FFO for the quarter ended June 30 was $20.2 million comparedwith FFO of $19.7 million for the second quarter of 1999. On a pershare basis, FFO was 69 cents a share, a one cent increase from ayear ago.

Same store revenue for the second quarter increased 6.8% percentover the same period a year ago. Same store net operating incomeincreased 7.2% in the second quarter 2000 versus second quarter1999. Same Store average rental rates increased to $10.78/sf from$10.29/sf. Same store occupancy for the second quarter 2000 alsoincreased to 88%, 2% greater than second quarter 1999.

Steve Tyler, Shurgard's senior vice president of operations gavetwo reasons for the growth: the ability to increase rates"significantly with minimal customer turnover," the company'sability to convert more customer inquiries into sales. AddedShurgard's Chief Financial Officer, Harrell Beck, "We are pleasedwith the revenue trend, but we are not satisfied with the pace ofrevenue growth. Our focus will be on improving the rate ofgrowth."