The company anticipates that charges related to these changes will total approximately $3.2 million and will be deducted from fourth quarter 2001 earnings. Shurgard Storage To Go is the Company's solution for customers who prefer the convenience of containerized storage delivered to their door.
Shurgard says it is discontinuing Storage To Go operations at its Atlanta and Orange County locations. The company will continue to operate Storage To Go in three markets: Seattle, Portland, and Oakland.
The anticipated fourth quarter charge will reduce fourth quarter FFO approximately $.10 per share. The closure of the warehouses and the fourth quarter adjustment are not expected to adversely impact the company's outlook for 2002. The company will release fourth quarter earnings after the market closes on Feb. 7.
Charles K. Barbo, chairman and chief executive officer of Shurgard, said of the decision, "We think that a very large investment of time and money is still required before the containerized storage industry can develop to a point where it will represent a substantial business opportunity for our shareholders. Today, that investment is not appropriate. Our core business represents a far more compelling investment."
Barbo adds the company's decision to continue to provide Storage To Go in three markets is based on several factors. He says it keeps the company directly involved in an emerging business opportunity that may have greater market appeal and strategic potential in the future and continues to provide brand exposure for Shurgard at little or no incremental cost.
In early afternoon, Shurgard was trading at $32.26, down slightly from its 52-week high of $33.10, and up from its low of $24.50.
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