----

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

----

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

|   (dollars in thousands,      except unit data)                                                                     | June30,    2008      (unaudited)                                  |  December      31,2007         |
|-------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Assets                                                                                                                        |                                                                                                                |                                                                        |
| Investment      in storage facilities:                                                                                        |                                                                                                                |
|  Land                                                                                                                    | $    239,644                                                                               | $    236,349                                       |
|  Building,      equipment, and construction in progress                                                                  |    1,121,131                                                                                    |   1,086,359                                                  |
|                                                                                                                          | 1,360,775                                                                                                      | 1,322,708                                                              |
|  Less:      accumulated depreciation                                                                                     |    (199,853)                                                                                         |    (183,679)                                                 |
| Investment      in storage facilities, net                                                                                    | 1,160,922                                                                                                      | 1,139,029                                                              |
| Cash      and cash equivalents                                                                                                | 21,060                                                                                                         | 4,010                                                                  |
| Accounts      receivable                                                                                                      | 2,575                                                                                                          | 2,794                                                                  |
| Receivable      from related parties                                                                                          | 14                                                                                                             | 27                                                                     |
| Investment      in joint ventures                                                                                             | 100                                                                                                            | -                                                                 |
| Prepaid      expenses                                                                                                         | 6,159                                                                                                          | 4,771                                                                  |
| Other      assets                                                                                                             |           10,814                                             |           7,574      |
| Net      assets of discontinued operations                                                                                    |                  -   |           6,383      |
|   Total      Assets                                                                                                 | $ 1,201,644=========                                                                                           | $ 1,164,588 =========                                             |
|  Liabilities                                                                                                             |                                                                                                                |                                                                        |
| Line      of credit                                                                                                           | $               -              | $    100,000                                       |
| Term      notes                                                                                                               | 500,000                                                                                                        | 356,000                                                                |
| Accounts      payable and accrued liabilities                                                                                 | 20,651                                                                                                         | 23,486                                                                 |
| Deferred      revenue                                                                                                         | 6,087                                                                                                          | 5,602                                                                  |
| Fair      value of interest rate swap agreements                                                                              | 4,457                                                                                                          | 1,230                                                                  |
| Accrued      distributions                                                                                                    | 14,057                                                                                                         | 13,922                                                                 |
| Mortgages      payable                                                                                                        |      110,152                                                                          |      110,517                                  |
|   Total      Liabilities                                                                                       | 655,404                                                                                                        | 610,757                                                                |
| Minority      interest – consolidated joint venture                                                                     | 13,082                                                                                                         | 16,783                                                                 |
|                                                                                                                          |                                                                                                                |                                                                        |
| Limited      partners' capital interest (422,527 units and 422,727 unitsin   2008      and 2007, respectively) |  17,292                                                                                                   |  16,951                                                           |
|                                                                                                                          |                                                                                                                |                                                                        |
| Partners'      Capital                                                                                                        |                                                                                                                |                                                                        |
| General      partner (219,567 units outstanding in 2008 and 2007)                                                             | 3,738                                                                                                          | 3,823                                                                  |
| Limited      partner (21,671,160 and 21,457,019 units outstanding in   2008      and 2007, respectively)       |  516,326                                                                                                  |  517,642                                                          |
| Accumulated      other comprehensive income                                                                                   |         (4,198)                                                             |          (1,368)               |
|   Total      Partners' Equity                                                                                       |       515,866                                                                    |       520,097                            |
|   Total      Liabilities and Partners' Capital                                                                      | $ 1,201,644                                                                                               | $ 1,164,588                                                       |
|  See      notes to financial statements.                                                                                 |                                                                                                                |                                                                        |

----

|   (dollars in thousands,      except per unit data)                                         | April      1, 2008to                June      30, 2008 | April      1, 2007to                June      30, 2007 |
|-------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
| Revenues                                                                                              |                                                                                                                                   |                                                                                                                                   |
|  Rental      income                                                                              | $    48,432                                                                                                   | $     46,301                                                                                             |
|  Other      operating income                                                                     |        1,688                                                                                   |         1,571                                                                             |
|   Total      operating revenues                                                             | 50,120                                                                                                                            | 47,872                                                                                                                            |
|                                                                                                  |                                                                                                                                   |                                                                                                                                   |
| Expenses                                                                                              |                                                                                                                                   |                                                                                                                                   |
|  Property      operations and maintenance                                                        | 13,355                                                                                                                            | 12,864                                                                                                                            |
|  Real      estate taxes                                                                          | 4,823                                                                                                                             | 4,606                                                                                                                             |
|  General      and administrative                                                                 | 4,095                                                                                                                             | 3,698                                                                                                                             |
|  Depreciation      and amortization                                                              |        8,508                                                                                   |      10,085                                                                                              |
|    Total      operating expenses                                                       |      30,781                                                                                              |      31,253                                                                                              |
|                                                                                                  |                                                                                                                                   |                                                                                                                                   |
|  Income      from operations                                                                     | 19,339                                                                                                                            | 16,619                                                                                                                       |
| Other      income (expenses)                                                                          |                                                                                                                                   |                                                                                                                                   |
|  Interest      expense                                                                           | (8,978)                                                                                                                                | (8,217)                                                                                                                                |
|  Interest      income                                                                            | 86                                                                                                                                | 149                                                                                                                               |
|  Minority      interest – consolidated joint ventures                                      | (421)                                                                                                                                  |         (462)                                                                                  |
|  Equity      in income of joint ventures                                                         |             7                                                         |             28                                                        |
|  Income      from continuing operations                                                          |  10,033                                                                                                                      |  8,117                                                                                                                       |
| Income      from discontinued operations (including gain on  disposal      of $716 in 2008) |               712                                           |               114                                           |
| Net      Income                                                                                       | 10,745                                                                                                                            | 8,231                                                                                                                             |
|   Preferred      unit distributions                                                         |             -                                                    |         (628)                                                                                  |
| Net      income available to common unitholders                                                       | $    10,745 =======                                                                                      | $      7,603 =======                                                                           |
|                                                                                                  |                                                                                                                                   |                                                                                                                                   |
| Earnings      per common unit – basic                                                           |                                                                                                                                   |                                                                                                                                   |
| Continuing      operations                                                                            | $        0.45                                                                             | $        0.36                                                                             |
| Discontinued      operations                                                                          |          0.04                                                                        |               -                                        |
|   Earnings      per common unit – basic                                               | $        0.49 =======                                                                | $        0.36 =======                                                                |
| Earnings      per common unit – diluted                                                         |                                                                                                                                   |                                                                                                                                   |
| Continuing      operations                                                                            | $        0.45                                                                             | $        0.36                                                                             |
| Discontinued      operations                                                                          |          0.03                                                                        |               -                                        |
|   Earnings      per common unit – diluted                                             | $        0.48 =======                                                                | $        0.36 =======                                                                |
|  Common      units used in basic earnings per unit calculation                                   |  22,150,033                                                                                                                  |  20,906,536                                                                                                                  |
|  Common      units used in diluted earnings per unit calculation                                 |  22,183,418                                                                                                                  |  20,960,213                                                                                                                  |
|                                                                                                  |                                                                                                                                   |                                                                                                                                   |
|   Distributions      declared per common unit                                               | $       0.63 =======                                                                 | $       0.62 =======                                                                      |

----

|   (dollars in thousands,      except per unit data)                                          | January      1, 2008            to                June      30, 2008 | January      1, 2007            to                June      30, 2007 |
|--------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Revenues                                                                                               |                                                                                                                                                                                                             |                                                                                                                                                                                                             |
|  Rental      income                                                                               | $    96,490                                                                                                                                                                             | $     89,340                                                                                                                                                                       |
|  Other      operating income                                                                      |        3,250                                                                                                                                                             |         2,903                                                                                                                                                       |
|   Total      operating revenues                                                              | 99,740                                                                                                                                                                                                      | 92,243                                                                                                                                                                                                      |
|                                                                                                   |                                                                                                                                                                                                             |                                                                                                                                                                                                             |
| Expenses                                                                                               |                                                                                                                                                                                                             |                                                                                                                                                                                                             |
|  Property      operations and maintenance                                                         | 27,150                                                                                                                                                                                                      | 25,217                                                                                                                                                                                                      |
|  Real      estate taxes                                                                           | 9,563                                                                                                                                                                                                       | 8,972                                                                                                                                                                                                       |
|  General      and administrative                                                                  | 8,220                                                                                                                                                                                                       | 7,254                                                                                                                                                                                                       |
|  Depreciation      and amortization                                                               |      17,109                                                                                                                                                                        |      17,064                                                                                                                                                                        |
|    Total      operating expenses                                                        |      62,042                                                                                                                                                                        |      58,507                                                                                                                                                                        |
|                                                                                                   |                                                                                                                                                                                                             |                                                                                                                                                                                                             |
|  Income      from operations                                                                      | 37,698                                                                                                                                                                                                      | 33,736                                                                                                                                                                                                 |
| Other      income (expenses)                                                                           |                                                                                                                                                                                                             |                                                                                                                                                                                                             |
|  Interest      expense                                                                            | (17,933)                                                                                                                                                                                                         | (15,816)                                                                                                                                                                                                         |
|  Interest      income                                                                             | 178                                                                                                                                                                                                         | 678                                                                                                                                                                                                         |
|  Minority      interest – consolidated joint ventures                                       | (884)                                                                                                                                                                                                            |         (924)                                                                                                                                                            |
|  Equity      in income of joint ventures                                                          |            19                                                                                                                                        |             80                                                                                                                                  |
|  Income      from continuing operations                                                           |  19,078                                                                                                                                                                                                |  17,754                                                                                                                                                                                                |
| Income      from discontinued operations (including gain on        disposal of $716 in 2008) |               794                                                                                                                     |                214                                                                                                               |
| Net      Income                                                                                        | 19,872                                                                                                                                                                                                      | 17,968                                                                                                                                                                                                      |
|   Preferred      unit distributions                                                          |             -                                                                                                                                   |      (1,256)                                                                                                                                                                            |
| Net      income available to common unitholders                                                        | $         19,872 =======                                                                                                                                                                | $    16,712 =======                                                                                                                                                                |
|                                                                                                   |                                                                                                                                                                                                             |                                                                                                                                                                                                             |
| Earnings      per common unit – basic                                                            |                                                                                                                                                                                                             |                                                                                                                                                                                                             |
| Continuing      operations                                                                             | $        0.86                                                                                                                                                       | $        0.79                                                                                                                                                       |
| Discontinued      operations                                                                           |          0.04                                                                                                                                                  |          0.01                                                                                                                                                  |
|   Earnings      per common unit – basic                                                | $        0.90 =======                                                                                                                                          | $        0.80 =======                                                                                                                                          |
| Earnings      per common unit – diluted                                                          |                                                                                                                                                                                                             |                                                                                                                                                                                                             |
| Continuing      operations                                                                             | $        0.86                                                                                                                                                       | $        0.79                                                                                                                                                       |
| Discontinued      operations                                                                           |          0.04                                                                                                                                                  |          0.01                                                                                                                                                  |
|   Earnings      per common unit – diluted                                              | $        0.90 =======                                                                                                                                          | $        0.80 =======                                                                                                                                          |
|  Common      units used in basic earnings per unit calculation                                    |  22,110,049                                                                                                                                                                                            |  20,873,847                                                                                                                                                                                            |
|  Common      units used in diluted earnings per unit calculation                                  |  22,135,281                                                                                                                                                                                            |  20,933,885                                                                                                                                                                                            |
|                                                                                                   |                                                                                                                                                                                                             |                                                                                                                                                                                                             |
|   Dividends      distribution per common unit                                                | $       1.26 =======                                                                                                                                           | $       1.24 =======                                                                                                                                                |

----

|   (dollars in      thousands)                                                                                                  |   January      1, 2008to           June 30,      2008 |        January      1, 2007to                  June 30,      2007 |
|------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Operating      Activities                                                                                                                |                                                                                                                   |                                                                                                                                                                                      |
| Net      income                                                                                                                          | $ 19,872                                                                                                     | $ 17,968                                                                                                                                                                        |
| Adjustments      to reconcile net income to net cash provided by  operating      activities:                                   |                                                                                                                   |                                                                                                                                                                                      |
|     Depreciation      and amortization                                                                               | 17,717                                                                                                            | 17,641                                                                                                                                                                               |
|     Gain      on sale of storage facility                                                                            | (716)                                                                                                                  | -                                                                                                                                                                                    |
|     Equity      in income of joint ventures                                                                          | (19)                                                                                                                   | (80)                                                                                                                                                                                      |
|     Minority      interest                                                                                           | 884                                                                                                               | 924                                                                                                                                                                                  |
|     Non-vested      stock earned                                                                                     | 705                                                                                                               | 573                                                                                                                                                                                  |
|     Stock      option expense                                                                                        | 137                                                                                                               | 102                                                                                                                                                                                  |
|     Changes      in assets and liabilities:                                                                          |                                                                                                                   |                                                                                                                                                                                      |
|       Accounts      receivable                                                                             | 225                                                                                                               | (288)                                                                                                                                                                                     |
|       Prepaid      expenses                                                                                | (1,354)                                                                                                                | (135)                                                                                                                                                                                     |
|       Accounts      payable and other liabilities                                                          | (2,424)                                                                                                                | 3,363                                                                                                                                                                                |
|       Deferred      revenue                                                                                |         439                                                               |          530                                                                                                                            |
| Net      cash provided by operating activities                                                                                           |    35,466                                                                                          |     40,598                                                                                                                                                       |
|                                                                                                                                     |                                                                                                                   |                                                                                                                                                                                      |
| Investing      Activities                                                                                                                |                                                                                                                   |                                                                                                                                                                                      |
|   Acquisition      of storage facilities                                                                                       | (14,037)                                                                                                               | (128,344)                                                                                                                                                                                 |
|   Improvements,      equipment additions, and construction in progress                                                         |      (21,666)                                                                                 | (20,466)                                                                                                                                                                                  |
|   Net      proceeds from the sale of storage facility                                                                          | 7,002                                                                                                             | -                                                                                                                                                                               |
|   Investment      in joint ventures                                                                                            | (6,206)                                                                                                                | -                                                                                                                                                                               |
|   Property      deposits                                                                                                       | (1,245)                                                                                                                |           (69)                                                                                                                          |
|   Receipts      from related parties                                                                                           |           13                                                    |            10                                                                                                                 |
| Net      cash used in investing activities                                                                                               |   (36,139)                                                                                                   |   (148,869)                                                                                                                                                                     |
|                                                                                                                                     |                                                                                                                   |                                                                                                                                                                                      |
| Financing      Activities                                                                                                                |                                                                                                                   |                                                                                                                                                                                      |
|   Net      proceeds from sale of common stock                                                                                  | 6,306                                                                                                             | 7,178                                                                                                                                                                                |
|   Proceeds      from line of credit and term note                                                                              |           250,000                                               | 96,000                                                                                                                                                                               |
|   Repayment      of line of credit and term note                                                                               | (206,000)                                                                                                              | (7,000)                                                                                                                                                                                   |
|   Financing      costs                                                                                                         | (2,946)                                                                                                                | -                                                                                                                                                                               |
|   Distributions      paid                                                                                                      | (28,820)                                                                                                               | (28,123)                                                                                                                                                                                  |
|   Distributions      from unconsolidated joint venture                                                                         | -                                                                                                            | 98                                                                                                                                                                                   |
|   Redemption      of operating partnership units                                                                               |          (9)                                                              | (98)                                                                                                                                                                                      |
|   Mortgage      principal and capital lease payments                                                                           |        (808)                                                                        |         (747)                                                                                                                                     |
| Net      cash provided by financing activities                                                                                           |     17,723                                                                                    |      67,308                                                                                                                                                 |
| Net      increase (decrease) in cash                                                                                                     |           17,050                                                | (40,963)                                                                                                                                                                                  |
| Cash      at beginning of period                                                                                                         |       4,010                                                                         |      47,730                                                                                                                                                 |
| Cash      at end of period                                                                                                               | $  21,060 =======                                                                                  | $   6,767 =======                                                                                                                                                |
| Supplemental      cash flow informationCash      paid for interest                                                                       |  $   18,362                                                                                   |  $ 14,936                                                                                                                                                                  |
| Fair      value of net liabilities assumed on the acquisition of      storage  facilities      *                          |            68                                              |            386                                                                                                                |
| *  See      Note 4 for fair value of land, building, and equipment      acquired    during      the period |                                                                                                                   |                                                                                                                                                                                      |

----

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

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

----

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

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

| Cost:                                                                |                                                                    |
|----------------------------------------------------------------------|-------------------------------------------------------------------------|
|   Beginning      balance                                   | $  1,322,708                                             |
|   Property      acquisitions                               | 14,013                                                             |
|   Additional      investment in consolidated joint venture | 2,473                                                              |
|   Improvements      and equipment additions                | 25,421                                                             |
|   Net      reductions in construction in progress          | (3,726)                                                                 |
|   Dispositions                                             |            (114) |
| Ending      balance                                                  | $ 1,360,775                                                   |

| Accumulated      Depreciation:                          |                                                                               |
|---------------------------------------------------------|------------------------------------------------------------------------------------|
|   Beginning      balance                      | $    183,679                                              |
|   Depreciation      expense during the period | 16,253                                                                        |
|   Dispositions                                |              (79) |
| Ending      balance                                     | $    199,853                                              |

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

|   (dollars in      thousands)                      |   January      1, 2008   to          June 30,      2008 | January      1, 2007   to          June 30,      2007 |
|--------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
|    Total      revenue                         |  $     233                                                                       |  $   458                                                                       |
|   Property      operations and maintenance expense | (76)                                                                                                                | (102)                                                                                                   |
|   Real      estate tax expense                     | (33)                                                                                                                | (50)                                                                                                    |
|   Depreciation      and amortization expense       |       (46)                                                                            |       (92)                                                                |
|   Net      realized gain on properties sold        |        716                                                                  |           -                                 |
| Total      income from discontinued operations               | $     794    ========                                                                 | $    214    =======                                                            |

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

----

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

| (dollars in      thousands)                                                                                                                                                                                                                         | June      30,   2008            | December      31,2007                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|
| 7.80%      mortgage note due December 2011, secured by 11 self-storage facilities      (Locke Sovran I) with an aggregate net book value of $44.0 million,      principal and interest paid monthly                                                 |   $  29,308                                    |   $  29,084                                    |
| 7.19%      mortgage note due March 2012, secured by 27 self-storage facilities (Locke      Sovran II) with an aggregate net book value of $80.7 million, principal      and interest paid monthly                                                   |    43,133                                           |    43,645                                           |
| 7.25%      mortgage note due December 2011, secured by 1 self-storage facility with      an aggregate net book value of $5.8 million, principal and interest paid      monthly.  Estimated market rate at time of acquisition      5.40%  |    3,577                                            |    3,643                                            |
| 6.76%      mortgage note due September 2013, secured by 1 self-storage facility with      an aggregate net book value of $2.0 million, principal and interest paid      monthly                                                                     |   1,011                                                  |   1,022                                                  |
| 6.35%      mortgage note due March 2014, secured by 1 self-storage facility with an      aggregate net book value of $3.8 million, principal and interest paid      monthly                                                                         |   1,110                                                  |   1,122                                                  |
| 5.55%      mortgage notes due November 2009, secured by 8 self-storage facilities      with an aggregate net book value of $35.2 million, interest only paid      monthly.  Estimated market rate at time of acquisition      6.44%       |    25,826                                           |    25,719                                           |
| 7.50%      mortgage notes due August 2011, secured by 3 self-storage facilities with      an aggregate net book value of $14.4 million, principal and interest paid      monthly.  Estimated market rate at time of acquisition      6.42%     |           6,187  |           6,282  |
| Total      mortgages payable                                                                                                                                                                                                                             | $ 110,152                                                     | $ 110,517                                                     |

----

|                                                                                 |                     Expected      Maturity Date Including      Discount                     |                                          |                                 |
|--------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|-----------------------------------------------------|
| (dollars      in thousands)                                                          | 2008                                                                                                                                                                                                                                                                                                | 2009                                          | 2010                                                | 2011 | 2012 | Thereafter | Total | FairValue |
| Line      of credit - variable rate     LIBOR      + 1.375% | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | -    | -    | -    | -    |
|                                                                                 |                                                                                                                                                                                                                                                                                                |                                          |                                                |   |   |   |   |   |
| Notes      Payable:                                                                  |                                                                                                                                                                                                                                                                                                |                                          |                                                |   |   |   |   |   |
| Term      note - variable rate LIBOR+1.625%                                          | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | $250,000 | -    | $250,000 | $250,000 |
| Term      note - variable rate LIBOR+1.50%                                           | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | -    | $  20,000 | $  20,000 | $  20,000 |
| Term      note - fixed rate 6.26%                                                    | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | -    | $  80,000 | $  80,000 | $  79,707 |
| Term      note - fixed rate 6.38%                                                    | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | -    | $150,000 | $150,000 | $147,883 |
|                                                                                 |                                                                                                                                                                                                                                                                                                |                                          |                                                |   |   |   |   |   |
| Mortgage      note - fixed rate 7.80%                                                | $      275                                                                                                                                                                                                                                                            | $     587            | $      630            | $27,816 | -    | -    | $  29,308 | $  30,501 |
| Mortgage      note - fixed rate 7.19%                                                | $      530                                                                                                                                                                                                                                                            | $  1,128                            | $   1,211                            | $  1,301 | $ 38,963 | -    | $  43,133 | $  45,028 |
| Mortgage      note - fixed rate 7.25%                                                | $             67                                                                                                                                                                                                                                                 | $     141            | $      149            | $   3,220 | -    | -    | $    3,577 | $    3,544 |
| Mortgage      note - fixed rate 6.76%                                                | $        11                                                                                                                                                                                                                                                 | $       23 | $        25 | $       27 | $       29 | $       896 | $    1,011 | $    1,038 |
| Mortgage      note - fixed rate 6.35%                                                | $        12                                                                                                                                                                                                                                                 | $       26 | $        28 | $       30 | $       31 | $       983 | $    1,110 | $    1,120 |
| Mortgage      notes - fixed rate 5.55%                                               | -                                                                                                                                                                                                                                                                                    | $ 25,826                                 | -                                    | -    | -    | -    | $  25,826 | $  26,573 |
| Mortgage      notes - fixed rate 7.50%                                               | $        99                                                                                                                                                                                                                                                 | $     208            | $      222            | $ 5,658 | -    | -    | $    6,187 | $    6,312 |
|                                                                                 |                                                                                                                                                                                                                                                                                                |                                          |                                                |   |   |   |   |   |
| Interest      rate derivatives – liability                                | -                                                                                                                                                                                                                                                                                    | -                              | -                                    | -    | -    | -    | -    | $         4,457 |

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

----

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

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

----

|                                     | Asset          (Liability) |  Level      1 |  Level      2 |  Level      3     |
|------------------------------------------|------------------------------------------------------------------------------|--------------------|--------------------|--------------------------------------------|
| Interest      rate swaps........ | (4,457)                                                                      | -        | (4,457)            | -            |

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

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

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

----

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

|  (in thousands except      per unit data)                                                                                                                  | Three      Months Ended     Jun. 30,      2008 | Three      MonthsEnded      Jun. 30,      2007 | Six      Months  Ended     Jun. 30,      2008 | Six      Months  Ended      Jun. 30,      2007 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| Numerator:                                                                                                                                                      |                                                                         |                                                                         |                                                                             |                                                                                   |
|   Net      income available to common unitholders                                                                                                     | $ 10,745                                                           | $ 7,603                                                       | $ 19,872                                                          | $ 16,712                                                                |
|                                                                                                                                                            |                                                                         |                                                                         |                                                                             |                                                                                   |
| Denominator:                                                                                                                                                    |                                                                         |                                                                         |                                                                             |                                                                                   |
|   Denominator      for basic earnings per unit -    weighted      average units                                                   |  22,150                                                            |  20,907                                                       |  22,110                                                           |  20,874                                                                 |
| Effect      of Dilutive Securities:                                                                                                                             |                                                                         |                                                                         |                                                                             |                                                                                   |
|   Stock      options, warrants and non-vested stock                                                                                                   |       33                                  |       53                             |       25                                 |       60                                       |
| Denominator      for diluted earnings per unit -    adjusted      weighted average units and    assumed      conversion |   22,183                                                      |   20,960                                                 |   22,135                                                     |   20,934                                                           |
|                                                                                                                                                            |                                                                         |                                                                         |                                                                             |                                                                                   |
| Basic      earnings per common unit from  continuing      operations                                                                                  |  $    0.45                                     |  $    0.36                                |  $    0.86                                    |  $    0.79                                          |
| Basic      earnings per common unit                                                                                                                             | $    0.49                                           | $    0.36                                      | $    0.90                                          | $    0.80                                                |
| Diluted      earnings per common unit from  continuing      operations                                                                                |  $    0.45                                     |  $    0.36                                |  $    0.86                                    |  $    0.79                                          |
| Diluted      earnings per common unit                                                                                                                           | $    0.48                                           | $    0.36                                      | $    0.90                                          | $    0.80                                                |

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

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

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

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|                                                                                                                                        | Six months      ended                                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
| (in      thousands)                                                                                                                         |            June 30,      2008                     | June 30,      2007     |
|  Net      income                                                                                                                       |  $ 19,872                                                   |  $ 17,968        |
| Minority      interest in income                                                                                                            | 884                                                                   | 924        |
| Depreciation      of real estate and amortization  of      intangible assets exclusive of deferred  financing      fees |   17,155                                                    |   17,157        |
| Depreciation      and amortization from  unconsolidated      joint ventures                                                       |  29                                                              |  28        |
| Gain      on sale of real estate                                                                                                            | (716)                                                                      | -         |
| Preferred      unit distributions                                                                                                           | -                                                                | (1,256)       |
| Funds      from operations allocable to  minority      interest in consolidated joint ventures                                    |       (884)                                  |     (924)       |
| FFO      available to common unitholders                                                                                                    | $  36,340       =======       | $ 33,897       ======       |

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| * | 7.80%      mortgage note due December 2011, secured by 11 self-storage facilities      (Locke Sovran I) with an aggregate net book value of $44.0 million,      principal and interest paid monthly.  The outstanding balance at      June 30, 2008 on this mortgage was $29.3 million.                                               |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| * | 7.19%      mortgage note due March 2012, secured by 27 self-storage facilities (Locke      Sovran II) with an aggregate net book value of $80.7 million, principal      and interest paid monthly.  The outstanding balance at June 30,      2008 on this mortgage was $43.1 million.                                                 |
| * | 7.25%      mortgage note due December 2011, secured by 1 self-storage facility with      an aggregate net book value of $5.8 million, principal and interest paid      monthly.  Estimated market rate at time of acquisition      5.40%.  The outstanding balance at June 30, 2008 on this      mortgage was $3.6 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 June 30, 2008 on this      mortgage was $1.0 million.                                                                    |
| * | 6.35%      mortgage note due March 2014, secured by 1 self-storage facility with an      aggregate net book value of $3.8 million, principal and interest paid      monthly.  The outstanding balance at June 30, 2008 on this      mortgage was $1.1 million.                                                                        |

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| * | 5.55%      mortgage notes due November 2009, secured by 8 self-storage facilities      with an aggregate net book value of $35.2 million, interest only paid      monthly.  Estimated market rate at time of acquisition      6.44%.  The outstanding balance at June 30, 2008 on this      mortgage was $25.8 million.       |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| * | 7.50%      mortgage notes due August 2011, secured by 3 self-storage facilities with      an aggregate net book value of $14.4 million, principal and interest paid      monthly.  Estimated market rate at time of acquisition      6.42%.  The outstanding balance at June 30, 2008 on this      mortgage was $6.2 million. |

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

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

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

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

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

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

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

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

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

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

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|       August      8, 2008 | SOVRAN      ACQUISITION LIMITED PARTNERSHIP By:  Sovran      Holdings, Inc.Its:  General      Partner  By:   /s/      David L.      Rogers                                  David      L. Rogers,           Chief      Financial Officer |
|---------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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