Summary
Public Storage (PSA) reported its third-quarter 2008 financial results, showing a decrease in net income to $137.3 million from $152.8 million in the prior year's quarter. This decline was primarily driven by a significant foreign currency exchange loss of $53.2 million in the current quarter, compared to a $30.4 million gain in the same period last year, impacting the overall profitability. Despite this, the company saw a substantial improvement in net income for the first nine months of the year, reaching $783.5 million compared to $289.6 million in 2007. This improvement was largely due to a significant gain of $341.9 million recognized from the disposition of a 51% interest in Shurgard Europe. Operationally, PSA's domestic self-storage segment demonstrated resilience, with same-store net operating income (before depreciation and amortization) increasing by 3.8% for the quarter and 3.4% for the nine months, driven by higher rental rates. However, total rental income declined by 8.1% for the quarter due to the deconsolidation of Shurgard Europe. The company ended the quarter with a strong liquidity position, holding $789.3 million in cash and cash equivalents, largely from the Shurgard Europe transaction.
Financial Highlights
17 data points| Revenue | $431.17M |
| Interest Expense | $9.10M |
| Net Income | $137.33M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $-0.01 |
| Shares Outstanding (Basic) | 168.13M |
| Shares Outstanding (Diluted) | 168.56M |
Key Highlights
- 1Net income for Q3 2008 decreased to $137.3 million from $152.8 million in Q3 2007, primarily due to a $53.2 million foreign exchange loss compared to a $30.4 million gain in the prior year.
- 2First nine months net income surged to $783.5 million, up from $289.6 million in 2007, significantly boosted by a $341.9 million gain from the sale of a 51% stake in Shurgard Europe.
- 3Domestic same-store net operating income (before depreciation and amortization) increased by 3.8% for the quarter and 3.4% for the nine months, indicating operational strength in the core business.
- 4Total rental income for the quarter decreased by 8.1% to $393.3 million, largely impacted by the deconsolidation of Shurgard Europe.
- 5The company's liquidity position is strong, with cash and cash equivalents at $789.3 million as of September 30, 2008, largely resulting from the Shurgard Europe divestiture.
- 6Depreciation and amortization expense decreased significantly year-over-year, particularly due to reduced amortization of domestic intangible assets related to the Shurgard Merger.