Public Storage Inc. said Thursday that its third-quarter profit rose 7.7% as it reduced losses from unprofitable operations and continued to attract new business through aggressive advertising and discounts.
The Glendale-based real estate investment trust, which rents out storage units in 37 states, earned $89.7 million, or 39 cents a share, compared with $83.4 million, or 27 cents, in the same period last year.
Public Storage's funds from operations, one of Wall Street's key measures of profitability for REITs, surged 22% to $99.8 million, or 79 cents a share, compared with $81.4 million, or 65 cents, a year ago. The results beat Wall Street's consensus estimate of 74 cents, said Los Angeles money manager Craig Silvers of Bricks & Mortar Capital.
"It was a great quarter," said Silvers, who owns the stock. "They made the right moves to drive their profits."
The company accelerated a plan to shut down unprofitable storage units in which renters filled stackable containers rather than leasing individual units. It also spent 37% more on advertising and more than doubled promotional discounts to attract business in the highly competitive industry.
