Summary
Public Storage (PSA) operates as the largest owner and operator of self-storage facilities in the United States, with a significant presence also in Western Europe through its investment in Shurgard Europe. The company's primary business is the acquisition, development, ownership, and operation of self-storage facilities, complemented by ancillary operations such as tenant reinsurance and merchandise sales. PSA also holds a substantial equity interest in PS Business Parks, Inc. (PSB), diversifying its real estate holdings into commercial properties. For the year ended December 31, 2016, PSA demonstrated strong operational performance, with net income allocable to common shareholders increasing to $1.18 billion, or $6.81 per diluted share. Funds From Operations (FFO) also saw a healthy increase to $9.70 per diluted share. The company's growth strategy focuses on improving existing facilities, acquiring new ones, and developing new space. PSA maintains a strong financial position characterized by low leverage and high credit ratings, enabling it to access capital markets effectively through a mix of retained cash flow, preferred and long-term debt, and equity issuances.
Financial Highlights
35 data points| Revenue | $2.56B |
| Cost of Revenue | $669.08M |
| Gross Profit | $1.89B |
| Operating Expenses | $1.19B |
| Operating Income | $1.37B |
| Interest Expense | $4.21M |
| Net Income | $1.45B |
| EPS (Basic) | $6.84 |
| EPS (Diluted) | $6.81 |
| Shares Outstanding (Basic) | 173.09M |
| Shares Outstanding (Diluted) | 173.88M |
Key Highlights
- 1Public Storage is the largest owner and operator of self-storage facilities in the U.S., with 2,336 consolidated facilities totaling 154 million net rentable square feet.
- 2The company also has a significant international presence through a 49% equity interest in Shurgard Europe, which operates 218 self-storage facilities in seven Western European countries.
- 3In addition to self-storage, PSA holds a 42% equity interest in PS Business Parks, Inc. (PSB), which owns and operates 28.1 million square feet of commercial properties.
- 4For the fiscal year ended December 31, 2016, PSA reported net income allocable to common shareholders of $1.18 billion, or $6.81 per diluted share.
- 5Funds From Operations (FFO) per diluted share increased by 10.4% to $9.70 in 2016, indicating strong operational performance.
- 6The company's growth is driven by improving existing facilities, acquiring new properties, and developing new self-storage space, with a development pipeline of approximately 5.3 million net rentable square feet at a cost of $660.2 million.
- 7PSA maintains a strong balance sheet with low leverage and high credit ratings (A by S&P, A2 by Moody's), providing robust access to capital.