| [X] | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|-----|--------------------------------------------------------------------------------------|

|   | For the fiscal year ended December 31, 2010. |
|--------|----------------------------------------------|

|   | or |
|--------|----|

| [  ] | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|----------------|------------------------------------------------------------------------------------------|

|   | For the transition period from                  to              . |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Commission File Number:     0-8667 |
|--------|--------------------------------------------------------|

|   | PUBLIC STORAGE PROPERTIES, LTD. |
|--------|---------------------------------|

|   | (Exact name of Registrant as specified in its charter) |
|--------|--------------------------------------------------------|

| California                                                     | 95-3196921             |
|----------------------------------------------------------------|------------------------|
| (State or other jurisdiction of                                | (I.R.S. Employer       |
| incorporation or organization)                                 | Identification Number) |
|                                                           |                   |
| 701 Western Avenue, Glendale, California  91201-2349 |
| (Address of principal executive offices) (Zip Code)            |

|   | (818) 244-8080 |
|--------|----------------|

|   | (Registrant's telephone number, including area code) |
|--------|------------------------------------------------------|

|   | Securities registered pursuant to Section 12(b) of the Act: None |
|--------|------------------------------------------------------------------|

|   | Securities registered pursuant to Section 12(g) of the Act: |
|--------|-------------------------------------------------------------|

| Units of Limited Partnership Interest |
|---------------------------------------|
| (Title of class)                      |

| Yes [   ] | No  [X] |
|--------------------------|-------------------|

| Yes [   ] | No  [X] |
|--------------------------|-------------------|

| Yes [X] | No  [   ] |
|---------|------------------------------------|

| Yes [   ] | No  [   ] |
|--------------------------|------------------------------------|

----

| Large Accelerated Filer [   ] | Accelerated Filer [   ] | Non-accelerated Filer [X] | Smaller Reporting Company [   ] |
|----------------------------------------------|----------------------------------------|---------------------------|------------------------------------------------|

| Yes [   ] | No  [X] |
|--------------------------|-------------------|

----

| ●   | general risks associated with the ownership and operation of real estate including changes in demand, potential liability for environmental contamination, adverse changes in tax, including property tax, real estate and zoning laws and regulations, and the impact of natural disasters; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | risks associated with downturns in the local economies in the markets in which we operate, including risks related to current economic conditions and the economic health of our tenants; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | the impact of competition from new and existing self-storage and commercial and other storage alternatives; |
|---------------------|-------------------------------------------------------------------------------------------------------------|

| ●   | the impact of the regulatory environment as well as national, state, and local laws and regulations including, without limitation, those governing environmental, tax and tenant insurance matters, and risks related to the impact of new laws and regulations; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | disruptions or shutdowns of our automated processes and systems or breaches of our data security; and |
|---------------------|-------------------------------------------------------------------------------------------------------|

| ●   | economic uncertainty due to the impact of war or terrorism.  |
|---------------------|-------------------------------------------------------------------|

----

| ●   | Our investments consist of nine self-storage facilities located in the U.S.  See “Self-Storage Facilities” below and Item 2 “Properties” for further information.  These investments were acquired both for income and capital gains. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | There is no limitation on the amount or percentage of assets, which can be invested in any specific person. |
|---------------------|-------------------------------------------------------------------------------------------------------------|

----

| ·   | “PS” Brand Name Recognition: PS has informed the Partnership that it is the largest self-storage facility operator in the U.S. in terms of both number of facilities and rentable space operated.  Its storage operations within the U.S. are conducted in major markets in 38 states, giving PS national recognition and prominence.  Its facilities tend to be highly visible and located in heavily populated areas, improving the local awareness of the brand.  Because the Partnership’s facilities are marketed under the PS brand, the Partnership benefits from these brand advantages. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Economies of scale: The size and scope of PS’ operations have enabled the properties it manages to achieve high operating margins and a low level of administrative costs relative to revenues through the centralization of many functions with specialists, such as facility maintenance, employee compensation and benefits programs, pricing of our product, as well as the development and documentation of standardized operating procedures.  Its concentration in the Partnership’s markets also provides managerial efficiencies stemming from having a large number of facilities in close proximity to each other, and makes various promotional and media programs, such as yellow pages, Internet keyword bidding, and television advertising, more economical.  The Partnership shares in these efficiencies. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | National Telephone Reservation System:  PS operates a centralized telephone reservation system, which provides added customer service and helps to maximize utilization of available self-storage space, including the Partnership’s space.  Customers calling either the toll-free telephone referral system, (800) 44-STORE, or a storage facility, are directed to the national reservation system.  A representative discusses with the customer space requirements, price and location preferences and also informs the customer of other products and services provided by PS and its subsidiaries.  We believe that PS’ centralized telephone reservation system improves the marketing of the Partnership’s storage space by providing higher-quality selling efforts through dedicated sales specialists. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On-line reservation and marketing system: PS provides customers the ability to review space availability, pricing, and make reservations for its and the Partnership’s facilities online through its website, www.publicstorage.com.  PS invests extensively in advertising on the Internet, primarily through the use of search engines. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Systems and controls.  PS has an organizational structure and a property operation system which links its corporate office with each of its and the Partnership’s self-storage facilities.  This enables PS to obtain daily information from each facility and to achieve efficiencies in operations and maintain control over its space inventory, rental rates, promotional discounts and delinquencies, and to identify changing market conditions and operating trends as well as analyze customer data, and quickly change properties’ pricing and promotional mix on an automated basis.  Expense management is achieved through centralized payroll and accounts payable systems and a comprehensive property tax appeals department.  PS also has an extensive internal audit program designed to ensure adherence to specified policies and procedures, and thereby ensure proper handling of cash collections. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Professional property operations.  There are approximately 4,900 persons who render services for the PS system in the U.S., primarily personnel engaged in property operations, substantially all of whom are employed by a clearing company that provides certain administrative and cost-sharing services to PS and other owners of properties operated by PS. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | lack of demand for rental spaces or units in a locale; |
|--------------------|--------------------------------------------------------|

| ·   | changes in general economic or local conditions; |
|--------------------|--------------------------------------------------|

| ·   | natural disasters, such as earthquakes, hurricanes and floods; which could exceed the aggregate limits of our insurance coverage; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | potential terrorist attacks; |
|--------------------|------------------------------|

| ·   | changes in supply of or demand for similar or competing facilities in an area; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | the impact of environmental protection laws; |
|--------------------|----------------------------------------------|

| ·   | changes in interest rates and availability of permanent mortgage funds which may render the sale or financing of a nonstrategic property difficult or unattractive including the impact of the current turmoil in the credit markets; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increases in insurance premiums, property tax assessments and other operating and maintenance expenses; |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | adverse changes in tax, real estate and zoning laws and regulations; and |
|--------------------|--------------------------------------------------------------------------|

| ·   | tenant and employment-related claims. |
|--------------------|---------------------------------------|

----

----

----

----

|          Location |  Size of Parcel | NetRentable Area |   | Numberof Spaces |   | Dateof Purchase | CompletionDate |
|-----------------------------------------------------------|----------------------|------------------|--------|-----------------|--------|-----------------|----------------|
| California                                                |                 |             |   |            |   |            |           |
| Corona                                                    | 2.82 acres           | 52,000 sq. ft.   |   |            | 463    |            | June 29, 1978  | Dec. 1978 |
| Fremont                                                   | 3.00 acres           | 53,000 sq. ft.   |   |            | 456    |            | Mar. 21, 1978  | Nov. 1978 |
| Milpitas                                                  | 3.40 acres           | 39,000 sq. ft    |   |            | 419    |            | May 8, 1978    | Nov. 1978 |
| Norco                                                     | 1.66 acres           | 29,000 sq. ft    |   |            | 258    |            | July 19, 1978  | Dec. 1978 |
| North Hollywood                                           | 2.06 acres           | 38,000 sq. ft.   |   |            | 343    |            | Mar. 17, 1978  | Dec. 1979 |
| Pasadena                                                  | 1.84 acres           | 37,000 sq. ft.   |   |            | 386    |            | Feb. 24, 1978  | Aug. 1978 |
| Sun Valley                                                | 2.72 acres           | 53,000 sq. ft.   |   |            | 477    |            | May 30, 1978   | Oct. 1978 |
| Wilmington                                                | 6.32 acres           | 133,000 sq. ft.  |   |            | 1,087  |            | Apr. 18, 1978  | Aug. 1978 |
| Whittier - El Monte                                       | 3.28 acres           | 58,000 sq. ft.   |   |            | 536    |            | Nov. 29, 1977  | July 1978 |

----

|                                 |   | For the Year Ended December 31, |      |
|--------------------------------------|--------|---------------------------------|-----------|
|                                 |   | 2010                            |      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                             |   | $                               | 7,385,000 |   |   | $ | 7,505,000 |   |   | $ | 7,872,000 |   |   | $ | 7,524,000 |   |   | $ | 7,371,000 |   |
|                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                         |   |                            | 150,000   |   |   |   | 147,000 |   |   |   | 142,000 |   |   |   | 130,000 |   |   |   | 165,000 |   |
|                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                           |   |                            | 5,259,000 |   |   |   | 5,386,000 |   |   |   | 5,649,000 |   |   |   | 5,314,000 |   |   |   | 5,042,000 |   |
|                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Limited partners' share              |   |                            | 3,707,000 |   |   |   | 4,059,000 |   |   |   | 4,266,000 |   |   |   | 3,701,000 |   |   |   | 3,751,000 |   |
|                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General partners' share              |   |                            | 1,552,000 |   |   |   | 1,327,000 |   |   |   | 1,383,000 |   |   |   | 1,613,000 |   |   |   | 1,291,000 |   |
|                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Limited Partners' Per Unit Data (1): |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                           |   | $                               | 185.35    |   |   | $ | 202.95 |   |   | $ | 213.30 |   |   | $ | 185.05 |   |   | $ | 187.55 |   |
| Cash distributions                   |   | $                               | 225.00    |   |   | $ | 191.00 |   |   | $ | 199.00 |   |   | $ | 234.00 |   |   | $ | 186.00 |   |
|                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance Sheet Data:                  |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents            |   | $                               | 273,000   |   |   | $ | 422,000 |   |   | $ | 802,000 |   |   | $ | 559,000 |   |   | $ | 1,483,000 |   |
|                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                         |   | $                               | 3,504,000 |   |   | $ | 4,280,000 |   |   | $ | 4,089,000 |   |   | $ | 3,745,000 |   |   | $ | 4,720,000 |   |
|                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | Per Unit data is based on the weighted average number of the Units (20,000) outstanding during each period. |
|-----------------|-------------------------------------------------------------------------------------------------------------|

----

----

----

|                            |   | Year over Year Change for Partnership’s Properties |   |
|---------------------------------|--------|----------------------------------------------------------|--------|
|   Three Months Ended: |   | Rentalincome                                             |   |   | Rental incomeper occupiedsquare foot |   |   | Square foot occupancy |   |
|                            |   |                                                     |   |   |   |   |   |   |   |
| March 31, 2009                  |   |                                                     | (0.7   | )% |   |   | (1.0 | )% |   |   | 0.2 | % |
| June 30, 2009                   |   |                                                     | (3.4   | )% |   |   | (3.2 | )% |   |   | (0.2 | )% |
| September 30, 2009              |   |                                                     | (5.6   | )% |   |   | (3.4 | )% |   |   | (2.4 | )% |
| December 31, 2009               |   |                                                     | (6.9   | )% |   |   | (5.3 | )% |   |   | (1.8 | )% |
| For entire year: 2009           |   |                                                     | (4.2   | )% |   |   | (3.2 | )% |   |   | (1.0 | )% |
|                            |   |                                                     |   |   |   |   |   |   |   |   |   |   |
| March 31, 2010                  |   |                                                     | (4.4   | )% |   |   | (3.3 | )% |   |   | (1.2 | )% |
| June 30, 2010                   |   |                                                     | (1.6   | )% |   |   | (2.4 | )% |   |   | 0.8 | % |
| September 30, 2010              |   |                                                     | (1.0   | )% |   |   | (2.2 | )% |   |   | 1.1 | % |
| December 31, 2010               |   |                                                     | 0.0    | % |   |   | (1.4 | )% |   |   | 1.5 | % |
| For entire year: 2010           |   |                                                     | (1.8   | )% |   |   | (2.3 | )% |   |   | 0.4 | % |
|                            |   |                                                     |   |   |   |   |   |   |   |   |   |   |

----

----

----

| Name                    | Positions with PS                                                          |
|-------------------------|----------------------------------------------------------------------------|
| B. Wayne Hughes         | Chairman of the Board                                                      |
| Ronald L. Havner, Jr.   | Vice Chairman of the Board, Chief Executive Officer, President and Trustee |
| John Reyes              | Senior Vice President and Chief Financial Officer                          |
| David F. Doll           | Senior Vice President and President, Real Estate Group                     |
| Candace N. Krol         | Senior Vice President of Human Resources                                   |
| Steven M. Glick         | Senior Vice President and Chief Legal Officer                              |
| Dann V. Angeloff        | Trustee                                                                    |
| John T. Evans           | Trustee                                                                    |
| Tamara Hughes Gustavson | Trustee                                                                    |
| Uri P. Harkham          | Trustee                                                                    |
| B. Wayne Hughes, Jr.    | Trustee                                                                    |
| Avedick B. Poladian     | Trustee                                                                    |
| Gary E. Pruitt          | Trustee                                                                    |
| Ronald P. Spogli        | Trustee                                                                    |
| Daniel C. Staton        | Trustee                                                                    |

----

----

----

| ITEM 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
|----------|------------------------------------------------------------------------------------------------|

| (a)   | At March 25, 2011, the following beneficially owned more than 5% of the Units: |
|-----------------|--------------------------------------------------------------------------------|

| Titleof Class                         | Name and Addressof Beneficial Owner                                                              | BeneficialOwnership   |   | Percentof Class |   |
|---------------------------------------|--------------------------------------------------------------------------------------------------|-----------------------|--------|-----------------|--------|
| Units of Limited Partnership Interest | Public Storage701 Western Ave.Glendale, California 91201                                         | 6,274 Units (1)  |   |            | 31.4%  |   |
|                                  |                                                                                             |                  |   |            |   |   |
| Units of Limited Partnership Interest | H-G Family Corporation, PS Orangeco Partnerships, Inc.701 Western Ave.Glendale, California 91201 | 6,196 Units (2)       |   |            | 31.0%  |   |

| 1)   | Includes (i) 6,169 Units owned by PS as to which PS has sole voting and dispositive power, (ii) 80 Units which, on January 1, 2009, PS exercised its option to acquire from Tamara Hughes Gustavson, an adult daughter of Hughes and (iii) 25 Units which on January 1, 2009, PS exercised its option to acquire from H-G Family Corporation, a corporation of which Hughes’ children are shareholders. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | Includes (i) 6,000 Units owned by BWH Marina Corporation II, a corporation wholly-owned by Hughes, as to which Hughes has sole voting and dispositive power and (ii) 196 Units owned by PS Orangeco Partnerships, Inc., a corporation in which Hughes and members of his family own approximately 48% of the voting stock, PS owns 46% and members of PS’s management and related individuals own approximately 6%. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The Partnership has no officers and directors. |
|-----|------------------------------------------------|

----

----

| (a)   | List of documents filed as part of this Report. |
|-----------------|-------------------------------------------------|

| 1.   | Financial Statements.  See Index to Financial Statements and Financial Statement Schedule. |
|----------------|------------------------------------------------------------------------------------------------------|

| 2.   | Financial Statement Schedules.  See Index to Financial Statements and Financial Statement Schedule. |
|----------------|---------------------------------------------------------------------------------------------------------------|

| 3.   | Exhibits: See Exhibit Index contained below. |
|----------------|----------------------------------------------|

| (b)   | Exhibits:  See Exhibit Index contained below. |
|-----------------|---------------------------------------------------------|

| (c)   | Not applicable. |
|-----------------|-----------------|

----

| 3.1  | Amended Certificate and Agreement of Limited Partnership.  Previously filed with the Securities and Exchange Commission as Exhibit A to the Partnership’s Prospectus included in Registration Statement No. 2-57750 and incorporated herein by reference.                                                                         |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1 | Second Amended and Restated Management Agreement dated November 16, 1995 between the Partnership and Public Storage, Inc.  Previously filed with the Securities and Exchange Commission as an exhibit to the Partnership’s Annual Report on Form 10-K for the year ended December 31, 1996 and incorporated herein by reference.  |
| 14   | Code of Ethics for Senior Financial Officers of Public Storage.  Filed with the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2003 and incorporated herein by reference.                                                                                                                               |
| 31.1 | Rule 13a – 14(a) Certification.  Filed herewith.                                                                                                                                                                                                                                                                                  |
| 31.2 | Rule 13a – 14(a) Certification.  Filed herewith.                                                                                                                                                                                                                                                                                  |
| 32   | Section 1350 Certifications.  Filed herewith.                                                                                                                                                                                                                                                                                           |

----

|                                                     | PUBLIC STORAGE PROPERTIES, LTD.  |
|----------------------------------------------------------|----------------------------------|
|                                                     | a California Limited Partnership |
|     Dated:  March 25, 2011 | By:                              | Public Storage, General Partner |
|                                                     |                             |   |
|                                                     |                             | By: | /s/ Ronald L. Havner, Jr. |
|                                                     |                             |   | Ronald L. Havner, Jr., Vice Chairman of the Board, Chief Executive Officer and President of Public Storage, Corporate General Partner |
|                                                     |                             |   |
|                                                     | By:                              | /s/ B. Wayne Hughes |
|                                                     |                             | B. Wayne Hughes, General Partner and Chairman of the Board of Public Storage |

----

| Signature                                                                                                                                                                                                                                                                                                                                                       | Capacity                                                                                                                           | Date                       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|----------------------------|
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
|   /s/ Ronald L. Havner Jr.                                                                            | Vice Chairman of the Board, Chief Executive Officer and President of Public Storage, Corporate General Partner                     |   March 25, 2011 |
| Ronald L. Havner, Jr.                                                                                                                                                                                                                                                                                                                                           |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
|  /s/ B. Wayne Hughes                                                                                       | General Partner and Chairman of the Board of Public Storage                                                                        |  March 25, 2011       |
| B. Wayne Hughes                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
|   /s/ John Reyes                                                                                      | Senior Vice President and Chief Financial Officer of Public Storage (principal financial officer and principal accounting officer) |   March 25, 2011 |
| John Reyes                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
| /s/ Dann V. Angeloff                                                                                            | Trustee of Public Storage                                                                                                          | March 25, 2011             |
| Dann V. Angeloff                                                                                                                                                                                                                                                                                                                                                |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
| /s/ John T. Evans                                                                                               | Trustee of Public Storage                                                                                                          | March 25, 2011             |
| John T. Evans                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
| /s/ Tamara Hughes Gustavson                                                       | Trustee of Public Storage                                                                                                          | March 25, 2011             |
| Tamara Hughes Gustavson                                                                                                                                                                                                                                                                                                                                         |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
| /s/ Uri P. Harkham                                                                                              | Trustee of Public Storage                                                                                                          | March 25, 2011             |
| Uri P. Harkham                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
| /s/ B. Wayne Hughes, Jr.                                                                                        | Trustee of Public Storage                                                                                                          | March 25, 2011             |
| B. Wayne Hughes, Jr.                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
| /s/ Avedick B. Poladian                                                                                         | Trustee of Public Storage                                                                                                          | March 25, 2011             |
| Avedick B. Poladian                                                                                                                                                                                                                                                                                                                                             |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
| /s/ Gary E. Pruitt                                                                                              | Trustee of Public Storage                                                                                                          | March 25, 2011             |
| Gary E. Pruitt                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
| /s/ Ronald P. Spogli                                                                                            | Trustee of Public Storage                                                                                                          | March 25, 2011             |
| Ronald P. Spogli                                                                                                                                                                                                                                                                                                                                                |                                                                                                                               |                       |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                               |                       |
| /s/ Daniel C. Staton                                                                                            | Trustee of Public Storage                                                                                                          | March 25, 2011             |
| Daniel C. Staton                                                                                                                                                                                                                                                                                                                                                |                                                                                                                               |                       |

----

|                                                                      | PageReferences  |
|---------------------------------------------------------------------------|----------------------|
| Report of Independent Registered Public Accounting Firm                   | F-1             |
| Balance sheets as of December 31, 2010 and 2009                           | F-2             |
| For each of the three years ended December 31, 2010, 2009 and 2008:  |                 |
| Statements of income                                                      | F-3             |
| Statements of partners' equity                                            | F-4             |
| Statements of cash flows                                                  | F-5             |
| Notes to financial statements                                             | F-6 - F-10      |
| Schedule:                                                            |                 |
| III - Real estate and accumulated depreciation                            | F-11 - F-12          |

----

----

|                                                                                                                               |   | December 31,2010 |       |   | December 31,2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|--------|------------------|--------|
|                                                                                                                               |   |             |       |   |             |   |
| ASSETS                                                                                                                             |   |             |       |   |             |   |
|                                                                                                                               |   |             |       |   |             |   |
|                                                                                                                               |   |             |       |   |             |   |
| Cash and cash equivalents                                                                                                          |   | $                | 273,000    |   |             | $      | 422,000 |   |
| Rent and other receivables                                                                                                         |   |             | 50,000     |   |             |   | 68,000 |   |
| Due from affiliates                                                                                                                |   |             | -          |   |             |   | 559,000 |   |
|                                                                                                                               |   |             |       |   |             |   |   |   |
| Real estate facilities, at cost:                                                                                                   |   |             |       |   |             |   |   |   |
| Buildings, land improvements and equipment                                                                                         |   |             | 10,397,000 |   |             |   | 10,296,000 |   |
| Land                                                                                                                               |   |             | 2,476,000  |   |             |   | 2,476,000 |   |
|                                                                                                                               |   |             | 12,873,000 |   |             |   | 12,772,000 |   |
| Less accumulated depreciation                                                                                                      |   |             | (9,738,000 | )      |             |   | (9,588,000 | ) |
|                                                                                                                               |   |             | 3,135,000  |   |             |   | 3,184,000 |   |
|                                                                                                                               |   |             |       |   |             |   |   |   |
| Other assets                                                                                                                       |   |             | 46,000     |   |             |   | 47,000 |   |
|                                                                                                                               |   |             |       |   |             |   |   |   |
| Total assets                                                                                                                       |   | $                | 3,504,000  |   |             | $      | 4,280,000 |   |
|                                                                                                                               |   |             |       |   |             |   |   |   |
|                                                                                                                               |   |             |       |   |             |   |   |   |
| LIABILITIES AND PARTNERS’ EQUITY                                                                                             |   |             |       |   |             |   |   |   |
|                                                                                                                               |   |             |       |   |             |   |   |   |
| Accounts payable and accrued liabilities                                                                                           |   | $                | 134,000    |   |             | $      | 111,000 |   |
| Deferred revenue                                                                                                                   |   |             | 168,000    |   |             |   | 165,000 |   |
| Total liabilities                                                                                                                  |   |             | 302,000    |   |             |   | 276,000 |   |
|                                                                                                                               |   |             |       |   |             |   |   |   |
| Commitments and contingencies (Note 8)                                                                                             |   |             |       |   |             |   |   |   |
|                                                                                                                               |   |             |       |   |             |   |   |   |
| Partners’ equity:                                                                                                            |   |             |       |   |             |   |   |   |
| Limited partners’ equity, $500 per unit, 20,000 units       authorized, issued and outstanding |   |             | 2,377,000  |   |             |   | 2,973,000 |   |
| General partners’ equity                                                                                                     |   |             | 825,000    |   |             |   | 1,031,000 |   |
|                                                                                                                               |   |             |       |   |             |   |   |   |
| Total partners’ equity                                                                                                       |   |             | 3,202,000  |   |             |   | 4,004,000 |   |
|                                                                                                                               |   |             |       |   |             |   |   |   |
| Total liabilities and partners’ equity                                                                                       |   | $                | 3,504,000  |   |             | $      | 4,280,000 |   |

----

|                                                                            |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|---------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                                            |   |   |      |   |   |   |      |   |   |
| REVENUES:                                                                       |   |   |      |   |   |   |      |   |   |
|                                                                            |   |   |      |   |   |   |      |   |   |
| Rental income                                                                   |   | $      | 7,172,000 |   |   | $      | 7,302,000 |   |   | $ | 7,621,000 |   |
| Other income                                                                    |   |   | 213,000   |   |   |   | 203,000   |   |   |   | 251,000 |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
|                                                                            |   |   | 7,385,000 |   |   |   | 7,505,000 |   |   |   | 7,872,000 |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
| COSTS AND EXPENSES:                                                             |   |   |      |   |   |   |      |   |   |   |   |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
| Cost of operations                                                              |   |   | 1,460,000 |   |   |   | 1,449,000 |   |   |   | 1,526,000 |   |
| Management fees paid to affiliate                                               |   |   | 430,000   |   |   |   | 438,000   |   |   |   | 457,000 |   |
| Depreciation                                                                    |   |   | 150,000   |   |   |   | 147,000   |   |   |   | 142,000 |   |
| General and administrative                                                      |   |   | 86,000    |   |   |   | 85,000    |   |   |   | 98,000 |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
|                                                                            |   |   | 2,126,000 |   |   |   | 2,119,000 |   |   |   | 2,223,000 |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
| NET INCOME                                                                      |   | $      | 5,259,000 |   |   | $      | 5,386,000 |   |   | $ | 5,649,000 |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
| Allocation of Net Income:                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Limited partners’ share of net income                                     |   | $      | 3,707,000 |   |   | $      | 4,059,000 |   |   | $ | 4,266,000 |   |
| General partners’ share of net income                                     |   |   | 1,552,000 |   |   |   | 1,327,000 |   |   |   | 1,383,000 |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
|                                                                            |   | $      | 5,259,000 |   |   | $      | 5,386,000 |   |   | $ | 5,649,000 |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
| Limited partners’ share of net income per unit (20,000 units outstanding) |   | $      | 185.35    |   |   | $      | 202.95    |   |   | $ | 213.30 |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
|                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |

----

|                         |   |   Limited Partners |       |   |   General Partners |   |       |  Total Partners’ Equity |   |
|------------------------------|--------|------------------------------|------------|--------|------------------------------|--------|------------|------------------------------------|--------|
|                         |   |                         |       |   |                         |   |       |                               |   |
|                         |   |                         |       |   |                         |   |       |                               |   |
| Balance at December 31, 2007 |   | $                            | 2,579,000  |   |                         | $      | 895,000    |                               |   | $ | 3,474,000 |   |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Net income                   |   |                         | 4,266,000  |   |                         |   | 1,383,000  |                               |   |   | 5,649,000 |   |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Cash distributions           |   |                         | (3,980,000 | )      |                         |   | (1,380,000 | )                                  |   |   | (5,360,000 | ) |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Equity transfer              |   |                         | (71,000    | )      |                         |   | 71,000     |                               |   |   | - |   |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Balance at December 31, 2008 |   |                         | 2,794,000  |   |                         |   | 969,000    |                               |   |   | 3,763,000 |   |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Net income                   |   |                         | 4,059,000  |   |                         |   | 1,327,000  |                               |   |   | 5,386,000 |   |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Cash distributions           |   |                         | (3,820,000 | )      |                         |   | (1,325,000 | )                                  |   |   | (5,145,000 | ) |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Equity transfer              |   |                         | (60,000    | )      |                         |   | 60,000     |                               |   |   | - |   |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Balance at December 31, 2009 |   |                         | 2,973,000  |   |                         |   | 1,031,000  |                               |   |   | 4,004,000 |   |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Net income                   |   |                         | 3,707,000  |   |                         |   | 1,552,000  |                               |   |   | 5,259,000 |   |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Cash distributions           |   |                         | (4,500,000 | )      |                         |   | (1,561,000 | )                                  |   |   | (6,061,000 | ) |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Equity transfer              |   |                         | 197,000    |   |                         |   | (197,000   | )                                  |   |   | - |   |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |
| Balance at December 31, 2010 |   | $                            | 2,377,000  |   |                         | $      | 825,000    |                               |   | $ | 3,202,000 |   |
|                         |   |                         |       |   |                         |   |       |                               |   |   |   |   |

----

|                                                                              |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|-----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Cash flows from operating activities:                                             |   |   |       |   |   |   |       |   |   |
|                                                                              |   |   |       |   |   |   |       |   |   |
| Net income                                                                        |   | $      | 5,259,000  |   |   | $      | 5,386,000  |   |   | $ | 5,649,000 |   |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Depreciation                                                                      |   |   | 150,000    |   |   |   | 147,000    |   |   |   | 142,000 |   |
| Decrease (increase) in rent and other receivables                                 |   |   | 18,000     |   |   |   | (8,000     | )      |   |   | (7,000 | ) |
| Decrease (increase) in due from affiliates                                        |   |   | 559,000    |   |   |   | (559,000   | )      |   |   | - |   |
| Decrease in other assets                                                          |   |   | 1,000      |   |   |   | 20,000     |   |   |   | 11,000 |   |
| Increase (decrease) in accounts payable and accrued liabilities                   |   |   | 23,000     |   |   |   | (25,000    | )      |   |   | 48,000 |   |
| Increase (decrease) in deferred revenue                                           |   |   | 3,000      |   |   |   | (25,000    | )      |   |   | 7,000 |   |
| Total adjustments                                                                 |   |   | 754,000    |   |   |   | (450,000   | )      |   |   | 201,000 |   |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Net cash provided by operating activities                                         |   |   | 6,013,000  |   |   |   | 4,936,000  |   |   |   | 5,850,000 |   |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash flows from investing activities:                                             |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Additions to real estate facilities                                               |   |   | (101,000   | )      |   |   | (171,000   | )      |   |   | (247,000 | ) |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Net cash used in investing activities                                             |   |   | (101,000   | )      |   |   | (171,000   | )      |   |   | (247,000 | ) |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash flows from financing activities:                                             |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Distributions paid to partners                                                    |   |   | (6,061,000 | )      |   |   | (5,145,000 | )      |   |   | (5,360,000 | ) |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Net cash used in financing activities                                             |   |   | (6,061,000 | )      |   |   | (5,145,000 | )      |   |   | (5,360,000 | ) |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                              |   |   | (149,000   | )      |   |   | (380,000   | )      |   |   | 243,000 |   |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash and cash equivalents at the beginning of the year                            |   |   | 422,000    |   |   |   | 802,000    |   |   |   | 559,000 |   |
|                                                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash and cash equivalents at the end of the year                                  |   | $      | 273,000    |   |   | $      | 422,000    |   |   | $ | 802,000 |   |

----

| 1.   | Description of Partnership |
|----------------|----------------------------|

| 2.   | Summary of Significant Accounting Policies and Partnership Matters |
|----------------|--------------------------------------------------------------------|

----

----

| 3.   |  Cash Distributions |
|----------------|--------------------------|

| 4.   | Partners' Equity |
|----------------|------------------|

| 5.   | Related Party Transactions |
|----------------|----------------------------|

----

|                                                |   | 2010                  |   |   | 2009   |
|-----------------------------------------------------|--------|-----------------------|--------|--------|--------|
|                                                |   | (Amount in thousands) |
| For the year ended December 31,                     |   |                  |   |
| Net investment income                               |   | $                     | 379    |   |   | $ | 332 |   |
| Loss and loss adjustment (expense) benefit          |   |                  | (580   | )      |   |   | 444 |   |
| Other expenses                                      |   |                  | (156   | )      |   |   | (199 | ) |
| Net (loss) income                                   |   | $                     | (357   | )      |   | $ | 577 |   |
|                                                |   |                  |   |   |   |   |   |   |
| At December 31,                                     |   |                  |   |   |   |   |   |   |
| Total assets (primarily cash and other investments) |   | $                     | 21,506 |   |   | $ | 20,367 |   |
| Liabilities for losses and loss adjustment expenses |   |                  | 3,141  |   |   |   | 4,065 |   |
| Other liabilities                                   |   |                  | 2,867  |   |   |   | 1,613 |   |
| Member’s surplus                              |   |                  | 15,498 |   |   |   | 14,689 |   |
|                                                |   |                  |   |   |   |   |   |   |

----

| 6.   | Taxes Based on Income |
|----------------|-----------------------|

| 7.   | Supplementary Quarterly Financial Data (unaudited) |
|----------------|----------------------------------------------------|

|                                                            |   | Three Months Ended |      |
|-----------------------------------------------------------------|--------|--------------------|-----------|
|                                                            |   | March 31, 2010     |      |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |
| Rental Income                                                   |   | $                  | 1,776,000 |   |   | $ | 1,811,000 |   |   | $ | 1,801,000 |   |   | $ | 1,784,000 |   |
| Cost of Operations (including management fees and depreciation) |   | $                  | 534,000   |   |   | $ | 535,000 |   |   | $ | 504,000 |   |   | $ | 467,000 |   |
| Net Income                                                      |   | $                  | 1,261,000 |   |   | $ | 1,298,000 |   |   | $ | 1,341,000 |   |   | $ | 1,359,000 |   |
| Net Income Per Limited Partner Unit                             |   | $                  | 38.40     |   |   | $ | 49.90 |   |   | $ | 49.05 |   |   | $ | 48.00 |   |
| Cash Distributions                                              |   | $                  | 1,939,000 |   |   | $ | 1,159,000 |   |   | $ | 1,400,000 |   |   | $ | 1,563,000 |   |
|                                                            |   |               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   | Three Months Ended |      |
|                                                            |   | March 31, 2009     |      |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |
| Rental Income                                                   |   | $                  | 1,858,000 |   |   | $ | 1,840,000 |   |   | $ | 1,820,000 |   |   | $ | 1,784,000 |   |
| Cost of Operations (including management fees and depreciation) |   | $                  | 540,000   |   |   | $ | 515,000 |   |   | $ | 503,000 |   |   | $ | 476,000 |   |
| Net Income                                                      |   | $                  | 1,340,000 |   |   | $ | 1,331,000 |   |   | $ | 1,376,000 |   |   | $ | 1,339,000 |   |
| Net Income Per Limited Partner Unit                             |   | $                  | 49.00     |   |   | $ | 50.55 |   |   | $ | 51.75 |   |   | $ | 51.65 |   |
| Cash Distributions                                              |   | $                  | 1,401,000 |   |   | $ | 1,239,000 |   |   | $ | 1,320,000 |   |   | $ | 1,185,000 |   |

| 8.   | Commitments and Contingencies |
|----------------|-------------------------------|

----

|                          |   | Initial Cost     |      |   |                    |   |      | Gross Carrying Amountat December 31, 2010      |   |   |             |   |   |                    |      |
|-------------------------------|--------|------------------|-----------|--------|-------------------------|--------|-----------|------------------------------------------------|--------|--------|------------------|--------|--------|-------------------------|-----------|
|    Description |   |   Land |      |   | Buildings&Equipment |   |      | Costs Subsequent to Construction(Improvements) |   |   |   Land |   |   | Buildings&Equipment |      |   |   Total |   |   |  AccumulatedDepreciation |   |   |  DateCompleted |   |
|                          |   |             |      |   |                    |   |      |                                           |   |   |             |   |   |                    |      |   |   |   |   |   |   |   |   |   |
| California                    |   |             |      |   |                    |   |      |                                           |   |   |             |   |   |                    |      |   |   |   |   |   |   |   |   |   |
|                          |   |             |      |   |                    |   |      |                                           |   |   |             |   |   |                    |      |   |   |   |   |   |   |   |   |   |
| Pasadena                      |   | $                | 327,000   |   |                    | $      | 515,000   |                                           |   | $      | 350,000          |   |   | $                       | 327,000   |   |   | $ | 865,000 |   |   | $ | 1,192,000 |   |   | $ | 816,000 |   |   |   | 08/78 |   |
| Whittier - El Monte           |   |             | 166,000   |   |                    |   | 763,000   |                                           |   |   | 438,000          |   |   |                    | 134,000   |   |   |   | 1,233,000 |   |   |   | 1,367,000 |   |   |   | 1,203,000 |   |   |   | 07/78 |   |
| Fremont                       |   |             | 112,000   |   |                    |   | 741,000   |                                           |   |   | 552,000          |   |   |                    | 112,000   |   |   |   | 1,293,000 |   |   |   | 1,405,000 |   |   |   | 1,187,000 |   |   |   | 11/78 |   |
| Milpitas                      |   |             | 198,000   |   |                    |   | 649,000   |                                           |   |   | 415,000          |   |   |                    | 195,000   |   |   |   | 1,068,000 |   |   |   | 1,263,000 |   |   |   | 958,000 |   |   |   | 11/78 |   |
| Wilmington                    |   |             | 815,000   |   |                    |   | 1,336,000 |                                           |   |   | 799,000          |   |   |                    | 815,000   |   |   |   | 2,134,000 |   |   |   | 2,949,000 |   |   |   | 2,023,000 |   |   |   | 08/78 |   |
| Sun Valley                    |   |             | 329,000   |   |                    |   | 611,000   |                                           |   |   | 390,000          |   |   |                    | 329,000   |   |   |   | 1,001,000 |   |   |   | 1,330,000 |   |   |   | 955,000 |   |   |   | 10/78 |   |
| Corona                        |   |             | 155,000   |   |                    |   | 757,000   |                                           |   |   | 407,000          |   |   |                    | 155,000   |   |   |   | 1,164,000 |   |   |   | 1,319,000 |   |   |   | 1,070,000 |   |   |   | 12/78 |   |
| Norco                         |   |             | 95,000    |   |                    |   | 456,000   |                                           |   |   | 257,000          |   |   |                    | 95,000    |   |   |   | 713,000 |   |   |   | 808,000 |   |   |   | 649,000 |   |   |   | 12/78 |   |
| North Hollywood               |   |             | 314,000   |   |                    |   | 553,000   |                                           |   |   | 373,000          |   |   |                    | 314,000   |   |   |   | 926,000 |   |   |   | 1,240,000 |   |   |   | 877,000 |   |   |   | 12/79 |   |
|                          |   |             |      |   |                    |   |      |                                           |   |   |             |   |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   | $                | 2,511,000 |   |                    | $      | 6,381,000 |                                           |   | $      | 3,981,000        |   |   | $                       | 2,476,000 |   |   | $ | 10,397,000 |   |   | $ | 12,873,000 |   |   | $ | 9,738,000 |   |   |   |   |   |

----

| COST RECONCILIATION                     |   |   |
|-----------------------------------------|--------|--------|
|                                    |   |   |   |   |   |
|                                    |   | 2010   |   |   | 2009 |
|                                    |   |   |   |   |   |
| Balance at the beginning of the year    |   | $      | 12,772,000 |   |   | $ | 12,601,000 |   |
|                                    |   |   |   |   |   |   |   |   |   |
| Additions during the year: Improvements |   |   | 101,000 |   |   |   | 171,000 |   |
|                                    |   |   |   |   |   |   |   |   |   |
| Balance at the end of the year          |   | $      | 12,873,000 |   |   | $ | 12,772,000 |   |
|                                    |   |   |   |   |   |   |   |   |   |
|                                    |   |   |   |   |   |   |   |   |   |
| ACCUMULATED DEPRECIATION RECONCILIATION |   |   |
|                                    |   |   |   |   |   |   |   |   |   |
|                                    |   |   | 2010 |   |   |   | 2009 |   |
|                                    |   |   |   |   |   |   |   |   |   |
| Balance at the beginning of the year    |   | $      | 9,588,000 |   |   | $ | 9,441,000 |   |
|                                    |   |   |   |   |   |   |   |   |   |
| Depreciation expense                    |   |   | 150,000 |   |   |   | 147,000 |   |
|                                    |   |   |   |   |   |   |   |   |   |
| Balance at the end of the year          |   | $      | 9,738,000 |   |   | $ | 9,588,000 |   |

|   | (a) | The aggregate depreciable cost prior to depreciation of real estate (excluding land) for federal income tax purposes is $9,280,000 (unaudited). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|