----

| Delaware                                                                | 16-1481551                                    |
|-------------------------------------------------------------------------|-----------------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) | (I.R.S.      EmployerIdentification      No.) |

----

| Part      I.Item      1. | Financial      InformationFinancial      Statements |
|--------------------------|-----------------------------------------------------|

|   (dollars in thousands,      except unit data)                                                                     | September      30,2008      (unaudited)                               |  December      31,2007         |
|-------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Assets                                                                                                                        |                                                                                                          |                                                                        |
| Investment      in storage facilities:                                                                                        |                                                                                                          |
|  Land                                                                                                                    | $    239,644                                                                         | $    236,349                                       |
|  Building,      equipment, and construction in progress                                                                  |    1,131,813                                                                              |   1,086,359                                                  |
|                                                                                                                          | 1,371,457                                                                                                | 1,322,708                                                              |
|  Less:      accumulated depreciation                                                                                     |    (208,207)                                                                                   |    (183,679)                                                 |
| Investment      in storage facilities, net                                                                                    | 1,163,250                                                                                                | 1,139,029                                                              |
| Cash      and cash equivalents                                                                                                | 12,283                                                                                                   | 4,010                                                                  |
| Accounts      receivable                                                                                                      | 3,136                                                                                                    | 2,794                                                                  |
| Receivable      from related parties                                                                                          | 14                                                                                                       | 27                                                                     |
| Investment      in joint ventures                                                                                             | 16,684                                                                                                   | -                                                                 |
| Prepaid      expenses                                                                                                         | 5,863                                                                                                    | 4,771                                                                  |
| Other      assets                                                                                                             |           7,750                                        |           7,574      |
| Net      assets of discontinued operations                                                                                    |                 -        |           6,383      |
|   Total      Assets                                                                                                 | $ 1,208,980 ========                                                                           | $ 1,164,588 ========                                         |
|  Liabilities                                                                                                             |                                                                                                          |                                                                        |
| Line      of credit                                                                                                           | $        3,000                                                   | $    100,000                                       |
| Term      notes                                                                                                               | 500,000                                                                                                  | 356,000                                                                |
| Accounts      payable and accrued liabilities                                                                                 | 26,671                                                                                                   | 23,486                                                                 |
| Deferred      revenue                                                                                                         | 5,688                                                                                                    | 5,602                                                                  |
| Fair      value of interest rate swap agreements                                                                              | 6,091                                                                                                    | 1,230                                                                  |
| Accrued      distributions                                                                                                    | 14,332                                                                                                   | 13,922                                                                 |
| Mortgages      payable                                                                                                        |      109,720                                                                    |      110,517                                  |
| Total      Liabilities                                                                                                   | 665,502                                                                                                  | 610,757                                                                |
| Minority      interest – consolidated joint venture                                                                | 13,082                                                                                                   | 16,783                                                                 |
|                                                                                                                          |                                                                                                          |                                                                        |
| Limited      partners' capital interest (419,952 units and 422,727 unitsin   2008      and 2007, respectively) |  18,768                                                                                             |  16,951                                                           |
|                                                                                                                          |                                                                                                          |                                                                        |
| Partners'      Capital                                                                                                        |                                                                                                          |                                                                        |
| General      partner (219,567 units outstanding in 2008 and 2007)                                                             | 3,674                                                                                                    | 3,823                                                                  |
| Limited      partner (21,753,656 and 21,457,019 units outstanding in   2008      and 2007, respectively)       |  513,868                                                                                            |  517,642                                                          |
| Accumulated      other comprehensive income                                                                                   |          (5,914)                                                 |          (1,368)               |
| Total      Partners' Equity                                                                                                   |       511,628                                                              |       520,097                            |
| Total      Liabilities and Partners' Capital                                                                                  | $ 1,208,980 ========                                                                           | $ 1,164,588 ========                                         |
|  See      notes to financial statements.                                                                                 |                                                                                                          |                                                                        |

----

|   (dollars in thousands,      except per unit data)         | July      1, 2008     to           September 30,      2008 | July      1, 2007     to           September 30,      2007 |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| Revenues                                                              |                                                                                                                                       |                                                                                                                                       |
|  Rental      income                                              | $    49,801                                                                                                       | $       48,966                                                                                     |
|  Other      operating income                                     |        2,696                                                                                       |          1,799                                                                           |
|   Total      operating revenues                             | 52,497                                                                                                                                | 50,765                                                                                                                                |
|                                                                  |                                                                                                                                       |                                                                                                                                       |
| Expenses                                                              |                                                                                                                                       |                                                                                                                                       |
|  Property      operations and maintenance                        | 14,702                                                                                                                                | 13,457                                                                                                                                |
|  Real      estate taxes                                          | 4,842                                                                                                                                 | 4,625                                                                                                                                 |
|  General      and administrative                                 | 4,267                                                                                                                                 | 3,968                                                                                                                                 |
|  Depreciation      and amortization                              |        8,639                                                                                       |         8,343                                                                                 |
|    Total      operating expenses                       |      32,450                                                                                                  |       30,393                                                                                            |
|                                                                  |                                                                                                                                       |                                                                                                                                       |
|  Income      from operations                                     | 20,047                                                                                                                                | 20,372                                                                                                                           |
| Other      income (expenses)                                          |                                                                                                                                       |                                                                                                                                       |
|  Interest      expense                                           | (10,034)                                                                                                                                   | (9,092)                                                                                                                                    |
|  Interest      income                                            | 94                                                                                                                                    | 137                                                                                                                                   |
|  Minority      interest – consolidated joint ventures      | (340)                                                                                                                                      |         (462)                                                                                      |
|  Equity      in (losses) income of joint ventures                |            (56)                                                                     |             17                                                            |
|  Income      from continuing operations                          |  9,711                                                                                                                           |  10,972                                                                                                                          |
| Income      from discontinued operations                              |               -                                            |            118                                                                 |
| Net      income available to common unitholders                       | $       9,711 =======                                                                         | $      11,090 =======                                                                              |
|                                                                  |                                                                                                                                       |                                                                                                                                       |
| Earnings      per common unit – basic                           |                                                                                                                                       |                                                                                                                                       |
| Continuing      operations                                            | $          0.44                                                                     | $          0.50                                                                     |
| Discontinued      operations                                          |               -                                                 |          0.01                                                                            |
|   Earnings      per common unit – basic               | $          0.44 =======                                                        | $          0.51 =======                                                        |
| Earnings      per common unit – diluted                         |                                                                                                                                       |                                                                                                                                       |
| Continuing      operations                                            | $          0.44                                                                     | $          0.50                                                                     |
| Discontinued      operations                                          |               -                                            |          0.01                                                                            |
|   Earnings      per common unit – diluted             | $          0.44 =======                                                        | $          0.51 =======                                                        |
|  Common      units used in basic earnings per unit calculation   |  22,232,896                                                                                                                      |  21,817,036                                                                                                                      |
|  Common      units used in diluted earnings per unit calculation |  22,255,763                                                                                                                      |  21,853,695                                                                                                                      |
|                                                                  |                                                                                                                                       |                                                                                                                                       |
|   Distributions      declared per common unit               | $          0.64 =======                                                   | $          0.63 =======                                                        |

----

|   (dollars in thousands,      except per unit data)                                         | January      1, 2008to           September 30,      2008 | January      1, 2007to           September 30,      2007 |
|-------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|
| Revenues                                                                                              |                                                                                                            |                                                                                                            |
|  Rental      income                                                                              | $    146,292                                                                           | $     138,306                                                                     |
|  Other      operating income                                                                     |         5,946                                                      |          4,702                                                |
|   Total      operating revenues                                                             | 152,238                                                                                                    | 143,008                                                                                                    |
|                                                                                                  |                                                                                                            |                                                                                                            |
| Expenses                                                                                              |                                                                                                            |                                                                                                            |
|  Property      operations and maintenance                                                        | 41,852                                                                                                     | 38,674                                                                                                     |
|  Real      estate taxes                                                                          | 14,406                                                                                                     | 13,596                                                                                                     |
|  General      and administrative                                                                 | 12,487                                                                                                     | 11,222                                                                                                     |
|  Depreciation      and amortization                                                              |       25,749                                                                 |       25,408                                                                 |
|    Total      operating expenses                                                       |       94,494                                                                 |       88,900                                                                 |
|                                                                                                  |                                                                                                            |                                                                                                            |
|  Income      from operations                                                                     | 57,744                                                                                                     | 54,108                                                                                                |
| Other      income (expenses)                                                                          |                                                                                                            |                                                                                                            |
|  Interest      expense                                                                           | (27,966)                                                                                                        | (24,908)                                                                                                        |
|  Interest      income                                                                            | 273                                                                                                        | 814                                                                                                        |
|  Minority      interest – consolidated joint ventures                                      | (1,224)                                                                                                         |         (1,386)                                                         |
|  Equity      in (losses) income of joint ventures                                                |            (38)                                          |             97                                 |
|  Income      from continuing operations                                                          |  28,789                                                                                               |  28,725                                                                                               |
| Income      from discontinued operations (including gain on  disposal      of $716 in 2008) |           794                                            |            332                                      |
| Net      Income                                                                                       | 29,583                                                                                                     | 29,057                                                                                                     |
|   Preferred      stock distributions                                                        |             -                                  |      (1,256)                                                                           |
| Net      income available to common unitholders                                                       | $      29,583 =======                                                   | $     27,801 =======                                                         |
|                                                                                                  |                                                                                                            |                                                                                                            |
| Earnings      per common unit – basic                                                           |                                                                                                            |                                                                                                            |
| Continuing      operations                                                                            | $          1.30                                          | $         1.30                                                |
| Discontinued      operations                                                                          |          0.04                                                 |          0.01                                                 |
|   Earnings      per common unit – basic                                               | $          1.34 =======                             | $         1.31 =======                                   |
| Earnings      per common unit – diluted                                                         |                                                                                                            |                                                                                                            |
| Continuing      operations                                                                            | $          1.30                                          | $         1.29                                                |
| Discontinued      operations                                                                          |          0.03                                                 |          0.02                                                 |
|   Earnings      per common unit – diluted                                             | $          1.33 =======                             | $         1.31 =======                                   |
|  Common      units used in basic earnings per unit calculation                                   |  22,150,998                                                                                           |  21,188,243                                                                                           |
|  Common      units used in diluted earnings per unit calculation                                 |  22,175,441                                                                                           |  21,240,488                                                                                           |
|                                                                                                  |                                                                                                            |                                                                                                            |
|   Distributions      declared per common unit                                               | $          1.90 =======                        | $         1.87 =======                                   |

----

|   (dollars in      thousands)                                                                                                  | January      1, 2008to           September 30,      2008 | January      1, 2007to           September 30,      2007 |
|------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|
| Operating      Activities                                                                                                                |                                                                                                            |                                                                                                            |
| Net      income                                                                                                                          | $ 29,583                                                                                              | $ 29,057                                                                                              |
| Adjustments      to reconcile net income to net cash provided by  operating      activities:                                   |                                                                                                            |                                                                                                            |
|     Depreciation      and amortization                                                                               | 26,662                                                                                                     | 26,263                                                                                                     |
|     Gain      on sale of storage facility                                                                            | (716)                                                                                                           | -                                                                                                     |
|     Equity      in losses (income) of joint ventures                                                                 | 38                                                                                                         | (97)                                                                                                            |
|     Minority      interest                                                                                           | 1,224                                                                                                      | 1,386                                                                                                      |
|     Non-vested      stock earned                                                                                     | 1,074                                                                                                      | 895                                                                                                        |
|     Stock      option expense                                                                                        | 208                                                                                                        | 139                                                                                                        |
|     Changes      in assets and liabilities:                                                                          |                                                                                                            |                                                                                                            |
|       Accounts      receivable                                                                             | (336)                                                                                                           | (722)                                                                                                           |
|       Prepaid      expenses                                                                                | (1,058)                                                                                                         | (329)                                                                                                           |
|       Accounts      payable and other liabilities                                                          | 3,425                                                                                                      | 7,274                                                                                                      |
|       Deferred      revenue                                                                                |           40                                             |            (62)                                          |
| Net      cash provided by operating activities                                                                                           |    60,144                                                                                   |      63,804                                                                       |
|                                                                                                                                     |                                                                                                            |                                                                                                            |
| Investing      Activities                                                                                                                |                                                                                                            |                                                                                                            |
|   Acquisition      of storage facilities                                                                                       | (14,037)                                                                                                        | (132,712)                                                                                                       |
|   Improvements,      equipment additions, and construction in progress                                                         |      (32,379)                                                                          | (28,505)                                                                                                        |
|   Net      proceeds from the sale of storage facility                                                                          | 7,002                                                                                                      | -                                                                                                     |
|   Investment      in joint ventures                                                                                            | (22,915)                                                                                                        | -                                                                                                     |
|   Reimbursement      of (payment of) property deposits                                                                         | 1,259                                                                                                      | (258)                                                                                                           |
|   Receipts      from related parties                                                                                           |           13                                             |             10                                 |
| Net      cash used in investing activities                                                                                               |   (61,057)                                                                                            |   (161,465)                                                                                           |
|                                                                                                                                     |                                                                                                            |                                                                                                            |
| Financing      Activities                                                                                                                |                                                                                                            |                                                                                                            |
|   Net      proceeds from sale of common stock                                                                                  | 9,525                                                                                                      | 10,499                                                                                                     |
|   Proceeds      from line of credit and term note                                                                              |           253,000                                        | 103,000                                                                                                    |
|   Repayment      of line of credit and term note                                                                               | (206,000)                                                                                                       | (12,000)                                                                                                        |
|   Financing      costs                                                                                                         | (2,946)                                                                                                         | (250)                                                                                                           |
|   Distributions      paid                                                                                                      | (43,219)                                                                                                        | (41,628)                                                                                                        |
|   Distributions      from unconsolidated joint venture                                                                         | 160                                                                                                        | 98                                                                                                         |
|   Redemption      of operating partnership units                                                                               |          (94)                                                      | (168)                                                                                                           |
|   Mortgage      principal and capital lease payments                                                                           |     (1,240)                                                                                 |       (1,116)                                                                     |
| Net      cash provided by financing activities                                                                                           |       9,186                                                                  |      58,435                                                                       |
| Net      increase (decrease) in cash                                                                                                     | 8,273                                                                                                      | (39,226)                                                                                                        |
| Cash      at beginning of period                                                                                                         |       4,010                                                                  |      47,730                                                                       |
| Cash      at end of period                                                                                                               | $  12,283 =======                                                                           | $    8,504 =======                                                                |
| Supplemental      cash flow informationCash      paid for interest                                                                       |  $   26,441                                                                            |  $ 23,003                                                                                        |
| Fair      value of net liabilities assumed on the acquisition of      storage  facilities      *                          |            68                                       |            386                                      |
| *  See      Note 4 for fair value of land, building, and equipment      acquired    during      the period |                                                                                                            |                                                                                                            |

----

| 1. | BASIS      OF PRESENTATION |
|----|----------------------------|

| 2. | ORGANIZATION |
|----|--------------|

----

| 3. | STOCK      BASED COMPENSATION |
|----|-------------------------------|

----

| 4. | INVESTMENT      IN STORAGE FACILITIES |
|----|---------------------------------------|

| Cost:                                                                |                                                                          |
|----------------------------------------------------------------------|-------------------------------------------------------------------------------|
|   Beginning      balance                                   | $  1,322,708                                                   |
|   Property      acquisitions                               | 14,013                                                                   |
|   Additional      investment in consolidated joint venture | 2,473                                                                    |
|   Improvements      and equipment additions                | 30,868                                                                   |
|   Net      increase in construction in progress            | 1,548                                                                    |
|   Dispositions                                             |            (153)       |
| Ending      balance                                                  | $ 1,371,457                                                         |
|                                                                 |                                                                          |
| Accumulated      Depreciation:                                       |                                                                          |
|   Beginning      balance                                   | $    183,679                                         |
|   Depreciation      expense during the period              | 24,637                                                                   |
|   Dispositions                                             |             (109) |
| Ending      balance                                                  | $    208,207                                         |

| 5. | DISCONTINUED      OPERATIONS |
|----|------------------------------|

|   (dollars in      thousands)                      | Jul.      1, 2008to          Sep. 30,      2008 | Jul.      1, 2007to          Sep. 30,      2007 | Jan.      1, 2008to          Sep. 30,      2008 | Jan.      1, 2007to          Sep. 30,      2007 |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|    Total      revenue                         |  $        -                 |  $   232                                                  |  $     233                                      |  $   690                                                  |
|   Property      operations and maintenance expense |           -            | (44)                                                                               | (76)                                                                               | (145)                                                                              |
|   Real      estate tax expense                     |           -            | (24)                                                                               | (33)                                                                               | (74)                                                                               |
|   Depreciation      and amortization expense       |           -            |       (46)                                           |       (46)                                           |       (139)                                          |
|   Net      realized gain on sale of property       |           -            |           -            |        716                                 |           -            |
| Total      income from discontinued operations               | $        -     =======           | $    118    =======                                       | $     794    ========                                | $    332    =======                                       |

| 6. | UNSECURED      LINE OF CREDIT AND TERM NOTES |
|----|----------------------------------------------|

| 7. | MORTGAGES      PAYABLE |
|----|------------------------|

| Mortgages      payable at September 30, 2008 and December 31, 2007 consist of      the following:                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (dollars in      thousands)                                                                                                                                                                                  | September      30,2008        | December      31,2007       |
| 7.80%      mortgage note due December 2011, secured by 11 self-storage facilities      (Locke Sovran I) with an aggregate net book value of $43.8 million,      principal and interest paid monthly          |  $  29,175  |  $  29,084  |
|                                                                                                                                                                                                              |   |   |
| 7.19%      mortgage note due March 2012, secured by 27 self-storage facilities (Locke      Sovran II) with an aggregate net book value of $81.0 million,      principal and interest paid monthly  |  42,875  |  43,645  |
|                                                                                                                                                                                                              |   |   |

----

| 7.25%      mortgage note due December 2011, secured by 1 self-storage facility with      an aggregate net book value of $5.8 million, principal and interest paid      monthly.  Estimated market rate at time of acquisition      5.40%        |   3,544                                            |   3,643                                            |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                                                                                                                                                                                                                      |                                                              |                                                              |
| 6.76%      mortgage note due September 2013, secured by 1 self-storage facility with      an aggregate net book value of $2.0 million, principal and interest paid      monthly                                                                           |  1,006                                                  |  1,022                                                  |
|                                                                                                                                                                                                                                                      |                                                              |                                                              |
| 6.35%      mortgage note due March 2014, secured by 1 self-storage facility with an      aggregate net book value of $3.8 million, principal and interest paid      monthly                                                                          |  1,104                                                  |  1,122                                                  |
|                                                                                                                                                                                                                                                      |                                                              |                                                              |
| 5.55%      mortgage notes due November 2009, secured by 8 self-storage facilities      with an aggregate net book value of $35.1 million, interest only paid      monthly.  Estimated market rate at time of acquisition      6.44         |   25,878                                           |   25,719                                           |
|                                                                                                                                                                                                                                                      |                                                              |                                                              |
| 7.50%      mortgage notes due August 2011, secured by 3 self-storage facilities with      an aggregate net book value of $14.3 million, principal and interest      paid monthly.  Estimated market rate at time of acquisition      6.42% |          6,138  |          6,282  |
|                                                                                                                                                                                                                                                      |                                                              |                                                              |
| Total      mortgages payable                                                                                                                                                                                                                              | $ 109,720 ========                                      | $ 110,517 ========                                      |

----

|                                                                     |                     Expected      Maturity Date Including      Discount                     |                                          |                                 |
|--------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|-----------------------------------------------------|
| (dollars      in thousands)                                              | 2008                                                                                                                                                                                                                                                                                                | 2009                                          | 2010                                                | 2011 | 2012 | Thereafter | Total | FairValue |
| Line      of credit - variable rate   LIBOR      + 1.375% | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | $   3,000 | -    | -    | $   3,000 | $   3,000 |
|                                                                     |                                                                                                                                                                                                                                                                                                |                                          |                                                |   |   |   |   |   |
| Notes      Payable:                                                      |                                                                                                                                                                                                                                                                                                |                                          |                                                |   |   |   |   |   |
| Term      note - variable rate LIBOR+1.625%                              | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | $250,000 | -    | $250,000 | $250,000 |
| Term      note - variable rate LIBOR+1.50%                               | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | -    | $  20,000 | $  20,000 | $  20,000 |
| Term      note - fixed rate 6.26%                                        | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | -    | $  80,000 | $  80,000 | $  79,763 |
| Term      note - fixed rate 6.38%                                        | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | -    | $150,000 | $150,000 | $146,793 |
|                                                                     |                                                                                                                                                                                                                                                                                                |                                          |                                                |   |   |   |   |   |
| Mortgage      note - fixed rate 7.80%                                    | $      142                                                                                                                                                                                                                                                            | $     587            | $      630            | $27,816 | -    | -    | $  29,175 | $  30,355 |
| Mortgage      note - fixed rate 7.19%                                    | $      272                                                                                                                                                                                                                                                            | $  1,128                            | $   1,211                            | $  1,301 | $  38,963 | -    | $  42,875 | $  44,755 |
| Mortgage      note - fixed rate 7.25%                                    | $        34                                                                                                                                                                                                                                                 | $     141            | $      149            | $  3,220 | -    | -    | $    3,544 | $    3,521 |
| Mortgage      note - fixed rate 6.76%                                    | $          6                                                                                                                                                                                                                                      | $       23 | $        25 | $       27 | $         29 | $       896 | $    1,006 | $    1,024 |
| Mortgage      note - fixed rate 6.35%                                    | $          6                                                                                                                                                                                                                                      | $       26 | $        28 | $       30 | $         31 | $       983 | $    1,104 | $    1,105 |
| Mortgage      notes - fixed rate 5.55%                                   | -                                                                                                                                                                                                                                                                                    | $25,878                                       | -                                    | -    | -    | -    | $  25,878 | $  26,502 |
| Mortgage      notes - fixed rate 7.50%                                   | $        50                                                                                                                                                                                                                                                 | $     208            | $      222            | $ 5,658 | -    | -    | $    6,138 | $    6,267 |
|                                                                     |                                                                                                                                                                                                                                                                                                |                                          |                                                |   |   |   |   |   |
| Interest      rate derivatives – liability                    | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | -    | -    | -    | $    5,914 |

| 8. | DERIVATIVE      FINANCIAL INSTRUMENTS |
|----|---------------------------------------|

----

|   Notional      Amount |   Effective      Date |   Expiration      Date |  Fixed   Rate      Paid |  Floating      Rate  Received      |
|----------------------------------|---------------------------------|----------------------------------|---------------------------------------------|----------------------------------------------------------------------------|
|                             |                            |
| $50      Million                 | 11/14/05                        | 9/1/09                           | 4.3900%                                     | 1      month LIBOR                                                         |
| $20      Million                 | 9/4/05                          | 9/4/13                           | 4.4350%                                     | 6      month LIBOR                                                         |
| $50      Million                 | 10/10/06                        | 9/1/09                           | 4.4800%                                     | 1      month LIBOR                                                         |
| $50      Million                 | 7/1/08                          | 6/25/12                          | 4.2825%                                     | 1      month LIBOR                                                         |
| $100      Million                | 7/1/08                          | 6/22/12                          | 4.2965%                                     | 1      month LIBOR                                                         |
| $75      Million                 | 9/1/09                          | 6/22/12                          | 4.7100%                                     | 1      month LIBOR                                                         |
| $25      Million                 | 9/1/09                          | 6/22/12                          | 4.2875%                                     | 1      month LIBOR                                                         |
|                             |                            |                             |                                        |                                                                       |

| 9. | FAIR      VALUE MEASUREMENTS |
|----|------------------------------|

----

|                     | Asset   (Liability) |  Level      1 |  Level      2 |  Level      3 |
|--------------------------|------------------------------------|--------------------|--------------------|--------------------|
| Interest      rate swaps | (6,091)                            | -                  | (6,091)            | -                  |

| 10. | COMMITMENTS      AND CONTINGENCIES |
|-----|------------------------------------|

| 11. | COMPREHENSIVE      INCOME |
|-----|---------------------------|

| 12. | INVESTMENT      IN JOINT VENTURES |
|-----|-----------------------------------|

----

| (dollars      in thousands)                                          | Sovran      HHF Storage   Holdings      LLC                                        | Iskalo      Office Holdings,      LLC                                                                                 |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
| Balance Sheet      Data:                                             |                                                                                                   |                                                                                                                       |
| Investment      in storage facilities, net                           | $ 143,608                                                                | $              -            |
| Investment      in office building                                   | -                                                                             | 5,548                                                                                             |
| Other      assets                                                    |      4,014                                           |          613                                         |
|   Total      Assets                                        | $ 147,622     =======                           | $       6,161     =======             |
|  Due      to the Operating Partnership                          |  $   218                                                  |  $              -      |
| Mortgage      payable                                                | 68,036                                                                        | 7,199                                                                                             |
| Other      liabilities                                               |       2,593                                     |         223                                               |
|   Total      Liabilities                                   | 70,847                                                                        | 7,422                                                                                             |
|  Unaffiliated      partners' equity (deficiency)                |  61,420                                                                  |  (717)                                                                                            |
| Operating      Partnership equity (deficiency)                       |      15,355                                          |       (544)                                                              |
|   Total      Liabilities and Partners' Equity (deficiency) | $ 147,622     =======                           | $     6,161     ======                          |
|                                                                 |                                                                                                   |                                                                                                                       |
| Income Statement      Data:                                          |                                                                                                   |                                                                                                                       |
| Total      revenues                                                  | $     2,782                                          | $        846                                              |
| Total      expenses                                                  |      3,090                                           |        858                                                     |
|   Net      loss                                            | $      (308)    ======      | $        (12)    ======               |

| 13. | EARNINGS      PER UNIT |
|-----|------------------------|

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|  (in thousands except      per unit data)                                                                                                                  | Three      Months Ended    Sep. 30,      2008 | Three      Months Ended    Sep. 30,      2007 | Nine      Months Ended    Sep. 30,      2008 | Nine      Months Ended    Sep. 30,      2007 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|
| Numerator:                                                                                                                                                      |                                                              |                                                              |                                                             |                                                             |
|   Net      income available to common unitholders                                                                                                     | $ 9,711                                                 | $ 11,090                                           | $ 29,583                                          | $ 27,801                                          |
|                                                                                                                                                            |                                                              |                                                              |                                                             |                                                             |
| Denominator:                                                                                                                                                    |                                                              |                                                              |                                                             |                                                             |
|   Denominator      for basic earnings per unit -    weighted      average units                                                   |  22,233                                                 |  21,817                                            |  22,151                                           |  21,188                                           |
| Effect      of Dilutive Securities:                                                                                                                             |                                                              |                                                              |                                                             |                                                             |
|   Stock      options, warrants and non-vested stock                                                                                                   |          23     |       37                  |       24                 |       52                 |
| Denominator      for diluted earnings per unit -    adjusted      weighted average units and    assumed      conversion |   22,256                                           |   21,854                                      |   22,175                                     |   21,240                                     |
|                                                                                                                                                            |                                                              |                                                              |                                                             |                                                             |
| Basic      earnings per common unit from  continuing      operations                                                                                  |  $    0.44                          |  $    0.50                     |  $    1.30                    |  $    1.30                    |
| Basic      earnings per common unit                                                                                                                             | $    0.44                                | $    0.51                           | $    1.34                          | $    1.31                          |
| Diluted      earnings per common unit from  continuing      operations                                                                                |  $    0.44                          |  $    0.50                     |  $    1.30                    |  $    1.29                    |
| Diluted      earnings per common unit                                                                                                                           | $    0.44                                | $    0.51                           | $    1.33                          | $    1.31                          |

| 14. | INCOME      TAXES |
|-----|-------------------|

| 15. | RECENT      ACCOUNTING PRONOUNCEMENTS |
|-----|---------------------------------------|

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

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----

----

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|                                                                                                                                        | Nine months      ended                                                                                   |
|---------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
| (in      thousands)                                                                                                                         | September 30,      2008                                                                                  | September 30,      2007 |
|  Net      income                                                                                                                       |  $ 29,583                                                   |  $ 29,057        |
| Minority      interest in income                                                                                                            | 1,224                                                                 | 1,386        |
| Depreciation      of real estate and amortization  of      intangible assets exclusive of deferred  financing      fees |   25,795                                                    |   25,547        |
| Depreciation      and amortization from  unconsolidated      joint ventures                                                       |  262                                                             |  44        |
| Gain      on sale of real estate                                                                                                            | (716)                                                                      | -         |
| Preferred      stock distributions                                                                                                          | -                                                                | (1,256)       |
| Funds      from operations allocable to  minority      interest in consolidated joint ventures                                    |       (1,224)                                |     (1,386)       |
| FFO      available to common unitholders                                                                                                    | $  54,924       =======       | $ 53,392       ======       |

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| *      | 7.80%      mortgage note due December 2011, secured by 11 self-storage facilities      (Locke Sovran I) with an aggregate net book value of $43.8 million,      principal and interest paid monthly.  The outstanding balance at      September 30, 2008 on this mortgage was      $29.2 million.                                     |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                           |
| *      | 7.19%      mortgage note due March 2012, secured by 27 self-storage facilities (Locke      Sovran II) with an aggregate net book value of $81.0 million,      principal and interest paid monthly.  The outstanding balance at      September 30, 2008 on this mortgage was      $42.9 million.                                  |
|   |                                                                                                                                                                                                                                                                                                                                                           |
| *      | 7.25%      mortgage note due December 2011, secured by 1 self-storage facility with      an aggregate net book value of $5.8 million, principal and interest paid      monthly.  Estimated market rate at time of acquisition      5.40%.  The outstanding balance at September 30, 2008 on      this mortgage was $3.5 million. |
|   |                                                                                                                                                                                                                                                                                                                                                           |
| *      | 6.76%      mortgage note due September 2013, secured by 1 self-storage facility with      an aggregate net book value of $2.0 million, principal and interest      paid monthly.  The outstanding balance at September 30,      2008 on this mortgage was $1.0 million.                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                           |
| *      | 6.35%      mortgage note due March 2014, secured by 1 self-storage facility with an      aggregate net book value of $3.8 million, principal and interest paid      monthly.  The outstanding balance at September 30, 2008 on      this mortgage was $1.1 million.                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                           |
| *      | 5.55%      mortgage notes due November 2009, secured by 8 self-storage facilities      with an aggregate net book value of $35.1 million, interest only paid      monthly.  Estimated market rate at time of acquisition      6.44%.  The outstanding balance at September 30, 2008 on      this mortgage was$25.9 million. |

|   |                                                                                                                                                                                                                                                                                                                                                                 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *      | 7.50%      mortgage notes due August 2011, secured by 3 self-storage facilities with      an aggregate net book value of $14.3 million, principal and interest      paid monthly.  Estimated market rate at time of acquisition      6.42%.  The outstanding balance at September 30, 2008 on      this mortgage was$6.1 million. |

----

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| Notional      Amount | Effective      Date | Expiration      Date | Fixed   Rate      Paid | Floating      Rate  Received      |
|----------------------|---------------------|----------------------|---------------------------------------|----------------------------------------------------------------------|
|                 |                |
| $50      Million     | 11/14/05            | 9/1/09               | 4.3900%                               | 1      month LIBOR                                                   |
| $20      Million     | 9/4/05              | 9/4/13               | 4.4350%                               | 6      month LIBOR                                                   |
| $50      Million     | 10/10/06            | 9/1/09               | 4.4800%                               | 1      month LIBOR                                                   |
| $50      Million     | 7/1/08              | 6/25/12              | 4.2825%                               | 1      month LIBOR                                                   |
| $100      Million    | 7/1/08              | 6/22/12              | 4.2965%                               | 1      month LIBOR                                                   |
| $75      Million     | 9/1/09              | 6/22/12              | 4.7100%                               | 1      month LIBOR                                                   |
| $25      Million     | 9/1/09              | 6/22/12              | 4.2875%                               | 1      month LIBOR                                                   |

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| Item      3. | Quantitative      and Qualitative Disclosures About MarketRisk |
|--------------|----------------------------------------------------------------|

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

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| PART      II.Item      1. | Other      InformationLegal      Proceedings |
|---------------------------|----------------------------------------------|

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

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

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

| Item      4. | Submission      of Matters to a Vote of SecurityHolders |
|--------------|---------------------------------------------------------|

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

| Item      6. | Exhibits                                                                                                                                                                                     |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                         |
| 31.1         | Certification      of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)      of the Securities Exchange Act, as amended.                                                 |   |
|         |                                                                                                                                                                                         |   |
| 31.2         | Certification      of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)      of the Securities Exchange Act, as amended.                                                 |   |
|         |                                                                                                                                                                                         |   |
| 32           | Certification      of Chief Executive Officer and Chief Financial Officer Pursuant to 18      U.S.C. Section 1350 as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002. |   |

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|       November      7, 2008 | SOVRAN      ACQUISITION LIMITED PARTNERSHIP By:  Sovran      Holdings, Inc.Its:  General      Partner  By:   /s/      David L.      Rogers                                  David      L. Rogers,           Chief      Financial Officer |
|-----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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