Summary
Public Storage (PSA) reported its financial results for the quarter and six months ended June 30, 2012. The company demonstrated revenue growth in its core self-storage operations, driven by increases in rental rates and occupancy. "Same store" facilities, which provide a stable performance comparison, showed a 5.1% revenue increase for the quarter and 4.9% for the six months, attributed to higher realized rents per occupied square foot. The company also saw growth in its "non-same store" facilities, reflecting successful integration of recent acquisitions. However, net income allocable to common shareholders saw a slight decrease for the quarter and a more significant decrease for the six-month period compared to the prior year. This was largely due to substantial foreign currency exchange losses related to its Euro-denominated loan receivable from Shurgard Europe, which negatively impacted earnings. Despite this, Public Storage maintained a strong liquidity position with substantial cash reserves and an undrawn credit facility, allowing it to continue its strategy of selective acquisitions and capital allocation.
Financial Highlights
31 data points| Revenue | $455.79M |
| Operating Income | $212.02M |
| Interest Expense | $5.07M |
| Net Income | $198.14M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 170.50M |
| Shares Outstanding (Diluted) | 171.56M |
Key Highlights
- 1Revenue from "Same Store Facilities" increased by 5.1% and 4.9% for the three and six months ended June 30, 2012, respectively, driven by higher rental rates and occupancy.
- 2Net income allocable to Public Storage shareholders decreased year-over-year for both the quarter and six-month period, primarily due to significant foreign currency exchange losses on the Shurgard Europe loan.
- 3Funds From Operations (FFO) per diluted common share was $1.38 for the quarter and $2.73 for the six months, a slight decrease from the prior year, also impacted by foreign currency fluctuations and preferred stock redemptions.
- 4The company acquired ten operating self-storage facilities for $88.1 million during the first six months of 2012.
- 5Public Storage maintained a strong balance sheet with total assets of $9.18 billion and total equity of $8.17 billion as of June 30, 2012.
- 6The company has a substantial cash position of $438.5 million as of June 30, 2012, providing ample liquidity.
- 7Several series of preferred shares were redeemed or called for redemption, indicating active capital management, with $1.2 billion in preferred securities issued during the six months ended June 30, 2012.