Summary
Public Storage (PSA) reported strong financial performance for the nine months ended September 30, 2022, driven by significant gains from the sale of its equity investment in PS Business Parks, Inc. (PSB) and robust growth in its same-store self-storage operations. Revenues from same-store facilities increased by 15.4%, reflecting higher rental rates and strong occupancy. The company also saw substantial growth in its acquired and newly developed facilities, indicating successful strategic expansion. Despite inflationary pressures on operating costs, PSA demonstrated effective cost management and implemented initiatives to mitigate these impacts. The company's balance sheet shows an increase in total assets, primarily due to growth in real estate facilities. Liabilities decreased due to a reduction in notes payable. PSA also repurchased shares and paid significant dividends, including a special dividend following the PSB sale, demonstrating a commitment to returning capital to shareholders. The company maintains a strong liquidity position and access to capital markets, positioning it well for continued growth and to navigate potential economic uncertainties.
Financial Highlights
33 data points| Revenue | $1.09B |
| Operating Expenses | $561.43M |
| Interest Expense | $34.11M |
| Net Income | $2.77B |
| EPS (Basic) | $15.47 |
| EPS (Diluted) | $15.38 |
| Shares Outstanding (Basic) | 175.28M |
| Shares Outstanding (Diluted) | 176.33M |
Key Highlights
- 1Significant gain of $2.1 billion recognized from the sale of the equity investment in PS Business Parks, Inc. (PSB).
- 2Total revenues increased by 22.2% for the three months and 25.0% for the nine months ended September 30, 2022, compared to the prior year periods.
- 3Same-store self-storage revenues increased by 14.7% for the three months and 15.4% for the nine months ended September 30, 2022, driven by a 17.2% and 16.6% increase in realized annual rent per occupied square foot, respectively.
- 4Net operating income (NOI) from same-store facilities increased by 17.0% for the three months and 18.6% for the nine months ended September 30, 2022.
- 5Funds From Operations (FFO) per diluted share increased by 29.1% to $4.66 for the three months and 35.0% to $13.08 for the nine months ended September 30, 2022.
- 6Total assets increased to $17.45 billion as of September 30, 2022, from $17.38 billion as of December 31, 2021, driven by growth in real estate facilities.
- 7Total liabilities decreased to $7.33 billion as of September 30, 2022, from $7.96 billion as of December 31, 2021, primarily due to a reduction in notes payable.