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Struggle for Storage REITS?

Amy Campbell

August 13, 2007

2 Min Read
Struggle for Storage REITS?

An entry posted this morning by Hilary Kramer to BloggingStocks discusses the status of Public Storage (PSA) stock, which has dropped in price by about 35 percent in recent months. According to Kramer, "The company's net income in 2006 was well below what it was in 2005, after a few years of steady growth, and the first two quarters of 2007 haven't been much better. Net income in the second quarter was down nearly 25 percent from the second quarter of 2006, and for the first six months it is down nearly 50 percent from the first half of 2006." Investors are understandably concerned. But outlook is still good for the company, particularly due to the long-term potential of the Shurgard acquisition. What are your thoughts? Any PSA stockholders out there?


In other self-storage REIT news, the Amsdell Family and U-Store-It Trust are finally burying the hatchet, as reported in today's Crain's Cleveland Business. U-Store-It will now buy 14 facilities fromand resolve its legal disputes withthe Amsdell-controlled company that built the properties for sale to the trust and members of the family, Rising Tide LLC. The groups will also dismiss pending state and federal lawsuits against each other once the $121 million sale is complete. In addition, they agreed to change the terms of settlement involving Todd, Robert and Barry Amsdell in their separation from U-Store-It.


So you see, the angst-ridden REITs are seeing light at the end of the tunnel after all, though there are many who would not have it so. I hear from owners who feel consolidation is not healthy for the industry, that independent entrepreneurship is the keystone to our ulimate success. Give me a holler and let me know if you agree/disagree.

About the Author(s)

Amy Campbell

Editor, Inside Self Storage

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