Summary
Public Storage (PSA) reported strong performance in its 2013 10-K, driven by its core domestic self-storage business, which constitutes 93% of its revenues. The company demonstrated robust growth in its same-store facilities, with revenue increasing by 5.3% year-over-year, attributed to a combination of higher occupancy rates and increased rental income per occupied square foot. This growth was achieved through strategic pricing adjustments and a reduction in promotional discounts, reflecting a healthy demand environment. The company also made significant strategic investments during the year, acquiring 121 new facilities for approximately $1.2 billion, a substantial increase from previous years. This aggressive acquisition strategy, coupled with ongoing development projects, positions PSA for continued expansion. Despite increased capital commitments for 2014, the company has diverse financing options, including retained cash flow, preferred and common securities, and debt, ensuring ample liquidity. Furthermore, its strong brand recognition, economies of scale, and centralized operating systems provide a competitive advantage in the fragmented self-storage market.
Financial Highlights
35 data points| Revenue | $1.96B |
| Cost of Revenue | $559.76M |
| Gross Profit | $1.41B |
| Operating Expenses | $1.01B |
| Operating Income | $951.10M |
| Interest Expense | $6.44M |
| Net Income | $1.06B |
| EPS (Basic) | $4.92 |
| EPS (Diluted) | $4.89 |
| Shares Outstanding (Basic) | 171.64M |
| Shares Outstanding (Diluted) | 172.69M |
Key Highlights
- 12013 saw a significant increase in acquisitions, with 121 facilities purchased for approximately $1.2 billion, reflecting the company's active growth strategy.
- 2Same-store rental income grew by 5.3% in 2013, driven by a 1.5% increase in average occupancy and a 3.8% increase in realized rent per occupied square foot.
- 3The company maintained a strong focus on operational efficiency, with cost of operations for same-store facilities decreasing by 1.3% in 2013.
- 4Public Storage continues to leverage its strong brand recognition and economies of scale, with approximately 71% of same-store revenues generated in the 20 most populated MSAs.
- 5Development projects are underway, with 1.8 million net rentable square feet planned, at an estimated cost of $196 million.
- 6Financing for growth remains robust, with substantial available borrowing capacity and strategic options for capital raising, including preferred securities and debt.
- 7The company reaffirmed its REIT status and commitment to distributing taxable income, with dividends per common share increasing to $5.15 in 2013 from $4.40 in 2012.