Welcome to the U-Store-It Trust second quarter 2008 earnings conference call. (Operator Instructions) Now, I would like to turn the conference over to Chief Executive Officer, Dean Jernigan.

Good morning to all, it’s my pleasure to read this cautionary statement for you. The company's remarks will include certain forward-looking statements regarding earnings and strategy that involve risks, uncertainties and other factors that may cause the actual results to differ materially from these forward-looking statements. The risk and factors have cause our actual results to differ materially from forward-looking statements are provided in the documents that the company files with the SEC, specifically, the 8-K along with our earnings release in the Business Risk Factor section of the company's annual report. In addition, the company's remarks include reference to non-GAAP measures, reconciliation between GAAP and non-GAAP can be found on the company's website. Chris is going to start of this morning with few comments and then I will make my comments and will open it up for Q-and-A.

Second quarter was a good one for U-Store-It both compare to our internal goals and expectations as well as compare to the self storage industry. We remain very encouraged with consumer demand, our rentals were up over the second quarter of last year on a same-store basis and new supply remains firmly in check. We have read reports of folks discussing a disappointing June, obviously we are not sure of what the basis of the comparison is, but we want to make sure as we assumed. Everyone realizes that there were five Saturdays in May of 2008 and the month ended on a Saturday which is very positive for our business, as compared to four Saturdays in May of last year. June of this year only had four Saturdays and the month ended on a Monday as compare to June of 2007 when there were five Saturdays including the last day of the month. So, if you take the quarter as a whole, to factor out the monthly differences in the number of Saturdays. We’ve increased our rentals for the quarter at 2.2% over the second quarter of last year. May and June were very positive for us and that momentum continued into July with a 55 basis point increase in same-store occupancy sequentially. Our same-store growth and rental income for the quarter of 5.6% was driven by a 50 basis point increase in average physical occupancy. The positive impacts of our technology in the revenue management area passing along rate increases to existing tenants and increasing street rents in markets such as Austin, Chicago, Huston and Nashville where we have experienced strong gains in physical occupancy and all of that combined with our receivables remaining well below prior year levels, which result in the lower credit write-offs than we…

Now, we break this up by state in the material that we file, but we managed by market actually and we have about 40 markets around the country and that we have storage facilities in, and the ones that we have 500,000 square feet or more only run through them. Now, we break this up by state in the material that we file, but we managed by market actually and we have about 40 markets around the country and that we have storage facilities in, and the ones that we have 500,000 square feet or more only run through them. , : Now, we get to the loser San Bernardino 2.5, plus 2.5 not negative, but still plus 2.5, Southern California plus 1.8, Tucson plus 1.6, Orlando plus 0.3, now the real losers Fort Lauderdale minus 2.9, West Palm Beach minus 3.3 and Tampa minus 6.2. It was all the same to me. I’ll tell you, if you strike the line under New Jersey and look at the properties, look at the markets below that starting with San Bernardino, through Southern California, Tucson, Orlando, Fort Lauderdale, West Palm Beach and Tampa, our fault not to market, our fault management issues. We’ve made many, many changes in those markets both at the DM level, District Manager level and at the property level with our General Managers and Managers and we really didn’t get all the right people in the right places prior to this rental seasoning, so we’re not blaming anything on the market right now, so as Florida is more of a malaise now than before 2005 and before the hurricanes hit yes, for sure. The migration patterns have changed it’s still a balanced state. People aren’t moving out more rapidly than they are moving in, but we don’t have…

(Operator Instructions) Your first question comes from David Toti - Citigroup. David Toti – Citigroup: Could you talk a little bit about the tolerance of new customers to your existing prices; are you seeing sort of more pushback from the new customers or more pushback from the existing customers?

David, we’re not really seeing our pushback on either side. Again from the revenue management perspective, where you’re pushing street rents for us at least it’s within those markets, where we’re seeing strong demand, occupancies are up and as a result we have a few units of that type available and in those markets we are pushing street rents. We try to avoid reducing street rents whenever possible, because once you go backwards it’s awful hard to climb backup that hill again. From a passing along rate increases to the existing customers and we tracked every single customer who get their rate increase letter and then what happens to them over the days and months their out until they ultimately leave the portfolio and our data would indicate that the rate increases being passed along, actually seem to be having humorously a positive impact on the length of stay. So on a percentage basis the tenants who are getting rate increase letters have been progressively staying longer than they were when we first got here and began the program of passing along monthly rate increases. So, we have not we have not seen a change there at all. In fact when you look at length of stays, for example the 180 day category, we’ve actually seen a sequential drop of about 105 basis points in terms of the amount of people who are moving out after 180 days now, than they were a year-ago this quarter. David Toti – Citigroup: Great and then just moving over to corporate, are you pretty comfortable with where you are in terms of staffing and internal systems at this point?

Yes, we are fully staffed, we have a great team and both from a systems perspective and a staffing perspective we are completely where we’d like to be. Now obviously on systems, it’s never ending, so systems create an awful lot of data for us, data creates an awful lot of demand for analysis and interpretation. So, I still believe from a data mining perspective we’ve got and awful lot we can do which will benefit us in many, many ways, but the core foundation is there and we push out an awful lot of data on a daily basis to help the folks run the business. David Toti – Citigroup: Did you address your strategy around your ’09 maturities?

So, the ’09 maturities we’ve got two buckets and the substantial one is the term loans and the unsecured credit facility. They have a one year extension option assuming that we continue to be in good covenant condition as we are with a 15 basis point fee. So, arguably if the markets continue where they are, that would be the strategy as to push that to November 2010. YSI III is one of the CMBS pools. It matures in November of 2009 and we are looking at a variety of options on that one right now, but haven’t settled on any specific strategy. David Toti – Citigroup: Could you just talk a little about the acquisition environment relative to, are you seeing increasing or decreasing volume, are you seeing changes in sort of average prices, are you seeing any distressed sellers in the market, any color would be great?

I think they’re continues to be a spread on the bid as between what people are interested in selling for and what buyers are interested in paying, which as a result has not created an awful lot of transaction volume, which is why we’re also pleased with our ability to execute where we have. You’ve obviously seen the transaction in the JV that Sovran did as a good data-point really for our portfolio. I’m not sure there’s been much else moving around and you just don’t see that stress yet to your other point. For the most part folks refinanced in the last few years with relatively long-term low cost interest only debt they’re cash flowing and happy. We do believe at some point, if the markets continue to be seized up as they are today, some of that opportunity will present itself, but I doubt that’s an ’08 event.

Your next question comes from Paul Adornato - BMO Capital Markets.

What actually is the absolute level of customer retention after 90 and 180 days?

We tend to lose. If you are a new customer and you came in today and rented unit, you’re move out between 120 and 180 days would be about 6.8% of the customers who would come in today and rent and then that drops to about 4.2% for the folks after a 180 days.

What has been the nature of the discounts that you’ve been offering especially in this last quarter. Has it been a months free rent, have you offered more than a month in some cases?

And do you notice the difference in retention among those that you’re offer the free month upfront versus the 50% off of three months?

Again I think we’ve been fairly new on the 50% off for three months, so I don’t have as much data as I would as I told you before on the trend there.

And finally, just on advertising you said you obviously spent a lot this quarter; did you turn it off completely in the second quarter?

No, we didn’t turn it off at all, so the advertising will continue. I think part of the 75% really relates to the fact that we did not turn it on in the second quarter of ’07. So sequentially, we’re continuing to use our investment particularly on the internet to drive customers and that’s something we can track, so it’s a highly valuable tool for us and there’s some ground we can gain on some of the other folks in that area.

And can you comment on July activity?

Yes, July was nice. As I said we were up 55 basis points sequentially, saw good customer rental activity and continue to be optimistic on the first eight days of August.

And just one more, how is bad debt been in the quarter?

Yes, that problem is gone, it’s 40% reduction in Q2 same store over Q2 of last year, receivables are over 31-days or below 2.5% and again I think hammering back on Dean’s comments, nothing here has been easy since we got here; which means everyday folks were focusing on blocking and tackling and I think AR is one of those areas, where that focus has created a best-in-class performance.

Your next question comes from Jordan Sandler - KeyBanc Capital Markets Jordan Sandler – KeyBanc Capital Markets: I’m here with Todd Thomas as well. Just wanted to touch base on sort of the provisions and I know this is maybe a little nitpicky, but on the same store revenue and expense provisions I was just curious to get a little bit more detail on what was driving those changes?

The drop on revenue and occupancy really relates to where we ended at June 30, particularly in Florida and how that’s going to translate into the last half of the year. As Dean said, we believe Florida is stabilized and things are starting to move in a positive direction, but we have what we have for the first six months. So that’s really the driver to tweaking the top-line. The bottom, the expenses we’ve had some programs in place since the end of last year on taking cost out of the system. We’ve had a keen focus on how we can reduce operating expenses and control them, where they can be reduced and it is bearing fruits. So, we had some aggressive internal objectives, which we are starting to and have been delivering on and as a result, I think the expenses will remain very much in control for the balance of the year. To be fare, the expenses last year in the second half of the year, were also fairly high. So, when we talk about flat to negative expense growth on a same store basis over the prior period, the sequential changes in operating expenses are not nearly going to show that magnitude, the change over the prior year will in fact be flat to negative for the second half of the year. Jordan Sandler – KeyBanc Capital Markets: Will your sequential expenses comedown? Is anything particularly seasonal 2Q to 3Q?

Not on a seasonality, but from say a property insurance perspective our renewal was at the end of May, so we’ll see lower insurance costs in the second half of the year than we did in the first half. Repair and maintenance, we’re working through the backend of all of the differed maintenance we wanted to get accomplished, we’ll see that move sequentially, slightly lower. Your utilities tend to peak in July within August to some extend with the cost for the climate-controlled units and then that comes down. Last year that was offset by really high snow removal in the fourth quarter in particular. We’ll see how that weather place out this year. Jordan Sandler – KeyBanc Capital Markets: And advertising you said, what’s going happen sequentially?

I think it will be relatively consistent with the second quarter. Jordan Sandler – KeyBanc Capital Markets: Okay, so that would probably be up a little bit from last year.

It will. Not nearly to the magnitude you saw in the second quarter, because we had the folks in place as we went into the third and we began ramping up especially on the internet and direct advertising in Q3 and Q4 of last year. Jordan Sandler – KeyBanc Capital Markets: The joint venture activity you’re talking about here a little bit. What’s the sort of order of magnitude and then which CMBS junks would probably?

Yes, we’re not identifying the specific pools at this point. I think in terms of order of magnitude total deal size we’re thinking somewhere between, these are a big range, somewhere between 180 and….