SEC Filing Summary: U-Store-It Trust (8-K)
Business Context and Reporting Period
This Form 8-K, dated December 2, 2008, is a current report filed by U-Store-It Trust (the "Company"). The filing addresses the re-issuance of historical financial statements for the years ended December 31, 2007, 2006, and 2005, as well as the quarters ended March 31, 2008, and June 30, 2008. The update is driven by compliance with Statement of Financial Accounting Standards No. 144 (SFAS 144) regarding the accounting for the impairment or disposal of long-lived assets.
Key Financial Metrics
The filing does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it details a reclassification of financial data:
- Discontinued Operations: During the nine months ended September 30, 2008, the Company sold 16 storage facilities and classified an additional five facilities as held for sale.
- Accounting Impact: Revenue and expenses related to these 21 facilities are now reported as discontinued operations in compliance with SFAS 144.
- Net Effect: The filing explicitly states that this reclassification has no effect on the Company's reported net income, statement of cash flows, or financial position.
Material Changes Versus Prior Period
The primary material change is the retrospective reclassification of specific storage facilities as discontinued operations in previously filed reports (2007 Form 10-K, Q1 2008 Form 10-Q, and Q2 2008 Form 10-Q). This update reflects the sale of 16 facilities and the "held for sale" status of 5 facilities as of September 30, 2008. No other items or disclosures in the referenced historical reports have been updated or amended.
Guidance, Outlook, and Risks
The filing contains standard forward-looking statements subject to risks and uncertainties. Management does not provide specific financial guidance or outlook in this document. Identified risks include:
- National and local economic, business, and real estate market conditions.
- Financing risks, including overleverage, default on mortgage loans, and potential inability to refinance.
- Increases in interest rates and operating costs.
- Counterparty non-performance related to derivative financial instruments.
- Ability to maintain Real Estate Investment Trust (REIT) status.
- Acquisition and development risks, and changes in zoning laws.
- Natural disasters and environmental liabilities.
Investor Verification Checklist
- Verify the specific financial impact of the 16 sold facilities and 5 held-for-sale facilities by reviewing the updated exhibits (99.1, 99.2, 99.3) attached to this filing.
- Confirm that the reclassification to discontinued operations has not altered the reported net income or cash flow figures in the original 2007 10-K and 2008 10-Q filings.
- Review the Company's current debt levels and refinancing capabilities given the highlighted risk of overleverage and interest rate increases.
- Assess the Company's ongoing ability to maintain its REIT status for federal income tax purposes.