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TMCNet:  U-Store-It Trust Announces Second Quarter 2007 Operating Results, Acquisition of 14 Self-Storage Facilities and Resolution of Disputes With the Amsdell Family

[August 06, 2007]

U-Store-It Trust Announces Second Quarter 2007 Operating Results, Acquisition of 14 Self-Storage Facilities and Resolution of Disputes With the Amsdell Family

(Market Wire Via Thomson Dialog NewsEdge) CLEVELAND, OH, August 6 / MARKET WIRE/ --

U-Store-It Trust (the "Company") (NYSE: YSI)
today announced its operating results for the three months ended June 30,

The Company is reporting net income of $295 thousand or $0.00 per share,
compared to net income (as restated and reclassified) of $724 thousand or
$0.01 per share for the quarter ended June 30, 2006. Funds from Operations
("FFO") for the second quarter of 2007 were $14.7 million or $0.24 per
share. This compares to the restated FFO for the second quarter of 2006 of
$16.2 million or $0.26 per share.

Total revenues increased $3.5 million and total property operating, G&A and
depreciation expense increased $4.1 million in the second quarter of 2007
as compared to the same period in 2006. These increases are primarily
attributable to the acquisition of 19 self-storage facilities for
approximately $104 million since June 30, 2006 and a full period impact in
the 2007 period of the 9 self-storage facilities purchased during the
second quarter of 2006 for approximately $55.8 million.

Interest expense increased approximately $2.1 million in the second quarter
of 2007 as compared to the second quarter of 2006 primarily as a result of
the additional debt used to fund the acquisition of 19 facilities purchased
since June 30, 2006 and the full period impact of the borrowings used to
acquire the 9 facilities during the second quarter of 2006.

During the quarter the Company sold all of its assets in Hilton Head, South
Carolina for approximately $12.8 million. The proceeds were used to reduce
short-term borrowings under the Company's credit facility. The Company
recognized a gain on sale of approximately $2.1 million.

The 397 owned facilities containing 25.2 million rentable square feet had a
physical occupancy at June 30, 2007 of 81.5% and an average physical
occupancy for the quarter ended June 30, 2007 of 80.0%.

President and Chief Executive Officer Dean Jernigan commented, "We are
continuing to make solid progress in achieving our revenue goals.
Unfortunately, in spite of the good self-storage fundamentals across the
country, there continues to be a heavy use of move-in specials by our
competitors. We elected to match our competitors during the quarter and
consequentially our discounts are higher than expected. We plan to continue
to be aggressive in those markets that require us to do so in order to gain
occupancy and grow revenues."

Same-Store Results

The Company's same-store pool for 2007 represents 331 facilities containing
approximately 20.2 million rentable square feet and representing
approximately 80% of the aggregate rentable square feet of the Company's
397 owned facilities at June 30, 2007. These same-store facilities
represent approximately 86% of property net operating income for the
quarter ended June 30, 2007.

Sequentially, the same-store facilities' occupancy grew 3.2% to 82.9% at
June 30, 2007 as compared to 79.7% at March 31, 2007. The same-store
facilities average occupancy for the second quarter of 2007 was 81.4% as
compared to 82.1% for the same quarter of last year. In-place annual rent
per square foot grew 4.4% in the second quarter of 2007 over the same
period of last year. Same-store net operating income grew 1.5% over the
second quarter of 2006.

Chief Financial Officer Christopher Marr said, "We have initiated our
capital recycling program with the sale of all of our South Carolina
assets. Our plan is to continue to exit non-core markets going forward and
use the proceeds to reduce short-term debt, fund our share repurchase plan,
and to selectively acquire and develop in our target markets. From an
internal growth perspective, we are encouraged by the 3.2% sequential
increase in our same-store physical occupancy and the continuation of that
positive momentum through the month of July."

The Acquisition of 14 Self-Storage Facilities and Resolution of Disputes
with the Amsdell Family

The Company announced today that it has executed an agreement for the
acquisition of 14 self-storage facilities for $121 million and the
resolution of disputes with the Amsdell Family, including settlement of
litigation with Rising Tide Development, LLC ("Rising Tide") and members of
the Amsdell Family.

Containing approximately 1.1 million square feet, the 14 self-storage
facilities are located in California, Florida, Georgia, Ohio and
Massachusetts. The Company intends to utilize its $250 million unsecured
revolving credit facility to fund the acquisition. The facilities are
owned by Rising Tide, an entity controlled by Robert Amsdell and Barry
Amsdell, both former Trustees of the Company. Upon the closing of the
acquisition, the Company will terminate its agreements with Rising Tide,
which it entered into at the time of the Company's initial public offering,
that provided the Company with an option to acquire these properties and
provided that the Company would manage and provide certain services to the
Rising Tide properties.

Additionally, the Company reached a settlement of all disputes with each of
Robert, Barry, Todd, and Kyle Amsdell and Rising Tide Development LLC,
which settlement is conditioned upon the closing of the Rising Tide
acquisition. Full and final mutual releases, which have been executed by
the parties, will become effective upon the closing of the acquisition.
All state and federal court litigation among the parties will be dismissed
with prejudice. As part of the settlement, Todd Amsdell resigned effective
February 20, 2007 and his termination for cause was rescinded.

Third Quarter and Full Year 2007 Financial Outlook

The Company estimates that its fully diluted FFO per share for the three
months ending September 30, 2007, will be between $0.24 and $0.26 and that
its fully diluted net loss per share for the period will be between $(0.04)
and $(0.02). The Company's estimate is based on the following key

-- General and administrative expenses of approximately $5.0-$5.5 million
-- Same-store average occupancy of approximately 83.0%
-- Same-store revenue growth of 2.0%-3.0% over the third quarter of 2006
-- Same-store expense growth of 1.5%-2.5% over the third quarter of 2006
-- Same-store net operating income growth of 2.0%-4.0% over the third
quarter of 2006

These estimates exclude an estimated $800 thousand non-cash charge the
Company will incur during the third quarter of 2007 in connection with
certain operating leases for its office space in Middleburg Heights, Ohio
which it expects to abandon during the third quarter.

The Company is revising its previous 2007 earnings guidance to reflect the
actual results of the first six months. The Company expects 2007 FFO per
share of $0.96 to $1.00 and EPS of $(0.09) to $(0.05). These estimates
exclude the above mentioned third quarter charge as well as the litigation
costs incurred during the first quarter 2007.

Conference Call

Management will host a conference call at 11:00 a.m. EDT on Tuesday August
7, 2007, to discuss financial results for the three months ended June 30,
2007. A live webcast of the conference call will be available online from
the investor relations page of the Company's corporate website at The dial-in numbers are 877-407-8035 for domestic
callers and 201-689-8035 for international callers. The reservation number
for both is 250454. After the live webcast, the call will remain available
on U-Store-It's website for thirty days. In addition, a telephonic replay
of the call will be available until September 7, 2007. The replay dial-in
number is 877-660-6853 for domestic callers, 201-612-7415 for international
callers. The account number for both is 286. The replay reservation number
is 250454. Supplemental operating and financial data as of June 30, 2007 is
available on our corporate website under the heading "Investor Relations
and Corporate Information."

About U-Store-It Trust

U-Store-It Trust is a self-administered and self-managed real estate
investment trust. The Company's self-storage facilities are designed to
offer affordable, easily-accessible and secure storage space for
residential and commercial customers. According to the Self-Storage
Almanac, U-Store-It Trust is one of the top five owners and operators of
self-storage facilities in the United States.

Non-GAAP Performance Measurements

FFO is a widely used performance measure for real estate companies and is
provided here as a supplemental measure of operating performance. The
Company calculates FFO in accordance with the best practices described in
the April 2002 National Policy Bulletin of the National Association of Real
Estate Investment Trusts (the "White Paper"). The White Paper defines FFO
as net income (computed in accordance with GAAP), excluding gains (or
losses) from sales of property, plus depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint ventures.

Management uses FFO as a key performance indicator in evaluating the
operations of the Company's facilities. Given the nature of its business as
a real estate owner and operator, the Company considers FFO a key measure
of its operating performance that is not specifically defined by accounting
principles generally accepted in the United States. The Company believes
that FFO is useful to management and investors as a starting point in
measuring its operational performance because it excludes various items
included in net income that do not relate to or are not indicative of its
operating performance such as gains (or losses) from sales of property and
depreciation, which can make periodic and peer analyses of operating
performance more difficult. FFO should not be considered as an alternative
to net income (determined in accordance with GAAP) as an indicator of the
Company's financial performance, is not an alternative to cash flow from

operating activities (determined in accordance with GAAP) as a measure of
the Company's liquidity, and is not indicative of funds available to fund
the Company's cash needs, including its ability to make distributions.

We define net operating income, which we refer to as "NOI," as total
continuing revenues less continuing property operating expenses. NOI also
can be calculated by adding back to net income: interest expense, loan
procurement amortization expense, early extinguishment of debt, minority
interest, loss on sale of storage facilities, depreciation and general and
administrative, and deducting from net income: income from discontinued
operations, gains on sale of self-storage facilities, and interest income.
NOI is not a measure of performance calculated in accordance with GAAP.

Management uses NOI as a measure of operating performance at each of our
facilities, and for all of our facilities in the aggregate. NOI should not
be considered as a substitute for operating income, net income, cash flows
provided by operating, investing and financing activities, or other income
statement or cash flow statement data prepared in accordance with GAAP.

Forward-Looking Statements

Certain statements in this release that are not historical fact may
constitute forward-looking statements within the meaning of the Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such statements are based on assumptions and expectations that
may not be realized and are inherently subject to risks, uncertainties and
other factors, many of which cannot be predicted with accuracy and some of
which might not even be anticipated. Although we believe the expectations
reflected in these forward-looking statements are based on reasonable
assumptions, future events and actual results, performance, transactions or
achievements, financial and otherwise, may differ materially from the
results, performance, transactions or achievements expressed or implied by
the forward-looking statements. Risk, uncertainties and other factors that
might cause such differences, some of which could be material, include but
are not limited to: whether the transactions described in this press
release will close and become effective, national and local economic,
business, real estate and other market conditions; the competitive
environment in which the Company operates; the execution of the Company's
business plan; financing risks; increases in interest rates and operating
costs; the Company's ability to maintain its status as a REIT for federal
income tax purposes; acquisition and development risks; changes in real
estate and zoning laws or regulations; risks related to natural disasters;
potential environmental and other liabilities; material weaknesses in our
internal financial reporting; and other factors affecting the real estate
industry generally or the self-storage industry in particular. The Company
refers you to the documents filed by the Company from time to time with the
Securities and Exchange Commission, specifically the section titled
"Business - Risk Factors" in the Company's Annual Report on Form 10-K,
which discuss these and other risks and factors that could cause the
Company's actual results to differ materially from any forward-looking

(in thousands, except share data)

June 30, December 31,
2007 2006
------------ ------------
Storage facilities $ 1,784,051 $ 1,771,864
Accumulated depreciation (235,193) (205,049)
------------ ------------
1,548,858 1,566,815
Cash and cash equivalents 3,443 19,716
Restricted cash 16,865 14,126
Loan procurement costs - net of amortization 6,673 7,575
Other assets 10,361 6,475
Due from related parties 1,358 632
------------ ------------
Total assets $ 1,587,558 $ 1,615,339
============ ============

Revolving credit facility $ 107,500 $ 90,500
Unsecured term loan 200,000 200,000
Mortgage loans and notes payable 583,427 588,930
Accounts payable and accrued expenses 21,868 22,590
Due to related parties 119 336
Distributions payable 18,196 18,197
Deferred revenue 10,437 9,740
Security deposits 608 655
------------ ------------
Total liabilities 942,155 930,948

Minority interests 52,921 56,898

Commitments and contingencies

Shareholders' Equity
Common shares $.01 par value, 200,000,000
shares authorized, 57,495,530 and
57,335,490 shares issued and outstanding
at June 30, 2007 and December 31, 2006,
respectively 574 573
Additional paid-in capital 796,077 794,632
Accumulated deficit (204,169) (167,712)
------------ ------------
Total shareholders' equity 592,482 627,493
------------ ------------
Total liabilities and shareholders' equity $ 1,587,558 $ 1,615,339
============ ============

(in thousands, except per share data)

Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2007 2006 2007 2006
(as (as
restated restated
and and
reclassified) reclassified)
--------- ----------- --------- -----------
Rental income $ 51,933 $ 49,268 $ 102,512 $ 93,885
Other property related
income 4,433 3,597 8,693 6,678
Other - related party 122 98 239 213
--------- ----------- --------- -----------
Total revenues 56,488 52,963 111,444 100,776

Property operating
expenses 22,391 20,875 45,197 39,637
Property operating
expenses - related party 118 12 219 32
Depreciation 16,722 15,641 33,407 30,221
General and administrative 5,752 4,132 11,745 9,521
General and administrative
- related party 14 273 37 450
--------- ----------- --------- -----------
Total operating
expenses 44,997 40,933 90,605 79,861
OPERATING INCOME 11,491 12,030 20,839 20,915
Interest expense on
loans (12,955) (10,888) (25,732) (20,797)
Loan procurement
amortization expense (445) (512) (889) (973)
Write-off of loan
procurement cost due
to early extinguishment
of debt - - - (1,273)
Interest income 91 159 204 1,042
Other - (102) (6) (60)
--------- ----------- --------- -----------
Total other expense (13,309) (11,343) (26,423) (22,061)
MINORITY INTERESTS (1,818) 687 (5,584) (1,146)
MINORITY INTERESTS 149 (57) 458 96
--------- ----------- --------- -----------
CONTINUING OPERATIONS (1,669) 630 (5,126) (1,050)
Income from operations 17 103 118 162
Gain on disposition of
discontinued operations 2,122 - 2,122 -
Minority interest
attributable to
operations (175) (9) (184) (13)
--------- ----------- --------- -----------
Income from
operations 1,964 94 2,056 149
--------- ----------- --------- -----------
NET INCOME (LOSS) $ 295 $ 724 $ (3,070) $ (901)
========= =========== ========= ===========

Basic and diluted earnings
(loss) per share from
continuing operations $ (0.03) $ 0.01 $ (0.09) $ (0.02)
Basic and diluted earnings
(loss) per share from
discontinued operations $ 0.03 $ 0.00 $ 0.04 $ 0.00
--------- ----------- --------- -----------
Basic and diluted earnings
(loss) per share $ - $ 0.01 $ (0.05) $ (0.02)
========= =========== ========= ===========

Weighted-average basic
shares outstanding 57,438 57,325 57,429 57,286
Weighted-average diluted
shares outstanding 57,473 57,399 57,429 57,286
========= =========== ========= ===========

Distributions declared per
common share and unit $ 0.29 $ 0.29 $ 0.58 $ 0.58
========= =========== ========= ===========

Same-Store Facility Results (331 facilities)
(unaudited and in thousands, except per square foot data)

Three months ended
June 30, June 30, Percent
2007 2006 Change
--------- --------- ---------
Gross revenues 48,247 47,710 (1) 1.1%
Rent and fee write-offs (1,574) (1,000) (1)
--------- ---------
46,673 46,710
Property taxes 5,555 5,527 (2) 0.5%
Personnel expense 4,755 5,003 (2) -4.9%
Advertising 869 1,456 -40.3%
Repair and maintenance 685 231 196.5%
Utilities 1,458 1,569 -7.1%
Property insurance 778 684 13.7%
Other expenses 3,300 3,405 -3.1%
--------- --------- ---------
Total operating expenses 17,400 17,875 -2.7%
Net operating income (3) 29,273 28,835 1.5%
Gross margin 62.7% 61.7%
Period Average Occupancy (4) 81.4% 82.1%
Period End Occupancy (5) 82.9% 83.1%
Total Rentable square feet 20,158 20,158
Realized annual rent
per occupied square foot (6) $ 10.51 $ 10.22
In place annual rent per
square foot (7) $ 12.22 $ 11.71

Reconciliation of Same-Store Net Operating Income to Operating Income

Same-store net operating income (3) $ 29,273 $ 28,835
Non same-store net operating income (3) 4,706 3,241
Depreciation (16,722) (15,641)
General and administrative expense (5,766) (4,405)
--------- ---------
Operating Income $ 11,491 $ 12,030

(1) In 2006, the Company's prior property management system did not capture
rent and fee writeoffs separate from rental income. As the information
is unavailable to present a meaningful comparison of same-store
results, managements best estimate of writeoffs during the 2006 period
is $1,000. This adjustment to present revenues on a gross basis and net
of writeoffs has no impact on 2006 net operating income, but management
believes presents the most relevant comparison of our same-store
results. The company began to capture specific amounts related to rent
and fee writeoffs effective with its conversion to a new property
management system at the beginning of the fourth quarter of 2006.
Accordingly, management anticipates making a similar estimate of prior
year writeoffs in its presentation of same-store results in the third
quarter of 2007.

(2) Adjusted for comparison purposes to reflect $195 thousand of
additional property taxes and $73 thousand of additional workers
compensation costs. These amounts, related to the second quarter of
2006, were expenses in the fourth quarter of 2006, as management
reevaluated its method of estimating these expenses. Accordingly,
management anticipates making a similar adjustment in its presentation
of same-store results in the third quarter of 2007.

(3) Net operating income (NOI) is a non-GAAP (generally accepted
accounting principles) financial measure that excludes the impact of
depreciation and general & administrative expense.

(4) Square feet occupancy represents the weighted average occupancy for
the period.

(5) Represents occupancy at June 30 of the respective year.

(6) Realized annual rent per occupied square foot is computed by dividing
rental income by the weighted average occupied square feet for the

(7) In place annual rent per square foot represents annualized
contractual rents per available square foot for the period.

Non-GAAP Financial Measures - Computation of Funds From Operations (FFO)
(unaudited and in thousands, except per share data)

Three months ended
June 30, June 30,
2007 2006
(as restated
------------- -------------

Net income $ 295 $ 724

Add (deduct):
Real estate depreciation 16,527 15,424
Gain on sale of real estate (2,122) -
Minority interests from continuting
operations (149) 57
Minority interests from discontinued
operations 175 9

------------- -------------
FFO $ 14,726 $ 16,214
============= =============

Income (loss) per share - fully diluted $ - $ 0.01
FFO per share and unit - fully diluted $ 0.24 $ 0.26

Weighted-average diluted shares outstanding 57,473 57,399
Weighted-average diluted shares and units
outstanding 62,659 62,598

Dividend per common share and unit $ 0.29 $ 0.29
Payout ratio of FFO (Dividend per share
divided by FFO per share and unit) 121% 112%

U-Store-It Trust
Christopher P. Marr
Chief Financial Officer
(610) 293-5700

Copyright 2007 Market Wire, Incorporated

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