Summary
Public Storage (PSA) reported its third quarter 2019 results, showcasing continued revenue growth and solid operational performance. Total revenues for the nine months ended September 30, 2019, increased by 3.3% to $2.13 billion, driven by a 3.2% rise in self-storage facility revenues. Net income attributable to common shareholders for the nine months was $945.5 million, or $5.42 per diluted share, a slight decrease from the prior year primarily due to a substantial equity share of gains recorded by PS Business Parks in the prior year and preferred share redemption activities. However, Funds From Operations (FFO) per diluted share increased to $7.86 from $7.68, indicating robust operational cash flow generation. The company's balance sheet remains strong, with total assets growing to $11.41 billion. Cash and equivalents significantly increased to $541.4 million, providing ample liquidity. The company continued its strategic growth through acquisitions and development, adding new facilities and expanding existing ones. Management highlighted increased marketing expenses and property taxes as key drivers for the rise in operating costs for same-store facilities. The company reiterated its commitment to returning capital to shareholders through consistent dividends and authorized share repurchase programs.
Financial Highlights
35 data points| Revenue | $729.34M |
| Cost of Revenue | $212.26M |
| Gross Profit | $517.07M |
| Operating Expenses | $371.00M |
| Interest Expense | $12.60M |
| Net Income | $397.94M |
| EPS (Basic) | $1.94 |
| EPS (Diluted) | $1.93 |
| Shares Outstanding (Basic) | 174.33M |
| Shares Outstanding (Diluted) | 174.61M |
Key Highlights
- 1Total revenues for the nine months ended September 30, 2019, increased by 3.3% to $2.13 billion, primarily driven by self-storage facility revenues.
- 2Net income attributable to common shareholders for the nine months was $945.5 million ($5.42 per diluted share), a slight decrease compared to the prior year.
- 3Funds From Operations (FFO) per diluted share increased by 2.3% to $7.86 for the nine months ended September 30, 2019.
- 4Cash and equivalents significantly increased to $541.4 million as of September 30, 2019, enhancing liquidity.
- 5The company actively engaged in growth initiatives, acquiring new facilities and developing/expanding existing ones, adding approximately 3.2 million net rentable square feet of self-storage space in the nine-month period.
- 6Same-store facilities revenue increased by 1.5% for the nine months, driven by higher rent per occupied square foot, although offset by increased marketing expenses and property taxes.
- 7The company maintained a strong balance sheet with total assets of $11.41 billion and a prudent approach to debt management, with no substantial principal payments due until 2022.