Jun 30, 2021

Public Storage Q2 2021 Earnings Report

Reported strong financial results driven by increased net operating income and strategic acquisitions.

Key Takeaways

Public Storage reported net income allocable to common shareholders of $346.2 million, or $1.97 per diluted share, for the three months ended June 30, 2021. Core FFO was $3.15 per diluted share, a 28.0% increase year-over-year. The company acquired 84 self-storage facilities for $2.3 billion and continued to expand its development pipeline.

Net income allocable to common shareholders was $1.97 per diluted share.

Core FFO allocable to common shareholders increased by 28.0% to $3.15 per diluted share.

Same Store direct net operating income increased by 20.8% due to revenue growth and cost reduction.

Acquired 84 self-storage facilities with 7.0 million net rentable square feet for $2.3 billion.

Total Revenue
$777M
Previous year: $665M
+16.9%
EPS
$3.15
Previous year: $2.46
+28.0%
REVPAF
$17.8
Previous year: $16.1
+10.3%
Average Occupancy
97%
Gross Profit
$611M
Previous year: $481M
+27.1%
Cash and Equivalents
$481M
Previous year: $1.27B
-62.1%
Total Assets
$14.5B
Previous year: $12.4B
+17.3%

Public Storage

Public Storage

Public Storage Revenue by Segment

Public Storage Revenue by Geographic Location

Forward Guidance

The Company provided guidance for the year ending December 31, 2021, with Core FFO per share estimated between $11.90 and $12.30.

Positive Outlook

  • Same Store Revenue growth between 7.00% and 8.50%.
  • Expense growth between 0.00% and 1.00%.
  • Net operating income growth between 9.40% and 11.90%.
  • Acquisitions of $3,100,000.
  • Development openings of $215,000.

Challenges Ahead

  • General and administrative expense between $96,000 and $99,000.
  • Interest expense between $94,000 and $96,000.
  • Preferred dividends of $182,000.
  • Capital expenditures between $250,000 and $300,000.
  • Forward-looking Core FFO per share measures exclude estimates for the impact of foreign currency exchange gains and losses.