10-KPeriod: FY2011

Public Storage Annual Report, Year Ended Dec 31, 2011

Filed February 27, 2012For Securities:PSAPSA-PRPSA-PFPSA-PGPSA-PHPSA-PIPSA-PJPSA-PMPSA-PNPSA-POPSA-PPPSA-PQPSA-PSPSA-PKPSA-PL

Summary

Public Storage's 2011 10-K report highlights its position as the largest owner and operator of self-storage facilities in the U.S., with a significant presence across 38 states. The company also maintains interests in European self-storage through Shurgard Europe and commercial real estate via PS Business Parks, Inc. (PSB). Financially, Public Storage demonstrated growth in its core self-storage operations, with "Same Store" facilities showing a 4.6% revenue increase year-over-year, driven by improved occupancy and rental rates. The company's strategy centers on improving existing facility performance, strategic acquisitions, and disciplined development. Despite economic uncertainties, Public Storage maintained strong financial footing, with a focus on leveraging internally generated cash flows and preferred securities for growth while managing debt levels prudently. The company reaffirmed its commitment to its REIT status and consistent shareholder distributions.

Financial Highlights

31 data points
Beta

Revenue

$1.74B

Net Income

$823.84M

47.5% Net Margin

EPS (Diluted)

$3.29

Total Assets

$8.93B

Cash & Equivalents

$139.01M

Free Cash Flow

$1.20B

Financial Statements
Beta
Revenue$1.74B
Operating Income$762.81M
Interest Expense$24.22M
Net Income$823.84M
EPS (Basic)$3.31
EPS (Diluted)$3.29
Shares Outstanding (Basic)169.66M
Shares Outstanding (Diluted)170.75M

Key Highlights

  • 1Public Storage is the largest owner and operator of self-storage facilities in the U.S., with 2,058 facilities and 131 million net rentable square feet as of December 31, 2011.
  • 2The company generated $1.72 billion in revenue in 2011, with self-storage operations contributing 92% of this total.
  • 3"Same Store" U.S. self-storage facilities saw revenue growth of 4.6% in 2011, driven by increased occupancy and rental rates.
  • 4Public Storage maintains a diversified portfolio with a 49% interest in Shurgard Europe and a 42% interest in PS Business Parks, Inc. (PSB).
  • 5The company's growth strategy focuses on improving existing operations, acquiring new facilities, and strategic development, though development activities were curtailed due to the operating environment.
  • 6Public Storage ended 2011 with $139 million in cash and a $300 million revolving credit facility, indicating a strong liquidity position.
  • 7The company successfully managed its capital structure, issuing significant amounts of preferred securities to fund growth and redemptions, while maintaining a low debt ratio of approximately 3%.

Frequently Asked Questions

Public Storage's primary business is the acquisition, development, ownership, and operation of self-storage facilities. As of December 31, 2011, it holds the position of the largest owner and operator of self-storage facilities in the United States, operating 2,058 facilities with 131 million net rentable square feet.

The core self-storage business performed well in 2011. "Same Store" U.S. facilities reported a 4.6% increase in revenue, driven by a 1.4% rise in occupancy and a 2.8% increase in realized rent per occupied square foot. This indicates a recovery and growth trend following the economic downturn.

Public Storage's growth strategies include improving the operating performance of existing facilities, acquiring new facilities, developing or redeveloping real estate, participating in the growth of its commercial real estate investments (PSB), and participating in the growth of its European self-storage operations (Shurgard Europe).

The company demonstrated a strong financial position with $139 million in cash and a $300 million credit facility at the end of 2011. Its debt ratio was very low at approximately 3%. Public Storage primarily funds growth through internally generated cash flows and the issuance of preferred securities, maintaining financial flexibility while managing debt prudently.