Summary
Public Storage (PSA) reported its first quarter 2009 results, reflecting a challenging economic environment that impacted rental income and occupancy. Despite a significant year-over-year decrease in net income, largely due to a substantial gain from the Shurgard Europe divestiture in the prior year's first quarter, the company demonstrated resilience. Management highlighted efforts to optimize costs and manage capital effectively, including opportunistic debt repurchases. The company maintained its focus on operational efficiency within its core self-storage business, while navigating foreign currency headwinds impacting its European investments.
Financial Highlights
16 data pointsBeta
Financial Statements
Beta
| Revenue | $404.24M |
| Interest Expense | $8.13M |
| Net Income | $217.00M |
| EPS (Basic) | $0.95 |
| Shares Outstanding (Basic) | 168.31M |
| Shares Outstanding (Diluted) | 168.47M |
Key Highlights
- 1Net income for the quarter decreased to $153.4 million from $519.9 million in the prior year, primarily impacted by the absence of a significant gain on the Shurgard Europe disposition in the prior year's quarter.
- 2Rental income from self-storage operations saw a slight increase of 0.5% year-over-year, reaching $371.6 million, driven by growth in 'Other Facilities' which offset a marginal decline in 'Same Store Facilities'.
- 3The company repurchased $110.2 million face amount of its senior unsecured notes in February 2009, recognizing a gain on early debt retirement of $4.1 million.
- 4Foreign currency exchange losses of $34.7 million were recorded, primarily due to the Euro-denominated loan receivable from Shurgard Europe, contrasting with a gain of $41.0 million in the prior year's quarter.
- 5Cash and cash equivalents stood at $493.4 million at the end of the quarter, providing ample liquidity alongside a $300 million revolving credit facility.
- 6Management noted that demand for self-storage space has softened due to general economic conditions, impacting occupancy and rental rates, with Florida being a particularly weak market.
- 7The company continued to repurchase preferred securities and preferred partnership units at a discount, resulting in significant benefits to common shareholders.