UPDATE 1-Public Storage Q3 FFO beats estimates

* Q3 FFO/shr $1.44 beats est $1.08

* Foreign exchange gain helps

Nov 5 (Reuters) - Real estate investment trust Public Storage (PSA.N) posted quarterly funds from operations that beat market expectations, largely driven by foreign exchange gains.

Public Storage, the largest publicly traded storage REIT in the U.S., posted third-quarter consolidated FFO of $307.5 million, or $1.44 a share, compared with $249 million, or $1.08 a share, a year earlier.

The current quarter included a foreign exchange gain of $21.4 million, compared with a loss of $53.2 million last year.

Analysts on average, were expecting the Glendale, California-based company to post FFO of $1.25 a share, according to Thomson Reuters I/B/E/S.

FFO is a key performance measure for real estate investment trusts, or REITs, because it excludes the profit-reducing effect of depreciation.

Average occupancy fell to 89.6 percent from 90.5 percent a year earlier.

Same-store revenue and net operating income fell 4.6 percent and 6 percent to $352.1 million and $238.8 million respectively.

Shares of Public Storage closed at $76.69 Thursday on the New York Stock Exchange.

For a Reuters preview on the company's results, please click on [nBNG416449]. (Reporting by Biswarup Gooptu in Bangalore; Editing by Pradeep Kurup)