Sep 30, 2022

Public Storage Q3 2022 Earnings Report

Reported strong performance driven by the strength and quality of assets and management team, backed by industry-leading platforms.

Key Takeaways

Public Storage reported a significant increase in net income allocable to common shareholders, driven by a gain on the sale of its equity investment in PS Business Parks, increased self-storage net operating income, and foreign currency exchange gains.

Net income allocable to common shareholders was $15.38 per diluted share.

Core FFO allocable to common shareholders increased by 20.8% to $4.13 per diluted share.

Same Store direct net operating income increased by 16.5%, resulting from a 14.7% increase in Same Store revenues.

Acquired 24 self-storage facilities with 1.7 million net rentable square feet for $250.6 million.

Total Revenue
$1.03B
Previous year: $841M
+22.2%
EPS
$4.13
Previous year: $3.42
+20.8%
REVPAF
$21.3
Previous year: $18.7
+13.9%
Average Occupancy
94.5%
Previous year: 96.8%
-2.4%
Gross Profit
$811M
Previous year: $658M
+23.2%
Cash and Equivalents
$884M
Previous year: $958M
-7.8%
Total Assets
$17.5B
Previous year: $15.3B
+14.2%

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, 2022, including estimates for Same Store revenue growth, expense growth, net operating income growth, acquisitions, development openings, Non-Same Store net operating income, ancillary net operating income, general and administrative expense, interest expense, preferred dividends, capital expenditures, and Core FFO per share.

Positive Outlook

  • Same Store Revenue growth between 13.50% and 15.00%.
  • Same Store Net Operating Income growth between 15.40% and 18.00%.
  • Acquisitions of $800,000.
  • Development openings of $250,000.
  • Ancillary net operating income between $160,000 and $165,000.

Challenges Ahead

  • Expense growth between 6.00% and 8.00%.
  • General and administrative expense between $105,000 and $111,000.
  • Interest expense of $140,000.
  • Preferred dividends of $195,000.
  • Capital expenditures between $400,000 and $450,000.