Public Storage posts 34 percent drop in 2nd-qtr FFO, hit by currency exchange rate fluctuation

Public Storage 2Q FFO drops on currency rates

GLENDALE, Calif. — Public Storage on Thursday said its second-quarter profit plunged 34 percent, mainly because of a drop in foreign exchange rates.

For the three months that ended June 30, the self-storage company said funds from operations, or FFO, dropped to 92 cents per share, from $1.40 per share, a year earlier.

Revenue slipped marginally to $354.4 million, from $355.2 million.

Analysts polled by Thomson Reuters on average expected FFO of $1.23 per share, on revenue of $372.5 million.

Public Storage operates as a real estate investment trust, and REITs judge their operating performance using FFO, which adds depreciation and amortization expenses, as well as other non-operating items, back to net income.

Public Storage said its quarterly net income attributable to common shareholders dropped to $60.8 million, or 36 cents per share, from $135.5 million, or 80 cents per share.

The results included $49.2 million in losses related to foreign currency exchange rates, while last year’s quarter included a $33.2 million gain. Expenses rose 3 percent to $239.8 million.

Public Storage said revenue for facilities open at least a year slipped less than 1 percent, mainly because of a small reduction in rent per occupied square foot.