Sovran Cuts Fiscal 2009 Outlook Due To Offering

BUFFALO, N.Y. (AP) — Sovran Self Storage Inc., a real estate investment trust, on Monday lowered its fiscal 2009 forecast, citing a one-time charge of 34 cents per share related to a recent public offering, and plans to repay debt.

The company forecast adjusted earnings of between 26 cents and 28 cents per share for its fiscal fourth quarter and between $2.33 and $2.37 for the full year. It previously forecast adjusted earnings of between $2.70 and $2.74 per share.

Analysts surveyed by Thomson Reuters expect the company to post a profit of 30 cents per share for the three months ended in September and $1.17 per share for 2009. Those estimates typically exclude one-time items.

On Sept. 29, Sovran announced plans to sell 3.5 million shares in a public offering. It also granted the underwriters an option to buy 525,000 additional shares to cover over-allotments. The underwriters exercised that option Oct. 2.

On Monday, the company closed the offering, which totaled 4 million shares and resulted in net proceeds of about $114.4 million. Proceeds will be used to repay debt and for general corporate purposes.

Shares of Sovran edged up 25 cents to close at $29.90.