As reported earlier, on November 24, 2010, the Registrant, through a wholly-owned subsidiary of the Registrant's operating partnership, entered into a purchase and sale agreement with an unaffiliated third party for the acquisition of a self storage facility located in Las Vegas, Nevada (the "Las Vegas VI property"). On December 29, 2010, the Registrant closed on the purchase of the Las Vegas VI property.

        The Registrant purchased the Las Vegas VI property for a purchase price of $4.0 million, plus closing costs and acquisition fees. The Registrant's advisor, Strategic Storage Advisor, LLC, earned a total of $100,000 in acquisition fees in connection with the acquisition of this property. The Registrant funded this acquisition using net proceeds from its initial public offering.

        The Las Vegas VI property is an approximately 740-unit self storage facility that sits on approximately 3.2 acres and contains approximately 94,000 rentable square feet of self storage space. The Las Vegas VI property is located at 2025 N. Rancho Drive, Las Vegas, Nevada. It was constructed in 2006.

        The Registrant purchased the property through a judicial foreclosure proceeding. The Registrant has been advised by local counsel that, although the court ordered that the original property owner (the "borrower") would have no right of redemption, pursuant to Nevada law, the borrower may still have the right to elect to redeem the property during a one-year period following the date the property is sold at foreclosure. Should the borrower elect to redeem the property prior to October 26, 2011, which is one year following the foreclosure sale, the Registrant may be obligated to return the property to the borrower, provided certain other conditions are met. Although the borrower may have a right to redeem, the Registrant believes that it is highly unlikely that this will occur.

        The Registrant's portfolio now includes 45 wholly-owned properties in 15 states and Canada.

Potential Acquisition of the London - Ontario Properties

        On December 22, 2010, the Registrant, through a wholly-owned subsidiary of the Registrant's operating partnership, executed a purchase and sale agreement with an unaffiliated third party (the "London - Ontario Purchase Agreement") for the acquisition of two self storage facilities located in London - Ontario, Canada (the "London - Ontario properties"). The purchase price for the London - Ontario properties is approximately $15.7 million, plus closing costs and acquisition fees. The Registrant expects this acquisition to close in the first quarter of 2011 and to fund such acquisition with net proceeds from its initial public offering.

        The London - Ontario I property is an approximately 660-unit self storage facility that sits on approximately 4.3 acres and contains approximately 68,000 rentable square feet of self storage space. The London - Ontario I property is located at 677 Wharncliffe Road South, London, Ontario - Canada. It was constructed in 2010.

       The London - Ontario II property is an approximately 610-unit self storage facility that sits on approximately 3.7 acres and contains approximately 57,000 rentable square feet of self storage space. The London - Ontario II property is located at 556 Wonderland Road North, London, Ontario - Canada. It was constructed in 2009.

       Pursuant to the London - Ontario Purchase Agreement, the Registrant would be obligated to purchase the London - Ontario properties only after satisfactory completion of agreed upon closing conditions. The Registrant will decide whether to acquire the London - Ontario properties generally based upon:

- satisfactory completion of due diligence on the property and the seller of the properties;

        There can be no assurance that the Registrant will complete the acquisition of the London - Ontario properties. In some circumstances, if the Registrant fails to complete the acquisition, it may forfeit up to $300,000 in earnest money on the London - Ontario properties.