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| (Mark One) |                                                                                    |
|------------|-----------------------------------------------------------------------------------------|
|       |                                                                                    |
| þ     | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| o      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|
|   |                                                                                     |

| Nevada                                                        |   | 88-0212662                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |
|                                                          |   |                                |
| 1059 Redondo Drive, Los Angeles, CA                           |   | 90019                               |
| (Address of principal executive offices)                      |   | (Zip Code)                          |

| Large accelerated filer o |   | Accelerated filer o |   | Non-accelerated filer o |   | Smaller reporting company þ |
|--------------------------------|--------|--------------------------|--------|------------------------------|--------|---------------------------------------|

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|                          |                                                                                                                                                                                 |   | Page   |   |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| PART I. FINANCIAL INFORMATION |
|                          |                                                                                                                                                                                 |
| Item 1.                       | Financial Statements:                                                                                                                                                                |   | 4      |   |
|                          | Balance Sheets as of June 30, 2012 (Unaudited) and December 31, 2011                                                                                                                 |   |   | 4      |   |
|                          | (Unaudited) Statements of Operations for the three and six months, Ended June 30, 2012and 2011 and for the period  from October 16, 2009 (Inception) to June 30, 2012 |   |   | 5      |   |
|                          | (Unaudited) Statements of Cash Flows for the six months Ended June 30, 2012 and 2011 and for the period from October 16, 2009 (Inception) to June 30, 2012                 |   |   | 6      |   |
|                          | Notes to Financial Statements (Unaudited)                                                                                                                                            |   |   | 7      |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                          |   |   | 10     |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| Item 3.                       | Quantitative and Qualitative Disclosures about Market Risk                                                                                                                           |   |   | 13     |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| Item 4.                       | Controls and Procedures                                                                                                                                                              |   |   | 13     |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| PART II. OTHER INFORMATION    |
|                          |                                                                                                                                                                                 |
| Item 1.                       | Legal Proceedings                                                                                                                                                                    |   |   | 14     |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| Item 1A.                      | Risk Factors                                                                                                                                                                         |   |   | 14     |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| Item 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                          |   |   | 14     |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| Item 3.                       | Defaults Upon Senior                                                                                                                                                                 |   |   | 14     |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| Item 4.                       | Mine Safety Disclosures                                                                                                                                                              |   |   | 14     |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| Item 5.                       | Other Information                                                                                                                                                                    |   |   | 14     |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| Item 6.                       | Exhibits                                                                                                                                                                             |   |   | 14     |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| EX-31.1                       |                                                                                                                                                                                 |   |   |   |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| EX-31.2                       |                                                                                                                                                                                 |   |   |   |   |
|                          |                                                                                                                                                                                 |   |   |   |   |
| EX-32                         |                                                                                                                                                                                 |   |   |   |   |

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| Item 1.   | Financial Statements |
|--------------------------|----------------------|

| SHEARSON AMERICAN REIT, INC.  |
|-------------------------------|
| (Formerly Known As PSA, INC.) |
| (A Development Stage Company) |
| BALANCE SHEETS                |

|                                                                                                  |   | June 30,    |        |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|--------------|--------|
|                                                                                                  |   | 2012        |        |   | 2011         |   |
|                                                                                                  |   | (Unaudited) |        |   |         |   |
| ASSETS                                                                                                |
| Current Assets                                                                                        |   |        |        |   |         |   |
| Total current assets                                                                                  |   | $           | -           |   |         | $      | - |   |
|     Total Assets                                                                  |   | $           | -           |   |         | $      | - |   |
|                                                                                                  |   |        |        |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                        |
| Current Liabilities:                                                                                  |   |        |        |   |         |   |   |   |
| Accounts Payable                                                                                      |   | $           | 29,098      |   |         | $      | 27,598 |   |
| Loans payable                                                                                         |   |        | 108,580     |   |         |   | 102,768 |   |
| Accrued Liabilities                                                                                   |   |        | 265,823     |   |         |   | 253,165 |   |
|     Total Liabilities                                                             |   |        | 403,501     |   |         |   | 383,531 |   |
|                                                                                                  |   |        |        |   |         |   |   |   |
| Commitments and Contingencies                                                                         |   |        |        |   |         |   |   |   |
|                                                                                                  |   |        |        |   |         |   |   |   |
| Stockholders' Equity (Deficit)                                                                        |   |        |        |   |         |   |   |   |
| Common Stock-$.001 par value, 75,000,000                                                              |   |        |        |   |         |   |   |   |
|     shares authorized; 52,518,999 shares issued and 52,514,749 shares outstanding |   |        | 52,519      |   |         |   | 52,519 |   |
| Paid-in Capital                                                                                       |   |        | 25,445,953  |   |         |   | 25,442,953 |   |
| Retained deficit- Prior to Development Stage                                                          |   |        | (25,689,280 | )      |         |   | (25,689,280 | ) |
| Deficit accumulated during the development stage                                                      |   |        | (198,410    | )      |         |   | (175,440 | ) |
| Less Treasury Stock 4,250 shares, at cost                                                             |   |        | (14,283     | )      |         |   | (14,283 | ) |
|     Total Stockholders' Equity (Deficit)                                          |   |        | (403,501    | )      |         |   | (383,531 | ) |
|                                                                                                  |   |        |        |   |         |   |   |   |
|     Total Liabilities and Stockholders' Equity (Deficit)                          |   | $           | -           |   |         | $      | - |   |

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| SHEARSON AMERICAN REIT, INC.                                                 |
|------------------------------------------------------------------------------|
| (Formerly Known As PSA, INC.)                                                |
| (A Development Stage Company)                                                |
| STATEMENTS OF OPERATIONS                                                     |
| Three Months and Six Months Ended June 30, 2012 and 2011, and |
| Period From Inception (October 16, 2009) to June30, 2012                     |
| (Unaudited)                                                                  |

|                                     |   | Three Months Ended |       |   | Six Months Ended |   |       | Inception to |   |
|------------------------------------------|--------|--------------------|------------|--------|------------------|--------|------------|--------------|--------|
|                                     |   | June 30,           |       |   | June 30,         |   |       | June 30,     |   |   | June 30, |   |   | June 30, |   |
|                                     |   | 2012               |       |   | 2011             |   |       | 2012         |   |   | 2011 |   |   | 2012 |   |
|                                     |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |
| Revenue                                  |   | $                  | -          |   |             | $      | -          |         |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                     |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs:                         |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative               |   |               | 8,000      |   |             |   | (337       | )            |   |   | 9,500 |   |   |   | 2,589 |   |   |   | 140,632 |   |
|                                     |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                  |   |               | (8,000     | )      |             |   | 337        |         |   |   | (9,500 | ) |   |   | (2,589 | ) |   |   | (140,632 | ) |
|                                     |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Other expense:                           |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                 |   |               | (6,734     | )      |             |   | (6,260     | )            |   |   | (13,470 | ) |   |   | (12,520 | ) |   |   | (57,778 | ) |
|                                     |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                 |   |               | (14,734    | )      |             |   | (5,923     | )            |   |   | (22,970 | ) |   |   | (15,109 | ) |   |   | (198,410 | ) |
|                                     |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                             |   |               | -          |   |             |   | -          |         |   |   | - |   |   |   | - |   |   |   | - |   |
|                                     |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                 |   | $                  | (14,734    | )      |             | $      | (5,923     | )            |   | $ | (22,970 | ) |   | $ | (15,109 | ) |   | $ | (198,410 | ) |
|                                     |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Per share information: Basic and Diluted |   |               |       |   |             |   |       |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share                       |   | $                  | (0.00      | )      |             | $      | (0.00      | )            |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   |   |   |   |
| Weighted average shares outstanding      |   |               | 52,514,749 |   |             |   | 52,514,749 |         |   |   | 52,514,749 |   |   |   | 52,514,749 |   |   |   |   |   |

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| SHEARSON AMERICAN REIT, INC.                              |
|-----------------------------------------------------------|
| (Formerly Known As PSA, INC.)                             |
| (A Development Stage Company)                             |
| STATEMENTS OF CASH FLOWS                                  |
| Six Months Ended June 30, 2012 and 2011, and              |
| Period From Inception (October 16, 2009) to June 30, 2012 |
| (Unaudited)                                               |

|                                                     |   | Six Months Ended |   |   | Inception to |   |
|----------------------------------------------------------|--------|------------------|--------|--------|--------------|--------|
|                                                     |   | June 30,         |   |   | June 30,     |   |   | June 30, |   |
|                                                     |   | 2012             |   |   | 2011         |   |   | 2012 |   |
| Cash flows from operating activities:                    |   |             |   |   |         |   |   |   |   |
| Net cash provided by (used in) operating activities      |   | $                | -      |   |         | $      | 311 |   |   | $ | (37,751 | ) |
|                                                     |   |             |   |   |         |   |   |   |   |   |   |   |
| Cash flows from investing activities                     |   |             | -      |   |         |   | - |   |   |   | - |   |
|                                                     |   |             |   |   |         |   |   |   |   |   |   |   |
| Cash flows from financing activities                     |   |             |   |   |         |   |   |   |   |   |   |   |
| Proceeds from loans payable                              |   |             | -      |   |         |   | - |   |   |   | 74,600 |   |
| Bank overdraft                                           |   |             | -      |   |         |   | (311 | ) |   |   | - |   |
| Repayments of loans payable                              |   |             | -      |   |         |   | - |   |   |   | (36,849 | ) |
| Net cash provided by (used in) financing activities |   |             | -      |   |         |   | (311 | ) |   |   | 37,751 |   |
|                                                     |   |             |   |   |         |   |   |   |   |   |   |   |
| Net increase (decrease) in cash                          |   |             | -      |   |         |   | - |   |   |   | - |   |
| Cash beginning of period                                 |   |             | -      |   |         |   | - |   |   |   | - |   |
| Cash end of period                                       |   | $                | -      |   |         | $      | - |   |   | $ | - |   |
|                                                     |   |             |   |   |         |   |   |   |   |   |   |   |
| Cash paid for interest                                   |   | $                | -      |   |         | $      | - |   |   | $ | - |   |
| Cash paid for income taxes                               |   | $                | -      |   |         | $      | - |   |   | $ | - |   |

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| Litigation judgment                     |   | $      | 100,501 |   |
|-----------------------------------------|--------|--------|---------|--------|
| Accrued interest on litigation judgment |   |   | 165,322 |   |
| Total accrued liabilities               |   | $      | 265,823 |   |

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| Item 2.   | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|--------------------------|---------------------------------------------------------------------------------------------|

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| Item 3.   | Quantitative and Qualitative Disclosures about Market Risk |
|--------------------------|------------------------------------------------------------|

| Item 4.   | Controls and Procedures |
|--------------------------|-------------------------|

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| Item 1.   | Legal Proceedings |
|--------------------------|-------------------|

| Item 1A.   | Risk Factors |
|---------------------------|--------------|

| Item 2.   | Unregistered Sales of Equity Securities and Use of Proceeds |
|--------------------------|-------------------------------------------------------------|

| Item 3.   | Defaults Upon Senior Securities |
|--------------------------|---------------------------------|

| Item 4.   | Mine Safety Disclosures |
|--------------------------|-------------------------|

| Item 5.   | Other Information |
|--------------------------|-------------------|

| Item 6.   | Exhibits |
|--------------------------|----------|

| 31.1    | Certification of CEO as required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.2    | Certification of CFO as required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 32      | Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                   |
| 101.INS | XBRL Instance Document                                                                                                                                                                 |
| 101.SCH | XBRL Schema Document                                                                                                                                                                   |
| 101.CAL | XBRL Calculation Linkbase Document                                                                                                                                                     |
| 101.DEF | XBRL Definition Linkbase Document                                                                                                                                                      |
| 101.LAB | XBRL Label Linkbase Document                                                                                                                                                           |
| 101.PRE | XBRL Presentation Linkbase Document                                                                                                                                                    |

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|                         |   |   |                           |   |
|------------------------------|--------|--------|--------------------------------|--------|
| /s/ John D. Williams         |   |   | /s/ John D. Williams           |   |
| Name: John D. Williams       |   |   | Name: John D. Williams         |   |
| Title: Chairman of the Board |   |   | Title: Chief Financial Officer |   |

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