Life is really getting tougher for the junk storage company of New York Life Storage Inc. Although it is a $ 38 billion business, but currently, they are facing a tough situation. The shares have reportedly, come down by 1.1 %. The chairman and the managing committee have decided to take some serious steps against the continuous lack luster performance for the last few months. They have even come up with an ultimatum stating that serious steps would be taken if the performance is not improved.
The co- founders have in fact, announced their plans to retire as well. This means that the company of Life Storage Inc. is now available for a takeover by the other counterparts like Extra Space Storage Inc.
Reports state that Litt has a 1.8 % stake in the company and according to him, the company is not only underperforming but it is also an undervalued company. The total revenue earned by the companies dealing with junk storage in the United States of America currently is $ 83 billion.
These companies are just coming out of the recession and are trying to recover from the dry period. The customers are also gradually beginning to invest in the service. So, this has made even more difficult for the junk storage company to raise their rates in order to increase the profit. So, this means that they are in a kind of dilemma. On one hand, they have to increase the rates so as to improve their profit percentage; on the other hand, they must also keep the rates at an attractive state so as to attract the clientele.
This is indeed a very tough time for the company. A wait of another few months is crucial for the company. To ride this tough period, Hamilton and Pettinella are joining the board. Both are known to have turned the tables of success for similar companies previously. Hamilton was in the board of FelCor Lodging Trust Inc. while Pettinella was chief of Home Properties when it was acquired in 2015.