FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

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

                  For the quarterly period ended June 30, 1998


                         Commission file number: 0-24071

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

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

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

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


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





<PAGE>


Part I.  Financial Information

Item 1.  Financial Statements

                           SOVRAN ACQUISITION LIMITED PARTNERSHIP

                                     BALANCE SHEETS
<TABLE>
<CAPTION>

                                                        June 30,    December 31,
(dollars in thousands) .......................            1998         1997
----------------------------------------------            ----         ----
<S>                                                    <C>           <C>    
                                                                                                                        
Assets
  Investment in storage facilities:
     Land                                              $   93,757    $   71,391
     Building and equipment                               358,334       261,645
                                                       ----------    ----------
                                                          452,091       333,036
     Less: accumulated depreciation                       (15,873)      (11,639)
                                                       ----------    ----------
  Investments in storage facilities, net                  436,218       321,397
  Cash and cash equivalents                                 2,695         2,567
  Accounts receivable                                       1,335           834
  Prepaid expenses and other assets                         3,030         2,275
                                                        ----------    ----------
  Total Assets..................................       $  443,278    $  327,073
                                                        ==========    ==========

Liabilities
  Line of credit                                       $  148,000    $   36,000
  Accounts payable and accrued liabilities                  4,591         1,950
  Deferred revenue                                          2,934         1,994
  Accrued distributions                                     6,882         6,816
  Mortgage payable                                          3,059         3,559
                                                        ----------    ----------
    Total Liabilities                                     165,466        50,319

   Limited partners' capital interest
   (453,609 and 443,609 units, respectively),
   at redemption value                                     12,814        14,454

Partners' Capital
  General partner                                           5,244         5,257
   Limited partner                                        259,754       257,043
                                                       ----------    ----------
   Total partners' capital                                264,998       262,300
                                                       ----------    ----------

  Total Liabilities and Partners' Capital              $  443,278    $  327,073
                                                        ==========    ==========
</TABLE>

See notes to financial statements













               SOVRAN ACQUISITION LIMITED PARTNERSHIP

                     STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>


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

Revenues:
  Rental income                           $  16,171          $  11,724
  Interest and other income                     271                214
                                               ----               ---
     Total revenues                          16,442             11,938

Expenses:
  Property operations
    and maintenance                           3,164              2,254
  Real estate taxes                           1,311                918
  General and administrative                  1,093                586
  Interest                                    2,153                306
  Depreciation and amortization               2,450              1,685
                                             ------             ------
     Total expenses                          10,171              5,749
                                            -------             ------

Net Income                                $   6,271          $   6,189                                               
                                          =========          =========                                                       
                                       

Earnings per unit - basic                 $    0.49          $    0.50
                                          =========           ========
                                       
Earnings per unit - diluted               $    0.49          $    0.50
                                          =========           ========
                                          
Units used in basic earnings
  per unit calculation                   12,775,737         12,201,392

Distributions declared per unit           $    0.54          $    0.52
                                          =========          =========
</TABLE>




                                                    
See notes to financial statements.
















                     SOVRAN ACQUISITION LIMITED PARTNERSHIP

                             STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>

                                            January 1, 1998     January 1, 1997
(dollars in thousands,                             to                 to 
except unit data)                            June 30, 1998       June 30, 1997
-----------------                            -------------       -------------
<S>                                            <C>            <C> 
                                                                                                        
Revenues:
  Rental income                                $    30,347    $      22,302
  Interest and other income                            470              368
                                               -----------    -------------
     Total revenues                                 30,817           22,670

Expenses:
  Property operations and maintenance                5,983            4,408
  Real estate taxes                                  2,498            1,775
  General and administrative                         1,947            1,330
  Interest                                           3,368              818
  Depreciation and amortization                      4,547            3,216
                                               -----------    -------------
     Total expenses                                 18,343           11,547
                                               -----------    -------------

Income before extraordinary item                    12,474           11,123
Extraordinary loss on extinguishment of debt          (350)             -
                                               -----------    -------------

Net Income                                     $    12,124    $      11,123
                                               ===========    =============

Earnings per unit before
 extraordinary item - basic .................         0.98             0.96
Extraordinary item                                   (0.03)               -
                                               -----------    -------------
Earnings per unit - basic                      $      0.95    $        0.96
                                                ==========    =============
Earnings per unit - diluted                    $      0.95    $        0.96
                                               ===========    =============

Units used in basic
 earnings per unit calculation                  12,754,524       11,525,835

Distributions declared per unit                $      1.08    $        1.04
                                               ===========    =============
</TABLE>


See notes to financial statements.














                     SOVRAN ACQUISITION LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>


                                                 January 1, 1998 January 1, 1997
                                                        to             to
(dollars in thousands)                             June 30, 1998   June 30, 1997
----------------------                             -------------   -------------
<S>                                                  <C>           <C> 
                                                     
Operating Activities
Net income                                           $   12,124    $   11,123
Adjustments to reconcile net income
  to net cash provided by operating activities:
  Extraordinary loss                                        350             -
  Depreciation and amortization                           4,547         3,216
  Restricted stock earned                                     7             6
  Changes in assets and liabilities:
     Accounts receivable                                   (474)         (202)
     Prepaid expenses and other assets                     (462)          514
     Accounts payable and other liabilities               2,767         2,594
     Deferred revenue                                       649           683
                                                     ----------    ----------
Net cash provided by operating activities                19,508        17,934
                                                     ----------    ----------

Investing Activities
  Additions to storage facilities                      (115,337)      (76,521)
  Additions to other assets                                (851)          (10)
                                                     ----------    ----------
Net cash used in investing activities                  (116,188)      (76,531)
                                                     ----------    ----------

Financing Activities
  Net proceeds from sale of common stock                      -        42,419
  Proceeds from line of credit draw down                112,000        15,000
  Distributions paid                                    (13,738)      (12,193)
  Purchase of treasury stock                               (954)            -
  Mortgage principal payments                              (500)            -
                                                     ----------    ----------
Net cash provided by financing activities                96,808        45,226
                                                     ----------    ----------
Net increase (decrease) in cash                             128       (13,371)
Cash at beginning of period                               2,567        16,687
                                                     ----------    ----------
Cash at end of period                                $    2,695    $    3,316
                                                     ==========    ==========

Supplemental cash flow information
  Cash paid for interest                             $    3,181    $      818
                                                     ==========    ==========
</TABLE>




See notes to financial statements ......................







                     SOVRAN ACQUISITION LIMITED PARTNERSHIP

                           STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>




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

Storage facilities acquired through the issuance
  of units in the Operating Partnership                              $    3,609
Fair value of net liabilities assumed on the acquisition
  of storage facilities                                              $      424
-------------------------------------------------------------------------------


Distributions declared but unpaid were $6,882 at June 30, 1998
  and $6,816 at December 31, 1997



</TABLE>








See notes to financial statements.










                           Notes to Financial Statements
                                   (Unaudited)


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

2.  Organization
         Sovran  Acquisition  Limited  Partnership  is the entity  through which
Sovran Self Storage,  Inc. (the Company) a  self-administered  and  self-managed
real  estate  investment  trust  (a  REIT),  conducts  substantially  all of its
business and owns substantially all of its assets. On June 26, 1995, the Company
commenced  operations,  through the Operating  Partnership,  effective  with the
completion of its initial public  offering of 5,890,000  shares (the  Offering).
Contemporaneously  with the closing of the Offering,  the Operating  Partnership
acquired, in a transaction accounted for as a purchase,  sixty-two  self-storage
facilities (the Original  Properties) which had been owned and managed by Sovran
Capital,  Inc.  and  the  Sovran  Partnerships  (Predecessors  to the  Company).
Purchase accounting was applied to the acquisition of the Original Properties to
the extent cash was paid to purchase 100% of the  limited-partnership  interests
in  the  Sovran  Partnerships,  prepay  outstanding  mortgages  at the  time  of
acquisition  and for related  transaction  costs.  Additionally,  the  Operating
Partnership   acquired  on  that  date  twelve   self-storage   properties  from
unaffiliated  third parties.  The Operating  Partnership  has since  purchased a
total of 117  (thirty-six in 1998,  forty-four in 1997,  twenty-nine in 1996 and
nine  in  1995)  self  storage   properties  from  unaffiliated  third  parties,
increasing the total number of self-storage properties owned at June 30, 1998 to
192 properties, most of which are in the eastern United States and Texas.

         As of June 30,  1998,  the  Company was a 96.4%  economic  owner of the
Operating Partnership and controls it through Sovran Holdings, Inc. (Holdings) a
wholly-owned  subsidiary  of the  Company  and the sole  general  partner of the
Operating Partnership.  The board of directors of Holdings, the members of which
are also members of the board of  directors of the Company,  manages the affairs
of the Operating Partnership by directing the affairs of Holdings. The Company's
limited  partner  and  indirect   general  partner  interest  in  the  Operating
Partnership  entitle  it to  share in the cash  distributions  from,  and in the
profits and losses of, the Operating  Partnership in proportion to its ownership
interest therein and entitle the Company to vote on all matters requiring a vote
of the limited partners.

         The other limited partners of the Operating Partnership are persons who
contributed their direct or indirect interest in certain self-storage properties
to the Operating  Partnership.  The Operating Partnership is obligated to redeem
each unit of the limited partnership (Unit) at the request of the holder thereof
for cash  equal to the fair  value  of a share  of the  Company's  common  stock
(Common Shares) at the time of such redemption, provided that the Company at its
options may elect to acquire any Unit  presented for  redemption  for one Common
Share or cash.  With each such  redemption  the Company's  percentage  ownership
interest in the Operating Partnership will increase.  In addition,  whenever the
Company  issues Common  Shares,  the Company is obligated to contribute  any net
proceeds therefrom to the Operating Partnership and the Operating Partnership is
obligated to issue an  equivalent  number of units to the Company.  Such limited
partners'   redemption  rights  are  reflected  in  "limited  partners'  capital
interest" in the  accompanying  balance sheets at the cash redemption  amount at
the balance sheet date.





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

(dollars in thousands)

<S>                                                             <C> 

Cost:
   Beginning balance                                            $      333,036
   Property acquisitions                                               110,940
   Improvements and equipment additions                                  8,232
   Dispositions                                                           (117)
--------------------------------------------------------------------------------
Ending balance                                                  $      452,091
--------------------------------------------------------------------------------
Accumulated Depreciation:
   Beginning balance                                            $       11,639
   Additions during the period                                           4,258
   Dispositions                                                            (24)
--------------------------------------------------------------------------------
Ending balance                                                  $       15,873
--------------------------------------------------------------------------------

</TABLE>

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

5.  Commitments and Contingencies
         The   Operating   Partnership's   current   practice   is  to   conduct
environmental  investigations in connection with property acquisitions.  At this
time, the Operating Partnership is not aware of any environmental  contamination
of any of its  facilities  which  individually  or in  the  aggregate  would  be
material to the Operating  Partnership's overall business,  financial condition,
or results of operations.
         As of June  30,  1998,  the  Operating  Partnership  had  entered  into
contracts for the purchase of 4 self-storage  facilities which were purchased in
July 1998 for a total cost of $22.7 million.





6.  Pro Forma Financial Information
         The following  unaudited pro forma Condensed Statement of Operations is
presented as if the 36 storage facilities  purchased during the six months ended
June 30,  1998,  had  occurred  at  January 1, 1998.  Such  unaudited  pro forma
information  is based upon the historical  combined  statements of operations of
the Operating  Partnership.  It should be read in conjunction with the financial
statements of the Operating  Partnership  and notes thereto  included  elsewhere
herein.  In  management's  opinion,  all  adjustments  necessary  to reflect the
effects of these transactions have been made. This unaudited pro forma statement
does not  purport to  represent  what the actual  results of  operations  of the
Operating  Partnership  would  have been  assuming  such  transactions  had been
completed  as set forth  above nor does it purport to  represent  the results of
operations for future periods.
<TABLE>
<CAPTION>

(in thousands, except per unit data)

                                                                   Six Months
                                                                 Ended June 30,
                                                                      1998
<S>                                                            <C>   

Revenues:
  Rental income                                                $         34,011
  Other income                                                              535
                                                               ----------------
     Total revenues                                                      34,546

Expenses:
  Property operations & maintenance                                       6,836
  Real estate taxes                                                       2,800
  General and administrative                                              1,995
  Interest                                                                5,236
  Depreciation and amortization                                           4,939
                                                               ----------------
     Total Expenses                                                      21,806

Income before extraordinary item                                         12,740

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

Net income                                                     $         12,390
                                                                ================


Earnings per unit before extraordinary item - basic                        1.00
Extraordinary item                                                         (.03)
                                                               -----------------
Earnings per unit - basic                                      $            .97
                                                               ================
Earnings per unit - diluted                                    $            .97
                                                               ================

Units used in basic earnings
 per unit calculation                                                12,751,822

</TABLE>

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

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

<TABLE>
<CAPTION>

                                          Six Months  Six Months
                                            Ended       Ended
                                           June 30,    June 30,
                                             1998       1997
                                         ---------    --------
<S>                                        <C>       <C>  

Numerator:
  Net Income ...........................   $12,124   $11,123

Denominator:
  Denominator for basic earnings
    per unit - weighted average units ..    12,754    11,526

Effect of Diluted Securities:
  Stock options ........................        54        57
  Denominator for diluted earnings
    per unit - adjusted weighted average
    units and assumed conversion .......    12,808    11,583

Basic earnings per unit ................   $   .95   $   .96
Diluted earnings per unit ..............   $   .95   $   .96
</TABLE>


9.  Recent Accounting Pronouncements
         On March 19, 1998 the Financial  Accounting  Standards  Board  Emerging
Issues  Task  Force  reached  a  consensus  as to the  accounting  for  internal
acquisition  costs  incurred in connection  with real  property.  The Task Force
consensus  indicates that internal costs related to the acquisition of operating
properties  should be  expensed  as  incurred.  The  Operating  Partnership  has
previously   capitalized   such  costs  and  will  comply  with  the   consensus
prospectively.  The amount of  internal  acquisition  costs  capitalized  in the
six-months   ended  June  30,  1998  and  1997,   was  $222,000  and   $400,000,
respectively.


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operation
         The following  discussion  and analysis of the  consolidated  financial
condition  and  results of  operations  should be read in  conjunction  with the
financial statements and notes thereto included elsewhere in this report.
         The Company  operates as a Real Estate  Investment  Trust  ("REIT") and
owns and  operates,  through  the  Operating  Partnership,  a  portfolio  of 192
self-storage  facilities,  providing storage space for business and personal use
to customers in 19 states.  The  Company's  investment  objective is to increase
cash flow and enhance shareholder value by aggressively  managing its portfolio,
to expand and  enhance  the  facilities  in that  portfolio  and to  selectively
acquire  new  properties  in  geographic  areas that will either  complement  or
efficiently grow the portfolio.
         When used in this discussion and elsewhere in this document,  the words
"intends,"  "believes,"  "anticipates," and similar  expressions are intended to
identify "forward-looking statements" within the meaning of that term in Section
27A of the  Securities  Exchange Act of 1933, as amended,  and in Section 21F of
Securities  Exchange Act of 1934, as amended.  Such  forward-looking  statements
involve known and unknown  risks,  uncertainties  and other  factors,  which may
cause  the  actual  results,   performance  or  achievements  of  the  Operating
Partnership to be materially  different from those  expressed or implied by such
forward-looking  statements. Such factors include the effect of competition from
new  self-storage  facilities,  which would cause rents and  occupancy  rates to
decline; the Operating Partnership's ability to evaluate,  finance and integrate
acquired  businesses  into the  Operating  Partnership's  existing  business and
operations;  the Operating  Partnership's  ability to effectively compete in the
industries in which it does  business;  and tax law changes which may change the
taxability of future income.

Liquidity and Capital Resources

Revolving Credit Facility
         On February 20, 1998, the Operating Partnership entered into a new $150
million  unsecured  credit facility which replaces in its entirety the Operating
Partnership's  $75 million  revolving credit facility.  The new facility matures
February 2001 and provides for funds at LIBOR plus 1.25%,  a savings of 65 basis
points over the Operating  Partnership's old facility. The Operating Partnership
intends to use funds  available  from this  credit  facility  to finance  future
acquisition  and  development  plans  described  below.  At June 30,  1998,  the
Operating  Partnership  had  remaining  borrowing  capacity of $2 million on the
line.

         In June 1998, the Operating Partnership entered into a $30 million term
note which  matures on  September  24, 1998 and provides for funds at LIBOR plus
1.25%. At June 30, 1998,  there was no balance  outstanding on the term note. To
manage its exposure to interest rate fluctuations, the Operating Partnership has
entered into LIBOR-based interest rate swap agreements in amounts of $75 million
through October 1998 and $40 million through June 1999.

Umbrella Partnership 
     The Operating  Partnership has the ability to issue  operating  partnership
("OP") units in exchange for properties sold by independent owners. By utilizing
such OP units as currency in facility  acquisitions,  the Operating  Partnership
may partially defer the seller's income-tax  liability and obtain more favorable
pricing  or terms.  As of June 30,  1998,  453,609  units  have  been  issued in
exchange for property at the request of the sellers.

Acquisition of Properties
         The Operating Partnership's external growth strategy is to increase the
number of  facilities  it owns by acquiring  suitable  facilities  in markets in
which it already  has an  operating  presence  or to expand  into new markets by
acquiring several  facilities at once in those new markets.  In the three months
ended June 30, 1998, the Operating  Partnership  acquired  eighteen  properties,
increasing its existing presence in Florida, Michigan, Missouri, North Carolina,
Ohio, Tennessee and Texas. The Operating  Partnership also entered a new market,
New Hampshire. The eighteen acquisitions in the three months ended June 30, 1998
added  1,169,000  square feet of space and 11,000  rental units to the Operating
Partnership's portfolio.

Future Acquisition and Development Plans
         In July,  the  Operating  Partnership  continued  its  external  growth
strategy by  increasing  the number of  facilities  it owns in Florida,  and has
contracts  on  properties  in Florida,  North  Carolina,  and Texas with planned
closings in the third quarter.
         The  Operating  Partnership  also  intends  to  improve  certain of its
existing facilities by building additional storage buildings on presently vacant
land and by installing climate control and enhanced security systems at selected
sites.

Liquidity
         At June 30, 1998, the Operating  Partnership's debt to equity ratio was
57%.
         As most of the Company's  operating cash flow is expected to be used to
pay dividends, (see REIT Qualification and Distribution Requirements), the funds
required  to  acquire  additional  properties  will be  provided  by  borrowings
pursuant to the revolving  line of credit and the issuance of UPREIT  units.  In
addition,  the Operating  Partnership believes it has achieved a level of market
capitalization  and critical mass to enable it to access the senior debt markets
to fund a portion of 1998 growth. The Company has filed a registration statement
and expects to access the capital markets in 1998.

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

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

For the period January 1, 1998 through June 30, 1998 (dollars in thousands)
         The  Operating  Partnership  reported  revenues  of $30,817  during the
period and incurred  $8,481 in operating  expenses,  resulting in net  operating
income of  $22,336,  or 72%.  General  and  administrative  expenses  of $1,947,
interest expense of $3,368 and  depreciation and amortization  expenses of 4,547
resulted in income of $12,474 before  extraordinary  item. An extraordinary loss
of $350 resulted from the write-off of the  unamortized  financing  costs of the
revolving  credit  facility  that was  replaced  in  February  1998.  Net income
amounted to $12,124.

Three months  ended June 30, 1998,  compared to Three months ended June 30, 1997
(dollars in thousands)
         The  following  discussion  compares the  activities  of the  Operating
Partnership  for the three months ended June 30, 1998 with the activities of the
Operating Partnership for the three months ended June 30, 1997.
         Total  revenues  increased from $11,938 for the three months ended June
30, 1997 to $16,442 for the three  months  ended June 30,  1998,  an increase of
$4,504 or 38%. Of this,  $4,200  resulted from the  acquisition of 18 properties
during the period April 1, 1998 through June 30, 1998 and $304 was realized as a
result of increased  rental rates at the 138  properties  owned by the Operating
Partnership  at April 30, 1997.  Overall,  same-store  revenues  grew 3% for the
three month period ended June 30, 1998 as compared to the same period in 1997.
         Property  operating and real estate tax expense increased $1,303 or 41%
during the period.  $1,112 was a result of absorbing  additional  expenses  from
operating the newly acquired  properties,  and $191 related to the operations of
its sites operated more than one year.
         General  and  administrative  expenses,  which  includes  losses of $66
realized as the result of replacement of equipment,  increased $507  principally
as a result of the need for  additional  personnel and increased  administrative
costs associated with managing the additional properties.
     Interest  expense  increased  $1,847 due to the $112  million  drawn on the
Operating  Partnership's  line of credit during 1998. Net income  increased from
$6,189 to $6,271, an increase of $82 or 1.3%.

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



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

Item 3.  Changes in Information About Market Risk
         No disclosure required

Part II.  Other Information

Item 1.  Legal Proceedings

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

Item 2.  Changes in Securities

         No disclosure required.

Item 3.  Defaults Upon Senior Securities

         No disclosure required.

Item 4.  Submission of Matters to a Vote of Security Holders

         No disclosure required.

Item 5.  Other Information

         No disclosure required.

Item 6.  Exhibits and Reports on Form 8-K

1. (a.)  Exhibit 27.  Financial Data Schedule

   (b.) Reports on Form 8-K

     On April 17,  1998,  the Company  filed an amended  Current  Report on Form
     8-K/A,  which amended the Company's  Form 8-K filed  February 20, 1998. The
     8-K/A  filed  April  17,  1998,  included  the  financial   statements  for
     twenty-four self storage facilities acquired. In addition, an unaudited Pro
     Forma  Combined  Balance  Sheet and  Statement of Operations at and for the
     year ended December 31, 1997 were presented.

     On June 10, 1998,  the Company filed a Current Report on Form 8-K reporting
     the acquisition of eight self-storage facilities. In addition, an unaudited
     Pro Forma Combined Balance Sheet and Statement of Operations at and for the
     three months ended March 31, 1998 and the year ended December 31, 1997 were
     presented.






<PAGE>



                                   SIGNATURES

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

                     Sovran Acquisition Limited Partnership
                           By: Sovran Holdings, Inc.,
                               Its:  General Partner



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