Public Storage (NYSE:PSA) announced today operating results for
the three and six months ended June 30, 2023.
“Public Storage’s industry-leading platform was evident during
the second quarter, with record customer move-in volume growth of
13.6%, stabilized same store NOI growth of 6.6%, and non-same store
lease-up NOI growth of 20%. These factors led to an increase in our
outlook for the back half of the year,” said Joe Russell, President
and Chief Executive Officer. “We continue to invest in the
industry’s leading digital platform and our operating model, while
enhancing and growing our portfolio. As evidenced by our recent
$2.2 billion Simply Self Storage acquisition, we remain uniquely
positioned to deliver growth and value to our stakeholders.”
Highlights for the Three Months Ended
June 30, 2023
- Reported net income allocable to common shareholders of $3.00
per diluted share.
- Reported core FFO allocable to common shareholders (“Core FFO”)
of $4.28 per diluted share, an increase of 7.3% relative to the
same period in 2022. Core FFO per diluted share increased 11.5%
compared to the same period in 2022, excluding the contribution
from our equity investment in PS Business Parks, Inc., which we
sold in July 2022.
- Increased Same Store (as defined below) direct net operating
income by 6.2%, resulting from a 6.3% increase in Same Store
revenues.
- Achieved 80.3% Same Store direct net operating income
margin.
- Acquired eleven self-storage facilities with 0.9 million net
rentable square feet for $144.0 million. Subsequent to June 30,
2023, we acquired or were under contract to acquire eleven
self-storage facilities with 0.8 million net rentable square feet,
for $118.2 million. In addition, on July 24, 2023, we entered into
a definitive agreement with Blackstone Real Estate Income Trust,
Inc. (“BREIT”) to acquire BREIT Simply Storage LLC, a self-storage
company that owns and operates 127 self-storage facilities (9.4
million square feet) and manages 25 self-storage facilities (1.8
million square feet) for third parties, for a cash acquisition
price of $2.2 billion (the “Simply Acquisition”).
- Completed various expansion projects with 0.2 million net
rentable square feet costing $19.1 million. At June 30, 2023, we
had various facilities in development and expansion with 4.8
million net rentable square feet estimated to cost $1.0
billion.
- On July 24, 2023, in connection with the Simply Acquisition,
issued $2.2 billion of unsecured senior notes in 2-, 5.5-, 10-, and
30-year tranches bearing annual rates of Compounded SOFR + 0.60%,
5.125%, 5.100%, and 5.350%, respectively.
Operating Results for the Three Months
Ended June 30, 2023
For the three months ended June 30, 2023, net income allocable
to our common shareholders was $528.3 million or $3.00 per diluted
common share, compared to $603.4 million or $3.42 per diluted
common share for the same period in 2022, representing a decrease
of $75.1 million or $0.42 per diluted common share. The decrease is
due primarily to (i) a $102.8 million decrease in foreign currency
exchange gains primarily associated with our Euro denominated notes
payable and (ii) a $39.0 million decrease in equity in earnings of
unconsolidated real estate entities due to the sale of our equity
investment in PSB in July 2022, partially offset by (iii) a $63.1
million increase in self-storage net operating income.
The $63.1 million increase in self-storage net operating income
in the three months ended June 30, 2023 as compared to the same
period in 2022 is a result of a $41.4 million increase attributable
to our Same Store Facilities and a $21.7 million increase
attributable to our Non-Same Store Facilities (as defined below).
Revenues for the Same Store Facilities increased 6.3% or $51.1
million in the three months ended June 30, 2023 as compared to the
same period in 2022, due primarily to higher realized annual rent
per occupied square foot, partially offset by a decline in
occupancy. Cost of operations for the Same Store Facilities
increased by 5.2% or $9.7 million in the three months ended June
30, 2023 as compared to the same period in 2022, due primarily to
increased property tax expense and marketing expense. The increase
in net operating income of $21.7 million for the Non-Same Store
Facilities is due primarily to the impact of facilities acquired in
2021 and 2022 and the fill-up of recently developed and expanded
facilities.
Operating Results for the Six Months
Ended June 30, 2023
For the six months ended June 30, 2023, net income allocable to
our common shareholders was $995.8 million or $5.65 per diluted
common share, compared to $1,067.5 million or $6.05 per diluted
common share for the same period in 2022, representing a decrease
of $71.7 million or $0.40 per diluted common share. The decrease is
due primarily to (i) a $165.1 million decrease in foreign currency
exchange gains primarily associated with our Euro denominated notes
payable and (ii) a $76.4 million decrease in equity in earnings of
unconsolidated real estate entities due to our sale of PSB in July
2022, partially offset by (iii) a $155.2 million increase in
self-storage net operating income and (iv) a $23.4 million increase
in interest and other income.
The $155.2 million increase in self-storage net operating income
in the six months ended June 30, 2023 as compared to the same
period in 2022 is a result of a $105.7 million increase
attributable to our Same Store Facilities and a $49.5 million
increase attributable to our Non-Same Store Facilities. Revenues
for the Same Store Facilities increased 8.0% or $126.5 million in
the six months ended June 30, 2023 as compared to the same period
in 2022, due primarily to higher realized annual rent per occupied
square foot, partially offset by a decline in occupancy. Cost of
operations for the Same Store Facilities increased by 5.4% or $20.7
million in the six months ended June 30, 2023 as compared to the
same period in 2022, due primarily to increased property tax
expense, repairs and maintenance expenses, marketing expense, and
other direct property costs. The increase in net operating income
of $49.5 million for the Non-Same Store Facilities is due primarily
to the impact of facilities acquired in 2021 and 2022 and the
fill-up of recently developed and expanded facilities.
Funds from Operations
Funds from Operations (“FFO”) and FFO per share are non-GAAP
measures defined by Nareit. We believe that FFO and FFO per share
are useful to REIT investors and analysts in measuring our
performance because Nareit’s definition of FFO excludes items
included in net income that do not relate to or are not indicative
of our operating and financial performance. FFO represents net
income before depreciation and amortization, which is excluded
because it is based upon historical costs and assumes that building
values diminish ratably over time, while we believe that real
estate values fluctuate due to market conditions. FFO also excludes
gains or losses on sale of real estate assets and real estate
impairment charges, which are also based upon historical costs and
are impacted by historical depreciation. FFO and FFO per share are
not a substitute for net income or earnings per share. FFO is not a
substitute for net cash flow in evaluating our liquidity or ability
to pay dividends, because it excludes investing and financing
activities presented on our consolidated statements of cash flows.
In addition, other REITs may compute these measures differently, so
comparisons among REITs may not be helpful.
For the three months ended June 30, 2023, FFO was $4.29 per
diluted common share as compared to $4.58 for the same period in
2022, representing a decrease of 6.3%.
For the six months ended June 30, 2023, FFO was $8.24 per
diluted common share, as compared to $8.41 in the same period in
2022, representing a decrease of 2.0%.
We also present “Core FFO” and “Core FFO per share,” non-GAAP
measures that represent FFO and FFO per share excluding the impact
of (i) foreign currency exchange gains and losses, (ii) charges
related to the redemption of preferred securities, and (iii)
certain other non-cash and/or nonrecurring income or expense items
primarily representing, with respect to the periods presented
below, the impact of contingency resolution, due diligence costs
incurred in pursuit of strategic transactions, unrealized gain on
private equity investments, and our equity share of deferred tax
benefits of a change in tax status and severance of a senior
executive from our equity investees. We review Core FFO and Core
FFO per share to evaluate our ongoing operating performance, and we
believe they are used by investors and REIT analysts in a similar
manner. However, Core FFO and Core FFO per share are not
substitutes for net income and net income per share. Because other
REITs may not compute Core FFO or Core FFO per share in the same
manner as we do, may not use the same terminology, or may not
present such measures, Core FFO and Core FFO per share may not be
comparable among REITs.
The following table reconciles net income to FFO and Core FFO
and reconciles diluted earnings per share to FFO per share and Core
FFO per share (unaudited):
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
Percentage Change
2023
2022
Percentage Change
(Amounts in thousands, except per
share data)
Reconciliation of
Net Income to FFO and Core FFO:
Net income allocable to common
shareholders
$
528,259
$
603,381
(12.5
)%
$
995,847
$
1,067,505
(6.7
)%
Eliminate items excluded from FFO:
Depreciation and amortization
220,971
217,373
440,758
438,168
Depreciation from unconsolidated real
estate investments
9,155
17,566
17,684
34,386
Depreciation allocated to noncontrolling
interests and restricted share unitholders
(1,732
)
(1,533
)
(3,205
)
(3,190
)
Gains on sale of real estate investments,
including our equity share from investments
(72
)
(29,306
)
(72
)
(53,184
)
FFO allocable to common shares
$
756,581
$
807,481
(6.3
)%
$
1,451,012
$
1,483,685
(2.2
)%
Eliminate the impact of items excluded
from Core FFO, including our equity share from investments:
Foreign currency exchange loss (gain)
1,096
(101,723
)
27,956
(137,100
)
Other items
(4,093
)
(1,781
)
(6,226
)
766
Core FFO allocable to common shares
$
753,584
$
703,977
7.0
%
$
1,472,742
$
1,347,351
9.3
%
Reconciliation of
Diluted Earnings per Share to FFO per Share and Core FFO per
Share:
Diluted earnings per share
$
3.00
$
3.42
(12.3
)%
$
5.65
$
6.05
(6.6
)%
Eliminate amounts per share excluded from
FFO:
Depreciation and amortization
1.29
1.32
2.59
2.66
Gains on sale of real estate investments,
including our equity share from investments
—
(0.16
)
—
(0.30
)
FFO per share
$
4.29
$
4.58
(6.3
)%
$
8.24
$
8.41
(2.0
)%
Eliminate the per share impact of items
excluded from Core FFO, including our equity share from
investments:
Foreign currency exchange loss (gain)
0.01
(0.58
)
0.16
(0.78
)
Other items
(0.02
)
(0.01
)
(0.04
)
0.01
Core FFO per share
$
4.28
$
3.99
7.3
%
$
8.36
$
7.64
9.4
%
Exclude the contribution from our equity
investment in PS Business Parks, Inc. to Core FFO per share
—
(0.15
)
—
(0.30
)
Core FFO per share, excluding the impact
of PS Business Parks, Inc.
$
4.28
$
3.84
11.5
%
$
8.36
$
7.34
13.9
%
Diluted weighted average common shares
176,212
176,312
176,181
176,325
Property Operations – Same Store
Facilities
The Same Store Facilities consist of facilities that have been
owned and operated on a stabilized level of occupancy, revenues,
and cost of operations since January 1, 2021. The composition of
our Same Store Facilities allows us to more effectively evaluate
the ongoing performance of our self-storage portfolio in 2021,
2022, and 2023 and exclude the impact of fill-up of unstabilized
facilities, which can significantly affect operating trends. We
believe the Same Store information is used by investors and
analysts in a similar manner. However, because other REITs may not
compute Same Store Facilities in the same manner as we do, may not
use the same terminology, or may not present such a measure, Same
Store Facilities may not be comparable among REITs. The following
table summarizes the historical operating results (for all periods
presented) of these 2,344 facilities (155.2 million net rentable
square feet) that represent approximately 75% of the aggregate net
rentable square feet of our U.S. consolidated self-storage
portfolio at June 30, 2023 (unaudited):
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
Change
2023
2022
Change
(Dollar amounts in thousands,
except for per square foot data)
Revenues (a):
Rental income
$
836,124
$
788,684
6.0
%
$
1,655,058
$
1,535,817
7.8
%
Late charges and administrative fees
28,381
24,738
14.7
%
56,615
49,393
14.6
%
Total revenues
864,505
813,422
6.3
%
1,711,673
1,585,210
8.0
%
Direct cost of operations (a):
Property taxes
77,211
74,504
3.6
%
153,895
147,562
4.3
%
On-site property manager payroll
31,514
30,575
3.1
%
64,044
62,320
2.8
%
Repairs and maintenance
14,665
13,679
7.2
%
32,676
29,588
10.4
%
Utilities
10,067
10,611
(5.1
)%
22,633
22,561
0.3
%
Marketing
14,469
9,086
59.2
%
30,022
20,805
44.3
%
Other direct property costs
22,073
20,911
5.6
%
45,297
41,641
8.8
%
Total direct cost of operations
169,999
159,366
6.7
%
348,567
324,477
7.4
%
Direct net operating income (b)
694,506
654,056
6.2
%
1,363,106
1,260,733
8.1
%
Indirect cost of operations (a):
Supervisory payroll
(8,502
)
(9,059
)
(6.1
)%
(17,700
)
(18,979
)
(6.7
)%
Centralized management costs
(15,211
)
(14,440
)
5.3
%
(31,108
)
(31,203
)
(0.3
)%
Share-based compensation
(2,731
)
(3,880
)
(29.6
)%
(5,870
)
(7,868
)
(25.4
)%
Net operating income (c)
$
668,062
$
626,677
6.6
%
$
1,308,428
$
1,202,683
8.8
%
Gross margin (before indirect costs,
depreciation and amortization expense)
80.3
%
80.4
%
(0.1
)%
79.6
%
79.5
%
0.1
%
Gross margin (before depreciation and
amortization expense)
77.3
%
77.0
%
0.4
%
76.4
%
75.9
%
0.7
%
Weighted average for the period:
Square foot occupancy
93.7
%
95.7
%
(2.1
)%
93.5
%
95.6
%
(2.2
)%
Realized annual rental income per (d):
Occupied square foot
$
22.99
$
21.23
8.3
%
$
22.82
$
20.69
10.3
%
Available square foot
$
21.54
$
20.32
6.0
%
$
21.33
$
19.79
7.8
%
At June 30:
Square foot occupancy
93.2
%
94.8
%
(1.7
)%
Annual contract rent per occupied square
foot (e)
$
23.34
$
21.80
7.1
%
(a)
Revenues and cost of operations do not
include tenant reinsurance and merchandise sales and expenses
generated at the facilities.
(b)
Direct net operating income (“Direct
NOI”), a subtotal within NOI, is a non-GAAP financial measure that
excludes the impact of supervisory payroll, centralized management
costs, and share-based compensation in addition to depreciation and
amortization expense. We utilize direct net operating income in
evaluating property performance and in evaluating property
operating trends as compared to our competitors.
(c)
See attached reconciliation of
self-storage NOI to net income.
(d)
Realized annual rent per occupied square
foot is computed by dividing annualized rental income, before late
charges and administrative fees, by the weighted average occupied
square feet for the period. Realized annual rent per available
square foot (“REVPAF”) is computed by dividing annualized rental
income, before late charges and administrative fees, by the total
available rentable square feet for the period. These measures
exclude late charges and administrative fees in order to provide a
better measure of our ongoing level of revenue. Late charges are
dependent upon the level of delinquency, and administrative fees
are dependent upon the level of move-ins. In addition, the rates
charged for late charges and administrative fees can vary
independently from rental rates. These measures take into
consideration promotional discounts, which reduce rental
income.
(e)
Annual contract rent represents the agreed
upon monthly rate that is paid by our tenants in place at the time
of measurement. Contract rates are initially set in the lease
agreement upon move-in, and we adjust them from time to time with
notice. Contract rent excludes other fees that are charged on a
per-item basis, such as late charges and administrative fees, does
not reflect the impact of promotional discounts, and does not
reflect the impact of rents that are written off as
uncollectible.
Property Operations – Non-Same Store
Facilities
In addition to the 2,344 Same Store Facilities, we have 544
facilities that were not stabilized with respect to occupancies,
revenues, or cost of operations since January 1, 2021 or that we
did not own as of January 1, 2021, including 322 facilities that
were acquired, 49 newly developed facilities, 87 facilities that
have been expanded or are targeted for expansion, and 86 facilities
that are unstabilized because they are undergoing fill-up or were
damaged in casualty events (collectively, the “Non-Same Store
Facilities”). Operating data, metrics, and further commentary with
respect to these facilities, including detail by vintage, are
included in “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” under “Analysis of Net Income
– Self-Storage Operations” in our June 30, 2023 Form 10-Q.
Investing and Capital
Activities
During the three months ended June 30, 2023, we closed the
acquisition of eleven self-storage facilities (seven in South
Carolina and one each in Florida, Massachusetts, North Carolina,
and Virginia) with 0.9 million net rentable square feet for $144.0
million. During the six months ended June 30, 2023, we closed the
acquisition of 16 self-storage facilities (seven in South Carolina,
two each in Florida and Virginia, and one each in Idaho, Kentucky,
Massachusetts, Michigan, and North Carolina) with 1.2 million net
rentable square feet for $190.8 million.
On July 24, 2023, we entered into a definitive agreement with
BREIT to acquire BREIT Simply Storage LLC, a self-storage company
that owns and operates 127 self-storage facilities (9.4 million
square feet) and manages 25 self-storage facilities (1.8 million
square feet) for third parties, for a cash acquisition price of
$2.2 billion. The 127 wholly-owned facilities are geographically
diversified across 18 states and located in markets with population
growth that has been approximately double the national average
since 2018. Approximately 65% of the facilities are located in
high-growth Sunbelt markets. The acquisition, which is subject to
the satisfaction of customary closing conditions, is currently
expected to close in the third quarter of 2023.
Subsequent to June 30, 2023, we acquired or were under contract
to acquire eleven self-storage facilities across six states with
0.8 million net rentable square feet, for $118.2 million.
During 2021, we acquired a portfolio of 48 properties (4.1
million net rentable square feet) operated under the brand name of
ezStorage for $1.8 billion. As of June 30, 2023, we have completed
the expansion projects on four facilities of this portfolio for
$26.4 million, adding 169,000 net rentable square feet of storage
space. These facilities generated revenues of $51.7 million, NOI of
$40.4 million (including Direct NOI of $41.7 million), and average
square footage occupancy of 85.7% for the six months ended June 30,
2023.
During 2021, we acquired a portfolio of 56 properties (7.5
million net rentable square feet) operated under the brand name of
All Storage for $1.5 billion. These facilities generated revenues
of $43.1 million, NOI of $27.4 million (including Direct NOI of
$28.9 million), and average square footage occupancy of 78.6% for
the six months ended June 30, 2023.
During the three months ended June 30, 2023, we completed
various expansion projects (0.2 million net rentable square feet in
California) costing $19.1 million. During the six months ended June
30, 2023, we opened three newly developed facilities and completed
various expansion projects (0.6 million net rentable square feet –
0.2 million in California and 0.1 million each in Florida,
Maryland, New Jersey, and Pennsylvania) costing $84.4 million. At
June 30, 2023, we had various facilities in development (2.5
million net rentable square feet) estimated to cost $554.0 million
and various expansion projects (2.3 million net rentable square
feet) estimated to cost $473.0 million. Our aggregate 4.8 million
net rentable square foot pipeline of development and expansion
facilities includes 1.5 million in California, 0.9 million in
Texas, 0.4 million in Nevada, 0.3 million each in Arizona, Florida,
Hawaii, and Maryland, 0.2 million in Washington, and 0.6 million in
other states. The remaining $577.0 million of development costs for
these projects are expected to be incurred primarily in the next 18
to 24 months.
In connection with the Simply Acquisition, on July 24, 2023, we
completed a public offering of $400 million, $500 million, $700
million, and $600 million aggregate principal amount of unsecured
senior notes bearing interest at an annual rate of Compounded SOFR
+ 0.60% (reset quarterly), 5.125%, 5.100%, and 5.350%,
respectively, and maturing on July 25, 2025, January 15, 2029,
August 1, 2033, and August 1, 2053, respectively.
Distributions Declared
On August 2, 2023, our Board of Trustees declared a regular
common quarterly dividend of $3.00 per common share. The Board also
declared dividends with respect to our various series of preferred
shares. All the dividends are payable on September 28, 2023 to
shareholders of record as of September 13, 2023.
Outlook for the Year Ending December
31, 2023
Set forth below are our current expectations with respect to
full year 2023 Core FFO per share and certain underlying
assumptions including the proposed Simply Acquisition and the
issuance of $2.2 billion of U.S. Dollar denominated unsecured
senior notes on July 24, 2023. In reliance on the exception
provided by applicable SEC rules, we do not provide guidance for
GAAP net income per share, the most comparable GAAP financial
measure, or a reconciliation of 2023 Core FFO per share to GAAP net
income per share because we are unable to reasonably predict the
following items which are included in GAAP net income: (i) gains or
losses on sales of real estate investments, (ii) foreign currency
exchange gains and losses, (iii) charges related to the redemption
of preferred securities, and (iv) certain other significant
non-cash and/or nonrecurring income or expense items. The actual
amounts for any and all of these items could significantly impact
our 2023 GAAP net income and, as disclosed in our historical
financial results, have significantly impacted GAAP net income in
prior periods.
Guidance Ranges for
2023
Low
High
($ Amounts in thousands, except
per share data)
Same Store:
Revenue growth
3.25%
5.00%
Expense growth
4.75%
6.75%
Net operating income growth
2.20%
5.10%
Acquisitions
$2,600,000
Development openings
$375,000
Non-Same Store net operating income
$555,000
$565,000
Ancillary net operating income
$169,000
$172,000
General and administrative expense
$100,000
$106,000
Interest expense
$200,000
Preferred dividends
$195,000
Capital expenditures
$450,000
Core FFO per share
$16.40
$16.80
Core FFO per share growth from 2022 Core
FFO per share
3.0%
5.5%
Core FFO per share growth from 2022 Core
FFO per share, excluding the impact of PS Business Parks, Inc.
5.2%
7.8%
Incremental Non-Same Store NOI to
stabilization (2024 and beyond)
$190,000
Second Quarter Conference
Call
A conference call is scheduled for August 3, 2023 at 9:00 a.m.
(PT) to discuss the second quarter earnings results. The domestic
dial-in number is (800) 579-2543, and the international dial-in
number is (785) 424-1789 (conference ID number for either domestic
or international is PSAQ223). A simultaneous audio webcast may be
accessed by using the link at www.publicstorage.com under “About
Us, Investor Relations, News and Events, Event Calendar.” A replay
of the conference call may be accessed through August 10, 2023 by
calling (800) 938-2806 (domestic), (402) 220-9034 (international)
or by using the link at www.publicstorage.com under “About Us,
Investor Relations, News and Events, Event Calendar.”
About Public Storage
Public Storage, a member of the S&P 500 and FT Global 500,
is a REIT that primarily acquires, develops, owns, and operates
self-storage facilities. At June 30, 2023, we had: (i) interests in
2,888 self-storage facilities located in 40 states with
approximately 206 million net rentable square feet in the United
States and (ii) a 35% common equity interest in Shurgard Self
Storage Limited (Euronext Brussels:SHUR), which owned 266
self-storage facilities located in seven Western European nations
with approximately 15 million net rentable square feet operated
under the Shurgard® brand. Our headquarters are located in
Glendale, California.
This press release, our Form 10-Q for the second quarter of
2023, a financial supplement, and additional information about
Public Storage are available on our website,
www.publicstorage.com.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements include statements relating to our
2023 outlook and all underlying assumptions, our expected
acquisition, disposition, development, and redevelopment activity,
supply and demand for our self-storage facilities, information
relating to operating trends in our markets, expectations regarding
operating expenses, including property tax changes, expectations
regarding the impacts from inflation and a potential future
recession, our strategic priorities, expectations with respect to
financing activities, rental rates, cap rates, and yields, leasing
expectations, our credit ratings, and all other statements other
than statements of historical fact. Such statements are based on
management’s beliefs and assumptions made based on information
currently available to management and may be identified by the use
of the words “outlook,” “guidance,” “expects,” “believes,”
“anticipates,” “should,” “estimates,” and similar expressions.
These forward-looking statements involve known and unknown risks
and uncertainties, which may cause our actual results and
performance to be materially different from those expressed or
implied in the forward-looking statements. Risks and uncertainties
that may impact future results and performance include, but are not
limited to those described in Part 1, Item 1A, “Risk Factors” in
our most recent Annual Report on Form 10-K filed with the
Securities and Exchange Commission (the “SEC”) on February 21, 2023
and in our other filings with the SEC. These include changes in
demand for our facilities, impacts of natural disasters, adverse
changes in laws and regulations including governing property tax,
evictions, rental rates, minimum wage levels, and insurance,
adverse economic effects from the COVID-19 Pandemic, international
military conflicts, or similar events impacting public health
and/or economic activity, increases in the costs of our primary
customer acquisition channels, adverse impacts to us and our
customers from inflation, unfavorable foreign currency rate
fluctuations, changes in federal or state tax laws related to the
taxation of REITs, security breaches, including ransomware, or a
failure of our networks, systems, or technology. These
forward-looking statements speak only as of the date of this press
release or as of the dates indicated in the statements. All of our
forward-looking statements, including those in this press release,
are qualified in their entirety by this cautionary statement. We
expressly disclaim any obligation to update publicly or otherwise
revise any forward-looking statements, whether as a result of new
information, new estimates, or other factors, events, or
circumstances after the date of these forward-looking statements,
except when expressly required by law. Given these risks and
uncertainties, you should not rely on any forward-looking
statements in this press release, or which management may make
orally or in writing from time to time, neither as predictions of
future events nor guarantees of future performance.
PUBLIC STORAGE
SELECTED CONSOLIDATED INCOME
STATEMENT DATA
(Amounts in thousands, except per
share data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Revenues:
Self-storage facilities
$
1,056,120
$
973,286
$
2,088,304
$
1,890,301
Ancillary operations
63,650
58,759
125,698
115,189
1,119,770
1,032,045
2,214,002
2,005,490
Expenses:
Self-storage cost of operations
257,678
237,989
526,293
483,483
Ancillary cost of operations
22,202
17,210
41,878
32,725
Depreciation and amortization
222,133
218,708
443,783
440,836
General and administrative
25,434
28,831
50,978
51,900
Interest expense
38,079
32,941
74,180
66,065
565,526
535,679
1,137,112
1,075,009
Other increases (decreases) to net
income:
Interest and other income
18,452
10,279
37,086
13,658
Equity in earnings of unconsolidated real
estate entities
9,565
48,525
15,560
91,949
Foreign currency exchange (loss) gain
(1,096
)
101,723
(27,956
)
137,100
Net income
581,165
656,893
1,101,580
1,173,188
Allocation to noncontrolling interests
(3,136
)
(3,043
)
(5,843
)
(5,395
)
Net income allocable to Public Storage
shareholders
578,029
653,850
1,095,737
1,167,793
Allocation of net income to:
Preferred shareholders – distributions
(48,673
)
(48,673
)
(97,351
)
(97,038
)
Restricted share units
(1,097
)
(1,796
)
(2,539
)
(3,250
)
Net income allocable to common
shareholders
$
528,259
$
603,381
$
995,847
$
1,067,505
Per common
share:
Net income per common share – Basic
$
3.01
$
3.44
$
5.68
$
6.09
Net income per common share – Diluted
$
3.00
$
3.42
$
5.65
$
6.05
Weighted average common shares – Basic
175,484
175,229
175,428
175,200
Weighted average common shares –
Diluted
176,212
176,312
176,181
176,325
PUBLIC STORAGE
SELECTED CONSOLIDATED BALANCE
SHEET DATA
(Amounts in thousands, except
share and per share data)
June 30, 2023
December 31, 2022
ASSETS
(Unaudited)
Cash and equivalents
$
651,665
$
775,253
Real estate facilities, at cost:
Land
5,315,098
5,273,073
Buildings
19,365,416
18,946,053
24,680,514
24,219,126
Accumulated depreciation
(8,966,878
)
(8,554,155
)
15,713,636
15,664,971
Construction in process
449,931
372,992
16,163,567
16,037,963
Investments in unconsolidated real estate
entities
276,778
275,752
Goodwill and other intangible assets,
net
212,022
232,517
Other assets
256,294
230,822
Total assets
$
17,560,326
$
17,552,307
LIABILITIES AND EQUITY
Notes payable
$
6,894,167
$
6,870,826
Accrued and other liabilities
507,588
514,680
Total liabilities
7,401,755
7,385,506
Equity:
Public Storage shareholders’ equity:
Preferred Shares, $0.01 par value,
100,000,000 shares authorized, 174,000 shares issued (in series)
and outstanding, (174,000 at December 31, 2022) at liquidation
preference
4,350,000
4,350,000
Common Shares, $0.10 par value,
650,000,000 shares authorized, 175,492,886 shares issued and
outstanding (175,265,668 shares at December 31, 2022)
17,549
17,527
Paid-in capital
5,940,945
5,896,423
Accumulated deficit
(167,404
)
(110,231
)
Accumulated other comprehensive loss
(75,146
)
(80,317
)
Total Public Storage shareholders’
equity
10,065,944
10,073,402
Noncontrolling interests
92,627
93,399
Total equity
10,158,571
10,166,801
Total liabilities and equity
$
17,560,326
$
17,552,307
PUBLIC STORAGE
SELECTED FINANCIAL
DATA
Computation of Funds Available
for Distribution (“FAD”)
(Unaudited – amounts in thousands
except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
FFO allocable to common shares
$
756,581
$
807,481
$
1,451,012
$
1,483,685
Eliminate effect of items included in FFO
but not FAD:
Share-based compensation expense in excess
of cash paid
11,485
15,292
12,398
18,646
Foreign currency exchange loss (gain)
1,096
(101,723
)
27,956
(137,100
)
Less: Capital expenditures in real estate
facilities
(100,804
)
(114,214
)
(194,544
)
(205,558
)
FAD (a)
$
668,358
$
606,836
$
1,296,822
$
1,159,673
Distributions paid to common
shareholders
$
526,478
$
350,225
$
1,052,869
$
700,394
Distribution payout ratio
78.8
%
57.7
%
81.2
%
60.4
%
Distributions per common share
$
3.00
$
2.00
$
6.00
$
4.00
(a)
FAD represents FFO adjusted to exclude
certain non-cash charges and to deduct capital expenditures. We
utilize FAD in evaluating our ongoing cash flow available for
investment, debt repayment, and common distributions. We believe
investors and analysts utilize FAD in a similar manner. FAD is not
a substitute for GAAP net cash flow in evaluating our liquidity or
ability to pay dividends, because it excludes investing and
financing activities presented on our statements of cash flows. In
addition, other REITs may compute this measure differently, so
comparisons among REITs may not be helpful.
PUBLIC STORAGE
SELECTED FINANCIAL
DATA
Reconciliation of Self-Storage
Net Operating Income to Net Income
(Unaudited – amounts in
thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Self-storage revenues for:
Same Store Facilities
$
864,505
$
813,422
$
1,711,673
$
1,585,210
Acquired facilities
98,575
77,085
193,797
146,388
Newly developed and expanded
facilities
64,705
56,177
126,736
107,261
Other non-same store facilities
28,335
26,602
56,098
51,442
Self-storage revenues
1,056,120
973,286
2,088,304
1,890,301
Self-storage cost of operations for:
Same Store Facilities
196,443
186,745
403,245
382,527
Acquired facilities
31,836
26,597
64,715
50,814
Newly developed and expanded
facilities
19,235
16,230
38,588
32,680
Other non-same store facilities
10,164
8,417
19,745
17,462
Self-storage cost of operations
257,678
237,989
526,293
483,483
Self-storage NOI for:
Same Store Facilities
668,062
626,677
1,308,428
1,202,683
Acquired facilities
66,739
50,488
129,082
95,574
Newly developed and expanded
facilities
45,470
39,947
88,148
74,581
Other non-same store facilities
18,171
18,185
36,353
33,980
Self-storage NOI (a)
798,442
735,297
1,562,011
1,406,818
Ancillary revenues
63,650
58,759
125,698
115,189
Ancillary cost of operations
(22,202
)
(17,210
)
(41,878
)
(32,725
)
Depreciation and amortization
(222,133
)
(218,708
)
(443,783
)
(440,836
)
General and administrative expense
(25,434
)
(28,831
)
(50,978
)
(51,900
)
Interest and other income
18,452
10,279
37,086
13,658
Interest expense
(38,079
)
(32,941
)
(74,180
)
(66,065
)
Equity in earnings of unconsolidated real
estate entities
9,565
48,525
15,560
91,949
Foreign currency exchange (loss) gain
(1,096
)
101,723
(27,956
)
137,100
Net income on our income statement
$
581,165
$
656,893
$
1,101,580
$
1,173,188
(a)
Net operating income or “NOI” is a
non-GAAP financial measure that excludes the impact of depreciation
and amortization expense, which is based upon historical costs and
assumes that building values diminish ratably over time, while we
believe that real estate values fluctuate due to market conditions.
We utilize NOI in determining current property values, evaluating
property performance, and evaluating operating trends. We believe
that investors and analysts utilize NOI in a similar manner. NOI is
not a substitute for net income, operating cash flow, or other
related GAAP financial measures, in evaluating our operating
results. This table reconciles from NOI for our self-storage
facilities to the net income presented on our income statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230801380491/en/
Ryan Burke (818) 244-8080, Ext. 1141
Public Storage (NYSE:PSA)
過去 株価チャート
から 5 2024 まで 6 2024
Public Storage (NYSE:PSA)
過去 株価チャート
から 6 2023 まで 6 2024