UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                  SCHEDULE 13D

                   Under the Securities Exchange Act of 1934
                              (Amendment No. 23)*

                              Public Storage, Inc.
                                (Name of Issuer)

                          Common Stock, $.10 par value
                         (Title of Class of Securities)

                                  74460D 10 9
                                 (CUSIP Number)

            David Goldberg, 701 Western Avenue, Suite 200, Glendale,
                 California 91201-2397, 818/244-8080, ext. 529
           ---------------------------------------------------------
                 (Name, Address and Telephone Number of Person
                Authorized to Receive Notices and Communications)

                               December 31, 2001
            (Date of Event which Requires Filing of this Statement)

If the filing person has previously  filed a statement on Schedule 13G to report
the  acquisition  which is the subject of this  Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].

Check the following box if a fee is being paid with the statement [ ]. (A fee is
not required only if the reporting person:  (1) has a previous statement on file
reporting  beneficial  ownership  of more  than  five  percent  of the  class of
securities  described  in Item 1;  and (2) has  filed  no  amendment  subsequent
thereto reporting  beneficial  ownership of five percent or less of such class.)
(See Rule 13d-7.)

NOTE: Six copies of this statement, including all exhibits, should be filed with
the  Commission.  See Rule  13d-1(a) for other  parties to whom copies are to be
sent.

*The  remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for  any  subsequent   amendment   containing   information  which  would  alter
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).



                                  SCHEDULE 13D
CUSIP No. 74460D 10 9

1    Name of Reporting Person
     S.S. or I.R.S. Identification No. of Above Person
        B. Wayne Hughes

2    Check the Appropriate Box if a Member of a Group*
        a. [ ]
        b. [x]

3    SEC Use Only

4    Source of Funds*
        PF, OO

5    Check Box if Disclosure of Legal  Proceedings is Required Pursuant to Items
     2(d) or 2(e)
        [ ]

6    Citizenship or Place of Organization
        United States of America

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

                7    Sole Voting Power
                     20,646,824 (see footnote 1 below)

                8    Shared Voting Power
                     0

                9    Sole Dispositive Power
                     20,646,824 (see footnote 1 below)

                10   Shared Dispositive Power
                     0

11   Aggregate Amount Beneficially Owned by Each Reporting Person
        20,646,824 (see footnote 1 below)

12   Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares*
        [ ]

13   Percent of Class Represented by Amount in Row (11)
        17.88%

14   Type of Reporting Person*
        IN

(1)  Includes  shares held indirectly  including  shares held in Issuer's 401(k)
     Plan. Does not include a total of 7,000,000  shares of Class B Common Stock
     of  Issuer  which are owned by B.  Wayne  Hughes,  Jr.  and  Tamara  Hughes
     Gustavson.  The Class B Common Stock is  convertible  into shares of Common
     Stock,  $.10 par value on a  share-for-share  basis  upon  satisfaction  of
     certain conditions, but in no event earlier than January 1, 2003.



                                  SCHEDULE 13D
CUSIP No. 74460D 10 9

1    Name of Reporting Person
     S.S. or I.R.S. Identification No. of Above Person
        B. Wayne Hughes, Jr.

2    Check the Appropriate Box if a Member of a Group*
        a. [ ]
        b. [x]

3    SEC Use Only

4    Source of Funds*
        PF, BK, OO

5    Check Box if Disclosure of Legal  Proceedings is Required Pursuant to Items
     2(d) or 2(e)
        [ ]

6    Citizenship or Place of Organization
        United States of America

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

                7    Sole Voting Power
                     1,177,907 (see footnote 1 above)

                8    Shared Voting Power
                     11,348 (see footnote 2 below)

                9    Sole Dispositive Power
                     1,177,907 (see footnote 1 above)

                10   Shared Dispositive Power
                     11,348 (see footnote 2 below)

11   Aggregate Amount Beneficially Owned by Each Reporting Person
        1,189,255 (see footnotes 1 and 2)

12   Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares*
        [ ]

13   Percent of Class Represented by Amount in Row (11)
        1.03%

14   Type of Reporting Person*
        IN

(2)  Includes 11,348 shares held of record jointly by Mr. Hughes, Jr. and Tamara
     Hughes Gustavson.



                                  SCHEDULE 13D
CUSIP No. 74460D 10 9

1    Name of Reporting Person
     S.S. or I.R.S. Identification No. of Above Person
        Tamara Hughes Gustavson (formerly Tamara L. Hughes)

2    Check the Appropriate Box if a Member of a Group*
        a. [ ]
        b. [x]

3    SEC Use Only

4    Source of Funds*
        PF, OO

5    Check Box if Disclosure of Legal  Proceedings is Required Pursuant to Items
     2(d) or 2(e)
        [ ]

6    Citizenship or Place of Organization
        United States of America

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

                7    Sole Voting Power
                     17,434,260 (see footnote 1 above)

                8    Shared Voting Power
                     11,348 (see footnote 2 above)

                9    Sole Dispositive Power
                     17,434,260 (see footnote 1 above)

                10   Shared Dispositive Power
                     11,348 (see footnote 2 above)

11   Aggregate Amount Beneficially Owned by Each Reporting Person
        17,445,608 (see footnotes 1 and 2)

12   Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares*
        [ ]

13   Percent of Class Represented by Amount in Row (11)
        15.10%

14   Type of Reporting Person*
        IN



This  Amendment  No. 23 to Statement on Schedule 13D (the  "Amended and Restated
Statement")  amends and  restates  the  Statement on Schedule 13D dated March 3,
1989,  as amended by Amendment  No. 1 dated  September 7, 1989,  Amendment No. 2
dated March 27, 1990,  Amendment No. 3 dated  November 1, 1990,  Amendment No. 4
dated January 2, 1991,  Amendment No. 5 dated November 4, 1991,  Amendment No. 6
dated January 14, 1992, Amendment No. 7 dated December 28, 1992, Amendment No. 8
dated August 6, 1993, Amendment No. 9 dated September 27, 1993, Amendment No. 10
dated December 28, 1993,  Amendment No. 11 dated April 4, 1994, Amendment No. 12
dated  September 30, 1994,  Amendment No. 13 dated November 11, 1994,  Amendment
No. 14 dated  January  23,  1995,  Amendment  No. 15 dated  February  28,  1995,
Amendment No. 16 dated June 30, 1995,  Amendment No. 17 dated November 16, 1995,
Amendment  No. 18 dated March 26, 1996,  Amendment  No. 19 dated  September  16,
1996, Amendment No. 20 dated December 23, 1996, Amendment No. 21 dated April 11,
1997 and Amendment No. 22 dated July 7, 1997.

Item 1.   Security and Issuer

The class of securities  to which this  Statement on Schedule 13D relates is the
common stock, par value $.10 per share (the "Shares"),  of Public Storage, Inc.,
a  California  corporation  formerly  known  as  Storage  Equities,   Inc.  (the
"Issuer").  The address of the principal  executive  office of the Issuer is 701
Western Avenue, Suite 200, Glendale, California 91201-2397.

Item 2.   Identity and Background

This  Amendment  No. 23 to  Statement on Schedule 13D is being filed by B. Wayne
Hughes,  B. Wayne Hughes,  Jr. and Tamara Hughes  Gustavson  (collectively,  the
"Reporting  Persons")  pursuant to an Amended Joint Filing  Agreement  which was
previously  filed.  As a  result  of the  transfer  of the  voting  stock  of PS
Insurance Company, Ltd. ("PSIC") and PS Orangeco,  Inc. ("PSOI") to Issuer, PSIC
and PSOI are no longer  included  as  reporting  persons  in this  Statement  on
Schedule 13 D. Also, as a result of the  dissolution  of Parker Hughes Trust No.
2, this trust is no longer  included as a reporting  person in this Statement on
Schedule 13D.

On November 16, 1995, Public Storage  Management,  Inc. ("PSMI") was merged with
and into the Issuer (the "PSMI  Merger")  pursuant to an  Agreement  and Plan of
Reorganization  dated as of June 30, 1995 and an Amendment to Agreement and Plan
of Reorganization  dated as of November 13, 1995, each among the Issuer,  Public
Storage,  Inc.  ("Old PSI") and PSMI  (collectively,  the "Agreement and Plan of
Reorganization").  Prior to the  Restructuring  (described  below)  and the PSMI
Merger,  (i) PSI Holdings,  Inc. ("PSH") was the sole shareholder of Old PSI and
Old PSI was the sole shareholder of PSIC and PSMI and (ii)  substantially all of
the stock of PSH was held by Mr.  Hughes,  as trustee of the B.W.  Hughes Living
Trust, Ms. Hughes, an adult daughter of Mr. Hughes and Mr. Hughes, Jr., an adult
son of Mr. Hughes (collectively, the "Hughes Family"). Prior to the PSMI Merger,
(i) PSIC was  distributed,  in a spin-off  intended to qualify as tax-free under
Section 355 of the Internal  Revenue Code, to the Hughes Family and (ii) Old PSI
was merged with and into PSH,  which was  followed by the merger of PSH with and
into PSMI (collectively,  the "Restructuring").  At the time of the PSMI Merger,
substantially all of the stock of PSMI was held by the Hughes Family as follows:
46.6% by B. Wayne Hughes,  as trustee of the B.W. Hughes Living Trust,  46.5% by
Ms. Hughes and 6.7% by Mr. Hughes,  Jr. As a result of the Restructuring and the
PSMI Merger,  Old PSI, PSH and PSMI ceased to exist. In connection with the PSMI
Merger,  the Issuer  changed  its name from  Storage  Equities,  Inc.  to Public
Storage,  Inc. In connection  with the PSMI Merger,  the Issuer  transferred the
merchandise  business  acquired  in the  PSMI  Merger  to PSOI in  exchange  for
non-voting  preferred  stock  of  PSOI  (representing  approximately  95% of the
equity) and the voting common stock of PSOI  (representing  approximately  5% of
the equity) was acquired by the Hughes Family.



Mr.  Hughes,  a United  States  citizen,  is the Chairman of the Board and Chief
Executive  Officer of the Issuer.  His business  address is 701 Western  Avenue,
Suite 200, Glendale, California 91201-2397. Mr. Hughes is the father of B. Wayne
Hughes, Jr. and Tamara Hughes Gustavson.

Mr. Hughes,  Jr., a United States citizen, is a Vice  President-Acquisitions  of
the Issuer.  His business  address is 701 Western Avenue,  Suite 200,  Glendale,
California 91201-2397.

Ms. Hughes, a United States citizen, is a Vice  President-Administration  of the
Issuer.  Her  business  address is 701  Western  Avenue,  Suite  200,  Glendale,
California 91201-2397.

Because of the relationship among the Reporting Persons,  such Reporting Persons
may be deemed a "group" within the meaning of Section 13(d)(3) of the Securities
Exchange Act of 1934.  However,  each of the Reporting Persons disclaims that he
or she  constitutes  such a group.  In addition,  except as otherwise  disclosed
herein,  each Reporting Person claims beneficial  ownership only of those Shares
set out following  his or her name under Item 5 hereof and disclaims  beneficial
ownership of any Shares covered by this Amended and Restated  Statement owned by
any other Reporting  Person.  The filing of this Amended and Restated  Statement
shall not be deemed an admission that the Reporting  Persons  constitute  such a
group or that a Reporting  Person is a  beneficial  owner of Shares owned by any
other Reporting Person.

During the last five years,  none of the Reporting Persons has been convicted in
a criminal proceeding  (excluding traffic violations or similar misdemeanors) or
has been a party to a civil proceeding of a judicial or  administrative  body of
competent jurisdiction and as a result of such proceeding was or is subject to a
judgment,  decree or final order enjoining future  violations of, or prohibiting
or mandating  activities subject to, federal or state securities laws or finding
any violation with respect to such laws.



Item 3.   Source and Amount of Funds or Other Compensation

In the PSMI  Merger,  the Issuer  acquired a  significant  amount of real estate
related  assets  and  as  a  result  of  the  PSMI  Merger,  the  Issuer  became
self-advised and self-managed. The aggregate consideration paid by the Issuer in
the PSMI Merger to the  shareholders  of PSMI  consisted  of (i) the issuance on
November 16, 1995 (the effective  date of the PSMI Merger) of 30,000,000  Shares
of the Issuer  (subject to  post-closing  adjustment)  having a market  value of
$16.088 per share  based on the average  closing  price of the  Issuer's  common
stock on the New York Stock Exchange for the 30 consecutive  trading days ending
on June  29,  1995,  the  day  prior  to the  date  the  Agreement  and  Plan of
Reorganization was executed,  and $17.75 per share based on the closing price of
the Issuer's  common stock on the New York Stock  Exchange on November 16, 1995,
the effective date of the PSMI Merger,  (ii) the issuance on January 22, 1996 of
an additional 5,861,723 Shares of the Issuer issued as post- closing adjustments
(in  respect of  6,412,210  Shares of the Issuer  that were owned by PSMI at the
effective  time of the PSMI Merger  which were  cancelled in the PSMI Merger and
reissued  to  the  Hughes  Family  as a  post-closing  adjustment,  offset  by a
reduction  in the total number of Shares  issuable in the PSMI Merger  resulting
from a further post- closing adjustment),  (iii) the issuance on January 2, 1996
of 7,000,000 shares of Class B Common Stock of the Issuer and (iv) assumption of
$68  million  of PSMI  debt  and  consolidated  property  debt of $4.7  million.
Substantially all of the  consideration  paid in the PSMI Merger was paid to the
Hughes Family.  For a detailed  description of the PSMI Merger, see the Issuer's
definitive proxy statement dated October 11, 1995.

As of December 31, 2001 and  subsequent  to that date through  January 10, 2002,
Mr.  Hughes owned a total of 20,646,824  Shares.  These Shares were acquired (or
deemed to be acquired) as follows:  (i) 17,676  Shares were acquired as follows:
(a) 550,293  Shares were acquired for an  approximate  aggregate  purchase price
(including  commissions)  of  $7,653,114,  which  funds were  obtained  from Mr.
Hughes' personal funds,  and (b) on November 14, 1995, B. Wayne Hughes,  Trustee
for B.W.  Hughes  Living  Trust  sold  532,617  of these  Shares  to PSMI for an
aggregate  price of $9,453,952,  (ii)(a)  pursuant to a merger of Public Storage
Properties  VIII,  Inc.  ("PSP8") into the Issuer (the "PSP8  Merger") which was
effective  September 30, 1994, B. Wayne Hughes,  Trustee for B.W.  Hughes Living
Trust  acquired  206,892  Shares of the Issuer in exchange for the  surrender of
144,781  shares of PSP8 common  stock series A (the terms of the PSP8 Merger are
set  forth in the  Agreement  and Plan of  Reorganization  between  PSP8 and the
Issuer  dated as of April 14, 1994 and the related  Agreement  of Merger,  which
were  filed  with the  Issuer's  Registration  Statement  on Form S-4  (File No.
33-54557)) and (b) on March 26, 1997, B. Wayne Hughes,  Trustee for B.W.  Hughes
Living Trust  transferred these Shares to a third party as a gift, (iii) 156,100
Shares were  acquired by B. Wayne Hughes,  Trustee for B.W.  Hughes Living Trust
from Harkham Industries,  Inc. (DBA Jonathan Martin, Inc.), a corporation wholly
owned by Uri P.  Harkham,  a director of the Issuer,  on November  30, 1994 in a



privately  negotiated  transaction  for an aggregate  price of $2,107,350,  with
funds obtained from Mr.  Hughes'  personal  funds,  and on November 14, 1995, B.
Wayne Hughes,  Trustee for B.W. Hughes Living Trust sold these 156,100 Shares to
PSMI for an  aggregate  price of  $2,770,775,  (iv) 27,400 of these  Shares were
originally  acquired in a custodial account for the benefit of Mr. Hughes' minor
child for an approximate  aggregate  purchase price  (including  commissions) of
$248,612  using  funds  contributed  by  Mr.  Hughes,   and  these  Shares  were
subsequently  transferred from that custodial account to Parker Hughes Trust No.
1 and then to custodial  accounts for the benefit of children of Mr. Hughes, Jr.
and Ms.  Hughes (such shares no longer  deemed to be  beneficially  owned by Mr.
Hughes),  (v) (a)  pursuant to a merger of Public  Storage  Properties  VI, Inc.
("PSP6") into the Issuer (the "PSP6  Merger")  which was effective  February 28,
1995, B. Wayne Hughes,  Trustee for B.W. Hughes Living Trust acquired a total of
250,351  Shares of the Issuer in exchange for the surrender of 145,215 shares of
PSP6  common  stock  series A (the terms of the PSP6 Merger are set forth in the
Agreement  and Plan of  Reorganization  between  PSP6 and the Issuer dated as of
September  26, 1994 and the related  Agreement of Merger,  which were filed with
the Issuer's Registration Statement on Form S-4 (File No. 33-56925)), (b) on May
11, 1995, B. Wayne  Hughes,  Trustee for B.W.  Hughes  Living Trust  transferred
93,023 of these  Shares to a third party as a gift and (c) on November 27, 1995,
B. Wayne Hughes,  Trustee for B.W.  Hughes Living Trust  transferred  157,328 of
these  Shares to a third  party as a gift,  (vi)  pursuant  to the PSP6  Merger,
Parker  Hughes  Trust No. 1 acquired  2,069 Shares of the Issuer in exchange for
the  surrender  of 1,200  shares of PSP6 common  stock  series A, (vii)  142,917
Shares were  acquired by B. Wayne Hughes,  Trustee for B.W.  Hughes Living Trust
from B.  Wayne  Hughes,  Jr. on  February  28,  1995 in a  privately  negotiated
transaction for an aggregate price of $2,038,000  consisting of the cancellation
of $2,038,000 of debt of B. Wayne Hughes, Jr. to B. Wayne Hughes,  (viii) 16,399
Shares  were  acquired as follows:  (a)  pursuant to a merger of Public  Storage
Properties  VII,  Inc.  ("PSP7") into the Issuer (the "PSP7  Merger")  which was
effective June 30, 1995, B. Wayne Hughes,  Trustee for B.W.  Hughes Living Trust
acquired  248,889  Shares of the Issuer in exchange for the surrender of 215,488
shares of PSP7 common stock series A (the terms of the PSP7 Merger are set forth
in the Agreement and Plan of Reorganization between PSP7 and the Issuer dated as
of February 2, 1995 and the related  Agreement of Merger,  which were filed with
the Issuer's  Registration  Statement on Form S-4 (File No.  33-58893)),  (b) on
September  6, 1995,  B. Wayne  Hughes,  Trustee  for B.W.  Hughes  Living  Trust
transferred  96,000 of these Shares to a third party as a gift,  (c) on November
1, 1995,  B. Wayne  Hughes,  Trustee for B.W.  Hughes  Living Trust  transferred
65,754 of these Shares to a third party as a gift,  (d) on November 14, 1995, B.
Wayne Hughes,  Trustee for B.W. Hughes Living Trust contributed  10,259 of these
Shares to PSOI in exchange for one-third of PSOI's  voting common stock,  (e) on
June 18, 1996, B. Wayne Hughes, Trustee for B.W. Hughes Living Trust transferred
50,000 of these Shares to a third party as a gift and (f) on March 26, 1997,  B.
Wayne Hughes,  Trustee for B.W. Hughes Living Trust transferred  10,477 of these
Shares to a third party as a gift,  (ix)  pursuant to the PSMI Merger,  B. Wayne
Hughes,  Trustee for B.W.  Hughes Living Trust was issued  16,089,553  Shares on
November   16,  1995,   which  Shares  were  subject  to  certain   post-closing
adjustments,  (x) as  post-closing  adjustments to the Shares issued pursuant to
the PSMI  Merger,  B. Wayne  Hughes,  Trustee for B.W.  Hughes  Living Trust was
issued 2,744,889 Shares on January 22, 1996 in respect of Shares that were owned
by PSMI at the  effective  time of the PSMI  Merger  and  cancelled  in the PSMI
Merger and reissued as a post-closing  adjustment,  offset by a reduction in the
total  number of Shares  issuable  in the PSMI Merger  resulting  from a further
post-  closing  adjustment,  (xi)(a)  pursuant  to a merger  of  Public  Storage
Properties  IX,  Inc.  ("PSP9")  into the Issuer (the "PSP9  Merger")  which was
effective March 26, 1996, B. Wayne Hughes,  Trustee for B.W. Hughes Living Trust
acquired  89,169  Shares of the Issuer in exchange for the  surrender of 104,781
shares of PSP9 common stock series A (the terms of the PSP9 Merger are set forth
in the  Agreement  and Plan of  Reorganization  among  the  Issuer,  PSP9 and PS
Business Parks,  Inc. dated as of December 13, 1995 and the related Agreement of
Merger  between  the  Issuer  and  PSP9,  which  were  filed  with the  Issuer's
Registration  Statement on Form S-4 (File No. 333-00591)),  (b) on June 4, 1996,



B. Wayne  Hughes,  Trustee for B.W.  Hughes Living Trust  transferred  40,000 of
these  Shares to a third  party as a gift and (c) on March 26,  1997,  B.  Wayne
Hughes,  Trustee for B.W. Hughes Living Trust transferred 49,169 of these Shares
to a third  party as a gift,  (xii)(a)  pursuant  to a merger of Public  Storage
Properties  X, Inc.  ("PSP10")  into the Issuer (the "PSP10  Merger")  which was
effective  September 16, 1996, B. Wayne Hughes,  Trustee for B.W.  Hughes Living
Trust  acquired  101,400  Shares of the Issuer in exchange for the  surrender of
107,415 shares of PSP10 common stock series A (the terms of the PSP10 Merger are
set forth in the  Agreement  and Plan of  Reorganization  between  PSP10 and the
Issuer dated as of June 20, 1996 and the related Agreement of Merger, which were
filed with the Issuer's Registration Statement on Form S-4 (File No. 333-08671))
and (b) on March 26, 1997, B. Wayne Hughes, Trustee for B.W. Hughes Living Trust
transferred  these  Shares to a third  party as a gift,  (xiii) 421 Shares  were
acquired as follows:  (a) pursuant to a merger of Public Storage Properties XII,
Inc.  ("PSP12")  into the  Issuer  (the  "PSP12  Merger")  which  was  effective
September  16,  1996,  B. Wayne  Hughes,  Trustee for B.W.  Hughes  Living Trust
acquired 91,526 Shares of the Issuer in exchange for the surrender of 424 shares
of PSP12 common stock series A,  36,890.6  shares of PSP12 common stock series B
and  72,347.6  shares of PSP12  common  stock  series C (the  terms of the PSP12
Merger are set forth in the Agreement and Plan of  Reorganization  between PSP12
and the Issuer  dated as of June 20, 1996 and the related  Agreement  of Merger,
which were filed with the Issuer's Registration  Statement on Form S-4 (File No.
333-08791)) and (b) on March 26, 1997, B. Wayne Hughes,  Trustee for B.W. Hughes
Living  Trust  transferred  91,105 of these  Shares to a third  party as a gift,
(xiv)  pursuant to the PSP12 Merger,  Parker  Hughes Trust No. 1 acquired  3,674
Shares of the Issuer in  exchange  for the  surrender  of 3,700  shares of PSP12
common stock series A, (xv)(a) pursuant to a merger of Partners Preferred Yield,
Inc. ("PPY") into the Issuer (the "PPY Merger") which was effective December 23,
1996, B. Wayne Hughes,  Trustee for B.W.  Hughes  Living Trust  acquired  75,997
Shares of the  Issuer in  exchange  for the  surrender  of 84,175  shares of PPY
common stock  series B, 49,515  shares of PPY common stock series C and 32,607.2
shares of PPY common  stock  series D (the terms of the PPY Merger are set forth
in the Agreement and Plan of Reorganization  among PPY, Partners Preferred Yield
II, Inc.  ("PPY2"),  Partners  Preferred Yield III, Inc. ("PPY3") and the Issuer
dated as of August 15, 1996 and the related  Agreement of Merger  (collectively,
the "PPY, PPY2 and PPY3 Merger  Agreement"),  which were filed with the Issuer's
Registration  Statement on Form S-4 (File No.  333-14161))  and (b) on March 26,
1997, B. Wayne Hughes,  Trustee for B.W. Hughes Living Trust  transferred  these
Shares to a third  party as a gift,  (xvi)(a)  pursuant to a merger of PPY2 into
the Issuer (the "PPY2 Merger")  which was effective  December 23, 1996, B. Wayne
Hughes,  Trustee for B.W.  Hughes  Living Trust  acquired  80,155  Shares of the
Issuer in exchange  for the  surrender  of 84,175  shares of PPY2  common  stock
series B, 49,515  shares of PPY2 common stock  series C and  32,607.2  shares of
PPY2  common  stock  series D (the terms of the PPY2 Merger are set forth in the
PPY, PPY2 and PPY3 Merger Agreement) and (b) on March 26, 1997, B. Wayne Hughes,
Trustee for B.W. Hughes Living Trust  transferred  these Shares to a third party
as a gift,  (xvii)(a)  pursuant  to a merger of PPY3 into the Issuer  (the "PPY3
Merger")  which was effective  December 23, 1996,  B. Wayne Hughes,  Trustee for
B.W.  Hughes Living Trust  acquired  34,805 Shares of the Issuer in exchange for
the  surrender of 3,037  shares of PPY3 common stock series A, 33,742  shares of
PPY3 common  stock  series B, 19,848  shares of PPY3 common  stock  series C and
13,070.8  shares of PPY3 common stock series D (the terms of the PPY3 Merger are
set forth in the PPY, PPY2 and PPY3 Merger Agreement) and (b) on March 26, 1997,
B. Wayne Hughes,  Trustee for B.W. Hughes Living Trust  transferred these Shares
to a third  party as a gift,  (xviii)  pursuant  to a merger of  Public  Storage
Properties  XIV, Inc.  ("PSP14") into the Issuer (the "PSP14  Merger") which was
effective April 11, 1997, B. Wayne Hughes,  Trustee for B.W. Hughes Living Trust
acquired 390 Shares of the Issuer in exchange for the surrender of 535 shares of



PSP14  common stock series A (the terms of the PSP14 Merger are set forth in the
Agreement and Plan of Reorganization  among PSP14, Public Storage Properties XV,
Inc.  ("PSP15")  and the Issuer  dated as of  December  5, 1996 and the  related
Agreement  of Merger  (collectively,  the "PSP14 and PSP15  Merger  Agreement"),
which were filed with the Issuer's Registration  Statement on Form S-4 (File No.
333-22665)),  (xix)  pursuant  to the PSP14  Merger,  Mr.  Hughes'  former  wife
acquired 219 Shares of the Issuer in exchange for the surrender of 300 shares of
PSP14 common stock  series A (such  shares no longer  deemed to be  beneficially
owned by Mr. Hughes), (xx) pursuant to the PSP14 Merger, Parker Hughes Trust No.
1 acquired  9,550 Shares of the Issuer in exchange  for the  surrender of 13,100
shares of PSP14 common stock series A (such shares  subsequently  transferred to
custodial accounts for the benefit of children of Mr. Hughes, Jr. and Ms. Hughes
and no longer deemed to be beneficially owned by Mr. Hughes), (xx) pursuant to a
merger of PSP15 into the Issuer (the "PSP15  Merger") which was effective  April
11, 1997, B. Wayne  Hughes,  Trustee for B.W.  Hughes Living Trust  acquired 401
Shares of the Issuer in exchange for the surrender of 535 shares of PSP15 common
stock  series A (the  terms of the PSP15  Merger  are set forth in the PSP14 and
PSP15 Merger Agreement), (xxi) pursuant to a merger of Public Storage Properties
XVI, Inc.  ("PSP16")  into the Issuer (the "PSP16  Merger")  which was effective
June 24, 1997, B. Wayne Hughes,  Trustee for B.W.  Hughes Living Trust  acquired
80,662 Shares of the Issuer in exchange for the surrender of 748 shares of PSP16
common stock series A and  184,160.4  shares of PSP16 common stock series C (the
terms  of  the  PSP16  Merger  are  set  forth  in the  Agreement  and  Plan  of
Reorganization  among PSP16,  Public Storage  Properties  XVII, Inc.  ("PSP17"),
Public Storage Properties XVIII, Inc. ("PSP18"),  Public Storage Properties XIX,
Inc.  ("PSP19")  and the  Issuer  dated  as of April  9,  1997  and the  related
Agreement of Merger  (collectively,  the "PSP16,  PSP17,  PSP18 and PSP19 Merger
Agreement"),  which were filed with the Issuer's Registration  Statement on Form
S-4 (File No. 333-26959)),  (xxii) pursuant to a merger of PSP17 into the Issuer
(the "PSP17 Merger") which was effective June 24, 1997, B. Wayne Hughes, Trustee
for B.W.  Hughes Living Trust  acquired 522 Shares of the Issuer in exchange for
the  surrender  of 748 shares of PSP17  common  stock series A (the terms of the
PSP17  Merger  are set  forth  in the  PSP16,  PSP17,  PSP18  and  PSP19  Merger
Agreement),  (xxiii)  pursuant  to a merger of PSP19 into the Issuer (the "PSP19
Merger")  which was effective  June 24, 1997, B. Wayne Hughes,  Trustee for B.W.
Hughes  Living  Trust  acquired  396  Shares of the Issuer in  exchange  for the
surrender  of 651 shares of PSP19  common stock series A (the terms of the PSP19
Merger are set forth in the PSP16,  PSP17,  PSP18 and PSP19  Merger  Agreement),
(xxiv)  pursuant to the PSP19  Merger,  Parker  Hughes  Trust No. 1 acquired 670
Shares of the Issuer in  exchange  for the  surrender  of 1,100  shares of PSP19
common  stock  series  A (such  shares  subsequently  transferred  to  custodial
accounts for the benefit of children of Mr.  Hughes,  Jr. and Ms.  Hughes and no
longer deemed to be beneficially owned by Mr. Hughes), (xxv) pursuant to mergers
of two  corporations  wholly owned by B. Wayne Hughes,  Trustee for B.W.  Hughes
Living Trust into a  wholly-owned  subsidiary  of Issuer which was  effective on
March 31, 1998, B. Wayne Hughes, Trustee for B.W. Hughes Living Trust acquired a
total of 853,700 Shares of the Issuer in exchange for the surrender of shares of
said two corporations,  (xxvi) pursuant to a merger of Public Storage Properties
XX, Inc.  ("PSP20") into the Issuer (the "PSP20 Merger") which was effective May
8, 1998, B. Wayne Hughes,  Trustee for B.W.  Hughes Living Trust acquired 25,009
Shares of the Issuer in exchange for the  surrender  of shares of PSP20  capital
stock and (xxvii)  pursuant to the  Agreement  and Plan of  Reorganization  (the
"PSIC  Reorganization")  by and among Issuer, Mr. Hughes,  Mr. Hughes,  Jr., Ms.
Hughes and PSIC,  dated as of March 15, 2001, B. Wayne Hughes,  Trustee for B.W.
Hughes Living Trust  acquired  653,653  Shares of the Issuer in exchange for the
surrender of shares of PSIC capital stock on December 31, 2001.



As of December 31, 2001 and  subsequent  to that date through  January 10, 2002,
Mr.  Hughes,  Jr. and Ms. Hughes owned jointly a total of 11,348  Shares.  These
Shares were acquired as follows: (i) 950 Shares were acquired for an approximate
aggregate  purchase price  (including  commissions) of $9,921,  which funds were
obtained from Mr. Hughes,  Jr.'s and Ms. Hughes' personal funds (ii) pursuant to
the PSP17 Merger,  Mr. Hughes, Jr. and Ms. Hughes acquired jointly 398 Shares of
the Issuer in exchange  for the  surrender  of 570 shares of PSP17  common stock
series A and (iii) 10,000 Shares were acquired for an aggregate  purchase  price
(including  commissions) of $225,000 with personal funds of Mr. Hughes,  Jr. and
Ms. Hughes on December 9, 1999.

As of December 31, 2001 and  subsequent  to that date through  January 10, 2002,
Mr. Wayne Hughes,  Jr. owned (or was deemed to own) a total of 1,177,907  Shares
(exclusive of Shares owned jointly by Mr.  Hughes,  Jr. and Ms.  Hughes).  These
Shares were acquired (or deemed to be acquired) as follows:  (i) 219,985  Shares
were acquired as follows:  (a) 230,244  Shares were acquired for an  approximate
aggregate purchase price (including commissions) of $2,796,974, which funds were
obtained from Mr. Hughes, Jr.'s personal funds and (b) on November 14, 1995, Mr.
Hughes, Jr. contributed 10,259 of these Shares to PSOI in exchange for one-third
of PSOI's voting common stock, (ii) pursuant to the PSP8 Merger, (a) Mr. Hughes,
Jr.  acquired  179 Shares of the Issuer in  exchange  for the  surrender  of 125
shares of PSP8 common stock series A and (b) Mr.  Hughes,  Jr. as custodian  for
his daughter  acquired 286 Shares of the Issuer in exchange for the surrender of
200 shares of PSP8 common stock series A, (iii) 1,472 Shares were  acquired upon
conversion of 875 shares of the Issuer's 8.25%  Convertible  Preferred Stock and
the 875 shares of Convertible  Preferred  Stock were acquired for an approximate
aggregate  purchase price (including  commissions) of $24,588,  which funds were
obtained  from Mr.  Hughes,  Jr.'s  personal  funds,  (iv)  103,392  Shares were
acquired as follows:  (a) in April 1994,  Mr.  Hughes,  Jr.  acquired a total of
526,300  Shares  for  an  approximate   aggregate   purchase  price   (including
commissions)  of  $7,383,989,  of which funds  $4,750,000 was borrowed under Mr.
Hughes,  Jr.'s credit  agreement with Wells Fargo Bank which is referenced under
Item 7, Exhibit 2 (the "Wells Fargo  Note") and  $2,633,989  was advanced by Old
PSI (the "Old PSI  Note"),  and the Old PSI Note bore  interest  at Wells  Fargo
Bank's prime rate plus 0.50%, (b) the Wells Fargo Note was subsequently paid off
in full, of which $2,038,000 was paid with funds advanced to Mr. Hughes,  Jr. by
Mr. Hughes (the "B. Wayne Hughes Note"), $1,484,000 was paid with funds advanced
to Mr. Hughes,  Jr. by Ms. Hughes (the "Tamara Hughes Note") and the balance was
paid with Mr. Hughes, Jr.'s funds, (c) on February 1, 1995, Mr. Hughes, Jr. sold
279,991 of these Shares to Ms. Hughes in a privately negotiated  transaction for
an aggregate  price of $3,992,671  consisting of the  cancellation of the Tamara
Hughes Note and the  assumption  by Ms. Hughes of $2,508,671 of the Old PSI Note
and (d) on February 28, 1995,  Mr.  Hughes,  Jr. sold 142,917 of these Shares to
Mr.  Hughes in a privately  negotiated  transaction  for an  aggregate  price of
$2,038,000  consisting  of the  cancellation  of the B. Wayne Hughes  Note,  (v)
pursuant  to the PSMI  Merger,  Mr.  Hughes,  Jr. was issued  144,254  Shares on
November   16,  1995,   which  Shares  were  subject  to  certain   post-closing
adjustments,  (vi) as post-closing  adjustments to the Shares issued pursuant to
the PSMI Merger,  Mr. Hughes,  Jr. was issued 455,746 Shares on January 22, 1996
in respect of Shares that were owned by PSMI at the  effective  time of the PSMI
Merger  and  cancelled  in  the  PSMI  Merger  and  reissued  as a  post-closing
adjustment,  offset by a reduction in the total number of Shares issuable in the
PSMI Merger resulting from a further post-closing adjustment,  (vii) pursuant to
the PSP12 Merger,  (a) Mr. Hughes,  Jr.  acquired 20,851 Shares of the Issuer in
exchange  for the  surrender  of 6,522 shares of PSP12 common stock series B and
18,480 shares of PSP12 common stock series C, (b) Mr.  Hughes,  Jr. as custodian
for his  daughter  acquired  2,085  Shares  of the  Issuer in  exchange  for the
surrender of 2,100  shares of PSP12  common stock series A, and (c) Mr.  Hughes,
Jr.'s wife as custodian for their  daughter  acquired 1,887 Shares of the Issuer
in exchange  for the  surrender  of 1,900 shares of PSP12 common stock series A,
(viii)  pursuant  to the PPY3  Merger,  Mr.  Hughes,  Jr. as  custodian  for his
daughter  acquired 386 Shares of the Issuer in exchange for the surrender of 500
shares of PPY3 common stock  series A, (ix)  pursuant to the PSP14  Merger,  Mr.
Hughes, Jr. acquired 6,269 Shares of the Issuer in exchange for the surrender of



1,000  shares of PSP14 common stock series A, 2,572 shares of PSP14 common stock
series B and 7,287  shares of PSP14  common  stock series C, (x) pursuant to the
PSP15 Merger,  Mr. Hughes,  Jr. acquired 28,027 shares of the Issuer in exchange
for the  surrender  of 16,393  shares of PSP15  common stock series B and 46,448
shares of PSP15 common stock series C, (xi)  pursuant to the PSP16  Merger,  (a)
Mr.  Hughes,  Jr.  acquired  13,852  Shares of the  Issuer in  exchange  for the
surrender of 8,307  shares of PSP16  common stock series B and 23,536  shares of
PSP16  common  stock series C and (b) Mr.  Hughes,  Jr.'s wife as custodian  for
their  daughter  acquired 775 Shares of the Issuer in exchange for the surrender
of 1,050  shares of PSP16  common  stock  series A, (xii)  pursuant to the PSP17
Merger,  (a) Mr. Hughes, Jr. acquired 7,218 Shares of the Issuer in exchange for
the  surrender  of 160 shares of PSP17  common  stock  series A, 4,917 shares of
PSP17 common stock series B and 13,932 shares of PSP17 common stock series C and
(b) Mr. Hughes, Jr.'s wife as custodian for their daughter acquired 91 Shares of
the Issuer in exchange  for the  surrender  of 130 shares of PSP17  common stock
series A, (xiii)  pursuant to the PSP20 Merger which was  effective May 8, 1998,
19 Shares were  received by a custodial  account for the benefit of Mr.  Hughes,
Jr.'s wife in exchange for shares of PSP20,  (xiv) a total of 35,781 Shares were
transferred from Parker Hughes Trust Nos. 1 and 2 effective December 31, 1998 to
custodial accounts for the benefit of Mr. Hughes,  Jr.'s children,  (xv) a total
of 4,280 Shares were acquired with Mr. Hughes,  Jr.'s personal funds in December
1999 for an aggregate  approximate  purchase price  (including  commissions)  of
$100,000 by custodial  accounts for the benefit of Mr. Hughes,  Jr.'s  children,
(xvi) Mr. Hughes,  Jr. acquired 112,302 Shares of the Issuer in exchange for the
surrender of shares of PSIC capital stock on December 31, 2001.

As of December 31, 2001 and  subsequent  to that date through  January 10. 2001,
Ms. Hughes owned (or was deemed to own) a total of 172,434,260 Shares (exclusive
of Shares owned  jointly by Ms.  Hughes and Mr.  Hughes,  Jr.) These Shares were
acquired (or deemed to be acquired) as follows: (i) 278,601 Shares were acquired
as  follows:  (a) 288,860  Shares were  acquired  for an  approximate  aggregate
purchase price (including commissions) of $2,628,763,  which funds were obtained
from Ms.  Hughes'  personal  funds and (b) on November 14, 1995,  Tamara  Hughes
Gustavson  contributed  10,259 of these Shares to PSOI in exchange for one-third
of PSOI's voting common stock,  (ii) 5,050 Shares were acquired upon  conversion
of  3,000  shares  of  Convertible  Preferred  Stock  and the  3,000  shares  of
Convertible  Preferred Stock were acquired for an approximate aggregate purchase
price  (including  commissions)  of $82,740,  which funds were obtained from Ms.
Hughes'  personal  funds,  (iii) 279,991 Shares were acquired by Ms. Hughes from
Mr. Hughes, Jr. on February 1, 1995 in a privately negotiated transaction for an
aggregate  price of  $3,992,671  consisting  of the  cancellation  of the Tamara
Hughes Note and the  assumption by Tamara Hughes  Gustavson of $2,508,671 of the
Old PSI Note,  and on November 14, 1995, Ms. Hughes sold these 279,991 Shares to
PSMI for an aggregate  price of  $4,969,840,  a portion of which was used to pay
off Ms. Hughes'  portion of the Old PSI Note,  (iv) pursuant to the PSMI Merger,
Ms. Hughes was issued  13,667,026 Shares on November 16, 1995, which Shares were
subject to certain post-closing adjustments,  (v) as post-closing adjustments to
the Shares issued pursuant to the PSMI Merger,  Ms. Hughes was issued  2,661,088
Shares on January  22,  1996 in respect of Shares that were owned by PSMI at the
effective  time of the PSMI Merger and cancelled in the PSMI Merger and reissued
as a  post-closing  adjustment,  offset by a  reduction  in the total  number of
Shares  issuable  in the  PSMI  Merger  resulting  from a  further  post-closing
adjustment, (vi) pursuant to the PSP12 Merger, Ms. Hughes acquired 36,541 Shares
of the Issuer in exchange  for the  surrender  of 15,800  shares of PSP12 common
stock series A, 6,522 shares of PSP12 common stock series B and 18,480 shares of
PSP12 common  stock series C, (vii)  pursuant to the PSP14  Merger,  Ms.  Hughes
acquired  5,540  Shares of the Issuer in  exchange  for the  surrender  of 2,572
shares of PSP14  common  stock  series B and 7,287  shares of PSP14 common stock
series C, (viii) pursuant to the PSP15 Merger, Ms. Hughes acquired 28,927 shares
of the Issuer in exchange  for the  surrender  of 1,200  shares of PSP15  common
stock series A, 16,393  shares of PSP15 common stock series B and 46,448  shares
of PSP15 common stock series C, (ix)  pursuant to the PSP16  Merger,  Ms. Hughes
acquired  13,852  Shares of the Issuer in exchange  for the  surrender  of 8,307
shares of PSP16 common  stock  series B and 23,536  shares of PSP16 common stock
series C, (x) pursuant to the PSP17 Merger,  Ms. Hughes acquired 8,851 Shares of
the Issuer in exchange  for the  surrender of 2,500 shares of PSP17 common stock
series A, 4,917 shares of PSP17 common stock series B and 13,932 shares of PSP17
common  stock  series C, (xi) a total of 35,780  shares  were  transferred  from
Parker  Hughes  Trusts Nos. 1 and 2  effective  December  31, 1998 to  custodial
accounts for the benefit of Ms. Hughes' children, (xii) 600 Shares were acquired
with Ms. Hughes' personal funds on October 26, 2000 for an approximate  purchase
price (including  commissions) of $13,500 by a custodial account for the benefit
of Ms. Hughes' child, and (xiii) pursuant to the PSIC Reorganization, Ms. Hughes
acquired 673,810 Shares of the Issuer in exchange for the surrender of shares of
PSIC capital stock on December 31, 2001.



Item 4.   Purpose of Transaction

The  purpose  of the  acquisition  of Shares  by the  Reporting  Persons  is for
investment as part of the general investment  portfolio of the Reporting Persons
acquiring such Shares.  The Reporting  Persons  believe that Issuer's  shares of
common stock represent a good investment.

The  Reporting  Persons  intend to review their  investments  in the Issuer on a
continuing  basis and may, at any time,  consistent with the Reporting  Persons'
obligations under the federal securities laws, determine to increase or decrease
their  ownership  of  Shares  through  purchases  or sales of Shares in the open
market or in privately negotiated  transactions.  Such determination will depend
on  various  factors,   including  the  Issuer's   business   prospects,   other
developments concerning the Issuer, general economic conditions, money and stock
market conditions,  and any other facts and circumstances which may become known
to the Reporting Persons regarding their investments in the Issuer.

By virtue of the purchase of the Shares,  the Reporting Persons have no plans or
proposals  which  relate to or would  result in (i) an  extraordinary  corporate
transaction,  such as a merger,  reorganization  or  liquidation,  involving the
Issuer;  (ii) a sale or transfer  of a material  amount of assets of the Issuer;
(iii) any change in the present  board of directors or management of the Issuer,
including  any plans or  proposals  to change the number or term of directors or
fill any  position,  vacancies on the boards;  (iv) any  material  change in the
present  capitalization or dividend policy of the Issuer; (v) any other material
change in the  Issuer's  business or  corporate  structure;  (vi) changes in the
Issuer's  articles of  incorporation or bylaws or other actions which may impede
the  acquisition  or  control of the  Issuer by any  person;  (vii) any class of
securities of the Issuer to be delisted from the national securities exchange or
cease to be quoted in an inter-dealer  quotation system of a registered national
securities  association;  (viii) a class of equity  securities  of the Issuer to
become eligible for termination of registration  pursuant to Section 12(d)(4) of
the Securities  Exchange Act of 1934; or (ix) any action similar to any of those
described above.

Mr.  Hughes is Chairman of the Board and Chief  Executive  Officer of the Issuer
and Mr. Hughes, Jr. is an officer and director of Issuer, and, in their capacity
as such,  they may, from time to time,  propose to Issuer's board of directors a
wide variety of types of transactions,  including  transactions similar to those
described above.



Item 5.   Interest in Securities of the Issuer

As of December 31, 2001 and  subsequent  to that date through  January 10, 2002,
each  Reporting  Person  owned (or was  deemed to own) the  aggregate  number of
Shares  set  forth  below  opposite  his or her  name.  Such  Shares  constitute
approximately  34% in the aggregate,  of the approximate  total number of Shares
outstanding on December 31, 2001.

                                                            Approximate % of
    Reporting Person              No. of Shares            Shares Outstanding
--------------------------    ------------------------    --------------------

B. Wayne Hughes                       20,646,824                17.88%
B. Wayne Hughes, Jr. and
  Tamara Hughes Gustavson                 11,348                  .01%
B. Wayne Hughes, Jr.                   1,177,907                 1.02%
Tamara Hughes Gustavson               17,434,260                15.09%
                              ------------------------    --------------------
   Total                              39,270,339                    34.00%

 Includes  Shares held of record by the B.W. Hughes Living Trust as to which
     Mr. Hughes has voting and dispositive power,  Shares held by a custodian of
     an  individual  retirement  account  for  Mr.  Hughes  as to  which  he has
     investment and  dispositive  power and Shares held in Issuer's 401(k) Plan.
     Does not include Shares owned by his former wife.

 Shares held of record jointly by Mr. Hughes, Jr. and Ms. Hughes as to which
     they have joint voting and dispositive power.

 Includes  Shares held by custodians of individual  retirement  accounts for
     Mr.  Hughes,  Jr.  and  his  wife  as to  which  each  has  investment  and
     dispositive  power,  Shares  held  by Mr.  Hughes,  Jr.  and  his  wife  as
     custodians for their children as to which they have voting and  dispositive
     power and Shares held in Issuer's 401(k) Plan.  Excludes 11,348 Shares held
     of record jointly by Mr. Hughes, Jr. and Ms. Hughes.

 Includes Shares held by a custodian of an individual retirement account for
     Ms. Hughes as to which she has investment  and  dispositive  power,  Shares
     held by Ms. Hughes'  husband as to which he has investment and  dispositive
     power,  Shares held by Ms. Hughes and her husband as  custodians  for their
     children,  as to which they have  voting and  dispositive  power and Shares
     held in Issuer's 401(k) Plan. Excludes 11,348 Shares held of record jointly
     by Ms. Hughes and Mr. Hughes, Jr.

During the 60-day  period ending  December 31, 2001 and  subsequent to that date
through January 10, 2002, the Reporting  Persons purchased or sold the number of
Shares in the transactions, on the transaction dates and at the prices per Share
(not including commissions) set forth below opposite his, her or its name.

                                                                           Price
                           Transaction      No. of           Type of        per
 Reporting Person             Date        Shares Bought    Transaction     Share
-----------------------    -----------   ---------------   ------------   ------

B. Wayne Hughes             12/31/01         653,653                    

B. Wayne Hughes, Jr         12/31/01         112,302                    

Tamara Hughes Gustavson     12/31/01         673,810                    

 Pursuant  to the PSIC  Reorganization,  B. Wayne  Hughes,  Trustee for B.W.
     Hughes Living Trust  acquired  653,653 Shares of the Issuer in exchange for
     the surrender of 136,200 shares of PSIC capital stock.

 Pursuant to the PSIC  Reorganization,  Mr.  Hughes,  Jr.  acquired  112,302
     Shares of the Issuer in exchange for the surrender of 23,400 shares of PSIC
     capital stock.

 Pursuant to the PSIC Reorganization,  Ms. Hughes acquired 673,810 Shares of
     the Issuer in exchange for the surrender of 140,400  shares of PSIC capital
     stock.

To the best of the Reporting  Persons'  knowledge,  except as disclosed  herein,
none of the Reporting  Persons named in Item 2 has any  beneficial  ownership of
any Shares as of December 31, 2001 and  subsequent to that date through  January
10,  2002,  or has engaged in any  transaction  in any Shares  during the 60-day
period ending  December 31, 2001 and subsequent to that date through January 10,
2002.

Except as disclosed herein, no other person is known to the Reporting Persons to
have the right to receive or the power to direct  receipt of dividends  from, or
the proceeds  from the sale of, the Shares  beneficially  owned by the Reporting
Persons.



Item 6.   Contracts, Arrangements, Understandings  or Relationships With Respect
           to Securities of the Issuer

In connection with the PSMI Merger,  in order to assist the Issuer in preserving
its status as a "real estate  investment  trust" under the Internal Revenue Code
of 1986, B. Wayne  Hughes,  Tamara Hughes  Gustavson,  B. Wayne Hughes,  Jr. and
Parker  Hughes Trust No. 2  (collectively,  the  "Shareholders")  entered into a
Shareholders'  Agreement  with the Issuer  dated as of  November  16,  1995 (the
"Shareholders   Agreement")   restricting  the   Shareholders'   acquisition  of
additional  shares of capital stock of the Issuer and providing  that, if at any
time, for any reason, more than 50% in value of the Issuer's outstanding capital
stock otherwise would be considered owned by five or fewer individuals, a number
of Shares owned by B. Wayne Hughes  necessary  to prevent  such  violation  will
automatically  and  irrevocably  be  transferred  to  a  designated   charitable
beneficiary.  The  Shareholders  Agreement is referenced under Item 7, Exhibit 5
and is incorporated herein by this reference.

Except as disclosed  herein,  to the best  knowledge of the  Reporting  Persons,
there are at present no contracts, arrangements, understandings or relationships
(legal or  otherwise)  among the  Reporting  Persons named in Item 2 and between
such  persons  and any person  with  respect to any  securities  of the  Issuer,
including but not limited to, transfer or voting of any of the securities of the
Issuer,  finder's fees,  joint ventures,  loan or option  arrangements,  puts or
calls,  guarantees  of  profits,  division  of  profits or loss or the giving or
withholding of proxies, or a pledge or contingency the occurrence of which would
give another person voting power over securities of the Issuer.

Item 7.   Material to be Filed as Exhibits

Exhibit 1 - Amended Joint Filing Agreement was previously filed.

Exhibit 2 - Credit Agreement  between B. Wayne Hughes,  Jr. and Wells Fargo Bank
dated as of April 11, 1994 was previously filed.

Exhibit 3 - Agreement  and Plan of  Reorganization  dated as of June 30, 1995 by
and among the  Issuer,  Old PSI and PSMI.  Filed as  Appendix A to the  Issuer's
definitive  Proxy  Statement dated October 11, 1995 (filed October 13, 1995) and
incorporated herein by reference.

Exhibit  4 -  Amendment  to  Agreement  and Plan of  Reorganization  dated as of
November  13,  1995 by and among  the  Issuer,  Old PSI and PSMI was  previously
filed.

Exhibit 5 -  Shareholders'  Agreement dated as of November 16, 1995 by and among
the Issuer, B. Wayne Hughes,  Tamara L. Hughes, B. Wayne Hughes,  Jr. and Parker
Hughes Trust No. 2 was previously filed.

                                   SIGNATURES

Each person whose signature  appears below hereby authorizes B. Wayne Hughes and
David Goldberg,  and each of them, as attorney-  in-fact,  to sign on its or his
behalf any amendment to this  Amendment No. 23 to Statement on Schedule 13D, and
to file the same,  with all exhibits  thereto and all  documents  in  connection
therewith, with the Securities and Exchange Commission.

After reasonable inquiry and to the best of our knowledge and belief, we certify
that the information set forth in this Amendment No. 23 to Statement on Schedule
13D is true, complete and correct.

Dated:  January 10, 2002


                                  /s/B. WAYNE HUGHES
                                  ----------------------
                                  B. Wayne Hughes

                                  /s/B. WAYNE HUGHES, JR.
                                  ----------------------
                                  B. Wayne Hughes, Jr.

                                  /s/TAMARA  HUGHES GUSTAVSON
                                  ----------------------
                                  Tamara Hughes Gustavson