Summary
Public Storage (PSA) reported its third-quarter and nine-month results for the period ending September 30, 2017. For the nine months, net income allocable to common shareholders increased slightly to $837.5 million ($4.81 per diluted share) from $831.1 million ($4.78 per diluted share) in the prior year. This growth was driven by a $53.1 million increase in self-storage net operating income, partly offset by higher foreign exchange losses and the impact of Hurricanes Harvey and Irma. The company also saw an increase in FFO per share to $7.00 from $6.94, reflecting solid operational performance despite challenging market conditions. The balance sheet shows a significant increase in cash and cash equivalents, rising to $694.2 million from $183.7 million at year-end 2016, primarily due to new debt issuance. The company continued its development and acquisition strategy, adding 14 self-storage facilities in the nine-month period and having further projects underway. Despite a slight decrease in diluted earnings per share for the three-month period compared to the prior year, largely due to increased preferred dividend allocations and hurricane-related losses, the overall financial health remains robust. The company's strong balance sheet, ample liquidity, and consistent operational performance in its core self-storage business position it well for continued growth. Investors should note the ongoing strategic investments in development and acquisitions, as well as the company's proactive debt management, including a substantial new unsecured note issuance.
Financial Highlights
35 data points| Revenue | $686.36M |
| Cost of Revenue | $190.62M |
| Gross Profit | $495.74M |
| Operating Expenses | $326.25M |
| Operating Income | $360.11M |
| Interest Expense | $2.39M |
| Net Income | $356.67M |
| EPS (Basic) | $1.61 |
| EPS (Diluted) | $1.61 |
| Shares Outstanding (Basic) | 173.72M |
| Shares Outstanding (Diluted) | 174.24M |
Key Highlights
- 1Net income allocable to common shareholders for the nine months ended September 30, 2017, was $837.5 million, a slight increase from $831.1 million in the prior year.
- 2Diluted earnings per share for the nine months were $4.81, up from $4.78 in the prior year.
- 3Funds From Operations (FFO) per diluted share increased to $7.00 for the nine months ended September 30, 2017, from $6.94 in the same period last year.
- 4Cash and cash equivalents significantly increased to $694.2 million at September 30, 2017, from $183.7 million at December 31, 2016.
- 5The company acquired 14 self-storage facilities during the nine months ended September 30, 2017, for $81.7 million.
- 6Public Storage issued $1.0 billion in aggregate principal amount of unsecured notes in September 2017.
- 7Hurricanes Harvey and Irma resulted in an $7.8 million casualty loss and $5.2 million in incremental tenant reinsurance losses.