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| 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%.