**FORM        10-Q**

**SOVRAN        ACQUISITION LIMITED PARTNERSHIP**

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

| **Part                  I.****Item                  1.** | **Financial                  Information****Financial                  Statements** |
|----------------------------------------------------------|-------------------------------------------------------------------------------------|
|                                                     |                                                                                |

**SOVRAN        ACQUISITION LIMITED PARTNERSHIP**

**CONSOLIDATED        BALANCE SHEETS**

|   (dollars                  in thousands, except unit data)                                                                                                                                |       September                  30,2007                  (unaudited) |  December                  31,2006              |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
| **Assets**                                                                                                                                                                                           |                                                                                                                                                                                          |                                                                                         |
| Investment                  in storage facilities:                                                                                                                                                   |                                                                                                                                                                                          |
|  Land                                                                                                                                                                                           | $    235,662                                                                                                                                                         | $    208,644                                                        |
|  Building,                  equipment, and construction in progress                                                                                                                             |    1,067,081                                                                                                                                                              |     935,260                                                         |
|                                                                                                                                                                                                 | 1,302,743                                                                                                                                                                                | 1,143,904                                                                               |
|  Less:                  accumulated depreciation                                                                                                                                                |    (177,988)                                                                                                                                                                   |    (155,843)                                                                  |
| Investment                  in storage facilities, net                                                                                                                                               | 1,124,755                                                                                                                                                                                | 988,061                                                                                 |
| Cash                  and cash equivalents                                                                                                                                                           | 8,504                                                                                                                                                                                    | 47,730                                                                                  |
| Accounts                  receivable                                                                                                                                                                 | 2,925                                                                                                                                                                                    | 2,166                                                                                   |
| Receivable                  from related parties                                                                                                                                                     | 27                                                                                                                                                                                       | 37                                                                                      |
| Prepaid                  expenses                                                                                                                                                                    | 5,985                                                                                                                                                                                    | 5,336                                                                                   |
| Fair                  value of interest rate swap agreements                                                                                                                                         | 797                                                                                                                                                                                      | 2,274                                                                                   |
| Other                  assets                                                                                                                                                                        |           6,760                                                                                                                        |           7,606                       |
|   Total                  Assets                                                                                                                                                            | $ 1,149,753                                                                                                                                                                         | $ 1,053,210                                                                        |
|  **Liabilities**                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                         |
| Line                  of credit                                                                                                                                                                      | $      91,000                                                                                                                                              | $             -   |
| Term                  notes                                                                                                                                                                          | 350,000                                                                                                                                                                                  | 350,000                                                                                 |
| Accounts                  payable and accrued liabilities                                                                                                                                            | 22,559                                                                                                                                                                                   | 15,092                                                                                  |
| Deferred                  revenue                                                                                                                                                                    | 5,746                                                                                                                                                                                    | 5,292                                                                                   |
| Accrued                  distributions                                                                                                                                                               | 13,884                                                                                                                                                                                   | 12,941                                                                                  |
| Mortgages                  payable                                                                                                                                                                   |      110,911                                                                                                                                                    |      112,027                                                   |
|   Total                  Liabilities                                                                                                                                                  | 594,100                                                                                                                                                                                  | 495,352                                                                                 |
| Minority                  interest – consolidated joint venture                                                                                                                                | 16,783                                                                                                                                                                                   | 16,783                                                                                  |
|                                                                                                                                                                                                 |                                                                                                                                                                                          |                                                                                         |
| Limited                  partners' capital interest (425,785 units and 429,035 units                  in   2007                  and 2006, respectively)                              |  19,518                                                                                                                                                                             |  24,575                                                                            |
|                                                                                                                                                                                                 |                                                                                                                                                                                          |                                                                                         |
| **Partners'                  Capital**                                                                                                                                                               |                                                                                                                                                                                          |                                                                                         |
| General                  partner (219,567 units outstanding in 2007 and 2006)                                                                                                                        | 3,830                                                                                                                                                                                    | 3,905                                                                                   |
| Limited                  partner (21,392,860 and 20,223,962 units outstanding in   2007                  and 2006, respectively)                                                      |  514,838                                                                                                                                                                            |  480,467                                                                           |
| Preferred                  partners (no Series C Preferred Units outstanding in   2007                  and 1,200,000 outstanding in 2006) at liquidation                  preference |  -                                                                                                                                                                             |  30,000                                                                            |
| Accumulated                  other comprehensive income                                                                                                                                              |              684                                                                                                        |           2,128                       |
|   Total                  Partners' Equity                                                                                                                                                  |       519,352                                                                                                                                              |       516,500                                             |
|   Total                  Liabilities and Partners' Capital                                                                                                                                 | $ 1,149,753 =========                                                                                                                                                               | $ 1,053,210 =========                                                              |
|  See                  notes to financial statements.                                                                                                                                            |                                                                                                                                                                                          |                                                                                         |

**SOVRAN        ACQUISITION LIMITED PARTNERSHIP**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**(unaudited)**

|   (dollars                  in thousands, except per unit data)         | July                  1, 2007     to         September                  30,2007 | July                  1, 2006     to           September                  30,2006 |
|-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Revenues**                                                                      |                                                                                                                                                  |                                                                                                                                                              |
|  Rental                  income                                              | $    49,195                                                                                                                  | $     43,354                                                                                                                        |
|  Other                  operating income                                     |        1,803                                                                                                  |         1,430                                                                                                        |
|   Total                  operating revenues                             | 50,998                                                                                                                                           | 44,784                                                                                                                                                       |
|                                                                              |                                                                                                                                                  |                                                                                                                                                              |
| **Expenses**                                                                      |                                                                                                                                                  |                                                                                                                                                              |
|  Property                  operations and maintenance                        | 13,501                                                                                                                                           | 12,163                                                                                                                                                       |
|  Real                  estate taxes                                          | 4,649                                                                                                                                            | 4,112                                                                                                                                                        |
|  General                  and administrative                                 | 3,968                                                                                                                                            | 3,430                                                                                                                                                        |
|  Depreciation                  and amortization                              |        8,390                                                                                                  |        6,683                                                                                                              |
|    Total                  operating expenses                       |      30,508                                                                                                             |      26,388                                                                                                                         |
|                                                                              |                                                                                                                                                  |                                                                                                                                                              |
|  Income                  from operations                                     | 20,490                                                                                                                                           | 18,396                                                                                                                                                  |
| **Other                  income (expenses)**                                      |                                                                                                                                                  |                                                                                                                                                              |
|  Interest                  expense                                           | (9,092)                                                                                                                                               | (8,421)                                                                                                                                                           |
|  Interest                  income                                            | 137                                                                                                                                              | 135                                                                                                                                                          |
|  Minority                  interest – consolidated joint ventures      | (462)                                                                                                                                                 |         (462)                                                                                                             |
|  Equity                  in income of joint ventures                         |             17                                                                       |             42                                                                                   |
|  **Net                  Income**                                             |  11,090                                                                                                                                     |  9,690                                                                                                                                                  |
|   Preferred                  unit distributions                         |               -                                                            |          (628)                                                                                                       |
| Net                  income available to common unitholders                       | $    11,090 =======                                                                                                     | $      9,062 =======                                                                                                      |
|                                                                              |                                                                                                                                                  |                                                                                                                                                              |
| **Earnings                  per common unit – basic**                       | $        0.51 =======                                                                               | $        0.49 =======                                                                                           |
| **Earnings                  per common unit – diluted**                     | $        0.51 =======                                                                               | $        0.49 =======                                                                                           |
|  Common                  units used in basic earnings per unit calculation   |  21,817,036                                                                                                                                 |  18,347,269                                                                                                                                             |
|  Common                  units used in diluted earnings per unit calculation |  21,853,695                                                                                                                                 |  18,416,927                                                                                                                                             |
|                                                                              |                                                                                                                                                  |                                                                                                                                                              |
|   Distributions                  declared per common unit               | $    0.63 =======                                                                                                  | $    0.62 =======                                                                                                                   |

**SOVRAN        ACQUISITION LIMITED PARTNERSHIP**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**(unaudited)**

|   (dollars                  in thousands, except per unit data)         | January                  1, 2007  to           September                  30, 2007 | January                  1, 2006  to           September                  30, 2006 |
|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| **Revenues**                                                                      |                                                                                                                                                |                                                                                                                                                |
|  Rental                  income                                              | $  138,985                                                                                                                           | $   117,797                                                                                                                     |
|  Other                  operating income                                     |        4,713                                                                                                |         3,940                                                                                          |
|   Total                  operating revenues                             | 143,698                                                                                                                                        | 121,737                                                                                                                                        |
|                                                                              |                                                                                                                                                |                                                                                                                                                |
| **Expenses**                                                                      |                                                                                                                                                |                                                                                                                                                |
|  Property                  operations and maintenance                        | 38,819                                                                                                                                         | 31,915                                                                                                                                         |
|  Real                  estate taxes                                          | 13,670                                                                                                                                         | 11,372                                                                                                                                         |
|  General                  and administrative                                 | 11,222                                                                                                                                         | 10,530                                                                                                                                         |
|  Depreciation                  and amortization                              |      25,547                                                                                                           |      18,362                                                                                                           |
|    Total                  operating expenses                       |      89,258                                                                                                           |      72,179                                                                                                           |
|                                                                              |                                                                                                                                                |                                                                                                                                                |
|  Income                  from operations                                     | 54,440                                                                                                                                         | 49,558                                                                                                                                    |
| **Other                  income (expenses)**                                      |                                                                                                                                                |                                                                                                                                                |
|  Interest                  expense                                           | (24,908)                                                                                                                                            | (20,992)                                                                                                                                            |
|  Interest                  income                                            | 814                                                                                                                                            | 490                                                                                                                                            |
|  Minority                  interest – consolidated joint ventures      | (1,386)                                                                                                                                             |         (1,068)                                                                                             |
|  Equity                  in income of joint ventures                         |             97                                                                     |            148                                                                          |
|  **Net                  Income**                                             |  29,057                                                                                                                                   |  28,136                                                                                                                                   |
|   Preferred                  unit distributions                         |       (1,256)                                                                                                         |       (1,884)                                                                                                         |
| Net                  income available to common unitholders                       | $    27,801 =======                                                                                                   | $    26,252 =======                                                                                                   |
|                                                                              |                                                                                                                                                |                                                                                                                                                |
| **Earnings                  per common unit – basic**                       | $        1.31 =======                                                                             | $        1.45 =======                                                                             |
| **Earnings                  per common unit – diluted**                     | $        1.31 =======                                                                             | $        1.44 =======                                                                             |
|  Common                  units used in basic earnings per unit calculation   |  21,188,243                                                                                                                               |  18,139,326                                                                                                                               |
|  Common                  units used in diluted earnings per unit calculation |  21,240,488                                                                                                                               |  18,205,493                                                                                                                               |
|                                                                              |                                                                                                                                                |                                                                                                                                                |
|   Distributions                  declared per common unit               | $    1.87 =======                                                                                                | $    1.85 =======                                                                                                     |

**SOVRAN        ACQUISITION LIMITED PARTNERSHIP**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**(unaudited)**

|   (dollars                  in thousands)                                                                                                                          | January                  1, 2007  to           September                  30, 2007 | January                  1, 2006  to           September                  30, 2006 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| **Operating                  Activities**                                                                                                                                    |                                                                                                                                                |                                                                                                                                                |
| Net                  income                                                                                                                                                  | $  28,476                                                                                                                            | $ 28,136                                                                                                                                  |
| Adjustments                  to reconcile net income to net cash provided by  operating                  activities:                                               |                                                                                                                                                |                                                                                                                                                |
|     Depreciation                  and amortization                                                                                                       | 26,263                                                                                                                                         | 19,110                                                                                                                                         |
|     Equity                  in income of joint ventures                                                                                                  | (97)                                                                                                                                                | (148)                                                                                                                                               |
|     Minority                  interest                                                                                                                   | 1,967                                                                                                                                          | 1,068                                                                                                                                          |
|     Non-vested                  stock earned                                                                                                             | 895                                                                                                                                            | 632                                                                                                                                            |
|     Stock                  option expense                                                                                                                | 139                                                                                                                                            | 100                                                                                                                                            |
|     Changes                  in assets and liabilities:                                                                                                  |                                                                                                                                                |                                                                                                                                                |
|       Accounts                  receivable                                                                                                     | (722)                                                                                                                                               | (175)                                                                                                                                               |
|       Prepaid                  expenses                                                                                                        | (329)                                                                                                                                               | (4,230)                                                                                                                                             |
|       Accounts                  payable and other liabilities                                                                                  | 7,274                                                                                                                                          | 7,951                                                                                                                                          |
|       Deferred                  revenue                                                                                                        |           (62)                                                                                    |          (12)                                                                                          |
| Net                  cash provided by operating activities                                                                                                                   |     63,804                                                                                                                 |    52,432                                                                                                                       |
|                                                                                                                                                                         |                                                                                                                                                |                                                                                                                                                |
| **Investing                  Activities**                                                                                                                                    |                                                                                                                                                |                                                                                                                                                |
|   Acquisition                  of storage facilities                                                                                                               | (132,712)                                                                                                                                           | (125,625)                                                                                                                                           |
|   Improvements,                  equipment additions, and construction in progress                                                                                 |      (28,505)                                                                                                              | (22,426)                                                                                                                                            |
|   Additional                  investment in consolidated joint ventures net of cash                  acquired                                                      |            -                                                                  | (7,531)                                                                                                                                             |
|   Receipts                  from joint ventures                                                                                                                    |            -                                                                  | 17                                                                                                                                             |
|   Property                  deposits                                                                                                                               | (258)                                                                                                                                               | 416                                                                                                                                            |
|   Receipts                  from related parties                                                                                                                   |             10                                                                     |            38                                                                           |
| Net                  cash used in investing activities                                                                                                                       |   (161,465)                                                                                                                               |  (155,111)                                                                                                                                     |
|                                                                                                                                                                         |                                                                                                                                                |                                                                                                                                                |
| **Financing                  Activities**                                                                                                                                    |                                                                                                                                                |                                                                                                                                                |
|   Net                  proceeds from sale of common stock                                                                                                          | 10,499                                                                                                                                         | 23,266                                                                                                                                         |
|   Proceeds                  from line of credit and term note                                                                                                      | 103,000                                                                                                                                        | 251,000                                                                                                                                        |
|   Pay                  down of line of credit                                                                                                                      | (12,000)                                                                                                                                            | (125,000)                                                                                                                                           |
|   Financing                  costs                                                                                                                                 | (250)                                                                                                                                               | (563)                                                                                                                                               |
|   Distributions                  paid                                                                                                                              | (41,628)                                                                                                                                            | (36,595)                                                                                                                                            |
|   Distributions                  from unconsolidated joint venture                                                                                                 | 98                                                                                                                                             | 123                                                                                                                                            |
|   Redemption                  of Operating Partnership Units                                                                                                       | (168)                                                                                                                                               | (2,680)                                                                                                                                             |
|   Mortgage                  principal payments                                                                                                                     |      (1,116)                                                                                                               |         (932)                                                                                               |
| Net                  cash provided by financing activities                                                                                                                   |      58,435                                                                                                           |    108,619                                                                                                                      |
| Net                  (decrease) increase in cash                                                                                                                             | (39,226)                                                                                                                                            | 5,940                                                                                                                                          |
| Cash                  at beginning of period                                                                                                                                 |      47,730                                                                                                           |        4,911                                                                                                |
| Cash                  at end of period                                                                                                                                       | $     8,504 =======                                                                                              | $   10,851 =======                                                                                                         |
| **Supplemental                  cash flow information**Cash                  paid for interest                                                                               |  $   23,003                                                                                                                |  $ 17,519                                                                                                                            |
| Fair                  value of liabilities assumed on the acquisition of storage facilities                  *                                                          | 386                                                                                                                                            | 36,038                                                                                                                                         |
| *  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                    | $  1,143,904                                      |
|   Property                  acquisitions                | 124,701                                                     |
|   Improvements                  and equipment additions | 34,219                                                      |
|   Dispositions                                          |           (81) |
| Ending                  balance                                   | $1,302,743                                                  |
|                                                              |                                                             |
| Accumulated                  Depreciation:                        |                                                             |
|   Beginning                  balance                    | $   155,843                                  |
|   Additions                  during the period          | 22,199                                                      |
|   Dispositions                                          |           (54) |
| Ending                  balance                                   | $   177,988                                  |

| **5.** | **PRO                  FORMA FINANCIAL INFORMATION** |
|--------|------------------------------------------------------|
|   |                                                 |

|   (dollars                  in thousands, except unit data)                      | July                  1, 2007 to         Sep.                  30, 2007 | July                  1, 2006 to         Sep.                  30, 2006 | Jan.                  1, 2007 to         Sep.                  30, 2007 | Jan.                  1, 2006 to         Sep.                  30, 2006 |
|--------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                                                                       |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |
| Pro                  forma total operating revenues                                        | $ 50,998                                                                                    | $ 49,148                                                                                    | $ 148,120                                                                                   | $ 142,172                                                                                   |
|                                                                                       |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |
| Pro                  forma net income                                                      | $ 11,696                                                                                    | $  9,871                                                                               | $ 31,451                                                                                    | $ 26,514                                                                                    |
|                                                                                       |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |
| Pro                  forma earnings per common unit -     diluted |  $ 0.54                                                                                |  $ 0.44                                                                                |  $ 1.42                                                                                |  $ 1.19                                                                                |
|                                                                                       |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |

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

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

| (dollars                  in thousands)                                                                                                                                                                                                                                                                                           | September                  30,2007        | December                  31,2006        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| 7.80%                  mortgage note due December 2011, secured by 11 self-storage facilities                  (Locke Sovran I) with an aggregate net book value of $41.7 million,                  principal and interest paid monthly                                                                                                |   $  29,189                                         |   $  29,486                                        |
|                                                                                                                                                                                                                                                                                                                                   |                                                                         |                                                                        |
| 7.19%                  mortgage note due March 2012, secured by 27 self-storage facilities                  (Locke                  Sovran II) with an aggregate net book value of $78.9 million, principal                  and interest paid monthly                                                                                 |    43,898                                                |    44,623                                               |
|                                                                                                                                                                                                                                                                                                                                   |                                                                         |                                                                        |
| 7.25%                  mortgage note due December 2011, secured by 1 self-storage facility                  with                  an aggregate net book value of $5.9 million, principal and interest                  paid                  monthly.  Estimated market rate at time of acquisition                  5.40%   |    3,675                                                 |    3,769                                                |
|                                                                                                                                                                                                                                                                                                                                   |                                                                         |                                                                        |
| 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                                                                                  |   1,027                                                       |   1,043                                                      |
|                                                                                                                                                                                                                                                                                                                                   |                                                                         |                                                                        |
| 6.35%                  mortgage note due March 2014, secured by 1 self-storage facility                  with an                  aggregate net book value of $1.9 million, principal and interest                  paid                  monthly                                                                                      |   1,128                                                       |   1,144                                                      |
|                                                                                                                                                                                                                                                                                                                                   |                                                                         |                                                                        |
| 5.55%                  mortgage notes due November 2009, secured by 8 self-storage facilities                  with an aggregate net book value of $35.3 million, interest only                  paid                  monthly.  Estimated market rate at time of acquisition                  6.44%                         |    25,665                                                |    25,496                                               |
|                                                                                                                                                                                                                                                                                                                                   |                                                                         |                                                                        |
| 7.50%                  mortgage notes due August 2011, secured by 3 self-storage facilities                  with                  an aggregate net book value of $14.5 million, principal and interest                  paid                  monthly.  Estimated market rate at time of acquisition                  6.42% |           6,329       |           6,466      |
|                                                                                                                                                                                                                                                                                                                                   |                                                                         |                                                                        |
| Total                  mortgages payable                                                                                                                                                                                                                                                                                               | $ 110,911                                                          | $ 112,027                                                         |
|                                                                                                                                                                                                                                                                                                                                   |                                                                         |                                                                        |

|                                                          |                     Expected                  Maturity Date Including                  Discount                     |                                          |                                                |
|---------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|-----------------------------------------------------|
| (dollars                  in thousands)                       | 2007                                                                                                                                                                                                                                                                                                              | 2008                                | 2009                                      | 2010   | 2011   | Thereafter | Total    | Fair    Value   |
| Line                  of credit - variable rate LIBOR + 0.9%  | -                                                                                                                                                                                                                                                                                                            | $91,000                                       | -                                    | -    | -    | -    | $  91,000 | $  91,000 |
|                                                          |                                                                                                                                                                                                                                                                                                                        |                                          |                                                |   |   |   |   |   |
| Notes                  Payable:                               |                                                                                                                                                                                                                                                                                                                        |                                          |                                                |   |   |   |   |   |
| Term                  note - variable rate LIBOR+1.20%        | -                                                                                                                                                                                                                                                                                                            | -                              | $100,000                                            | -    | -    | -    | $100,000 | $100,000 |
| Term                  note - variable rate LIBOR+1.50%        | -                                                                                                                                                                                                                                                                                                            | -                              | -                                    | -    | -    | $  20,000 | $  20,000 | $  20,000 |
| Term                  note - fixed rate 6.26%                 | -                                                                                                                                                                                                                                                                                                            | -                              | -                                    | -    | -    | $  80,000 | $  80,000 | $  79,921 |
| Term                  note - fixed rate 6.38%                 | -                                                                                                                                                                                                                                                                                                            | -                              | -                                    | -    | -    | $150,000 | $150,000 | $148,888 |
|                                                          |                                                                                                                                                                                                                                                                                                                        |                                          |                                                |   |   |   |   |   |
| Mortgage                  note - fixed rate 7.80%             | $     105                                                                                                                                                                                                                                                                                          | $     427            | $      467            | $       504 | $27,686 | -    | $  29,189 | $  30,891 |
| Mortgage                  note - fixed rate 7.19%             | $     253                                                                                                                                                                                                                                                                                          | $  1,042                            | $   1,128                            | $    1,211 | $  1,301 | $  38,963 | $  43,898 | $  45,774 |
| Mortgage                  note - fixed rate 7.25%             | $       32                                                                                                                                                                                                                                                                               | $     133            | $      141            | $       149 | $   3,220 | -    | $    3,675 | $    3,607 |
| Mortgage                  note - fixed rate 6.76%             | $         5                                                                                                                                                                                                                                                                    | $       22 | $        23 | $         25 | $       27 | $       925 | $    1,027 | $    1,061 |
| Mortgage                  note - fixed rate 6.35%             | $         6                                                                                                                                                                                                                                                                    | $       24 | $        26 | $         28 | $       30 | $    1,014 | $    1,128 | $    1,143 |
| Mortgage                  notes - fixed rate 5.55%            | -                                                                                                                                                                                                                                                                                                            | -                              | $ 25,665                                       | -    | -    | -    | $  25,665 | $  26,493 |
| Mortgage                  notes - fixed rate 7.50%            | $                        47                                                                                                                                                                                                                                                                   | $     194            | $      208            | $       222 | $ 5,658 | -    | $    6,329 | $    6,435 |
|                                                          |                                                                                                                                                                                                                                                                                                                        |                                          |                                                |   |   |   |   |   |
| Interest                  rate derivatives – asset | -                                                                                                                                                                                                                                                                                                            | -                              | -                                    | -    | -    | -    | -    | $       797 |

| **8.** | **INTEREST                  RATE SWAP AGREEMENTS** |
|--------|----------------------------------------------------|
|   |                                               |

|   Notional                  Amount |   Effective                  Date |   Expiration                  Date |  Fixed   Rate                  Paid |  Floating                  Rate  Received      |
|----------------------------------------------|---------------------------------------------|----------------------------------------------|---------------------------------------------------------|----------------------------------------------------------------------------------------|
|                                         |                                        |
| $50                  Million                 | 11/14/05                                    | 9/1/09                                       | 5.590%                                                  | 1                  month LIBOR                                                         |
| $20                  Million                 | 9/4/05                                      | 9/4/13                                       | 5.935%                                                  | 6                  month LIBOR                                                         |
| $50                  Million                 | 10/10/06                                    | 9/1/09                                       | 5.680%                                                  | 1                  month LIBOR                                                         |
|                                         |                                        |                                         |                                                    |                                                                                   |

| **9.** | **COMMITMENTS                  AND CONTINGENCIES** |
|--------|----------------------------------------------------|
|   |                                               |

| **10.** | **COMPREHENSIVE                  INCOME** |
|---------|-------------------------------------------|
|    |                                      |

| **11.** | **INVESTMENT                  IN JOINT VENTURES** |
|---------|---------------------------------------------------|
|    |                                              |

| **12.** | **EARNINGS                  PER UNIT** |
|---------|----------------------------------------|
|    |                                   |

|  (in                  thousands except per unit data)                                                                                                                                          | Three                  Months Ended    Sep.                  30, 2007 | Three                  Months Ended    Sep.                  30, 2006 | Nine                  Months Ended    Sep.                  30, 2007 | Nine                  Months Ended    Sep.                  30, 2006 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
| Numerator:                                                                                                                                                                                          |                                                                                      |                                                                                      |                                                                                     |                                                                                     |
|   Net                  income available to common unitholders                                                                                                                             | $ 11,090                                                                        | $ 9,062                                                                    | $ 27,801                                                                  | $ 26,252                                                                  |
|                                                                                                                                                                                                |                                                                                      |                                                                                      |                                                                                     |                                                                                     |
| Denominator:                                                                                                                                                                                        |                                                                                      |                                                                                      |                                                                                     |                                                                                     |
|   Denominator                  for basic earnings per unit -    weighted                  average units                                                               |  21,817                                                                         |  18,347                                                                    |  21,188                                                                   |  18,139                                                                   |
| Effect                  of Dilutive Securities:                                                                                                                                                     |                                                                                      |                                                                                      |                                                                                     |                                                                                     |
|   Stock                  options, warrants and non-vested stock                                                                                                                           |       37                                               |       70                                          |       52                                         |       66                                         |
| Denominator                  for diluted earnings per unit -    adjusted                  weighted average units and    assumed                  conversion |   21,854                                                                   |   18,417                                                              |   21,240                                                             |   18,205                                                             |
|                                                                                                                                                                                                |                                                                                      |                                                                                      |                                                                                     |                                                                                     |
| Basic                  earnings per common unit                                                                                                                                                     | $    0.51                                                        | $    0.49                                                   | $    1.31                                                  | $    1.45                                                  |
| Diluted                  earnings per common unit                                                                                                                                                   | $    0.51                                                        | $    0.49                                                   | $    1.31                                                  | $    1.44                                                  |

| **13.** | **INCOME                  TAXES** |
|---------|-----------------------------------|
|    |                              |

| **14.** | **PREFERRED                  STOCK** |
|---------|--------------------------------------|
|    |                                 |

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

*Fair Value        Measurements"*

*"The Fair Value Option for        Financial Assets and Financial Liabilities-including an amendment of FASB        Statement No. 115". *

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

**DISCLOSURE        REGARDING FORWARD-LOOKING STATEMENTS**

**RESULTS        OF OPERATIONS**

**FUNDS        FROM OPERATIONS**

*Reconciliation        of Net Income to Funds From Operations*

|                                                                                                                                                                            |                     Nine                  months                  ended                |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (in                  thousands)                                                                                                                                                 | September                  30,2007                                                                                                                                                                                                                                    | September                  30, 2006 |
|  Net                  income                                                                                                                                               |  $ 29,057                                                                                                                                                                                                                |  $ 28,136        |
| Minority                  interest in income                                                                                                                                    | 1,386                                                                                                                                                                                                                              | 1,068        |
| Depreciation                  of real estate and amortization  of                  intangible assets exclusive of deferred  financing                  fees |   25,547                                                                                                                                                                                                                 |   18,362        |
| Depreciation                  and amortization from  unconsolidated                  joint ventures                                                                   |  44                                                                                                                                                                                                                           |  148        |
| Preferred                  stock dividends                                                                                                                                      | (1,256)                                                                                                                                                                                                                                 | (1,884)       |
| Funds                  from operations allocable to  minority                  interest in consolidated joint venture                                                 |       (1,386)                                                                                                                                                                                             |     (1,323)       |
| FFO                  available to common unitholders                                                                                                                            | $  53,392       =======                                                                                                                                                                    | $ 44,507       ======       |

**LIQUIDITY        AND CAPITAL RESOURCES**

| * | 7.80%                  mortgage note due December 2011, secured by 11 self-storage facilities                  (Locke Sovran I) with an aggregate net book value of $41.7 million,                  principal and interest paid monthly.  The outstanding balance at                  September 30, 2007 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 $78.9 million, principal                  and interest paid monthly.  The outstanding balance at                  September 30, 2007 on this mortgage was $43.9                  million.                                                      |
| * | 7.25%                  mortgage note due December 2011, secured by 1 self-storage facility                  with                  an aggregate net book value of $5.9 million, principal and interest                  paid monthly.  Estimated market rate at time of acquisition                  5.40%.  The outstanding balance at September 30, 2007 on                  this mortgage was $3.7 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,                  2007 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 $1.9 million, principal and interest paid                  monthly.  The outstanding balance at September 30, 2007 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 $35.3 million, interest only paid                  monthly.  Estimated market rate at time of acquisition                  6.44%.  The outstanding balance at September 30, 2007 on                  this mortgage was $25.7 million.                        |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *      | 7.50%                  mortgage notes due August 2011, secured by 3 self-storage facilities                  with                  an aggregate net book value of $14.5 million, principal and interest                  paid monthly.  Estimated market rate at time of acquisition                  6.42%.  The outstanding balance at September 30, 2007 on                  this mortgage was $6.3 million. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |

**ACQUISITION        OF PROPERTIES**

**FUTURE        ACQUISITION AND DEVELOPMENT PLANS**

**DISTRIBUTION        REQUIREMENTS OF THE COMPANY AND IMPACT ON THE OPERATING        PARTNERSHIP**

**UMBRELLA        PARTNERSHIP REIT**

**INTEREST        RATE RISK**

|   Notional                  Amount |   Effective                  Date |   Expiration                  Date |  Fixed   Rate                  Paid |  Floating                  Rate  Received      |
|----------------------------------------------|---------------------------------------------|----------------------------------------------|---------------------------------------------------------|----------------------------------------------------------------------------------------|
|                                         |                                        |                                         |                                                    |                                                                                   |
| $50                  Million                 | 11/14/05                                    | 9/1/09                                       | 5.590%                                                  | 1                  month LIBOR                                                         |
| $20                  Million                 | 9/4/05                                      | 9/4/13                                       | 5.935%                                                  | 6                  month LIBOR                                                         |
| $50                  Million                 | 10/10/06                                    | 9/1/09                                       | 5.680%                                                  | 1                  month LIBOR                                                         |
|                                         |                                        |                                         |                                                    |                                                                                   |

**INFLATION**

**SEASONALITY**

**RECENT        ACCOUNTING PRONOUNCEMENTS**

| **Item                  3.** | **Quantitative                  and Qualitative Disclosures About Market Risk** |
|------------------------------|---------------------------------------------------------------------------------|
|                         |                                                                            |

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

**Conclusion        Regarding the Effectiveness of Disclosure Controls and        Procedures**

**Changes        in Internal Control over Financial Reporting**

| **PART                  II.****Item                  1.** | **Other                  Information****Legal                  Proceedings** |
|-----------------------------------------------------------|------------------------------------------------------------------------------|
|                                                      |                                                                         |

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

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

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

| **Item                  4.** | **Submission                  of Matters to a Vote of Security Holders** |
|------------------------------|--------------------------------------------------------------------------|
|                         |                                                                     |

| **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. |   |

|        November                  2, 2007Date | SOVRAN                  ACQUISITION LIMITED PARTNERSHIP By:  Sovran                  Holdings, Inc.Its:  General                  Partner By:   /s/                  David L.                  Rogers                                  David                  L. Rogers,           Chief                  Financial Officer |
|---------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|