FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549



               x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1998


                         Commission file number: 0-24071


                     Sovran Acquisition Limited Partnership
             (Exact name of Registrant as specified in its charter)

                               Delaware 16-1481551
                (State or other jurisdiction of (I.R.S. Employer
               incorporation or organization) Identification No.)

                                5166 Main Street
                          Williamsville, New York 14221
               (Address of principal executive offices) (Zip code)

                                 (716) 633 1850
               (Registrant's telephone number including area code)


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



<PAGE>





Part I. Financial Information

Item 1. Financial Statements
<TABLE>

                             SOVRAN ACQUISITION LIMITED PARTNERSHIP
                                         BALANCE SHEETS
<CAPTION>

                                                    September 30,   December 31,
                                                        1998           1997
(dollars in thousands)                              (unaudited)
-------------------------------------------------------------------------------
<S>                                                  <C>           <C>

Assets
  Investment in storage facilities:
     Land                                            $    100,801  $     71,391   
     Building and equipment                               388,800       261,645
                                                     ------------  ------------
                                                          489,601       333,036
     Less: accumulated depreciation                       (18,559)      (11,639)
                                                     ------------  ------------
  Investments in storage facilities, net                  471,042       321,397
  Cash and cash equivalents                                 6,112         2,567
  Accounts receivable                                       1,302           834
  Prepaid expenses and other assets                         3,135         2,275
                                                     ------------   -----------
  Total Assets                                       $    481,591   $   327,073
                                                     ============   ===========
                                                    
                                                       
Liabilities
  Line of credit and term note                       $   176,500    $    36,000
  Accounts payable and accrued liabilities                 4,640          1,950
  Deferred revenue                                         2,882          1,994
  Accrued distributions                                    7,356          6,816
  Mortgage payable                                         3,059          3,559
                                                     -----------    -----------           
  Total Liabilities                                      194,437         50,319

  Limited partners' capital interest
   (863,037 and 443,609 units, respectively),
   at redemption value                                    22,655         14,454

Partners' Capital
  General partner                                          5,144          5,257
  Limited partner                                        259,355        257,043
                                                     -----------    -----------
  Total Partners' Capital                                264,499        262,300
                                                     -----------    -----------

  Total Liabilities and Partners' Capital            $   481,591    $   327,073
                                                     ===========    ===========
                                                                  
                                                             
See notes to financial statements.

</TABLE>










<PAGE>

<TABLE>

              SOVRAN ACQUISITION LIMITED PARTNERSHIP
                   STATEMENTS OF OPERATIONS
                        (unaudited)

<CAPTION>

                                         July 1, 1998            July 1, 1997
(dollars in thousands,                        to                      to
 except unit data)                   September 30, 1998       September 30, 1997
-------------------------------------------------------------------------------
<S>                                        <C>                     <C> 

Revenues:
  Rental income                            $     18,876            $     13,161
  Interest and other income                         231                     159
                                           ------------            ------------
     Total revenues                              19,107                  13,320

Expenses:
  Property operations and maintenance             3,905                   2,571
  Real estate taxes                               1,481                   1,056
  General and administrative                      1,173                     697
  Interest                                        3,080                     592
  Depreciation and amortization                   2,830                   1,845
                                           ------------             -----------
      Total expenses                             12,469                   6,761
                                           ------------             -----------

Net Income                                 $      6,638             $     6,559
                                           ============             ===========                                          

Earnings per unit - basic                  $       0.51             $      0.52
                                           ============             ===========              
Earnings per unit - diluted                $       0.50             $      0.52
                                           ============             ===========

Units used in basic earnings
  per unit calculation                       13,136,572              12,606,779

Distributions declared per unit            $       0.56             $      0.54              
                                           ============             ===========


See notes to financial statements.

</TABLE>





<PAGE>

<TABLE>


                                   SOVRAN ACQUISITION LIMITED PARTNERSHIP
                                          STATEMENTS OF OPERATIONS
                                               (unaudited)
<CAPTION>

                                          January 1, 1998      January 1, 1997
(dollars in thousands,                           to                   to
 except unit data)                       September 30, 1998   September 30, 1997
-------------------------------------------------------------------------------
<S>                                         <C>                     <C> 

Revenues:
  Rental income                             $    49,223             $    35,464
  Interest and other income                         701                     527
                                            -----------             -----------
     Total revenues                              49,924                  35,991

Expenses:
  Property operations and maintenance             9,888                   6,979
  Real estate taxes                               3,979                   2,832
  General and administrative                      3,120                   2,027
  Interest                                        6,448                   1,410
  Depreciation and amortization                   7,377                   5,061
                                            -----------             -----------
     Total expenses                              30,812                  18,309
                                            -----------             -----------
Income before extraordinary item                 19,112                  17,682

Extraordinary loss on extinguishment of debt       (350)                      -
                                            -----------             -----------

Net Income                                  $    18,762             $    17,682
                                            ===========             ===========
                                                                           
                                                                       
Earnings per unit before
   extraordinary item - basic               $      1.48             $      1.49
Extraordinary item                                (0.02)                      -
                                            -----------             -----------
Earnings per unit - basic                   $      1.46             $      1.49
                                            ===========             ===========
Earnings per unit - diluted                 $      1.45             $      1.48
                                            ===========             ===========
                                                                                           

Units used in basic
    earnings per unit calculation            12,881,773              11,904,659

Distributions declared per unit              $     1.64              $     1.58
                                             ==========              ==========
                                                                            


See notes to financial statements.

</TABLE>
<PAGE>







<TABLE>


                     SOVRAN ACQUISITION LIMITED PARTNERSHIP
                            STATEMENTS OF CASH FLOWS
                                  (unaudited)


<CAPTION>

                                      January 1, 1998          January 1, 1997
                                             to                      to
(dollars in thousands)               September 30, 1998      September 30, 1997
-------------------------------------------------------------------------------
<S>                                         <C>                     <C> 
 
Operating Activities
Net income                                  $    18,762             $    17,682
Adjustments to reconcile net income
  to net cash provided by operating
  activities:
  Extraordinary loss                                350                       -
  Depreciation and amortization                   7,377                   5,061
  Restricted stock earned                             5                      10
  Changes in assets and liabilities:
     Accounts receivable                           (409)                   (289)
     Prepaid expenses and other assets             (659)                     17
     Accounts payable and other
      liabilities                                 2,695                   3,325
     Deferred revenue                                67                     693
                                             ----------             -----------
Net cash provided by operating
 activities                                      28,188                  26,499
                                             ----------             -----------

Investing Activities
  Additions to storage facilities              (140,924)                (92,386)
  Additions to other assets                        (866)                    (10)
                                             ----------             -----------
Net cash used in investing activities          (141,790)                (92,396)
                                             ----------             -----------

Financing Activities
  Net proceeds from sale of common stock              -                  42,340
  Proceeds from line of credit draw down        140,500                  28,000
  Distributions paid                            (20,863)                (18,999)
  Purchase of treasury stock                     (1,990)                      -
  Mortgage principal payments                      (500)                      -
                                             ----------             -----------
Net cash provided by financing activities       117,147                  51,341
                                             ----------             -----------
Net increase (decrease) in cash                   3,545                 (14,556)
Cash at beginning of period                       2,567                  16,687
                                             ----------             -----------
Cash at end of period                        $    6,112             $     2,131
                                             ==========             ===========
                                            
                                                                          

Supplemental cash flow information
     Cash paid for interest                  $    5,940             $     1,410

See notes to financial statements.

</TABLE>



<PAGE>



<TABLE>


                     SOVRAN ACQUISITION LIMITED PARTNERSHIP
                            STATEMENTS OF CASH FLOWS
                                   (unaudited)
<CAPTION>




Supplemental cash flow information for the nine months
  ended September 30, 1998
(dollars in thousands)
-------------------------------------------------------------------------------
  <S>                                                           <C> 


  Storage facilities acquired through the issuance of minority
      interest in the Operating Partnership                     $        14,703

   Fair value of net liabilities assumed on the acquisition
      of storage facilities                                     $         1,208
-------------------------------------------------------------------------------



Distributions declared but unpaid were $7,356 at September 30, 1998 and $6,816
     at December 31, 1997
</TABLE>


<PAGE>



                          Notes to Financial Statements
                                   (Unaudited)


1.  Basis of Presentation
         The accompanying  unaudited financial  statements of Sovran Acquisition
Limited Partnership (the Operating Partnership) have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and  with the  instructions  to Form  10-Q and  Article  10 of  Regulation  S-X.
Accordingly,  they do not  include all  information  and  footnotes  required by
generally accepted accounting principles for complete financial  statements.  In
the opinion of  management,  all  adjustments  (consisting  of normal  recurring
accruals)  considered  necessary  for a fair  presentation  have been  included.
Operating  results  for the nine month  periods  ended  September  30,  1998 and
September  30, 1997 are not  necessarily  indicative  of the results that may be
expected for the year ended December 31, 1998.

2.  Organization
         Sovran  Acquisition  Limited  Partnership  is the entity  through which
Sovran Self Storage,  Inc. (the Company) a  self-administered  and  self-managed
real  estate  investment  trust  (a  REIT),  conducts  substantially  all of its
business and owns substantially all of its assets. On June 26, 1995, the Company
commenced  operations,  through the Operating  Partnership,  effective  with the
completion of its initial public  offering of 5,890,000  shares (the  Offering).
Contemporaneously  with the closing of the Offering,  the Operating  Partnership
acquired, in a transaction accounted for as a purchase,  sixty-two  self-storage
facilities (the Original  Properties) which had been owned and managed by Sovran
Capital,  Inc.  and  the  Sovran  Partnerships  (Predecessors  to the  Company).
Purchase accounting was applied to the acquisition of the Original Properties to
the extent cash was paid to purchase 100% of the  limited-partnership  interests
in  the  Sovran  Partnerships,  prepay  outstanding  mortgages  at the  time  of
acquisition  and for related  transaction  costs.  Additionally,  the  Operating
Partnership   acquired  on  that  date  twelve   self-storage   properties  from
unaffiliated  third parties.  The Operating  Partnership  has since  purchased a
total of 127  (forty-five in 1998,  forty-four in 1997,  twenty-nine in 1996 and
nine  in  1995)  self  storage   properties  from  unaffiliated  third  parties,
increasing the total number of  self-storage  properties  owned at September 30,
1998 to 201  properties,  most of which are in the  eastern  United  States  and
Texas.
         As of September 30, 1998, the Company was a 93.4% economic owner of the
Operating Partnership and controls it through Sovran Holdings, Inc. (Holdings) a
wholly-owned  subsidiary  of the  Company  and the sole  general  partner of the
Operating Partnership.  The board of directors of Holdings, the members of which
are also members of the board of  directors of the Company,  manages the affairs
of the Operating Partnership by directing the affairs of Holdings. The Company's
limited  partner  and  indirect   general  partner  interest  in  the  Operating
Partnership  entitle  it to  share in the cash  distributions  from,  and in the
profits and losses of, the Operating  Partnership in proportion to its ownership
interest therein and entitle the Company to vote on all matters requiring a vote
of the limited partners.
         The other limited partners of the Operating Partnership are persons who
contributed their direct or indirect interest in certain self-storage properties
to the Operating  Partnership.  The Operating Partnership is obligated to redeem
each unit of the limited partnership (Unit) at the request of the holder thereof
for cash  equal to the fair  value  of a share  of the  Company's  common  stock
(Common Shares) at the time of such redemption, provided that the Company at its
options may elect to acquire any Unit  presented for  redemption  for one Common
Share or cash.  With each such  redemption  the Company's  percentage  ownership
interest in the Operating Partnership will increase.  In addition,  whenever the
Company  issues Common  Shares,  the Company is obligated to contribute  any net
proceeds therefrom to the Operating Partnership and the Operating Partnership is
obligated to issue an  equivalent  number of units to the Company.  Such limited
partners'   redemption  rights  are  reflected  in  "limited  partners'  capital
interest" in the  accompanying  balance sheets at the cash redemption  amount at
the balance sheet date.

<PAGE>



3.  Investment in Storage Facilities
The following  summarizes activity in storage facilities during the period ended
September 30, 1998.
<TABLE>
<CAPTION>

(dollars in thousands)

<S>                                                           <C> 

Cost:
   Beginning balance                                          $      333,036
   Property acquisitions                                             145,841
   Improvements and equipment additions                               10,890
   Dispositions                                                         (166)
                                                              -------------- 
Ending balance                                                $      489,601
                                                              ==============


Accumulated Depreciation:
   Beginning balance                                          $       11,639
   Additions during the period                                         6,962
   Dispositions                                                          (42)
                                                              -------------- 
Ending balance                                                $       18,559
                                                              ==============
</TABLE>



4.  Line of Credit
         On February 20, 1998, the Operating Partnership entered into a new $150
million  unsecured  credit facility which replaced in its entirety the Operating
Partnership's  $75 million  revolving credit facility.  The new facility matures
February 2001 and provides for funds at LIBOR plus 1.25%,  a savings of 65 basis
points over the Operating  Partnership's  old  facility.  As a result of the new
credit  facility,  in 1998 the Operating  Partnership  recorded an extraordinary
loss on the  extinguishment  of debt of $350,000  representing  the  unamortized
financing costs of the former revolving credit facility.
         In June 1998,  the  Operating  Partnership  entered  into a $30 million
unsecured  term note which  matured on September 24, 1998 and provided for funds
at LIBOR  plus  1.25%.  The term  note has been  increased  to $40  million  and
extended through January 1999, and bears interest at LIBOR plus 1.50%.
         To manage its exposure to interest  rate  fluctuations,  the  Operating
Partnership  has entered  into  LIBOR-based  interest  rate swap  agreements  in
amounts of $75 million  through  October 1998 and $40 million through June 1999.
Net payments or receipts  under swap  agreements  are recorded as adjustments to
interest expense.  The net carrying amount of the Operating  Partnership's  debt
instruments approximates the fair values.

5.  Commitments and Contingencies
         The   Operating   Partnership's   current   practice   is  to   conduct
environmental  investigations in connection with property acquisitions.  At this
time, the Operating Partnership is not aware of any environmental  contamination
of any of its  facilities  which  individually  or in  the  aggregate  would  be
material to the Operating  Partnership's overall business,  financial condition,
or results of operations.
         As of September 30, 1998,  the Operating  Partnership  had entered into
contracts for the purchase of 10 self-storage  facilities with expected costs of
$24 million.


<PAGE>


6.  Pro Forma Financial Information
         The following  unaudited pro forma Condensed Statement of Operations is
presented as if the 45 storage facilities purchased during the nine months ended
September 30, 1998,  had occurred at January 1, 1998.  Such  unaudited pro forma
information  is based upon the historical  combined  statements of operations of
the Operating  Partnership.  It should be read in conjunction with the financial
statements of the Operating  Partnership  and notes thereto  included  elsewhere
herein.  In  management's  opinion,  all  adjustments  necessary  to reflect the
effects of these transactions have been made. This unaudited pro forma statement
does not  purport to  represent  what the actual  results of  operations  of the
Operating  Partnership  would  have been  assuming  such  transactions  had been
completed  as set forth  above nor does it purport to  represent  the results of
operations for future periods.
<TABLE>
<CAPTION>

(in thousands, except per unit data)

                                                             Nine Months Ended
                                                               September 30,
                                                                   1998
<S>                                                           <C>   

Revenues:
  Rental income                                               $         55,534
  Other income                                                             828
                                                              ----------------
     Total revenues                                                     56,362

Expenses:
  Property operations & maintenance                                     11,398
  Real estate taxes                                                      4,547
  General and administrative                                             3,170
  Interest                                                               9,329
  Depreciation and amortization                                          8,031
                                                              ----------------
     Total Expenses                                                     36,475
                                                              ----------------
Income before extraordinary item                                        19,887

Extraordinary loss on extinguishment of debt                              (350)
                                                              -----------------

Net income                                                    $         19,537
                                                              ================


Earnings per unit before extraordinary item - basic           $           1.51
Extraordinary item                                                        (.02)
                                                              -----------------
Earnings per unit - basic                                     $           1.49
                                                              ================
Earnings per unit - diluted                                   $           1.48
                                                              ================

Units used in basic earnings
 per unit calculation                                               13,136,000

</TABLE>

<PAGE>

7.  Legal Proceedings
         A  former  business  associate  (Plaintiff)  of  certain  officers  and
directors of the Company, including Robert J. Attea, Kenneth F. Myszka, David L.
Rogers and Charles E.  Lannon,  filed a lawsuit  against the Company on June 13,
1995 in the United States  District  Court for the Northern  District of Ohio in
connection with the formation of the Company as a REIT and related transactions,
as well as the Offering.  On April 29, 1996, the Plaintiff filed a first amended
complaint and on September 24, 1997, a second amended  complaint was filed.  The
complaint  alleges,  among other  things,  breach of fiduciary  duty,  breach of
contract,  breach of general  partnership/joint  venture arrangement,  fraud and
deceit,  breach  of duty of good  faith and  other  causes  of action  including
declaratory judgement as to the Plaintiff's  continuing interest in the Company.
The  Plaintiff is seeking  money  damages in excess of $15  million,  as well as
punitive damages and declaratory and injunctive relief (including the imposition
of a constructive  trust on assets of the Company in which the Plaintiff  claims
to have a continuing  interest) and an  accounting.  The amended  complaint also
added Messrs.  Attea, Myszka,  Rogers and Lannon as additional  defendants.  The
parties are currently  involved in discovery.  The Company intends to vigorously
defend the  lawsuit.  Messrs.  Attea,  Myszka,  Rogers and Lannon have agreed to
indemnify  the  Company  for cost and any loss  arising  from the  lawsuit.  The
Company  believes  that the actual  amount of the  Plaintiff's  recovery in this
matter if any,  would be within  the  ability  of these  individuals  to provide
indemnification.  The  Company  does not believe  that the  lawsuit  will have a
material adverse effect upon the Company.


8.  Earnings Per Unit
         In 1997,  the  Operating  Partnership  adopted  Statement  of Financial
Accounting  Standards No. 128,  "Earnings  Per Share." The following  table sets
forth the computation of basic and diluted earnings per unit:
<TABLE>
<CAPTION>


                                            Nine Months             Nine Months
                                               Ended                   Ended
                                           September 30,           September 30,
                                               1998                     1997
                                          -------------           -------------
<S>                                       <C>                     <C>

Numerator:
  Net Income                              $     18,762            $    17,682

Denominator:
  Denominator for basic earnings
    per unit - weighted average units           12,882                 11,905

Effect of Diluted Securities:
  Stock options                                     30                     61
  Denominator for diluted earnings
   per unit - adjusted weighted
   average units and assumed conversion         12,912                 11,966

Basic earnings per unit                   $       1.46            $      1.49
Diluted earnings per unit                 $       1.45            $      1.48
</TABLE>

9.  Recent Accounting Pronouncements
         On March 19, 1998 the Financial  Accounting  Standards  Board  Emerging
Issues  Task  Force  reached  a  consensus  as to the  accounting  for  internal
acquisition  costs  incurred in connection  with real  property.  The Task Force
consensus  indicates that internal costs related to the acquisition of operating
properties  should be  expensed  as  incurred.  The  Operating  Partnership  has
previously   capitalized   such  costs  and  will  comply  with  the   consensus
prospectively.  The amount of  internal  acquisition  costs  capitalized  in the
nine-months  ended  September  30, 1998 and 1997,  was  $222,000  and  $600,000,
respectively.

<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operation

         The following  discussion  and analysis of the  consolidated  financial
condition  and  results of  operations  should be read in  conjunction  with the
financial statements and notes thereto included elsewhere in this report.
         The Company  operates as a Real Estate  Investment  Trust  ("REIT") and
owns and  operates,  through  the  Operating  Partnership,  a  portfolio  of 201
self-storage  facilities,  providing storage space for business and personal use
to customers in 19 states.  The  Company's  investment  objective is to increase
cash flow and enhance shareholder value by aggressively  managing its portfolio,
to expand and  enhance  the  facilities  in that  portfolio  and to  selectively
acquire  new  properties  in  geographic  areas that will either  complement  or
efficiently grow the portfolio.
         When used in this discussion and elsewhere in this document,  the words
"intends,"  "believes,"  "anticipates," and similar  expressions are intended to
identify "forward-looking statements" within the meaning of that term in Section
27A of the  Securities  Exchange Act of 1933, as amended,  and in Section 21F of
Securities  Exchange Act of 1934, as amended.  Such  forward-looking  statements
involve known and unknown  risks,  uncertainties  and other  factors,  which may
cause  the  actual  results,   performance  or  achievements  of  the  Operating
Partnership to be materially  different from those  expressed or implied by such
forward-looking  statements. Such factors include the effect of competition from
new  self-storage  facilities,  which would cause rents and  occupancy  rates to
decline; the Operating Partnership's ability to evaluate,  finance and integrate
acquired  businesses  into the  Operating  Partnership's  existing  business and
operations;  the Operating  Partnership's  ability to effectively compete in the
industries in which it does  business;  and tax law changes which may change the
taxability of future income.

Liquidity and Capital Resources

Revolving Credit Facility
         On February 20, 1998, the Operating Partnership entered into a new $150
million  unsecured  credit facility which replaces in its entirety the Operating
Partnership's  $75 million  revolving credit facility.  The new facility matures
February 2001 and provides for funds at LIBOR plus 1.25%,  a savings of 65 basis
points over the Operating  Partnership's old facility. The Operating Partnership
intends to use funds  available  from this  credit  facility  to finance  future
acquisition  and development  plans described  below. At September 30, 1998, the
outstanding balance of the unsecured credit facility was $150 million.
         In June 1998, the Operating Partnership entered into a $30 million term
note that  matured on  September  24, 1998 and  provided for funds at LIBOR plus
1.25%.  The term note has been  increased  to $40 million and  extended  through
January  1999,  and bears  interest at LIBOR plus 1.50%.  At September 30, 1998,
there was $26.5 million  outstanding on the term note. To manage its exposure to
interest  rate  fluctuations,   the  Operating   Partnership  has  entered  into
LIBOR-based  interest  rate swap  agreements  in amounts of $75 million  through
October 1998 and $40 million through June 1999.

Umbrella Partnership
         The  Operating   Partnership   has  the  ability  to  issue   operating
partnership ("OP") units in exchange for properties sold by independent  owners.
By utilizing such OP units as currency in facility  acquisitions,  the Operating
Partnership  may partially  defer the seller's  income-tax  liability and obtain
more favorable  pricing or terms.  As of September 30, 1998,  863,037 units have
been issued in exchange for property at the request of the sellers.

Acquisition of Properties
         The Operating Partnership's external growth strategy is to increase the
number of  facilities  it owns by acquiring  suitable  facilities  in markets in
which it already  has an  operating  presence  or to expand  into new markets by
acquiring several  facilities at once in those new markets.  In the three months
ended September 30, 1998, the Operating  Partnership  acquired nine  properties,
increasing its existing presence in Florida,  North Carolina and Texas. The nine
acquisitions  in the three months ended  September 30, 1998 added 640,000 square
feet of space and 7,000 rental units to the Operating Partnership's portfolio.

Future Acquisition and Development Plans
         In October,  the Operating  Partnership  continued its external  growth
strategy  by  increasing  the  number of  facilities  it owns in Texas,  and has
contracts on properties in Louisiana, Mississippi, Ohio, Rhode Island, and Texas
with  planned  closings in the fourth  quarter of 1998 and the first  quarter of
1999.
         The  Operating  Partnership  also  intends  to  improve  certain of its
existing facilities by building additional storage buildings on presently vacant
land and by installing climate control and enhanced security systems at selected
sites.

Liquidity   
         As most of the Company's  operating cash flow is expected to be used to
pay dividends, (see REIT Qualification and Distribution Requirements), the funds
required  to  acquire  additional  properties  will be  provided  by  borrowings
pursuant to the revolving line of credit and the issuance of UPREIT units.
     At September 30, 1998,  the Company had $13.5 million  available  under the
term note. The Company has received a committment  from a syndicate of banks for
a $75 million  term note that will be used to repay the current $40 million term
note and provide financing for future acquisitions.

REIT Qualification and Distribution Requirements
         The  Operating  Partnership  is treated as a  partnership  for  Federal
income tax  purposes  and the  Company is treated as a partner in the  Operating
Partnership.  As a partner, the Company is deemed to own its proportionate share
of the assets of the  partnership  and is deemed to be entitled to the income of
the partnership attributable to such share.
         As a REIT,  the Company is not  required  to pay federal  income tax on
income  that it  distributes  to its  shareholders,  provided  that  the  amount
distributed is equal to at least 95% of taxable income. These distributions must
be made in the year to which they  relate or in the  following  year if declared
before the Company files its federal  income-tax return and if it is paid before
the first regular dividend of the following year.
         As a REIT,  the  Company  must  derive at least 95% of its total  gross
income from income  related to real  property,  interest and  dividends.  In the
three months ended September 30, 1998, the Company's  percentage of revenue from
such sources exceeded 98%, thereby passing the 95% test, and no special measures
are  expected  to be  required  to  enable  the  Company  to  maintain  its REIT
designation.

Results of Operations
         The following  discussion  is based on the financial  statements of the
Operating Partnership as of September 30, 1998 and September 30, 1997.

For the period January 1, 1998 through September 30, 1998 (dollars in thousands)
         The  Operating  Partnership  reported  revenues  of $49,924  during the
period and incurred  $13,867 in operating  expenses,  resulting in net operating
income of  $36,057,  or 72%.  General  and  administrative  expenses  of $3,120,
interest expense of $6,448 and  depreciation and amortization  expenses of 7,377
resulted in income of $19,112 before  extraordinary  item. An extraordinary loss
of $350 resulted from the write-off of the  unamortized  financing  costs of the
revolving  credit  facility  that was  replaced  in  February  1998.  Net income
amounted to $18,762.

Three months ended September 30, 1998,  compared to Three months ended September
30, 1997 (dollars in thousands)
         The  following  discussion  compares the  activities  of the  Operating
Partnership for the three months ended September 30, 1998 with the activities of
the Operating Partnership for the three months ended September 30, 1997.
         Total  revenues  increased  from  $13,320  for the three  months  ended
September 30, 1997 to $19,107 for the three months ended  September 30, 1998, an
increase of $5,787 or 43%. Of this,  $5,290  resulted from the acquisition of 53
properties  during the period July 1, 1997 through  September  30, 1998 and $497
was realized as a result of increased  rental rates at the 148 properties  owned
by the Operating Partnership at June 30, 1997. Overall, same-store revenues grew
3.8% for the three month period ended September 30, 1998 as compared to the same
period in 1997.
         Property  operating and real estate tax expense increased $1,759 or 48%
during the period.  $1,466 was a result of absorbing  additional  expenses  from
operating the newly acquired  properties,  and $293 related to the operations of
its sites operated more than one year.
         General  and  administrative  expenses,  which  includes  losses of $96
realized as the result of replacement of equipment,  increased $476  principally
as a result of the need for  additional  personnel and increased  administrative
costs associated with managing the additional properties.
     Interest  expense  increased  $2,488 due to the $140.5 million drawn on the
Operating  Partnership's  line of credit during 1998. Net income  increased from
$6,559 to $6,638, an increase of $79 or 1.2%.

Inflation
         The Operating  Partnership  does not believe that  inflation has had or
will have a direct adverse effect on its  operations.  Substantially  all of the
leases at the  facilities  allow for monthly rent  increases,  which provide the
Operating Partnership with the opportunity to achieve increases in rental income
as each lease matures.

Seasonality
         The Operating  Partnership's revenues typically have been higher in the
third and fourth quarters, primarily because the Operating Partnership increases
its rental rates on most of its storage  units at the beginning of May and, to a
lesser  extent,  because  self-storage  facilities  tend to  experience  greater
occupancy  during  the late  spring,  summer  and early  fall  months due to the
greater  incidence  of  residential  moves during these  periods.  However,  the
Operating  Partnership  believes  that  its  tenant  mix,  diverse  geographical
locations,  rental structure and expense structure  provide adequate  protection
against  undue  fluctuations  in cash  flows and net  revenues  during  off-peak
seasons.  Thus, the Operating  Partnership does not expect seasonality to affect
materially distributions to unitholders.

<PAGE>

Part II.  Other Information

Item 1.  Legal Proceedings
     A former business  associate  (Plaintiff) of certain officers and directors
of the Company,  including Robert J. Attea,  Kenneth F. Myszka,  David L. Rogers
and Charles E. Lannon,  filed a lawsuit  against the Company on June 13, 1995 in
the United States District Court for the Northern District of Ohio in connection
with the formation of the Company as a REIT and related transactions, as well as
the Offering.  On April 29, 1996, the Plaintiff filed a first amended  complaint
and on September 24, 1997, a second amended  complaint was filed.  The complaint
alleges,  among other  things,  breach of  fiduciary  duty,  breach of contract,
breach of  general  partnership/joint  venture  arrangement,  fraud and  deceit,
breach of duty of good faith and other  causes of action  including  declaratory
judgement  as to  the  Plaintiff's  continuing  interest  in  the  Company.  The
Plaintiff is seeking money damages in excess of $15 million, as well as punitive
damages and  declaratory  and injunctive  relief  (including the imposition of a
constructive  trust on assets of the  Company in which the  Plaintiff  claims to
have a continuing interest) and an accounting.  The amended complaint also added
Messrs. Attea, Myszka, Rogers and Lannon as additional  defendants.  The parties
are currently  involved in discovery.  The Company intends to vigorously  defend
the lawsuit.  Messrs.  Attea, Myszka, Rogers and Lannon have agreed to indemnify
the Company for cost and any loss arising from the lawsuit. The Company believes
that the actual amount of the Plaintiff's  recovery in this matter if any, would
be within the  ability of these  individuals  to  provide  indemnification.  The
Company does not believe that the lawsuit  will have a material  adverse  effect
upon the Company.

Item 5.  Other Information

         No disclosure required.


Item 6.  Exhibits  and  Reports  on Form 8-K

 (a.)  Exhibit 27 -  Financial  data schedule.

 (b.)  Reports on Form 8-K

     On July 6, 1998, the Company filed a Current Report on Form 8-K,  reporting
     the acquisition of ten self-storage  facilities.  In addition, an unaudited
     Pro Forma Combined Balance Sheet and Statement of Operations at and for the
     three months ended March 31, 1998 and the year ended December 31, 1997 were
     presented.

     On  September  25,  1998,  the Company  filed a Current  Report on Form 8-K
     reporting the acquisition of four self-storage facilities.  In addition, an
     unaudited Pro Forma  Combined  Balance Sheet and Statement of Operations at
     and for the six months ended June 30, 1998 and the year ended  December 31,
     1997 were presented.



<PAGE>


                                   SIGNATURES

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

                     Sovran Acquisition Limited Partnership


                                    By:  SOVRAN HOLDINGS, INC.
                                            Its: General Partner



November 13, 1998                    By:  / S /   David L. Rogers
------------------                        -----------------------
Date                                      DAVID L. ROGERS,
                                          Chief Financial Officer