Summary
Public Storage (PSA) reported strong performance for the first quarter of 2016, with net income attributable to common shareholders increasing by 13.5% to $241.3 million, or $1.39 per diluted share, compared to $212.6 million, or $1.23 per diluted share, in the prior year period. This growth was primarily driven by a significant 12.3% increase in total net operating income from self-storage operations, reaching $414.7 million. The company's "Same Store Facilities" demonstrated robust growth, with revenues up 6.5% and net operating income increasing by 10.4%. This was fueled by a 6.1% rise in realized annual rental income per occupied square foot, achieved through annual rent increases to existing tenants and higher move-in rates. The "Non Same Store Facilities" also showed substantial improvement, with net operating income surging 29.0%, reflecting the ongoing stabilization of recently acquired and developed properties. Looking ahead, Public Storage is actively pursuing growth through both acquisitions and development. The company acquired 12 self-storage facilities for $98.1 million in the quarter and has a development pipeline poised to add 4.6 million net rentable square feet. Despite the positive operational performance, management highlighted potential earnings dilution in the short term due to ongoing development activities, a key factor for investors to consider.
Financial Highlights
35 data points| Revenue | $611.79M |
| Cost of Revenue | $173.29M |
| Gross Profit | $438.50M |
| Operating Expenses | $301.46M |
| Operating Income | $310.32M |
| Interest Expense | $711K |
| Net Income | $315.87M |
| EPS (Basic) | $1.40 |
| EPS (Diluted) | $1.39 |
| Shares Outstanding (Basic) | 172.98M |
| Shares Outstanding (Diluted) | 173.85M |
Key Highlights
- 1Net income increased by 13.5% to $241.3 million ($1.39 per diluted share) for Q1 2016, up from $212.6 million ($1.23 per diluted share) in Q1 2015.
- 2Total net operating income from self-storage operations grew by 12.3% to $414.7 million.
- 3Same Store Facilities revenue increased by 6.5%, driven by a 6.1% rise in realized annual rental income per occupied square foot.
- 4Non Same Store Facilities net operating income surged by 29.0%, indicating successful stabilization of newer properties.
- 5The company acquired 12 self-storage facilities for $98.1 million in Q1 2016 and has a significant development pipeline of 4.6 million net rentable square feet underway.
- 6Funds From Operations (FFO) per diluted common share increased by 9.9% to $2.10, and Core FFO per diluted common share increased by 13.9% to $2.21.
- 7The company announced a regular common quarterly dividend of $1.80 per common share, an increase of $0.10 from the previous quarter.