Jun 30, 2023

Public Storage Q2 2023 Earnings Report

Public Storage's Q2 2023 performance was marked by record customer move-in volume growth, stabilized same store NOI growth, and non-same store lease-up NOI growth, leading to an increased outlook for the year.

Key Takeaways

Public Storage reported strong Q2 2023 results, driven by record customer move-in volume growth and solid NOI growth. The company also announced the acquisition of Simply Self Storage for $2.2 billion, further positioning it for future growth.

Net income allocable to common shareholders was $3.00 per diluted share.

Core FFO was $4.28 per diluted share, an increase of 7.3% relative to the same period in 2022.

Same Store direct net operating income increased by 6.2%, resulting from a 6.3% increase in Same Store revenues.

The company acquired eleven self-storage facilities with 0.9 million net rentable square feet for $144.0 million.

Total Revenue
$1.06B
Previous year: $973M
+8.5%
EPS
$4.28
Previous year: $3.99
+7.3%
REVPAF
$21.5
Previous year: $20.5
+5.2%
Average Occupancy
93.7%
Gross Profit
$840M
Previous year: $777M
+8.1%
Cash and Equivalents
$652M
Previous year: $1.01B
-35.7%
Total Assets
$17.6B
Previous year: $17.9B
-1.7%

Public Storage

Public Storage

Public Storage Revenue by Segment

Public Storage Revenue by Geographic Location

Forward Guidance

Public Storage provided guidance for the year ending December 31, 2023, including expectations for Same Store revenue growth, expense growth, net operating income growth, acquisitions, development openings, and Core FFO per share.

Positive Outlook

  • Same Store Revenue growth between 3.25% and 5.00%.
  • Acquisitions of $2,600,000.
  • Development openings of $375,000.
  • Ancillary net operating income between $169,000 and $172,000.
  • Core FFO per share growth from 2022 Core FFO per share between 3.0% and 5.5%.

Challenges Ahead

  • Expense growth between 4.75% and 6.75%.
  • General and administrative expense between $100,000 and $106,000.
  • Interest expense of $200,000.
  • Preferred dividends of $195,000.
  • Capital expenditures of $450,000.