Oct 30 (Reuters) - Real estate investment trust Public

Storage ( PSA ) on Wednesday reported a drop in quarterly funds

from operations (FFO) and profit due to higher expenses and

foreign currency losses.

Core FFO for the third quarter came in at $4.20 per share,

compared to $4.33 per share, a year ago.

The company's net profit fell to $380.7 million, or $2.16

per share, for the quarter ended Sept. 30, from $563.2 million,

or $3.20 per share, a year earlier.

Higher operating costs due to inflationary pressures and

falling occupancy in storage units weighed on the company's

profits.

However, CEO Joe Russell noted that performance is

stabilizing across its portfolio.

Shares of the company, which leases out storage spaces for

both personal and business use on a monthly basis, were down

roughly 2% in extended trading.

The California-based company also maintained its annual

core FFO target in the range of $16.50 and $16.85 per share.