U-Store-It Posts 1Q

We've looked over U-Store-It's YSI first-quarter operating metrics, and plan no immediate change to our fair value estimate of this self-storage owner. A low job turnover rate is keeping the demand for U-Store-It's facilities low. On a year-over-year basis, same-store net operating income dropped by 3.6% due to a 3.2% decline in revenue. Occupancy also tanked, falling 160 basis points from the first quarter of last year. Unemployment is expected to remain elevated in the near-term, so U-Store-It faces a challenging 2010 operating environment.