Storage facility landlord Public Storage said that despite a revenue decline, it saw higher second quarter net income. Funds from operations increased due to lower expenses and foreign currency exchange gains.

After Thursday’s market close, the Glendale real estate investment trust with storage facilities in 38 states reported net income of more than $199 million (80 cents per share), compared with nearly $134 million (40 cents) a year earlier. Revenue fell 2.7 percent to $407 million.

Funds from operations or FFO, which includes such factors as amortization and depreciation and is considered a key measure of a REIT’s financial strength, rose 19 percent to $299 million ($1.40).

Analysts surveyed by Thomson Reuters on average expected FFO of $1.21 per share and revenue of $394 million.

Results included a $33.2 million foreign exchange gain, a $25.4 million reduction in general and administrative expenses related to its divesting of an interest in Shurgard Europe, and an $11 million reduction in depreciation and amortization.

Shares were up $2.32, or 3 percent, in midday trading on the New York Stock Exchange.