Public Storage Tumbles on Lower Earnings

Stock prices of Public Storage in Glendale tumbled nearly 6 percent Thursday on second-quarter earnings and revenue that fell short of analysts’ expectations. Public Storage, a real estate investment trust and the largest global owner and operator of self-storage facilities, reported second-quarter funds from operations, a metric used by REITS, of $2.31 a share, down from $2.34 for the same quarter a year ago. Zacks Investment Research reported a consensus of analyst estimates at $2.56. The company attributed the drop to losing an additional $34 million in foreign currency exchange relating to its debt, which is heavily denominated in euros. Public Storage’s second-quarter revenue was $664 million, compared to $634 million for the same period last year. That also fell short of analysts’ estimate of $674 million, according to Zacks. Public Storage (PS) released its results before the market opened. Shares fell $11.78, or 5.6 percent, to close at $198.28 on the New York Stock Exchange.