Summary
Public Storage (PSA) demonstrated strong operational performance in 2015, reporting increased net income and Funds From Operations (FFO) per diluted share. The company, the largest owner and operator of self-storage facilities in the U.S., saw revenue growth driven by higher rental rates across its same-store portfolio, which represents a significant portion of its U.S. operations. Expansion through both acquisitions and development continues to be a key strategy, with substantial investments made in new facilities and a robust development pipeline. The company's financial strategy focuses on accessing capital through a diversified mix of equity and debt, while maintaining a conservative financial profile. PSA successfully issued preferred shares in early 2016 and has begun utilizing unsecured debt as a capital source. Investments in unconsolidated entities like PS Business Parks (PSB) and Shurgard Europe provide diversification. Overall, PSA appears well-positioned, leveraging its strong brand, economies of scale, and strategic market presence to drive growth and shareholder returns.
Financial Highlights
34 data points| Revenue | $2.38B |
| Cost of Revenue | $635.50M |
| Gross Profit | $1.75B |
| Operating Expenses | $1.15B |
| Operating Income | $1.23B |
| Interest Expense | $610K |
| Net Income | $1.31B |
| EPS (Basic) | $6.10 |
| EPS (Diluted) | $6.07 |
| Shares Outstanding (Basic) | 172.70M |
| Shares Outstanding (Diluted) | 173.51M |
Key Highlights
- 1Public Storage (PSA) is the largest owner and operator of self-storage facilities in the U.S., operating 2,277 facilities across 38 states.
- 2The company reported a significant increase in net income allocable to common shareholders and FFO per diluted share for 2015 compared to 2014.
- 3Revenue growth was primarily driven by a 6.5% increase in rental income for same-store facilities due to higher realized annual rent per occupied square foot.
- 4PSA continues its growth strategy through both acquisitions (17 facilities in 2015) and development, with a $486 million development pipeline for new space.
- 5The company has a diversified capital strategy, utilizing retained cash flow, preferred securities, and increasingly, unsecured debt.
- 6Investments in unconsolidated real estate entities, PS Business Parks (42% interest) and Shurgard Europe (49% interest), provide diversification benefits.
- 7PSA maintained a strong balance sheet with a low Debt Ratio of approximately 2% as of December 31, 2015, and strong credit ratings from Standard & Poor's ('A') and Moody's ('A2').