other matters, the reincorporation in which Meridian was merged with and
into Liberty with Liberty as the surviving entity. Also, at the special meeting,
Meridian's shareholders approved the acquisition of Liberty Self-Stor, Ltd., an
Ohio limited liability company owned by Richard M. Osborne, Liberty's Chairman
of the Board and Chief Executive Officer, which then owned 15 self-storage
facilities. The acquisition was accomplished through the reorganization of the
company as an umbrella partnership real estate investment trust, or UPREIT. In
an UPREIT structure, the publicly-held REIT is the general partner of an
operating partnership which owns the properties of the REIT.

     Upon the reorganization, Liberty became the general partner owning
approximately 1% of the operating partnership and a limited partner owning
approximately 28.9%, and Mr. Osborne, Thomas J. Smith, President and Chief
Operating Officer of Liberty, and Retirement Management Company, a company
controlled by Mr. Osborne, are the limited partners, owning approximately 70.1%
of the operating partnership. The limited partnership interests of the operating
partnership are divided into two classes: Class A and Class B. Mr. Osborne, Mr.
Smith and Retirement Management Company received Class A limited partnership
interests and Liberty received Class B limited partnership interests. The Class
A limited partnership interests are redeemable for cash or, at the election of
Liberty, convertible into common stock on a one-for-one basis. The Class B
limited partnership interests are identical to the Class A interests in all
material respects except that the Class B interests are not redeemable or
convertible.

     Unless the context indicates otherwise, Liberty as used herein refers to
Liberty Self-Stor, Inc., as successor-in-interest to Meridian, the operating
partnership and the self-storage company.

     Management.  The management of the self-storage company continued in that
capacity as the management of Liberty. The operating partnership is the entity
through which Liberty conducts substantially all of its business and owns
substantially all of its assets, either directly or through subsidiaries.
Liberty's board of directors manages the affairs of the operating partnership by
directing the affairs of Liberty as general partner of the operating
partnership. Liberty's general partnership interests and Class B limited
partnership interests entitle it to share in cash distributions from, and in the
profits and losses of, the operating partnership in proportion to its percentage
interest therein and entitle Liberty to vote on all matters requiring a vote of
the limited partners. Liberty plans to make all future purchases of self-storage
facilities through the operating partnership or other partnerships or entities
that may be formed as subsidiaries of Liberty.

     Business.  Liberty is a self-managed real estate investment trust which
manages, acquires, develops, expands and operates self-storage facilities. As of
December 31, 2001, Liberty owned and operated 19 self-storage facilities
consisting of approximately 924,000 rentable square feet, situated in two
states, Ohio and New York. As of December 31, 2001, the facilities had an
average occupancy of 69.91% and an average annual rental rate per square foot of
$5.40.

     Liberty seeks to increase cash flow and enhance shareholder value through
efficient management and selective acquisitions of new self-storage facilities.
In addition, Liberty intends to manage its facilities aggressively by increasing
rents and occupancy levels, strictly controlling costs, maximizing collections,
strategically expanding and improving existing facilities and developing new
facilities, if economic conditions warrant.

                                        1
<PAGE>

     Liberty is incorporated under Maryland law. Liberty's principal executive
offices are located at 8500 Station Street, Suite 100, Mentor, Ohio 44060 and
its telephone number is 440-974-3770.

     Industry Overview.  Liberty believes that self-storage facilities offer
inexpensive storage space to residential and commercial users. Demand for
self-storage service has increased as indicated by an increase in industry-wide
average rents and in industry average occupancy rates. Liberty expects demand to
remain strong because historically demand for self-storage facilities is slow to
react to changing conditions and because of various other factors, including
population growth, increased mobility, expansion of condominium, townhouse and
apartment living, and increasing consumer awareness, particularly by commercial
users.

     Federal Income Tax.  Meridian made an election to be taxed as a REIT under
Sections 856 through 860 of the Internal Revenue Code of 1986 and Liberty
intends to continue to operate as a REIT. However, Liberty may be unable to
operate in a manner so as to remain qualified as a REIT. Liberty's continued
qualification as a REIT in current and future taxable years will depend upon
whether Liberty and the operating partnership continue to meet the various
qualification tests imposed under the Code.

     If Liberty continues to qualify for taxation as a REIT and distributes to
its stockholders at least 95% of its taxable income, excluding net capital
gains, it generally will not be subject to federal corporate income tax on the
portion of its ordinary income or capital gain that is timely distributed to its
stockholders. This treatment substantially eliminates the "double taxation" at
the corporate and stockholder levels that generally results from an investment
in a corporation. If Liberty were to fail to qualify as a REIT, it would be
taxed at rates applicable to corporations on all of its income, whether or not
distributed to its stockholders. Even if Liberty continually qualifies as a
REIT, it may be subject to federal income or excise tax in some circumstances.

     Employees.  Liberty currently employs 33 full-time and 8 part-time
employees, including 23 on-site managers and 2 regional managers. None of
Liberty's employees are covered by a collective bargaining agreement. Liberty
considers its employee relations to be excellent.

                                        2
<PAGE>

ITEM 2.  DESCRIPTION OF PROPERTY

THE SELF-STORAGE FACILITIES

     As of December 31, 2001, Liberty owned and operated 19 self-storage
facilities containing an aggregate of 924,175 square feet. Sixteen of the
self-storage facilities are located in Ohio and the other three are located in
New York. Liberty owns 100% fee interest in each of the self-storage facilities.
The following table provides an overview of information regarding the
self-storage facilities:

<Table>
<Caption>
                                                       RENTABLE
                               DATE     YEAR BUILT/     SQUARE
LOCATION                     ACQUIRED    EXPANDED        FT.       ACRES    UNITS    CONSTRUCTION
--------                     --------   -----------   ----------   ------   -----   ---------------
<S>                          <C>        <C>           <C>          <C>      <C>     <C>
OHIO:
Avon.......................  10/31/97     1981-         67,423       6.12     495   Masonry & Steel
                                        1986/1998*
Canton.....................   4/22/97    1979-87        41,175      11.15     388   Concrete
Catawba....................   6/30/97   1988/1998*      43,052       7.57     302   Steel
Cleveland..................   12/3/96   1997/1999*      46,400       3.68     353   Steel
Dayton.....................   5/22/97   1989/2000*      47,250       5.00     368   Concrete
East Canton................   5/30/97      1997         26,700      12.63     177   Steel
East Liverpool.............  10/31/96   1986-1996       29,990      11.49     222   Steel
Leuer Avenue...............   5/22/00      2000         59,950       1.80     592   Steel
Louisville.................   5/30/97   1988-1990       53,060       6.83     364   Masonry
Mentor.....................   3/20/98   1983/1999*      66,302       6.00     441   Masonry
Painesville (1)............  10/01/00   1940/2000*      77,500       3.20     368   Steel
Perry......................   1/10/97   1992/1997*      63,950       6.19     397   Steel
Ravenna....................   3/31/97      1988         16,950       1.79     150   Steel
Springfield................   5/24/00   1986-1999       59,450       4.60     747   Steel
Westlake...................    6/1/00      2001         63,500       4.40     475   Masonry/Steel
Willoughby.................   10/4/96      1997         33,998       2.37     276   Masonry

NEW YORK:
Endicott...................  11/20/96      1989         35,580       4.99     297   Concrete/Steel
                                                                                    Roof
Southold...................    6/1/97      1989         53,055       6.95     552   Steel
Riverhead..................   5/26/99   1985-1986/      38,890       3.05     336   Steel
                                          1999*
                                                       -------     ------   -----
TOTAL..............................................    924,175     109.81   7,300
                                                       =======     ======   =====
</Table>

---------------

 * Year additional units were added by Liberty.

(1) In addition, Painesville has 26,285 square feet of office and retail space,
    with an occupancy rate of 68.3% and an annual rental rate of $10.64 per
    square foot at December 31, 2001.

                                        3
<PAGE>

     The following table shows the occupancy rates and annual rental rates per
square foot for each of the 19 self-storage facilities for the year ended
December 31, 2001:

<Table>
<Caption>
                                                                               ANNUAL RENTAL
                                                                                 RATE PER
LOCATION                                                      OCCUPANCY RATE    SQUARE FOOT
--------                                                      --------------   -------------
<S>                                                           <C>              <C>
OHIO:
Avon........................................................       89.51%         $ 4.57
Canton......................................................       65.13            3.10
Catawba.....................................................       65.81            1.87
Cleveland...................................................      100.00           10.07
Dayton......................................................       63.70            5.15
East Canton.................................................       72.47            3.51
East Liverpool..............................................       92.58            4.88
Leuer Avenue................................................       34.23            3.60
Louisville..................................................       85.68            4.06
Mentor......................................................       56.37            4.19
Painesville.................................................       20.11            1.67
Perry.......................................................       70.42            3.93
Ravenna.....................................................       82.01            5.27
Springfield.................................................       72.18            4.38
Westlake....................................................       47.17            4.02
Willoughby..................................................       76.40            6.37

NEW YORK:
Endicott....................................................       88.27            6.98
Southold....................................................       87.05           11.29
Riverhead...................................................       73.11            9.41
                                                                  ------          ------
AVERAGE.....................................................       69.91%         $ 5.40
</Table>

     Environmental and Other Regulations.  Liberty is subject to federal, state
and local environmental regulations that apply generally to the ownership of
real property and the operation of self-storage facilities. Liberty has not
received notice from any governmental authority or private party of any material
environmental noncompliance, claim or liability in connection with any of the
self-storage facilities. Liberty is not aware of any environmental condition
with respect to any of the self-storage facilities that could have a material
adverse effect on Liberty's financial condition or results of operations.

     Under various federal, state, and local environmental laws, a current or
previous owner or operator of real property may be liable for the costs of
removal or remediation of hazardous or toxic substances on, under or in the
property. These laws often impose liability whether or not the owner or operator
caused or knew of the presence of hazardous or toxic substances and whether or
not the storage of such substances violated a tenant's lease. The owner or
operator is not in a position to know what a tenant stores at its self-storage
facility. In addition, the presence of hazardous or toxic substances, or the
failure to remediate such property, may adversely affect the owner's or
operator's ability to use the contaminated property as collateral in connection
with borrowing money. In connection with the ownership of the self-storage
facilities, Liberty may be potentially liable for any cleanup costs.

     In connection with Meridian's sale of its last property, the Charleston
property, in August 1997, $1.35 million was held-back from the $13.0 million
sale price for estimated remediation work. In the late 1980s, the San Francisco
Bay Region of the California Regional Water Quality Control Board requested that
Meridian investigate and characterize soil and groundwater contamination of the
Charleston property. Meridian engaged an environmental engineering firm that
discovered the presence of trichloroethylene and other solvent chemicals in

                                        4
<PAGE>

the groundwater. The Regional Water Quality Control Board deferred issuing a
Site Cleanup Requirements Order in order to give Meridian time to complete the
pending sale of the Charleston property. As part of the sale, the purchaser
agreed to indemnify Meridian broadly against the pending Site Cleanup
Requirements Order and other types of environmental claims. Its indemnity is
backed by an environmental insurance policy. It is possible that the Regional
Water Quality Control Board could still name Liberty (as Meridian's successor)
as a potentially responsible party when it ultimately issues its Site Cleanup
Requirements Order for the property based on Meridian's former ownership.

     In the course of due diligence in connection with the reorganization,
Liberty conducted Phase I environmental audits of each of the self-storage
facilities owned at the time of the reorganization. The Phase I environmental
audits showed no environmental contamination, and, therefore, no need for
remediation. Liberty has also conducted Phase I environmental audits for each
subsequently acquired facility, none of which revealed any need for remediation.

     Liberty's self-storage facilities are also generally subject to the same
types of local regulations governing other real property, including zoning
ordinances. Liberty believes that the self-storage facilities are in substantial
compliance with all such regulations.

     Property Management.  All 19 self-storage facilities are operated under the
"Liberty Self-Stor, Ltd." trade name and have on-site managers, ten of whom are
resident managers. All managers report to Liberty's Vice President of
Operations. The facilities are staffed six to nine hours per day, seven days a
week, with access from 6 a.m. to 10 p.m. The facilities are located in a mix of
urban, suburban and rural locations.

     Proposed Expansions.  Currently, Liberty has no specific plans regarding
expansion of the existing self-storage facilities.

     Competition.  The facilities compete with a variety of other self-storage
companies including national, regional and local companies. Each facility has at
least two other self-storage facilities within a five mile radius. Many of
Liberty's competitors are larger and have substantially greater financial
resources than Liberty. Competition may reduce the number of suitable
acquisition opportunities offered to Liberty and increase the bargaining power
of property owners seeking to sell. If competition increases, Liberty could
experience a decrease in occupancy levels and rental rates, which could decrease
the cash available for distribution. In addition, the self-storage industry has
at times experienced overbuilding in response to perceived increases in demand.
A recurrence of such overbuilding might cause Liberty to experience a decrease
in occupancy levels, limit Liberty's ability to increase rents, and compel
Liberty to offer discounted rents.

     Leases.  Space at each facility is leased on a monthly basis using a
standard form lease agreement. Attached to each lease agreement is a lease
addendum notifying lessees that they store goods at their own risk.

     Insurance.  In the opinion of Liberty's management, the facilities are
adequately covered by insurance. Each facility has a limit on coverage
determined by management and the insurance company and each policy carries a
$2,500 deductible. Liberty's responsibility for losses extends only to the
actual property and not the property of tenants. Tenants are responsible for
insuring their own belongings stored at the facility. Liberty's management uses
its discretion in determining amounts, coverage limits and deductibility
provisions of insurance, with a view to acquiring appropriate insurance on
Liberty's investments at a reasonable cost and on suitable terms.

     In addition, Liberty maintains title insurance insuring fee title to the
self-storage facilities in an aggregate amount believed to be adequate.

     Mortgages.  The Willoughby, Perry, Canton, Catawba, East Canton,
Louisville, Ravenna, East Liverpool, Dayton, and Endicott facilities are all
encumbered by mortgages which secure a $9,845,000 loan. The loan had a fixed
interest rate for the initial three years equal to 2.25% over the average yield
on U.S. Treasury Securities adjusted to a constant maturity of three years. As
of June 1, 2001, the interest rate adjusted to 6.74% for the final two years
with maturity to occur on June 1, 2003. The loan is amortized over 20 years.
Current principal and interest payments are $78,243 per month. The loan is
personally guaranteed by Mr. Osborne. The principal amount of the loan as of
December 31, 2001, was $8,916,181.

                                        5
<PAGE>

     The Dayton facility is further encumbered by a mortgage securing an
$802,000 construction and development loan. As of December 31, 2000, the full
$802,000 had been drawn on the loan for construction expenditures. Interest
during the construction phase of the loan was at the lending bank's prime rate.
Upon completion of the construction phase, which occurred in November 1999, the
interest on the loan became a variable rate equal to 2.25% above the weekly
average yield on U.S. Treasury Securities adjusted to the constant maturity of
two years with maturity to occur on October 31, 2002. Currently, the interest
rate is 4.88%. Monthly principal payments are being amortized over an 18-year
period. This note is personally guaranteed by Mr. Osborne. The principal amount
of the loan as of December 31, 2001, was $771,568.

     The Catawba facility is further encumbered by a mortgage securing a
$265,087 construction and development loan. The loan had an initial interest
rate equal to the prime rate. As of July 1, 1999, the interest rate converted to
a rate equal to 2.25% over the average yield on U.S. Treasury Securities
adjusted to a constant maturity of two years. The interest rate was further
adjusted to 7.6% as of June 1, 2001 for determining the payments during the last
two years of the loan, which matures June 2003. Payments were interest only
through May 31, 1999 and thereafter converted to principal and interest
payments, using a 23-year amortization period. This note is personally
guaranteed by Mr. Osborne. The principal amount of the loan as of December 31,
2001, was $253,355.

     The East Liverpool facility is also encumbered by a $250,000 mortgage.
Current monthly interest payments are $2,000 and the principal amount is due on
maturity. This note is guaranteed by Mr. Osborne and matures in 2026. The
principal amount of the loan as of December 31, 2001, was $250,000.

     The Avon facility is encumbered by a mortgage securing a $549,446
construction and development loan, which is guaranteed by Mr. Osborne and
matures on October 31, 2002. The terms of this loan are identical to those for
the loan encumbering the Catawba facility, except that the variable rate is
2.25% over the average yield on U.S. Treasury Securities adjusted to a constant
maturity of three years. Monthly principal and interest payments are currently
$4,287. The principal amount of the loan as of December 31, 2001, was $530,415.
The Avon facility is also encumbered by a $945,000 loan, maturing October 31,
2002, guaranteed by Mr. Osborne. The loan has an interest rate of 8.02%. Current
monthly principal and interest payments are $7,306 per month, with a 25-year
amortization period. The principal amount of the loan as of December 31, 2001,
was $884,582.

     The Mentor facility is encumbered by a mortgage securing a $1,884,000
construction and development loan, maturing June 4, 2009. Interest during the
construction phase of the loan was 8.0%. The interest on the loan was adjusted,
upon completion of the construction, to a variable rate equal to 2.75% above the
then current weekly average yield on U.S. Treasury Securities adjusted to the
constant maturity of three years. The loan provided for interest only payments
through December 31, 1999, and thereafter principal and interest payments of
$15,769 amortized over a 20-year period. This note is personally guaranteed by
Mr. Osborne. The principal amount of the loan as of December 31, 2001, was
$1,810,167.

     The Southold facility is encumbered by a mortgage in the amount of
$2,675,000, which matures July 2002. Current monthly principal and interest
payments are $22,862. The initial interest rate was the lending bank's prime
rate, which converted on June 30, 2000 to 2.50% over the average yield on U.S.
Treasury Securities adjusted for a constant maturity of three years. The loan
provided for interest only payments through June 30, 2000 and thereafter
converted to principal and interest using a 20-year amortization. This note is
guaranteed by Mr. Osborne. The principal amount of the loan as of December 31,
2001, was $2,527,218.

     The Cleveland and Leuer Avenue facilities are encumbered by a mortgage in
the amount of $3,652,000, maturing on April 24, 2021. Current monthly principal
and interest payments are $29,672 with an interest rate of 7.5%, using a 20-year
amortization. This note is guaranteed by Mr. Osborne. The principal amount of
the loan as of December 31, 2001 was $3,607,076.

     The Riverhead facility is encumbered by a mortgage in the amount of
$600,000, maturing June 2004. Current monthly principal and interest payments
are $5,207, with an interest rate of 8.50%, using a 20-year amortization. This
note is personally guaranteed by Thomas J. Smith. The principal amount of the
loan as of December 31, 2001 was $568,137. The Riverhead facility is encumbered
by a second mortgage with in the amount of $674,000, maturing in June 2003.
Current monthly payments are $2,260. Interest was at the lending

                                        6
<PAGE>

bank's prime rate until June 1, 2000 when it converted to 2.50% over the average
yield on U.S. Treasury Securities adjusted to a constant maturity of three
years. The loan provides for interest only payments through December 31, 2000
and thereafter converts to the variable rate discussed above, using an 18-year
amortization. This note is guaranteed by Mr. Osborne. The principal amount of
the loan as of December 31, 2001, was $656,595.

     The Springfield facility is encumbered by a mortgage in the amount of
$1,600,000, maturing June 2005. Current monthly principal and interest payments
are $14,499, with an interest rate of 9.1%, using a 20-year amortization. This
note is personally guaranteed by Mr. Osborne. The principal amount of the loan
as of December 31, 2001, was $1,549,702. The Springfield facility is encumbered
by a second mortgage in the amount of $500,000, maturing June 2025. Current
monthly principal and interest payments are $3,777, with an interest rate of
7.75%, using a 25-year amortization. This note is guaranteed by Mr. Osborne. The
principal amount of the loan as of December 31, 2001, was $489,585.

     The Westlake facility is encumbered by a mortgage securing a $2,532,200
construction and development loan. The loan had an initial interest rate of
9.25%. On October 24, 2001, a Loan Modification Agreement was signed and the
interest rate was adjusted to 6.25%. In May 2003, the interest rate will be
adjusted to a rate equal to .75% over the lending bank's prime rate. Payments
were interest only through November 18, 2000. Current monthly principal and
interest payments are $17,388, using a 10-year amortization period, and maturing
in August 2011. This note is personally guaranteed by Mr. Osborne. The principal
amount of the loan as of December 31, 2001, was $2,515,433.

     The Painesville facility is encumbered by a mortgage in the amount of
$2,062,128, maturing March 2009. Monthly principal and interest payments are
$16,612, with an interest rate of 7.5%, using a 20-year amortization period. On
April 30, 2005, the interest rate converts to 2.25% over the average yield on
U.S. Treasury Securities adjusted to a constant maturity of five years. This
note is personally guaranteed by Mr. Osborne. The principal amount of the loan
as of December 31, 2001, was $1,972,324. A second loan in the amount of
$1,300,000 also finances the Painesville facility. The loan is a personal loan
by a bank to Mr. Osborne. Liberty entered into a loan agreement with Mr. Osborne
with terms that are identical to the bank loan. The loan has an interest rate
equal to the lending bank's prime rate, maturing October 2003. Current monthly
interest payments are $5,146. The principal amount of the loan as of December
31, 2000, was $1,300,000.

     Depreciation.  Depreciation on the self-storage facilities is computed
using the straight-line method and is based upon useful lives of 25 years for
buildings and improvements and five years for personal property.

INVESTMENT POLICY

     Liberty was organized to acquire, succeed to, continue and expand the
business of Meridian. Liberty intends to operate and be taxed as a REIT. Liberty
operates and manages its self-storage facilities as the general partner of the
operating partnership. Although Liberty presently intends to focus its
investment strategy on self-storage facilities, the board of directors, in its
sole discretion, may change or modify Liberty's investment objective.

     Activities of Liberty.  Liberty has the ability to engage under its
articles and bylaws, subject to Maryland law, in the following activities:

          1. issue senior securities;

          2. borrow money;

          3. make loans;

          4. underwrite securities of other issuers;

          5. engage in the purchase or sale of investments;

          6. offer securities in exchange for property;

          7. repurchase or otherwise reacquire its shares or other securities;
             and

          8. make annual reports and other reports to stockholders which contain
             annual audited financial statements.

                                        7
<PAGE>

     Liberty could borrow money necessary to acquire properties, could offer
interests of the operating partnership in exchange for properties, and will make
annual reports with audited financial statements. Liberty has no current plans
to engage in any of the other listed activities. During each of the last three
years, the Company filed annual and quarterly reports with the SEC. Liberty's
ability to engage in any of the above activities is subject to change without
the approval of stockholders.

     Self-Storage Investment Strategy.  Liberty focuses on the acquisition,
expansion and development of a portfolio of self-storage facilities. Liberty
seeks to capitalize on several types of opportunities it believes are present in
the self-storage market.

     - ACQUISITIONS OF PROPERTIES -- Liberty seeks properties in locations with
       desirable supply and demand characteristics, with the potential for
       higher occupancy and rental rates and that currently have non-
       professional management/ownership. Liberty seeks to acquire properties at
       an attractive price where appropriate and expand the property to add
       additional rental units. Liberty seeks to acquire properties based on
       rents and expenses in place and then undertake a program of cost control
       and revenue enhancement. To reduce competition for its acquisitions,
       Liberty primarily seeks individual properties, versus bulk acquisitions,
       and facilities which do not meet the typical size requirements of the
       major national self-storage companies, generally below 45,000-50,000
       square feet. Liberty believes opportunities exist to acquire such
       facilities, and is engaged from time to time in discussions with
       potential sellers.

     At this time, Liberty has no outstanding agreements to acquire any
additional facilities.

     - DEVELOPMENT -- Liberty's management, Thomas J. Smith, Jeffrey J. Heidnik
       and Sherry L. Kirchenbauer, have had collectively 25 years of experience
       in the self-storage industry and in the real estate industry. In addition
       to the acquisition of 13 facilities and the development of three
       facilities in the last three years, the self-storage company has expanded
       approximately seven of its facilities in that period. Through these
       individuals, Liberty has in-house development and expansion expertise and
       will selectively develop facilities in attractive markets.

     Liberty focuses in geographic areas where it has existing real estate
relationships or has previously conducted business and owned self-storage
facilities, including Ohio, New York, North Carolina, New Jersey, Florida,
Indiana, Pennsylvania and Michigan. Management efficiency is sought by
concentrating acquisitions into "regional clusters" where regional managers will
be responsible for more than one facility and the individual location managers
will report to the regional manager. These "regional clusters" promote economies
of scale. Liberty plans to pay for acquisitions with cash, debt, the issuance of
equity securities or funds from operations. Liberty will acquire additional
self-storage facilities primarily for income.

ITEM 3.  LEGAL PROCEEDINGS.

     There are no material pending legal proceedings to which Liberty is a party
or to which any of its assets are subject.

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

     None.

                                        8
<PAGE>

                                    PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED SHAREHOLDER MATTERS.

     Shares Prices.  On January 4, 2000, after approval of the reincorporation,
Liberty's shares of common stock, $0.001 par value per share, began trading on
the Over-the-Counter Bulletin Board Market of Nasdaq under the symbol "LSSI".

     The following table sets forth the published high and low bid information
for Liberty's common stock for each quarter within Liberty's last two fiscal
years. Because Liberty's common stock is traded on the Over-the-Counter Bulletin
Board Market and previously was traded on the SmallCap Market, these quotations
reflect inter-dealer prices, without retail mark-up, mark-down or commission,
and may not represent actual transactions.

<Table>
<Caption>
                                                              HIGH     LOW
                                                              -----   -----
<S>                                                           <C>     <C>
2000
First Quarter...............................................  $0.56   $0.41
Second Quarter..............................................   0.47    0.31
Third Quarter...............................................   0.36    0.19
Fourth Quarter..............................................   0.28    0.19

2001
First Quarter...............................................  $0.25   $0.16
Second Quarter..............................................   0.22    0.16
Third Quarter...............................................   0.17    0.14
Fourth Quarter..............................................   0.23    0.13
</Table>

     Record Holders.  As of March 8, 2002, Liberty's shares of common stock were
held by approximately 2,100 holders of record.

     Dividends.  No dividends were paid to Liberty's stockholders in 2000 or
2001. Under the REIT tax rules, Liberty is required to make annual distributions
to stockholders of at least 95% of its taxable income. Liberty did not have any
taxable income in 2000 or 2001 and, thus, Liberty remains in compliance with
this rule. In accordance with Liberty's organizational documents, dividend
distributions are at the discretion of Liberty's directors. In addition, under
the terms of the partnership agreement of the operating partnership, the
operating partnership is required to make distributions to enable Liberty to
comply with the REIT dividend rules, unless Liberty, acting as general partner
of the operating partnership, determines that such a distribution would not be
in the best interests of the operating partnership. There can be no assurance
when or if dividends will resume.

     Issuance of Common Stock.  Liberty did not issue any shares of its common
stock in the fourth quarter of 2001.

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION

INTRODUCTION AND DISCUSSION OF KNOWN TRENDS, EVENTS AND UNCERTAINTIES

     On December 29, 1999, Liberty Self-Stor, Inc., a Maryland corporation,
succeeded to the business of Meridian Point Realty Trust '83.

     At a special meeting of Meridian's shareholders in lieu of an annual
meeting of shareholders on December 28, 1999, Meridian's shareholders approved,
among other matters, the reincorporation in which Meridian was merged with and
into Liberty with Liberty as the surviving entity. Also, at the special meeting,
Meridian's shareholders approved the acquisition of Liberty Self-Stor, Ltd., an
Ohio limited liability company owned by Richard M. Osborne, Liberty's Chairman
of the Board and Chief Executive Officer, which then owned 15 self-storage
facilities. The acquisition was accomplished through the reorganization of the
company as an umbrella partnership real estate investment trust, or UPREIT. In
an UPREIT structure, the publicly-held REIT is the general partner of an
operating partnership which owns the properties of the REIT.

                                        9
<PAGE>

     The self-storage facility acquisitions in 2000 have been accounted for
under the purchase method of accounting. Accordingly, operating results of the
acquired properties have been included in Liberty's operating results since the
dates of acquisition.

     In connection with the Statement of Financial Accounting Standards No. 142
"Goodwill and Other Intangible Assets," Liberty had a $221,000 expense in the
first quarter of 2002 in connection with writing off the goodwill, net of
amortization, associated with the Springfield facility.

     The following discussion should be read in conjunction with accompanying
Consolidated Balance Sheets, Statements of Operations, Statements of
Shareholders' Equity, and Cash Flows and the notes thereto. Unless otherwise
defined in this report, or unless the context otherwise requires, the
capitalized words or phrases referred to in this section either: (a) describe
accounting terms that are used as line items in such financial statements, or
(b) have the meanings ascribed to them in such financial statements and the
notes thereto.

LIQUIDITY AND CAPITAL RESOURCES

     Liquidity represents Liberty's ability to generate sufficient amounts of
cash to meet its financial commitments. The primary source of liquidity for
Liberty is cash generated from rental charges at its self-storage facilities. In
2001, Liberty's operating activities produced a net loss equal to $467,351 as
compared to a net loss from operating activities of $378,584 in 2000. Cash and
cash equivalents were $114,476 at the end of 2001, as compared to $689,290 at
the end of 2000. The items affecting operating cash flow and cash and cash
equivalents are discussed more fully in the "Material Changes in Results of
Operations" section.

     Liberty uses cash primarily to operate and maintain its self-storage
facilities and to service the principal and interest on its existing debt. In
2002, $5,337,578 of Liberty's long-term debt will mature. Sources of liquidity
over the next 12-month period include available cash and cash generated from
rental charges at Liberty's self-storage facilities. As an additional source of
liquidity, Liberty intends to refinance some or all of its maturing long-term
debt in order to satisfy its obligations and to generate additional cash to meet
its financial commitments.

     Liberty believes that cash flow from operating and refinancing activities
will be sufficient to meet its anticipated operating and capital expenditure
requirements on a short-term and long-term basis. However, there can be no
assurance that Liberty will be able to refinance any or all of its maturing
debt. If adequate funds are not available or not available on acceptable terms,
Liberty's business and results of operations would be materially and adversely
affected and Liberty may be unable to continue to fund its operations or growth
or acquire additional properties or to meet its obligations. Liberty may also
determine to issue additional shares of preferred or common stock to reduce its
debt to equity leverage or incur additional debt or sell assets. Given the low
trading price of shares of Liberty's common stock, any additional issuance of
stock will be dilutive to existing shareholders and would likely be
significantly dilutive. There can be no assurance that Liberty will be able to
issue any additional shares of stock, sell its properties at prices that Liberty
believes are reasonable or obtain additional debt on favorable terms.

     During the twelve months ended December 31, 2001 and 2000, Liberty had no
cash distributions. Liberty does not anticipate making any cash distributions in
2002.

     The following table sets forth the maturity dates and the total of
Liberty's long-term debt. Liberty has no other long-term obligations or
commitments.

<Table>
<Caption>
                                                    PAYMENTS DUE BY PERIOD
                           ------------------------------------------------------------------------
CONTRACTUAL                 LESS THAN                                     AFTER
OBLIGATIONS                   1 YEAR        1-3 YEARS     4-5 YEARS      5 YEARS          TOTAL
-----------                ------------   -------------   ----------   ------------   -------------
<S>                        <C>            <C>             <C>          <C>            <C>
Long-Term Debt...........  5,426,118.00   13,923,633.00   425,677.00   8,826,910.00   28,602,338.00
                           ------------   -------------   ----------   ------------   -------------
Total Contractual Cash
  Obligations............  5,426,118.00   13,923,633.00   425,677.00   8,826,910.00   28,602,338.00
                           ============   =============   ==========   ============   =============
</Table>

                                        10
<PAGE>

MATERIAL CHANGES IN RESULTS OF OPERATIONS

  REVENUES

     Revenues from real estate operations increased $0.8 million, or 19.4%, to
$4.8 million for the year ended December 31, 2001, from $4.0 million in the
prior year. $0.48 million, or 60% of the increase was attributable to the
addition of four new self-storage facilities, consisting of Springfield,
Painesville, and Leuer Avenue in 2000 and Westlake in the second quarter of
2001, and the remainder of the increase was primarily attributable to increased
rental rates. The occupancy rates were 69.91% and 68.21% as of December 31, 2001
and 2000, respectively. The increase was primarily due to the increased
occupancy at the four new self-storage facilities. The occupancy rates at the
self-storage facilities, excluding the four new self-storage facilities,
increased to 74.74% as of December 31, 2001, from 74.70% as of December 31,
2000.

     Interest and other revenues decreased approximately $25,900, or 75.81%, to
$8,200 for the year ended December 31, 2001, from $34,100 in the prior year. The
decrease is primarily the result of the reduction in unrestricted cash in 2001.

  EXPENSES

     Interest expense increased $0.4 million, or 23.3%, to $2.2 million for the
year ended December 31, 2001, from $1.8 million in the prior year. The increase
in interest expense was attributable to higher debt levels in 2001 that were
associated with mortgages for the four new self-storage facilities, recently
offset by a decline in interest rates.

     Property taxes and insurance expenses increased $0.2 million, or 48.6%, to
$0.7 million for the year ended December 31, 2001, from $0.5 million in the
prior year. $0.1 million, or 50%, of the increase was attributable to an
increase in the real estate taxes assessed at the Painesville self-storage
facility. The increased assessment is being disputed because the property value
on the tax bill is much greater than the historical cost and market value of the
property. The remainder of the increase was attributable to increased property
taxes and insurance associated with the operation of the four new self-storage
facilities, consisting of Springfield, Painesville, Leuer Avenue, and Westlake.

     Property operating expenses increased $0.2 million, or 20.6%, to $1.05
million for the year ended December 31, 2001, from $0.9 million in the prior
year. The increase in property operating expenses was attributable to the
operation of the four new self-storage facilities, consisting of Springfield,
Painesville, Leuer Avenue, and Westlake.

     Legal and professional fees decreased $0.1 million, or 38.7%, to $0.16
million for the year ended December 31, 2001, from $0.26 million in the prior
year. Legal and professional fees include all legal fees, accounting fees and
investor relations expenses. The decrease in legal and professional fees was
attributable to the non-recurring legal fees that arose in 2000 in connection
with Meridian merging with and reincorporating as Liberty Self-Stor, Inc.

     General and administrative expenses increased approximately $70,000, or
8.1%, to $924,000 for the year ended December 31, 2001, from approximately
$854,000 in the prior year. The increase is primarily due to Liberty's increased
use of temporary employment services to obtain employees for the self-storage
facilities.

     Depreciation, amortization and other expenses increased $0.25 million, or
23.6%, to $1.3 million for the year ended December 31, 2001, from $1.05 million
in the prior year. The increase in depreciation, amortization and other expenses
was attributable to the operation of the four new self-storage facilities,
consisting of Springfield, Painesville, Leuer Avenue, and Westlake.

  NET LOSS

     As a result of the factors noted above, there was a net loss of
approximately $467,000 for the year ended December 31, 2001, compared to a net
loss of approximately $379,000 in the prior year, an increased loss of $88,000,
or 23.4%.

                                        11
<PAGE>

  FUNDS FROM OPERATIONS

     Liberty believes that Funds from Operations ("FFO") is helpful to investors
as a measure of the performance of an equity REIT because, when considered in
conjunction with cash flows from operating activities, financing activities, and
investing activities, it provides investors with an understanding of the ability
of Liberty to incur and service debt and to make capital expenditures. FFO is
defined as net income (loss) (computed in accordance with generally accepted
accounting principals), excluding gains (or losses) from sales of property, plus
depreciation and amortization, and after adjustments for unconsolidated
partnerships and joint ventures. Adjustments for unconsolidated partnerships and
joint ventures will be calculated to reflect funds from operations on the same
basis. FFO should not be considered a substitute for net income or cash flows,
nor should it be considered an alternative to operating performance or
liquidity. The following table sets forth the calculation of FFO:

<Table>
<Caption>
                                                        TWELVE MONTHS       TWELVE MONTHS
                                                            ENDED               ENDED
                                                      DECEMBER 31, 2001   DECEMBER 31, 2000
                                                      -----------------   -----------------
<S>                                                   <C>                 <C>
Net loss............................................     $  (467,351)         $(378,584)
Depreciation of real estate and amortization of
  intangible assets.................................       1,297,749          1,049,725
Minority interest...................................      (1,090,486)          (883,361)
                                                         -----------          ---------
FFO available to common shareholders................     $  (260,088)         $(212,220)
</Table>

  FORWARD-LOOKING STATEMENTS

     Statements that are not historical facts, including statements about
Liberty's confidence in its prospects and strategies and its expectations about
growth, are forward-looking statements that involve risks and uncertainties.
These risks and uncertainties include, but are not limited to (1) Liberty's
continued tax status as a REIT, (2) the failure to successfully implement
Liberty's business plans, (3) the failure to successfully integrate acquired and
newly-constructed facilities into Liberty, (4) the ability of Liberty to issue
additional shares, sell its assets or properties or obtain debt financing on
satisfactory terms, (5) the ability to refinance Liberty's debts as they come
due, including without limitation, Liberty's maturing long-term debt, (6)
changes in general economic conditions, (7) changes in local real estate
conditions, (8) the inability to generate sufficient revenues to meet operating
expenses, including, but not limited to, rising property insurance costs, (9)
the failure to manage growth effectively, (10) changes in borrowing interest
rates, and (11) decreases in occupancy rates. Any investor or potential investor
in Liberty must consider these risks and others that are detailed in other
filings by Liberty with the Securities and Exchange Commission. These risks and
others could cause actual results to differ materially from those in the
forward-looking statements.

  ELECTION OF REIT STATUS

     Liberty intends to be taxed as a REIT under Section 856(c)(1) of the
Internal Revenue Code for the fiscal year ending December 31, 2001. The REIT
provisions of the Code generally allow a REIT to deduct dividends paid to
stockholders in computing the REIT's taxable income. No provisions for federal
or state income taxes have been made in the accompanying Consolidated Statements
of Operations.

     To qualify for REIT status, Liberty must meet a number of highly technical
organizational and operational requirements on a continuing basis. Those
requirements seek to ensure, among other things, that the gross income and
investments of a REIT are largely real estate related, with other permitted
assets; that a REIT distributes substantially all its ordinary taxable income to
shareholders on a current basis and that the REIT's ownership is not overly
concentrated. Due to the complex nature of these rules, the limited available
guidance concerning interpretation of the rules, the importance of ongoing
factual determinations and the possibility of adverse changes in or
interpretations of the law, administrative interpretations of the law and
developments at Liberty, no assurance can be given regarding Liberty's
qualification as a REIT for any particular year. If Liberty failed to qualify as
a REIT, distributions to stockholders would no longer be required. In addition,
distributions originally treated as capital gain distributions could be
re-characterized as ordinary dividend distributions to shareholders.

                                        12
<PAGE>

Moreover, Liberty might not be able to elect to be treated as a REIT for the
four taxable years after the year during which Liberty ceased to qualify as a
REIT. If Liberty later re-qualified as a REIT, it might be required to pay a
full corporate-level tax on any unrealized gain associated with its assets as of
the date of re-qualification and to make distributions equal to any earnings
accumulated during the period of non-REIT status.

  ACCOUNTING POLICIES

     Liberty's discussion and analysis of its financial condition and results of
operations are based upon its consolidated financial statements, which have been
prepared in accordance with accounting principals generally accepted in the
United States. The preparation of these financial statements requires Liberty to
make estimates and assumptions that affect the reported amounts in the financial
statements and disclosures of contingent assets and liabilities. On an on-going
basis, Liberty evaluates all of these estimates and assumptions. Actual results
could differ from these estimates. Liberty believes the following accounting
policies affect its more significant judgments and estimates used in the
preparation of its financial statements.

     Revenue recognition:  Liberty recognizes revenues monthly when they are
earned, based on the rental rates of the occupied self-storage units.

     Property and equipment:  Property and equipment acquired in connection with
Liberty's acquisition of the Ohio LLC were valued based upon the appraisal done
in 1999, while assets acquired since the reorganization are stated at cost. The
assets are depreciated using the straight-line method over their estimated
useful lives of 25 years for buildings and improvements and 5 years for
furniture and equipment.

     Goodwill:  Goodwill recorded in connection with purchase transactions is
being amortized on a straight-line basis over 20 years.

     Impairment of long-lived assets:  Long-lived assets, including goodwill,
are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. If the sum of the expected
future undiscounted cash flows is less than the carrying amount of the asset, a
loss is recognized for the difference between the fair value and the carrying
value of the asset.

  NEW ACCOUNTING PRONOUNCEMENTS

     Statement of Financial Accounting Standards ("SFAS") No. 141 "Business
Combinations," No. 142 "Goodwill and Other Intangible Assets," and No. 144
"Accounting for the Impairment or Disposal of Long-Lived Assets" will be
effective January 1, 2002.

     Among other things, SFAS No. 141 requires all future business combinations
to be accounted for as purchases rather than as "pooling of interests." SFAS No.
142 requires amortization of goodwill to be discontinued and requires annual
tests for impairment in the value of goodwill. SFAS No. 144 revises the guidance
provided by SFAS No. 121 for determining the impairment of long-lived assets,
other than goodwill.

     The impact of implementing SFAS Nos. 141 and 144 is expected to be
immaterial to Liberty. Implementation of SFAS No. 142 is expected to increase
Liberty's net income by $15,000, the anticipated current year goodwill
depreciation expense. Liberty has completed its impairment test under SFAS No.
142, and determined that the goodwill associated with the Springfield facility,
which consists of $221,000 net of amortization, will be written off in the year
2002.

ITEM 7.  FINANCIAL STATEMENTS

     Liberty's Report of Independent Accountants and Consolidated Financial
Statements are incorporated herein by reference and filed as part of this
report.

ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

     Liberty has not changed its independent certified public accountants and
has not had any disagreement with its independent certified public accountants
on accounting or financial disclosures required to be made under rules of the
Securities and Exchange Commission.
                                        13
<PAGE>

                                    PART III

ITEM 9.  DIRECTORS AND EXECUTIVE OFFICERS

     The information required by this Item 9 is incorporated herein by reference
to the Registrant's definitive Proxy Statement, relating to its 2002 Annual
Meeting ("Proxy Statement"), under the captions "Board of Directors," "Executive
Officers" and "Section 16(a) Beneficial Ownership Reporting Compliance." The
Proxy Statement will be filed with the SEC prior to April 28, 2002.

ITEM 10.  EXECUTIVE COMPENSATION

     The information required by Item 10 is contained under the caption
"Executive Compensation and Other Information" in the Proxy Statement and is
incorporated herein by reference.

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     The information required by Item 11 is contained under the caption
"Principal Stockholders" in the Proxy Statement and is incorporated herein by
reference.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     The information required by Item 12 is contained under the caption "Certain
Relationships and Related Transactions" in the Proxy Statement and is
incorporated herein by reference.

ITEM 13.  EXHIBITS, LIST, AND REPORTS ON FORM 8-K

(a) INDEX TO EXHIBITS

NO. DESCRIPTION

     (In accordance with Item 601 of Regulation S-B)

<Table>
<Caption>
EXHIBIT NO.                          DESCRIPTION
-----------                          -----------
<S>          <C>
     2.1     Purchase and Sale Agreement entered into August 4, 1997,
             together with First Amendment to Purchase and Sale Agreement
             effective August 7, 1997 and Second Amendment to Purchase
             and Sale Agreement effective August 15, 1997, between
             Meridian Point Realty Trust '83 and 2400 Charleston
             Associates, LLC (successor to Rubin-Pachulski Properties,
             Inc.) (Filed as Exhibit 10.1 to Registrant's Form 8-K dated
             September 5, 1997 and incorporated herein by reference.)
     2.2     Agreement and Plan of Merger, dated as of December 28, 1999,
             by and among Meridian Point Realty Trust '83, Liberty
             Self-Stor, Inc. and Liberty Self-Stor Limited Partnership
             (Exhibits A and B to the Agreement and Plan of Merger are
             Exhibits 3.1 and 3.2, respectively) (Filed as Exhibit 2.1 to
             Registrant's Form 8-K dated January 12, 2000 and
             incorporated herein by reference.)
     3.1     Articles of Incorporation of Liberty Self-Stor, Inc. (Filed
             as Exhibit 3.1 to Registrant's Form 8-K dated January 12,
             2000 and incorporated herein by reference.)
     3.2     Bylaws of Liberty Self-Stor, Inc. (Filed as Exhibit 3.2 to
             Registrant's Form 8-K dated January 12, 2000 and
             incorporated herein by reference.)
    10.1     Agreement between Meridian Point Realty Trust '83 and E&L
             Associates, dated February 23, 1996 (Filed as part of
             Registrant's Form 8-K dated February 10, 1995 and
             incorporated herein by reference.)
    10.2     Indemnity Trust Agreement, dated as of September 2, 1998, by
             and between Meridian Point Realty Trust '83 and U.S. Trust
             Company, N.A. (Filed as Exhibit 10.2 to Registrant's Form
             10-KSB dated March 31, 1999 and incorporated herein by
             reference.)
    10.3     1999 Stock Option and Award Plan of Liberty Self-Stor, Inc.
             (Filed as Exhibit 10.1 to Registrant's Form 8-K dated
             January 12, 2000 and incorporated herein by reference.)
</Table>

                                        14
<PAGE>

<Table>
<Caption>
EXHIBIT NO.                          DESCRIPTION
-----------                          -----------
<S>          <C>
    10.4     Lease between OsAir, Inc. and Liberty Self-Stor, Inc. (Filed
             as Exhibit 10.2 to Registrant's Form 8-K dated January 12,
             2000 and incorporated herein by reference.)
    10.5     Agreement of Limited Partnership of LSS I Limited
             Partnership, dated December 29, 1999. (Filed as Exhibit 10.3
             to Registrant's Form 8-K dated January 12, 2000 and
             incorporated herein by reference.)
    10.6     Employment Agreement, dated December 28, 1999, by and
             between Liberty Self-Stor, Inc. and Thomas J. Smith (Filed
             as Exhibit 10.4 to Registrant's Form 8-K dated January 12,
             2000 and incorporated herein by reference.)
    10.7     Cost Sharing Agreement, by and between Liberty Self-Stor,
             Ltd. and Liberty Self-Stor II, Ltd. dated December 28, 1999
             (Filed as Exhibit 10.7 to Registrant's Form 10-KSB, dated
             March 15, 2000 and incorporated herein by reference.)
    99.1*    Assurance letter of Arthur Andersen LLP
</Table>

---------------

* Filed herewith

(b) REPORTS ON FORM 8-K

     No Form 8-K reports were filed during the quarter ended December 31, 2001.

                                        15
<PAGE>

                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) 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.

<Table>
<S>                                            <C>
Dated: March 29, 2002                          LIBERTY SELF-STOR, INC.

                                               By: /s/ RICHARD M. OSBORNE
                                               --------------------------------------------------------
                                                   Richard M. Osborne
                                                   Chairman and Chief Executive Officer (Principal
                                                   Executive Officer)
</Table>

     Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

<Table>
<Caption>
                   SIGNATURE                                     TITLE                       DATE
                   ---------                                     -----                       ----
<S>                                               <C>                                   <C>


/s/ RICHARD M. OSBORNE                            Chairman, Chief Executive Officer     March 29, 2002
------------------------------------------------  and Director (Principal Executive
Richard M. Osborne                                Officer)


/s/ THOMAS J. SMITH                               President, Chief Operating Officer    March 29, 2002
------------------------------------------------  and Director
Thomas J. Smith


/s/ MARC C. KRANTZ                                Secretary and Director                March 29, 2002
------------------------------------------------
Marc C. Krantz


/s/ SHERRY L. KIRCHENBAUER                        Chief Financial Officer and           March 29, 2002
------------------------------------------------  Assistant Secretary (Principal
Sherry L. Kirchenbauer                            Financial and Accounting Officer)


/s/ MARK D. GROSSI                                Director                              March 29, 2002
------------------------------------------------
Mark D. Grossi


/s/ STEVEN A. CALABRESE                           Director                              March 29, 2002
------------------------------------------------
Steven A. Calabrese
</Table>

                                        16
<PAGE>

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Shareholders and Board of Directors of
Liberty Self-Stor, Inc.:

     We have audited the accompanying consolidated balance sheets of Liberty
Self-Stor, Inc. (a Maryland corporation, formerly Meridian Point Realty Trust
'83) and Subsidiary as of December 31, 2001 and 2000, and the related statements
of operations, shareholders' equity and cash flows for the years then ended.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.

     We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

     In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Liberty Self-Stor, Inc. and
Subsidiary as of December 31, 2001 and 2000, and the results of their operations
and their cash flows for the years then ended in conformity with accounting
principles generally accepted in the United States.

                                          Arthur Andersen LLP

Cleveland, Ohio,
February 28, 2002.

                                        17
<PAGE>

                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                          CONSOLIDATED BALANCE SHEETS

                    DECEMBER 31, 2001 AND DECEMBER 31, 2000

<Table>
<Caption>
                                                                  2001           2000
                                                              ------------   ------------
<S>                                                           <C>            <C>
                           ASSETS
ASSETS:
  Cash and cash equivalents.................................  $    114,476   $    689,290
  Accounts receivable.......................................        82,769         60,815
  Restricted cash...........................................         2,192          3,082
  Other current assets......................................        24,501         26,090
                                                              ------------   ------------
          Total current assets..............................       223,938        779,277
PROPERTY AND EQUIPMENT:
  Land......................................................     4,189,306      4,189,306
  Buildings and improvements................................    30,931,978     29,647,653
  Furniture and equipment...................................       210,242        247,224
                                                              ------------   ------------
                                                                35,331,526     34,084,183
  Less -- Accumulated depreciation..........................     2,295,627      1,036,285
                                                              ------------   ------------
                                                                33,035,899     33,047,898
OTHER ASSETS:
  Goodwill, net.............................................       282,507        297,938
  Other assets..............................................       117,517         56,553
                                                              ------------   ------------
          Total assets......................................  $ 33,659,861   $ 34,181,666
                                                              ============   ============
            LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
  Current maturities of long-term debt......................  $  5,426,118   $  2,229,032
  Notes payable to related party............................       480,000        500,000
  Accounts payable..........................................       172,465        451,412
  Accounts payable to related parties.......................       120,211        126,290
  Accrued expenses..........................................     1,003,536        786,146
                                                              ------------   ------------
          Total current liabilities.........................     7,202,330      4,092,880
LONG-TERM DEBT, net of current maturities...................    23,176,220     25,258,961
OTHER LONG-TERM LIABILITIES.................................        25,461         31,138
MINORITY INTEREST LIABILITY.................................     2,276,255      3,366,741
COMMITMENTS AND CONTINGENCIES (Note 9)
SHAREHOLDERS' EQUITY:
  Serial preferred stock -- $.001 par value: 2,000,000
     shares authorized, no shares issued and outstanding....            --             --
  Common stock -- $.001 par value: 50,000,000 shares
     authorized; 3,082,668 shares issued and outstanding,
     stated at:.............................................     3,082,668      3,031,618
  Paid-in capital...........................................    22,719,644     22,755,694
  Distributions in excess of income.........................   (24,822,717)   (24,355,366)
                                                              ------------   ------------
          Total shareholders' equity........................       979,595      1,431,946
                                                              ------------   ------------
          Total liabilities and shareholders' equity........  $ 33,659,861   $ 34,181,666
                                                              ============   ============
</Table>

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

                                        18
<PAGE>

                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF OPERATIONS

                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

<Table>
<Caption>
                                                                 2001         2000
                                                              ----------   ----------
<S>                                                           <C>          <C>
GROSS REVENUES:
  Revenues from real estate operations......................  $4,795,764   $4,017,345
  Interest and other........................................       8,253       34,122
                                                              ----------   ----------
     Total revenues.........................................   4,804,017    4,051,467
OPERATING EXPENSES:
  Interest expense..........................................   2,222,228    1,802,624
  Property taxes and insurance..............................     711,093      478,660
  Property operating expenses...............................   1,049,185      870,136
  Legal and professional fees...............................     158,073      258,038
  General and administrative, including amounts paid to
     related parties of $48,000 in 2001 and 2000............     923,526      854,229
  Depreciation, amortization and other......................   1,297,749    1,049,725
                                                              ----------   ----------
          Total expenses....................................   6,361,854    5,313,412
                                                              ----------   ----------
     Loss before minority interest..........................  (1,557,837)  (1,261,945)
     Minority interest......................................   1,090,486      883,361
                                                              ----------   ----------
          Net loss..........................................  $ (467,351)  $ (378,584)
                                                              ==========   ==========
NET LOSS PER COMMON SHARE -- BASIC AND DILUTED..............  $    (0.15)  $    (0.12)
                                                              ==========   ==========
</Table>

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

                                        19
<PAGE>

                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

<Table>
<Caption>
                                                                                    DISTRIBUTIONS
                                                                        PAID-IN       IN EXCESS
                                              SHARES       AMOUNT       CAPITAL       OF INCOME
                                             ---------   ----------   -----------   -------------
<S>                                          <C>         <C>          <C>           <C>
BALANCE, December 31, 1999.................  3,031,618   $3,031,618   $22,755,694   $(23,976,782)
  Net loss.................................         --           --            --       (378,584)
                                             ---------   ----------   -----------   ------------
BALANCE, December 31, 2000.................  3,031,618   $3,031,618   $22,755,694   $(24,355,366)
  Net loss.................................         --           --            --       (467,351)
  Issuance of stock........................     51,050       51,050       (36,050)            --
                                             ---------   ----------   -----------   ------------
BALANCE, December 31, 2001.................  3,082,668   $3,082,668   $22,719,644   $(24,822,717)
                                             =========   ==========   ===========   ============
</Table>

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

                                        20
<PAGE>

                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF CASH FLOWS

                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

<Table>
<Caption>
                                                                 2001          2000
                                                              -----------   -----------
<S>                                                           <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss....................................................  $  (467,351)  $  (378,584)
Adjustments to reconcile net loss to net cash used in
  operating activities:
     Depreciation and amortization..........................    1,285,224     1,049,725
     Stock compensation expense.............................       15,000            --
     Minority interest liability............................   (1,090,486)     (883,361)
Changes in operating assets and liabilities:
  Restricted cash...........................................          890           541
  Accounts receivable.......................................      (21,954)       (5,173)
  Other current assets......................................        1,589        45,150
  Other assets..............................................      (71,415)     (291,253)
  Accounts payable..........................................     (278,947)     (163,331)
  Accrued expenses..........................................      217,390       249,992
  Other liabilities.........................................      (11,756)       13,195
                                                              -----------   -----------
       Net cash used in operating activities................     (421,816)     (363,099)
                                                              -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment.........................   (1,247,343)   (8,983,500)
Proceeds of investment in mortgage-related assets...........           --     1,390,131
                                                              -----------   -----------
       Net cash used in investing activities................   (1,247,343)   (7,593,369)
                                                              -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable.........................   (3,873,417)     (437,829)
Borrowings on notes payable.................................    4,967,762     8,633,075
                                                              -----------   -----------
       Net cash provided by financing activities............    1,094,345     8,195,246
                                                              -----------   -----------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS............     (574,814)      238,778
CASH AND CASH EQUIVALENTS, beginning of period..............      689,290       450,512
                                                              -----------   -----------
CASH AND CASH EQUIVALENTS, end of period....................  $   114,476   $   689,290
                                                              ===========   ===========
SUPPLEMENTAL DISCLOSURE:
  Non-cash financing transaction -- Issuance of stock.......  $    15,000            --
</Table>

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

                                        21
<PAGE>

                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000

1.  GENERAL

     Liberty Self-Stor, Inc. (the "Company" or "Liberty") is a corporation
organized under the laws of the State of Maryland for the purpose of operating,
managing, developing, expanding and investing in self-storage facilities. The
Company was formerly known as Meridian Point Realty Trust '83 ("Meridian"). On
December 29, 1999, Meridian was merged with and reincorporated into Liberty.

     On December 28, 1999, a special meeting of shareholders was held for the
purpose of electing trustees and approving and adopting certain proposals
including, but not limited to, approval of the reincorporation of Meridian into
Liberty and the formation of an operating partnership, LSS I Limited Partnership
("LSS"), a Delaware limited partnership, with the members of Liberty Self-Stor,
Ltd., an Ohio limited liability company (the "Ohio LLC"). The members of the
Ohio LLC were Richard M. Osborne, Chairman and Chief Executive Officer of
Liberty, Thomas J. Smith, Liberty's President and Chief Operating Officer, and
Retirement Management Company, an Ohio corporation owned by Mr. Osborne.

     All of the proposals were approved by the shareholders and adopted on
December 28, 1999. As a result, Meridian was merged with and reincorporated into
Liberty Self-Stor, Inc., a perpetual-life REIT. As a perpetual-life REIT,
Liberty is now able to invest proceeds from sales and refinancings in additional
properties. In addition, each member of the Ohio LLC exchanged their membership
interests for Class A limited partnership interests in LSS, resulting in LSS
being the sole member of the Ohio LLC. Liberty contributed its net assets,
primarily cash and investments, to LSS in exchange for the sole general partner
interest therein and Class B limited partnership interests. The Class A limited
partnership interests are redeemable for cash or, at the election of Liberty,
convertible into shares of Liberty stock on a one-for-one basis. The Class B
limited partnership interests are not entitled to redemption, conversion or a
preferred return. At December 31, 2001, Liberty and the former members of the
Ohio LLC have 30% and 70% equity interests in LSS, respectively. The minority
interest liability of $2,276,255 at December 31, 2001, represents the 70%
interest in the net assets of LSS held by the former members of the Ohio LCC.
After completion of the formation transactions, LSS owned and operated 15
self-storage facilities. At December 31, 2001, Liberty owned and operated 19
self-storage facilities.

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

  Principles of Consolidation

     Pursuant to the terms of the partnership agreement of LSS, Liberty, as sole
general partner, controls LSS. Accordingly, Liberty accounts for its investment
in LSS utilizing the consolidation method, recognizing minority interest to the
extent of the Class A limited partnership interests issued to the former members
of the Ohio LLC.

  Acquisitions of Properties

     The consummation of the LSS formation transactions discussed in Note 1 was
accounted for utilizing the purchase method of accounting, with LSS being the
acquirer. As such, the historical net carrying values of the assets and
liabilities of the Ohio LLC were adjusted to their estimated fair values. No
adjustments were made to the historical net carrying values of assets and
liabilities of Meridian.

     Operations of newly acquired properties are included as of their
acquisition date.

  Cash and Cash Equivalents

     Liberty considers all investments with an original maturity of three months
or less to be cash equivalents.

                                        22
<PAGE>
                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000

  Property and Equipment

     Property and equipment acquired in connection with Liberty's acquisition of
the Ohio LLC were valued based upon an appraisal done in 1999, while assets
acquired since the reorganization are valued at cost. All property and equipment
are depreciated using the straight-line method over estimated useful lives of 25
years for buildings and improvements and 5 years for furniture and equipment.

  Goodwill

     Goodwill associated with LSS's acquisitions of the Ohio LLC (approximately
$68,000) in 1999 and of the Springfield, Ohio self-storage facility
(approximately $240,000) in 2000 is being amortized on a straight-line basis
over estimated useful lives of 20 years. Accumulated amortization of goodwill
was $25,889 and $10,458 at December 31, 2001 and 2000, respectively.

  Asset Impairment

     Liberty reviews its properties for impairment when events or changes in
circumstances indicate the carrying amounts of the properties may not be
recoverable. When such conditions exist, management estimates future cash flows
from operations. If the estimated undiscounted future cash flows are less than
the carrying amount of the asset, an adjustment to reduce the carrying amount to
the related property's estimated fair market value would be recorded and an
impairment loss would be recognized. Liberty does not believe that there are any
factors or circumstances indicating impairment of any of its investment in its
properties or goodwill.

  Revenue Recognition

     Liberty's rental revenue is derived from monthly rentals of self-storage
units.

     Rental revenue is recognized in the period the rent is earned which is
typically on a monthly basis.

  Estimates, Risks and Uncertainties

     The preparation of financial statements in conformity with generally
accepted accounting principals requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

     From time to time, Liberty is subject to legal claims arising in the
ordinary course of business in connection with its ownership of real estate and
leasing of such real estate to tenants. Liberty maintains liability insurance,
subject to customary deductibles and accordingly, management does not believe
the ultimate resolution of such matters will have a material effect on Liberty's
financial position or results of operations.

  Fair Value of Financial Instruments

     Fair value is determined by using available market information and
appropriate valuation methodologies. Liberty's principal financial instruments
are cash and cash equivalents, restricted cash, accounts receivable, and notes
payable. Cash and cash equivalents and restricted cash, due to their short
maturities, and the liquidity of accounts receivable, are carried at amounts
which reasonably approximate fair value. In the opinion of management, the
carrying values of notes payable at December 31, 2001 and 2000 approximate their
respective fair values as of such date, due to the variable interest rates.

                                        23
<PAGE>
                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000

3.  INVESTMENTS IN MORTGAGE-RELATED ASSETS

     At December 31, 1999, Liberty held investments in Real Estate Mortgage
Investment Conduits ("REMICs"). Liberty had classified these investments as
trading securities under Statement of Financial Accounting Standard No. 115,
"Accounting for Certain Investments in Debt and Equity Securities." Accordingly,
a loss on these investments of $7,351 was recognized in 1999. During 2000, these
investments were sold and an additional loss of $9,843 was included in interest
and other in the consolidated statements of operations.

4.  LONG-TERM DEBT

     Long-term debt consists of the following:

<Table>
<Caption>
                                                                2001          2000
                                                             -----------   -----------
<S>                                                          <C>           <C>
Mortgage note payable to a bank with monthly installments
  of $78,243 including interest at 6.74%, amortized over a
  twenty year period with a maturity date of June 1, 2003,
  secured by certain real property and personally
  guaranteed by a stockholder of Liberty...................  $ 8,916,181   $ 9,191,334
Mortgage note payable to a bank with monthly installments
  of $10,887 including interest at 6.85%, amortized over a
  twenty year period. Note was repaid in 2001..............           --     1,212,872
Mortgage note payable to a bank with monthly installments
  of $7,306 including interest at 8.02% amortized over a
  twenty-five year period with a maturity date of October
  31, 2002, secured by certain real property and personally
  guaranteed by a stockholder of Liberty...................      884,582       900,168
Mortgage note payable to a bank with monthly installments
  of $2,035 including interest at 7.60% amortized over a
  twenty-three year period with a maturity date of June 1,
  2003, secured by certain real property and personally
  guaranteed by a stockholder of Liberty...................      253,355       258,316
Mortgage note payable to a bank with monthly installments
  of $4,287 including interest at 7.68% amortized over a
  twenty-three year period with a maturity date of October
  31, 2002, secured by certain real property and personally
  guaranteed by a stockholder of Liberty...................      530,415       540,691
Note payable to a corporation, due in 2026, monthly
  interest payments of $2,000, secured by certain real
  property and personally guaranteed by a stockholder of
  Liberty..................................................      250,000       250,000
Mortgage note payable to a bank for construction and term
  financing of real property, interest at 8.17% amortized
  over a twenty year period with a maturity date of July 1,
  2002 secured by certain real property and personally
  guaranteed by a stockholder of Liberty...................    2,527,218     2,592,174
Mortgage note payable to a bank with monthly installments
  of $15,769 including interest at 8.0% amortized over a
  twenty year period with a maturity date of June 4, 2009,
  secured by certain real property and personally
  guaranteed by a stockholder of Liberty...................    1,810,167     1,855,494
Mortgage note payable to individuals in monthly
  installments of $5,207 including interest at 8.5% payable
  on a twenty year amortization, due June 2004, secured by
  certain real property, and personally guaranteed by a
  stockholder of Liberty...................................      568,137       581,696
</Table>

                                        24
<PAGE>
                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000

<Table>
<Caption>
                                                                2001          2000
                                                             -----------   -----------
<S>                                                          <C>           <C>
Mortgage note payable to a bank for construction and term
  financing of real property, interest currently at 9.1%,
  amortized over an eighteen year period with a maturity
  date of June 1, 2003, secured by certain real property
  and personally guaranteed by a stockholder of Liberty....  $   656,595   $   674,000
Construction and permanent financing loan payable to a bank
  in monthly installments of $2,397 including interest at
  7.25%, note matured May 1, 2001..........................           --       293,230
Mortgage note payable to a bank for construction and term
  financing of real property, interest at 4.88% amortized
  over an eighteen year period with a maturity date of
  October 31, 2002, secured by certain real property and
  personally guaranteed by a stockholder of Liberty........      771,568       802,000
Mortgage note payable to a bank for term financing,
  interest at 9.1% amortized over a twenty year period with
  a maturity date of June 1, 2005, secured by certain real
  property and personally guaranteed by a stockholder of
  Liberty..................................................    1,549,702     1,582,636
Mortgage note payable to an individual with monthly
  installments of $3,777 including interest at 7.75%
  amortized over a twenty-five-year period with a maturity
  date of June 30, 2025, secured by certain real property
  and personally guaranteed by a stockholder of Liberty....      489,585       496,662
Mortgage note payable to a bank for construction and term
  financing of real property, interest at 6.25% amortized
  over a ten year period with a maturity date of August 1,
  2011, secured by certain real property and personally
  guaranteed by a stockholder of Liberty...................    2,515,433     1,371,049
Mortgage note payable to a bank for construction and term
  financing of real property, interest at 8.38% amortized
  over a twenty-four year period with a maturity date of
  December 1, 2005. Note was repaid in 2001................           --     1,527,258
Unsecured note payable to Liberty's Chairman and Chief
  Executive Officer, with monthly interest payments of
  $5,146, at a rate of 4.75%, with a maturity date of
  October 1, 2003..........................................    1,300,000     1,300,000
Mortgage note payable to a bank for term financing of real
  property, interest at 7.5%, amortized over a twenty year
  period with a maturity date of March 30, 2009, secured by
  certain real property and personally guaranteed by a
  stockholder of Liberty...................................    1,972,324     2,021,275
Loan payable to a bank for equipment, with monthly
  installments of $2,584, including interest at 6.5%. Loan
  was repaid in 2001.......................................           --        37,138
Mortgage note payable to a bank for term financing of real
  property, interest at 7.5% amortized over a twenty year
  period with a maturity date of April 24, 2021, secured by
  certain real property and personally guaranteed by a
  stockholder of Liberty...................................    3,607,076            --
                                                             -----------   -----------
                                                             $28,602,338   $27,487,993
Less Current Maturities....................................    5,426,118     2,229,032
                                                             -----------   -----------
                                                             $23,176,220   $25,258,961
</Table>

                                        25
<PAGE>
                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000

     Future maturities of debt are as follows:

<Table>
<S>                                                            <C>
2002........................................................   $ 5,426,118
2003........................................................    11,180,717
2004........................................................       966,317
2005........................................................     1,776,599
2006........................................................       425,677
Thereafter..................................................     8,826,910
                                                               -----------
                                                               $28,602,338
</Table>

     During the years ended December 31, 2001 and 2000, Liberty paid $2,269,617
and $1,802,624 of interest on its debt instruments.

5.  NOTES PAYABLE TO RELATED PARTY:

     Liberty has an unsecured note payable to its Chairman and Chief Executive
Officer in the amounts of $480,000 and $500,000 at December 31, 2001 and 2000,
respectively. The note is payable upon demand and bears interest at a variable
rate which was 4.75% and 9.50% at December 31, 2001 and 2000, respectively.

     Liberty has an additional unsecured note payable to its Chairman and Chief
Executive Officer in the amount of $1,300,000 at December 31, 2001 and 2000, as
discussed in Note 4.

6.  EARNINGS PER SHARE:

     Basic earnings per share of common stock for 2001 and 2000 is determined by
dividing net loss by the weighted average number of shares of common stock
outstanding during the period. Weighted average number of shares outstanding was
3,069,906 and 3,031,618 for 2001 and 2000, respectively. Liberty had no dilutive
securities outstanding during 2001 and 2000.

     During the years ended December 31, 2001 and 2000, Liberty paid no cash
distributions to its shareholders.

7.  INCOME TAXES:

     Liberty has previously elected to be taxed as a REIT pursuant to Section
856 (c) (1) of the Internal Revenue Code of 1986, as amended (the "Code"), and
intends to be taxed as a REIT under the Code for the fiscal year ending December
31, 2001. The REIT provisions of the Code generally allow a REIT to deduct
dividends paid to shareholders in computing the Company's taxable income. In
addition, Liberty has net operating loss carryforwards for future years of
approximately $4,800,000. These net operating loss carryforwards will expire at
various dates through 2019. Utilization of the loss carryforwards could be
limited if there is a substantial change in ownership of Liberty. No provisions
for federal or state income taxes have been made in the accompanying
consolidated statements of operations.

     To qualify for REIT status, Liberty must meet a number of highly technical
organizational and operational requirements on a continuing basis. Those
requirements seek to ensure, among other things, that the gross income and
investments of a REIT are largely real estate related, with certain other
permitted assets, that a REIT distributes substantially all its ordinary taxable
income to shareholders on a current basis and that the REIT's ownership is not
overly concentrated. Due to the complex nature of these rules, the limited
available guidance concerning interpretation of the rules, the importance of
ongoing factual determinations and the possibility of adverse changes in or
interpretations of the law, administrative interpretations of the law and
developments at Liberty, no assurance can be given regarding Liberty's
qualification as a REIT for any particular year.

                                        26
<PAGE>
                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000

     If Liberty failed to qualify as a REIT for the fiscal year ended December
31, 2001, it would be taxed as a regular corporation, and distributions to
shareholders (of which there were none) would not be deductible in computing
Liberty's taxable income. However, no current or deferred federal provision for
income tax would be needed because Liberty's net operating loss carry-forwards
could be used to offset any financial statement tax liability resulting from
loss of REIT status. Moreover, Liberty might not be able to elect to be treated
as a REIT for the four taxable years after the year during which Liberty ceased
to qualify as a REIT. If Liberty later requalified as a REIT, it might be
required to pay a full corporate-level tax on any unrealized gain associated
with its assets as of the date of requalification and to make distributions
equal to any earnings accumulated during the period of non-REIT status.

8.  OTHER RELATED PARTY TRANSACTIONS:

     In connection with the proxy solicitation by Meridian '83 Shareholders'
Committee for Growth, Turkey Vulture Fund XIII, Ltd. (the "Fund"), incurred
expenses of $102,613. Liberty's board subsequently authorized the expense
reimbursement because of the benefit to Liberty of the proxy solicitation. The
reimbursement was conditioned upon the authorization by the shareholders of the
conversion to a perpetual-life REIT through an amendment to the Declaration of
Trust. Richard M. Osborne, Liberty's Chairman of the Board and Chief Executive
Officer, is the sole manager of the Fund. The $102,613 included in accounts
payable to related parties on Liberty's consolidated balance sheet because Mr.
Osborne has informed Liberty's management that he is not requiring payment at
this time.

     Mr. Osborne is the sole manager of Liberty Self-Stor II, Ltd., an Ohio
limited liability company, which is the owner of a truck rental business, which
makes trucks available for short-term rental to the general public, including
tenants of the self-storage facilities, and provides for the retail sale of
locks, boxes, packing materials, propane gas and related merchandise at the
self-storage facilities. Liberty has entered into a cost sharing agreement with
Liberty Self-Stor II with respect to the sharing of employees and space at the
offices of the self-storage facilities for the benefit of both companies. As of
December 31, 2001 Liberty owes Liberty Self-Stor II, Ltd. $13,257 associated
with these transactions, which is included in accounts payable to related
parties in the accompanying consolidated balance sheet.

     At December 31, 2001 and 2000, Liberty had cash and cash equivalents of
$28,230 and $609,283, respectively at a financial institution which is partially
owned by a group controlled by Mr. Osborne.

     On December 28, 1999, the shareholders approved Liberty's lease of its
executive offices from OsAir, Inc., a company owned by Mr. Osborne. The rent for
the initial term is $4,000 per month. For the years ended December 31, 2001 and
2000, $48,000 of this related party expense is included in general and
administrative expenses.

     In June 2000, Liberty purchased 4.4 acres of land in Westlake, Ohio for
$784,385 from Liberty Self-Stor II, Ltd., which is controlled by Mr. Osborne.
The purchase price was based on Mr. Osborne's carrying cost. Construction of a
77,700 square foot self-storage facility on the property was completed in April
2001. The facility consists of 475 self-storage units. Mr. Osborne did not
receive any additional stock of Liberty or any units of LSS I in connection with
the purchase.

     In October 2000, Liberty purchased a 103,785 square foot facility,
consisting of 77,500 square feet of self-storage space and the balance being
office and retail space, in Painesville, Ohio from Liberty Self-Stor II, Ltd.,
which is controlled by Mr. Osborne. The purchase price was based on Mr.
Osborne's carrying cost. The facility consists of 368 self-storage units, as
well as office and retail space on 3.2 acres. In exchange for the property,
Liberty assumed $3.3 million in bank loans. Of the bank loans, $1.3 million
consists of a personal loan by a bank to Mr. Osborne. Liberty entered into a
loan agreement with Mr. Osborne with terms that are identical to the bank

                                        27
<PAGE>
                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000

loan. Mr. Osborne did not receive any additional stock of Liberty or any units
of LSS I in connection with this purchase.

     Marc C. Krantz, a director and secretary of Liberty, is the managing
partner of the law firm of Kohrman, Jackson & Krantz P.L.L., which provides
legal services to Liberty.

9.  COMMITMENTS AND CONTINGENCIES:

     The ownership of real estate entails environmental risks and potential
liability to owners, including former owners. Environmental investigation at the
Golden Cove property sold to Meridian Industrial Trust ("MIT") in 1997 indicated
that soil at the property contained volatile organic compounds in concentrations
that exceeded the clean-up goals typically cited by the California Regional
Water Quality Control Board (the "RWQCB"). As part of the sale transaction,
Meridian (Liberty's predecessor) was obligated to fully fund the remediation
costs, for which it had previously accrued $140,000 in 1994. Approximately
$95,000 had been expended by Meridian for remediation costs through December 31,
2001, and Liberty does not believe that any additional costs will be incurred.
However, there can be no assurance to that effect. Liberty, as successor to
Meridian, may be entitled to seek contribution and indemnity for the remediation
costs against other potentially responsible parties who may have caused the
contamination at the property.

     In the late 1980's, the San Francisco Bay Region of the RWQCB requested
that Meridian investigate and characterize soil and groundwater contamination at
the Charleston property which was sold by Meridian in August 1997. Meridian
engaged an environmental engineering firm that discovered the presence of
trichloroethlylene and other solvent chemicals in the groundwater. The RWQCB
deferred issuing a Site Cleanup Requirements ("SCRs") order to give Meridian
time to complete the pending sale of the property. As part of the sale, the
purchaser agreed to indemnify Meridian broadly against the pending SCRs and
other types of environmental claims. The indemnity is backed by an environmental
insurance policy placed with Reliance Insurance Company of Illinois. It is
possible that the RWQCB could still name Meridian, or Liberty as successor to
Meridian, when it ultimately issues its SCRs order for the property based on the
Company's former ownership. If that occurs, Meridian or Liberty would tender the
SCRs order to the purchaser for compliance. Similarly, Meridian or Liberty would
tender any other environmental claims brought against it to the purchaser
pursuant to the indemnity.

10.  EMPLOYEE BENEFITS:

     The 1999 Stock Option Plan ("the Plan") permits the grant of nonstatutory
stock options ("NSSOs"), incentive stock options ("ISOs" and together with
NSSOs, "Options"), and restricted shares. The Plan was adopted to attract and
retain qualified and competent persons who are key to Liberty, including key
employees, officers, and directors. The Plan provides for the grant to employees
of ISOs within the meaning of Section 422 of the Code, for grant of NSSOs to
eligible employees (including officers and directors) and non-employee directors
and for the grant of restricted share awards. Liberty may grant up to 300,000
options or restricted shares pursuant to the Plan. As of December 31, 2001 and
2000, 180,000 options have been granted. There were no options exercised or
cancelled in 2001.

     Liberty follows the disclosure provisions of Statement of Financial
Accounting Standard ("SFAS") No. 123, "Accounting for Stock-Based Compensation,"
and accordingly, no expense was recognized for options and restricted shares
granted. The proforma compensation expense in 2001 and 2000 related to the stock
options granted was immaterial.

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                     LIBERTY SELF-STOR, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000

11.  NEW ACCOUNTING PRONOUNCEMENTS

     Statement of Financial Accounting Standards ("SFAS") No. 141 "Business
Combinations," No. 142 "Goodwill and Other Intangible Assets," and No. 144
"Accounting for the Impairment or Disposal of Long-Lived Assets" will be
effective January 1, 2002.

     Among other things, SFAS No. 141 requires all future business combinations
to be accounted for as purchases rather than as "pooling of interests." SFAS No.
142 requires amortization of goodwill to be discontinued and requires annual
tests for impairment in the value of goodwill. SFAS No. 144 revises the guidance
provided by SFAS No. 121 for determining the impairment of long-lived assets,
other than goodwill.

     The impact of implementing SFAS Nos. 141 and 144 is expected to be
immaterial to Liberty. Implementation of SFAS No. 142 is expected to increase
Liberty's net income by $15,431, the current year goodwill depreciation expense.
Liberty has completed its impairment test under SFAS No. 142, and determined
that the goodwill associated with the Springfield facility, which consists of
$221,000 net of amortization, will be written off in the year 2002.

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