Summary
Public Storage (PSA) filed an 8-K on September 7, 2021, to disclose an investor presentation containing operating data for the two months ended August 31, 2021. The key takeaway for investors is the significant increase in rental rates for new move-ins and existing occupied units, indicating strong pricing power in the self-storage market. Despite a slight decrease in the total square footage moved in, the average annual contract rent per square foot for new move-ins surged by 25.2% compared to the prior year. Furthermore, occupancy levels remained robust at 95.9%, a 1.4% increase year-over-year, while the average annual contract rent per occupied square foot also saw a healthy 9.7% rise. This data suggests a favorable market environment for Public Storage, characterized by strong demand that allows for significant rent increases, which should translate into improved revenue and profitability for the company.
Key Highlights
- 1Investor Presentation released on September 7, 2021, containing operating data for the two months ended August 31, 2021.
- 2Annual contract rent per square foot for new move-ins increased by 25.2% to $18.71 (compared to $14.95 in 2020).
- 3Annual contract rent per square foot for move-outs increased by 18.2% to $18.13 (compared to $15.34 in 2020).
- 4Square foot occupancy at August 31, 2021, was 95.9%, up 1.4% year-over-year.
- 5Annual contract rent per occupied square foot at August 31, 2021, was $19.39, up 9.7% year-over-year.
- 6The data pertains to 2,278 same-store facilities, representing approximately 81% of PSA's U.S. self-storage portfolio.
- 7Annual contract rent excludes certain fees and promotional discounts, and does not reflect uncollectible rents.