Summary
Public Storage (PSA) reported its third-quarter and nine-month results for the period ending September 28, 2010. While the overall financial results for the nine-month period showed a decrease in net income compared to the prior year, primarily due to foreign currency fluctuations and adjustments related to redeemed securities, the company demonstrated a return to revenue growth in its core self-storage business. For the three months ended September 30, 2010, net income increased year-over-year, driven by improved operations in Same Store Facilities and a significant foreign currency exchange gain. The company has also been actively pursuing strategic acquisitions, having acquired 38 self-storage facilities in the first nine months of 2010. Management expressed optimism about potential future acquisition opportunities, noting an increase in facilities coming to market. The company's liquidity remains strong, with substantial cash reserves and access to a credit line, positioning it to fund operations and strategic initiatives.
Financial Highlights
31 data points| Revenue | $422.30M |
| Interest Expense | $7.84M |
| Net Income | $239.35M |
| EPS (Basic) | $1.08 |
| EPS (Diluted) | $1.07 |
| Shares Outstanding (Basic) | 169.01M |
| Shares Outstanding (Diluted) | 169.98M |
Key Highlights
- 1Same Store Facilities revenue showed a modest increase of 1.2% for the three months ended September 30, 2010, after experiencing year-over-year declines throughout 2009, indicating a positive turn in operational performance.
- 2The company acquired 38 self-storage facilities for $225.4 million during the first nine months of 2010, primarily in Southern California, and is actively seeking further acquisition opportunities.
- 3Net income for the three months ended September 30, 2010, increased to $182.2 million ($1.07 per diluted share) from $173.5 million ($1.03 per diluted share) in the prior year, boosted by operational improvements and a significant foreign currency exchange gain.
- 4Despite a decrease in net income for the nine months ended September 30, 2010, compared to the prior year ($277.8 million vs. $468.5 million), this was largely attributed to non-operational factors like foreign currency translation losses and specific accounting adjustments related to security redemptions.
- 5Public Storage maintains a strong liquidity position with $513.5 million in cash and $102.1 million in short-term investments at September 30, 2010, alongside a $300 million credit line.
- 6The company successfully raised $121.2 million in net proceeds from the issuance of Series P Cumulative Preferred Shares in October 2010, demonstrating access to capital markets.
- 7Operating expenses for Same Store Facilities increased by 3.2% for the quarter and 1.5% for the nine months, driven mainly by higher property taxes, payroll, and repairs and maintenance, though media advertising costs decreased.