Dec 31, 2023

Public Storage Q4 2023 Earnings Report

Public Storage's Q4 2023 financial performance reflected an increase in net income and Core FFO, driven by growth in self-storage net operating income and strategic acquisitions.

Key Takeaways

Public Storage reported a net income allocable to common shareholders of $2.21 per diluted share for Q4 2023, with Core FFO increasing by 1.0% to $4.20 per diluted share. The company achieved a Same Store direct net operating income margin of 79.7%. They also continued to expand their portfolio through acquisitions and development projects, enhancing their position for future growth and value creation.

Net income allocable to common shareholders was reported at $2.21 per diluted share.

Core FFO reached $4.20 per diluted share, a 1.0% increase year-over-year.

Same Store direct net operating income margin was 79.7%.

Eleven self-storage facilities were acquired for $171.9 million, adding 0.8 million net rentable square feet.

Total Revenue
$1.16B
Previous year: $1.03B
+12.8%
EPS
$4.2
Previous year: $4.16
+1.0%
REVPAF
$21.2
Previous year: $21.3
-0.1%
Average Occupancy
92.7%
Previous year: 93.4%
-0.7%
Gross Profit
$869M
Previous year: $829M
+4.8%
Cash and Equivalents
$370M
Previous year: $775M
-52.3%
Free Cash Flow
$661M
Total Assets
$19.8B
Previous year: $17.6B
+12.9%

Public Storage

Public Storage

Public Storage Revenue by Segment

Public Storage Revenue by Geographic Location

Forward Guidance

Public Storage provided its outlook for the year ending December 31, 2024, focusing on Same Store revenue and expense growth, acquisitions, development openings, and Core FFO per share.

Positive Outlook

  • Same Store revenue growth is expected to be between -1.0% and 1.0%.
  • Non-Same Store net operating income is projected to be between $495 million and $515 million.
  • Ancillary net operating income is anticipated to be between $183 million and $186 million.
  • Acquisitions are planned for $500 million.
  • Development openings are estimated at $450 million.

Challenges Ahead

  • Same Store net operating income growth is projected to be between -2.4% and 0.7%.
  • Expense growth is expected to be between 2.0% and 3.5%.
  • General and administrative expenses are estimated to be between $84 million and $90 million.
  • Interest expense is projected to be $289 million.
  • Core FFO per share growth from 2023 Core FFO per share is expected to be between -1.7% and 1.8%.