Public Storage Q4 2022 Earnings Report
Key Takeaways
Public Storage reported strong Q4 2022 results, with core FFO per diluted share increasing by 17.5% and same-store direct net operating income rising by 15.0%. The company's strategic focus on digital transformation, operating model enhancements, and a strong balance sheet positions it for continued growth and value creation.
Net income allocable to common shareholders was $2.06 per diluted share.
Core FFO allocable to common shareholders increased 17.5% to $4.16 per diluted share.
Same Store direct net operating income increased by 15.0%, driven by a 13.0% increase in Same Store revenues.
Acquired 30 self-storage facilities with 1.6 million net rentable square feet for $228.6 million.
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, with expectations for Same Store revenue growth between 2.50% and 5.00% and Core FFO per share between $16.10 and $16.80.
Positive Outlook
- Same Store revenue growth is expected to be between 2.50% and 5.00%.
- Non-Same Store net operating income is projected to be between $510 million and $530 million.
- Ancillary net operating income is anticipated to be between $169 million and $174 million.
- Development openings are planned for $375 million.
- Core FFO per share is expected to grow between 1.1% and 5.5% from 2022 Core FFO per share.
Challenges Ahead
- Expense growth is projected to be between 4.75% and 6.75%.
- Capital expenditures are estimated at $450 million.
- Interest expense is expected to be $177 million.
- Preferred dividends are projected to be $195 million.
- General and administrative expense is anticipated to be between $100 million and $106 million.