Public Storage (NYSE:PSA) announced today operating results for
the three months ended March 31, 2023.
“Public Storage’s first quarter was robust, with move-in volumes
up nearly 13%, same store NOI up more than 11%, and non-same store
acquisition and development NOI up nearly 30%,” said Joe Russell,
President and Chief Executive Officer. “We are focused on
operations, leading the self-storage industry’s digital evolution,
transforming our operating model, and enhancing and growing our
portfolio. We see opportunity across our business and are uniquely
positioned to execute on delivering growth and value to our
stakeholders.”
Highlights for the Three Months Ended
March 31, 2023
- Reported net income allocable to common shareholders of $2.65
per diluted share.
- Reported core FFO allocable to common shareholders (“Core FFO”)
of $4.08 per diluted share, an increase of 11.8% relative to the
same period in 2022. Core FFO per diluted share increased 16.2%
compared to the same period in 2022, excluding the contribution
from our equity investment in PS Business Parks, Inc., which we
sold in July 2022.
- Increased Same Store (as defined below) direct net operating
income by 10.2%, resulting from a 9.8% increase in Same Store
revenues.
- Achieved 78.9% Same Store direct net operating income margin,
an increase of 0.4% relative to the same period in 2022.
- Acquired five self-storage facilities with 0.3 million net
rentable square feet for $46.8 million. Subsequent to March 31,
2023, we acquired or were under contract to acquire 12 self-storage
facilities with 0.9 million net rentable square feet, for $139.0
million.
- Opened three newly developed facilities and completed various
expansion projects with 0.4 million net rentable square feet
costing $65.3 million. At March 31, 2023, we had various facilities
in development and expansion with 4.8 million net rentable square
feet estimated to cost $1.0 billion.
Operating Results for the Three Months
Ended March 31, 2023
For the three months ended March 31, 2023, net income allocable
to our common shareholders was $467.6 million or $2.65 per diluted
common share, compared to $464.1 million or $2.63 per diluted
common share for the same period in 2022, representing an increase
of $3.5 million or $0.02 per diluted common share. The increase is
due primarily to (i) a $92.0 million increase in self-storage net
operating income and (ii) a $15.3 million increase in interest and
other income, partially offset by (iii) a $62.2 million increase in
foreign currency exchange losses primarily associated with our Euro
denominated notes payable and (iv) a $37.4 million decrease in
equity in earnings of unconsolidated real estate entities due to
our sale of PSB in July 2022.
The $92.0 million increase in self-storage net operating income
in the three months ended March 31, 2023 as compared to the same
period in 2022 is a result of a $64.4 million increase attributable
to our Same Store Facilities and a $27.6 million increase
attributable to our Non-Same Store Facilities (as defined below).
Revenues for the Same Store Facilities increased 9.8% or $75.5
million in the three months ended March 31, 2023 as compared to the
same period in 2022, due primarily to higher realized annual rent
per occupied square foot, partially offset by a decline in
occupancy. Cost of operations for the Same Store Facilities
increased by 5.6% or $11.0 million in the three months ended March
31, 2023 as compared to the same period in 2022, due primarily to
increased property tax expense, repairs and maintenance expenses,
marketing expense, and other direct property costs. The increase in
net operating income of $27.6 million for the Non-Same Store
Facilities is due primarily to the impact of facilities acquired in
2021 and 2022 and the fill-up of recently developed and expanded
facilities.
Funds from Operations
Funds from Operations (“FFO”) and FFO per share are non-GAAP
measures defined by Nareit. We believe that FFO and FFO per share
are useful to REIT investors and analysts in measuring our
performance because Nareit’s definition of FFO excludes items
included in net income that do not relate to or are not indicative
of our operating and financial performance. FFO represents net
income before depreciation and amortization, which is excluded
because it is based upon historical costs and assumes that building
values diminish ratably over time, while we believe that real
estate values fluctuate due to market conditions. FFO also excludes
gains or losses on sale of real estate assets and real estate
impairment charges, which are also based upon historical costs and
are impacted by historical depreciation. FFO and FFO per share are
not a substitute for net income or earnings per share. FFO is not a
substitute for net cash flow in evaluating our liquidity or ability
to pay dividends, because it excludes investing and financing
activities presented on our consolidated statements of cash flows.
In addition, other REITs may compute these measures differently, so
comparisons among REITs may not be helpful.
For the three months ended March 31, 2023, FFO was $3.94 per
diluted common share as compared to $3.83 for the same period in
2022, representing an increase of 2.9%.
We also present “Core FFO” and “Core FFO per share,” non-GAAP
measures that represent FFO and FFO per share excluding the impact
of (i) foreign currency exchange gains and losses, (ii) charges
related to the redemption of preferred securities, and (iii)
certain other non-cash and/or nonrecurring income or expense items
primarily representing, with respect to the periods presented
below, the impact of contingency resolution, due diligence costs
incurred in pursuit of strategic transactions, unrealized gain on
private equity investments, and our equity share of severance of a
senior executive from our equity investees. We review Core FFO and
Core FFO per share to evaluate our ongoing operating performance,
and we believe they are used by investors and REIT analysts in a
similar manner. However, Core FFO and Core FFO per share are not
substitutes for net income and net income per share. Because other
REITs may not compute Core FFO or Core FFO per share in the same
manner as we do, may not use the same terminology, or may not
present such measures, Core FFO and Core FFO per share may not be
comparable among REITs.
The following table reconciles net income to FFO and Core FFO
and reconciles diluted earnings per share to FFO per share and Core
FFO per share (unaudited):
Three Months Ended March 31,
2023
2022
Percentage Change
(Amounts in thousands, except per
share data)
Reconciliation of
Net Income to FFO and Core FFO:
Net income allocable to common
shareholders
$
467,588
$
464,124
0.7
%
Eliminate items excluded from FFO:
Depreciation and amortization
219,787
220,795
Depreciation from unconsolidated real
estate investments
8,529
18,037
Depreciation allocated to noncontrolling
interests and restricted share unitholders
(1,473
)
(1,657
)
Gains on sale of real estate investments,
including our equity share from investments
—
(25,095
)
FFO allocable to common shares
$
694,431
$
676,204
2.7
%
Eliminate the impact of items excluded
from Core FFO, including our equity share from investments:
Foreign currency exchange loss (gain)
26,860
(35,377
)
Other items
(2,133
)
2,547
Core FFO allocable to common shares
$
719,158
$
643,374
11.8
%
Reconciliation of
Diluted Earnings per Share to FFO per Share and Core FFO per
Share:
Diluted earnings per share
$
2.65
$
2.63
0.8
%
Eliminate amounts per share excluded from
FFO:
Depreciation and amortization
1.29
1.35
Gains on sale of real estate investments,
including our equity share from investments
—
(0.15
)
FFO per share
$
3.94
$
3.83
2.9
%
Eliminate the per share impact of items
excluded from Core FFO, including our equity share from
investments:
Foreign currency exchange loss (gain)
0.15
(0.20
)
Other items
(0.01
)
0.02
Core FFO per share
$
4.08
$
3.65
11.8
%
Exclude the contribution from our equity
investment in PS Business Parks, Inc. to Core FFO per share
—
(0.14
)
Core FFO per share, excluding the impact
of PS Business Parks, Inc.
$
4.08
$
3.51
16.2
%
Diluted weighted average common shares
176,228
176,336
Property Operations – Same Store
Facilities
The Same Store Facilities consist of facilities that have been
owned and operated on a stabilized level of occupancy, revenues,
and cost of operations since January 1, 2021. Our Same Store
Facilities increased from 2,276 facilities at December 31, 2022 to
2,348 at March 31, 2023. The composition of our Same Store
Facilities allows us to more effectively evaluate the ongoing
performance of our self-storage portfolio in 2021, 2022, and 2023
and exclude the impact of fill-up of unstabilized facilities, which
can significantly affect operating trends. We believe the Same
Store information is used by investors and analysts in a similar
manner. However, because other REITs may not compute Same Store
Facilities in the same manner as we do, may not use the same
terminology, or may not present such a measure, Same Store
Facilities may not be comparable among REITs. The following table
summarizes the historical operating results (for all periods
presented) of these 2,348 facilities (155.5 million net rentable
square feet) that represent approximately 76% of the aggregate net
rentable square feet of our U.S. consolidated self-storage
portfolio at March 31, 2023 (unaudited):
Three Months Ended March 31,
2023
2022
Percentage Change
(Dollar amounts in thousands,
except for per square foot data)
Revenues (a):
Rental income
$
820,442
$
748,560
9.6
%
Late charges and administrative fees
28,282
24,700
14.5
%
Total revenues
848,724
773,260
9.8
%
Direct cost of operations (a):
Property taxes
76,871
73,237
5.0
%
On-site property manager payroll
32,592
31,804
2.5
%
Repairs and maintenance
18,052
15,940
13.2
%
Utilities
12,583
11,967
5.1
%
Marketing
15,580
11,740
32.7
%
Other direct property costs
23,258
20,762
12.0
%
Total direct cost of operations
178,936
165,450
8.2
%
Direct net operating income (b)
669,788
607,810
10.2
%
Indirect cost of operations (a):
Supervisory payroll
(9,215
)
(9,940
)
(7.3
)%
Centralized management costs
(15,923
)
(16,790
)
(5.2
)%
Share-based compensation
(3,145
)
(3,996
)
(21.3
)%
Net operating income (c)
$
641,505
$
577,084
11.2
%
Gross margin (before indirect costs,
depreciation and amortization expense)
78.9%
78.6%
0.4
%
Gross margin (before depreciation and
amortization expense)
75.6%
74.6%
1.3
%
Weighted average for the period:
Square foot occupancy
93.2%
95.5%
(2.4
)%
Realized annual rental income per (d):
Occupied square foot
$
22.65
$
20.16
12.4
%
Available square foot
$
21.10
$
19.25
9.6
%
At March 31:
Square foot occupancy
92.8%
95.0%
(2.3
)%
Annual contract rent per occupied square
foot (e)
$
22.94
$
20.71
10.8
%
(a)
Revenues and cost of operations do not
include tenant reinsurance and merchandise sales and expenses
generated at the facilities.
(b)
Direct net operating income (“Direct
NOI”), a subtotal within NOI, is a non-GAAP financial measure that
excludes the impact of supervisory payroll, centralized management
costs, and share-based compensation in addition to depreciation and
amortization expense. We utilize direct net operating income in
evaluating property performance and in evaluating property
operating trends as compared to our competitors.
(c)
See attached reconciliation of
self-storage NOI to net income.
(d)
Realized annual rent per occupied square
foot is computed by dividing annualized rental income, before late
charges and administrative fees, by the weighted average occupied
square feet for the period. Realized annual rent per available
square foot (“REVPAF”) is computed by dividing annualized rental
income, before late charges and administrative fees, by the total
available rentable square feet for the period. These measures
exclude late charges and administrative fees in order to provide a
better measure of our ongoing level of revenue. Late charges are
dependent upon the level of delinquency, and administrative fees
are dependent upon the level of move-ins. In addition, the rates
charged for late charges and administrative fees can vary
independently from rental rates. These measures take into
consideration promotional discounts, which reduce rental
income.
(e)
Annual contract rent represents the agreed
upon monthly rate that is paid by our tenants in place at the time
of measurement. Contract rates are initially set in the lease
agreement upon move-in, and we adjust them from time to time with
notice. Contract rent excludes other fees that are charged on a
per-item basis, such as late charges and administrative fees, does
not reflect the impact of promotional discounts, and does not
reflect the impact of rents that are written off as
uncollectible.
Property Operations – Non-Same Store
Facilities
In addition to the 2,348 Same Store Facilities, we have 529
facilities that were not stabilized with respect to occupancies,
revenues, or cost of operations since January 1, 2021 or that we
did not own as of January 1, 2021, including 311 facilities that
were acquired, 49 newly developed facilities, 87 facilities that
have been expanded or are targeted for expansion, and 82 facilities
that are unstabilized because they are undergoing fill-up or were
damaged in casualty events (collectively, the “Non-Same Store
Facilities”). Operating data, metrics, and further commentary with
respect to these facilities, including detail by vintage, are
included in “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” under “Analysis of Net Income
– Self-Storage Operations” in our March 31, 2023 Form 10-Q.
Investing and Capital
Activities
During the three months ended March 31, 2023, we closed the
acquisition of five self-storage facilities (one each in Florida,
Idaho, Kentucky, Michigan, and Virginia) with 0.3 million net
rentable square feet for $46.8 million.
Subsequent to March 31, 2023, we acquired or were under contract
to acquire 12 self-storage facilities across three states with 0.9
million net rentable square feet, for $139.0 million.
During 2021, we acquired a portfolio of 48 properties (4.1
million net rentable square feet) operated under the brand name of
ezStorage for $1.8 billion. As of March 31, 2023, we have completed
the expansion projects on four facilities of this portfolio for
$26.3 million, adding 169,000 net rentable square feet of storage
space. These facilities generated revenues of $25.6 million, NOI of
$20.0 million (including Direct NOI of $20.5 million), and average
square footage occupancy of 85.7% for the three months ended March
31, 2023.
During 2021, we acquired a portfolio of 56 properties (7.5
million net rentable square feet) operated under the brand name of
All Storage for $1.5 billion. These facilities generated revenues
of $21.4 million, NOI of $13.3 million (including Direct NOI of
$14.2 million), and average square footage occupancy of 78.5% for
the three months ended March 31, 2023.
During the three months ended March 31, 2023, we opened three
newly developed facilities and completed various expansion projects
(0.4 million net rentable square feet – 0.1 million each in
Florida, Maryland, New Jersey, and Pennsylvania) costing $65.3
million. At March 31, 2023, we had various facilities in
development (2.4 million net rentable square feet) estimated to
cost $537.8 million and various expansion projects (2.4 million net
rentable square feet) estimated to cost $488.2 million. Our
aggregate 4.8 million net rentable square foot pipeline of
development and expansion facilities includes 1.7 million in
California, 0.9 million in Texas, 0.4 million in Nevada, 0.3
million each in Florida, Hawaii, and Maryland, 0.2 million in
Washington, and 0.7 million in other states. The remaining $648.6
million of development costs for these projects are expected to be
incurred primarily in the next 18 to 24 months.
Distributions Declared
On May 2, 2023, our Board of Trustees declared a regular common
quarterly dividend of $3.00 per common share. The Board also
declared dividends with respect to our various series of preferred
shares. All the dividends are payable on June 29, 2023 to
shareholders of record as of June 14, 2023.
Outlook for the Year Ending December
31, 2023
Set forth below are our current expectations with respect to
full year 2023 Core FFO per share and certain underlying
assumptions. In reliance on the exception provided by applicable
SEC rules, we do not provide guidance for GAAP net income per
share, the most comparable GAAP financial measure, or a
reconciliation of 2023 Core FFO per share to GAAP net income per
share because we are unable to reasonably predict the following
items which are included in GAAP net income: (i) gains or losses on
sales of real estate investments, (ii) foreign currency exchange
gains and losses, (iii) charges related to the redemption of
preferred securities, and (iv) certain other significant non-cash
and/or nonrecurring income or expense items. The actual amounts for
any and all of these items could significantly impact our 2023 GAAP
net income and, as disclosed in our historical financial results,
have significantly impacted GAAP net income in prior periods.
Guidance Ranges for
2023
Low
High
($ amounts in thousands, except
per share data)
Same Store:
Revenue growth
2.75%
5.00%
Expense growth
4.75%
6.75%
Net operating income growth
1.50%
5.10%
Acquisitions
$750,000
Development openings
$375,000
Non-Same Store net operating income
$510,000
$530,000
Ancillary net operating income
$169,000
$174,000
General and administrative expense
$100,000
$106,000
Interest expense
$177,000
Preferred dividends
$195,000
Capital expenditures
$450,000
Core FFO per share
$16.15
$16.80
Core FFO per share growth from 2022 Core
FFO per share
1.4%
5.5%
Core FFO per share growth from 2022 Core
FFO per share, excluding the impact of PS Business Parks, Inc.
3.6%
7.8%
Incremental Non-Same Store NOI to
stabilization (2024 and beyond)
$80,000
First Quarter Conference
Call
A conference call is scheduled for May 4, 2023 at 9:00 a.m. (PT)
to discuss the first quarter earnings results. The domestic dial-in
number is (800) 225-9448, and the international dial-in number is
(203) 518-9708 (conference ID number for either domestic or
international is PSAQ123). A simultaneous audio webcast may be
accessed by using the link at www.publicstorage.com under “About
Us, Investor Relations, News and Events, Event Calendar.” A replay
of the conference call may be accessed through May 11, 2023 by
calling (800) 839-5246 (domestic), (402) 220-2702 (international)
or by using the link at www.publicstorage.com under “About Us,
Investor Relations, News and Events, Event Calendar.”
About Public Storage
Public Storage, a member of the S&P 500 and FT Global 500,
is a REIT that primarily acquires, develops, owns, and operates
self-storage facilities. At March 31, 2023, we had: (i) interests
in 2,877 self-storage facilities located in 40 states with
approximately 205 million net rentable square feet in the United
States and (ii) a 35% common equity interest in Shurgard Self
Storage Limited (Euronext Brussels:SHUR), which owned 266
self-storage facilities located in seven Western European nations
with approximately 15 million net rentable square feet operated
under the Shurgard® brand. Our headquarters are located in
Glendale, California.
This press release, our Form 10-Q for the first quarter of 2023,
a financial supplement, and additional information about Public
Storage are available on our website, www.publicstorage.com.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements include statements relating to our
2023 outlook and all underlying assumptions, our expected
acquisition, disposition, development, and redevelopment activity,
supply and demand for our self-storage facilities, information
relating to operating trends in our markets, expectations regarding
operating expenses, including property tax changes, expectations
regarding the impacts from inflation and a potential future
recession, our strategic priorities, expectations with respect to
financing activities, rental rates, cap rates, and yields, leasing
expectations, our credit ratings, and all other statements other
than statements of historical fact. Such statements are based on
management’s beliefs and assumptions made based on information
currently available to management and may be identified by the use
of the words “outlook,” “guidance,” “expects,” “believes,”
“anticipates,” “should,” “estimates,” and similar expressions.
These forward-looking statements involve known and unknown risks
and uncertainties, which may cause our actual results and
performance to be materially different from those expressed or
implied in the forward-looking statements. Risks and uncertainties
that may impact future results and performance include, but are not
limited to those described in Part 1, Item 1A, “Risk Factors” in
our most recent Annual Report on Form 10-K filed with the
Securities and Exchange Commission (the “SEC”) on February 21, 2023
and in our other filings with the SEC. These include changes in
demand for our facilities, impacts of natural disasters, adverse
changes in laws and regulations including governing property tax,
evictions, rental rates, minimum wage levels, and insurance,
adverse economic effects from the COVID-19 Pandemic, international
military conflicts, or similar events impacting public health
and/or economic activity, increases in the costs of our primary
customer acquisition channels, adverse impacts to us and our
customers from inflation, unfavorable foreign currency rate
fluctuations, changes in federal or state tax laws related to the
taxation of REITs, security breaches, including ransomware, or a
failure of our networks, systems, or technology. These
forward-looking statements speak only as of the date of this press
release or as of the dates indicated in the statements. All of our
forward-looking statements, including those in this press release,
are qualified in their entirety by this cautionary statement. We
expressly disclaim any obligation to update publicly or otherwise
revise any forward-looking statements, whether as a result of new
information, new estimates, or other factors, events, or
circumstances after the date of these forward-looking statements,
except when expressly required by law. Given these risks and
uncertainties, you should not rely on any forward-looking
statements in this press release, or which management may make
orally or in writing from time to time, neither as predictions of
future events nor guarantees of future performance.
PUBLIC STORAGE
SELECTED CONSOLIDATED INCOME
STATEMENT DATA
(Amounts in thousands, except per
share data)
(Unaudited)
Three Months Ended March 31,
2023
2022
Revenues:
Self-storage facilities
$
1,032,184
$
917,015
Ancillary operations
62,048
56,430
1,094,232
973,445
Expenses:
Self-storage cost of operations
268,615
245,494
Ancillary cost of operations
19,676
15,515
Depreciation and amortization
221,650
222,128
General and administrative
25,544
23,069
Interest expense
36,101
33,124
571,586
539,330
Other increases (decreases) to net
income:
Interest and other income
18,634
3,379
Equity in earnings of unconsolidated real
estate entities
5,995
43,424
Foreign currency exchange (loss) gain
(26,860
)
35,377
Net income
520,415
516,295
Allocation to noncontrolling interests
(2,707
)
(2,352
)
Net income allocable to Public Storage
shareholders
517,708
513,943
Allocation of net income to:
Preferred shareholders – distributions
(48,678
)
(48,365
)
Restricted share units
(1,442
)
(1,454
)
Net income allocable to common
shareholders
$
467,588
$
464,124
Per common share:
Net income per common share – Basic
$
2.67
$
2.65
Net income per common share – Diluted
$
2.65
$
2.63
Weighted average common shares – Basic
175,451
175,170
Weighted average common shares –
Diluted
176,228
176,336
PUBLIC STORAGE
SELECTED CONSOLIDATED BALANCE
SHEET DATA
(Amounts in thousands, except
share and per share data)
March 31, 2023
December 31, 2022
ASSETS
(Unaudited)
Cash and equivalents
$
695,424
$
775,253
Real estate facilities, at cost:
Land
5,293,989
5,273,073
Buildings
19,129,120
18,946,053
24,423,109
24,219,126
Accumulated depreciation
(8,759,281
)
(8,554,155
)
15,663,828
15,664,971
Construction in process
377,348
372,992
16,041,176
16,037,963
Investments in unconsolidated real estate
entities
285,692
275,752
Goodwill and other intangible assets,
net
219,730
232,517
Other assets
265,756
230,822
Total assets
$
17,507,778
$
17,552,307
LIABILITIES AND EQUITY
Notes payable
$
6,899,335
$
6,870,826
Accrued and other liabilities
470,395
514,680
Total liabilities
7,369,730
7,385,506
Equity:
Public Storage shareholders’ equity:
Preferred Shares, $0.01 par value,
100,000,000 shares authorized, 174,000 shares issued (in series)
and outstanding, (174,000 at December 31, 2022) at liquidation
preference
4,350,000
4,350,000
Common Shares, $0.10 par value,
650,000,000 shares authorized, 175,466,222 shares issued and
outstanding (175,265,668 shares at December 31, 2022)
17,547
17,527
Paid-in capital
5,923,564
5,896,423
Accumulated deficit
(168,952
)
(110,231
)
Accumulated other comprehensive loss
(76,448
)
(80,317
)
Total Public Storage shareholders’
equity
10,045,711
10,073,402
Noncontrolling interests
92,337
93,399
Total equity
10,138,048
10,166,801
Total liabilities and equity
$
17,507,778
$
17,552,307
PUBLIC STORAGE
SELECTED FINANCIAL
DATA
Computation of Funds Available
for Distribution (“FAD”)
(Unaudited – amounts in thousands
except per share data)
Three Months Ended March 31,
2023
2022
FFO allocable to common shares
$
694,431
$
676,204
Eliminate effect of items included in FFO
but not FAD:
Share-based compensation expense in excess
of cash paid
913
3,354
Foreign currency exchange loss (gain)
26,860
(35,377
)
Less: Capital expenditures to maintain
real estate facilities
(93,740
)
(91,344
)
FAD (a)
$
628,464
$
552,837
Distributions paid to common
shareholders
$
526,391
$
350,169
Distribution payout ratio
83.8%
63.3%
Distributions per common share
$
3.00
$
2.00
(a)
FAD represents FFO adjusted to exclude
certain non-cash charges and to deduct capital expenditures. We
utilize FAD in evaluating our ongoing cash flow available for
investment, debt repayment, and common distributions. We believe
investors and analysts utilize FAD in a similar manner. FAD is not
a substitute for GAAP net cash flow in evaluating our liquidity or
ability to pay dividends, because it excludes investing and
financing activities presented on our statements of cash flows. In
addition, other REITs may compute this measure differently, so
comparisons among REITs may not be helpful.
PUBLIC STORAGE
SELECTED FINANCIAL
DATA
Reconciliation of Self-Storage
Net Operating Income to Net Income
(Unaudited – amounts in
thousands)
Three Months Ended March 31,
2023
2022
Self-storage revenues for:
Same Store Facilities
$
848,724
$
773,260
Acquired facilities
95,222
69,303
Newly developed and expanded
facilities
62,031
51,084
Other non-same store facilities
26,207
23,368
Self-storage revenues
1,032,184
917,015
Self-storage cost of operations for:
Same Store Facilities
207,219
196,176
Acquired facilities
32,879
24,217
Newly developed and expanded
facilities
19,353
16,450
Other non-same store facilities
9,164
8,651
Self-storage cost of operations
268,615
245,494
Self-storage NOI for:
Same Store Facilities
641,505
577,084
Acquired facilities
62,343
45,086
Newly developed and expanded
facilities
42,678
34,634
Other non-same store facilities
17,043
14,717
Self-storage NOI (a)
763,569
671,521
Ancillary revenues
62,048
56,430
Ancillary cost of operations
(19,676
)
(15,515
)
Depreciation and amortization
(221,650
)
(222,128
)
General and administrative expense
(25,544
)
(23,069
)
Interest and other income
18,634
3,379
Interest expense
(36,101
)
(33,124
)
Equity in earnings of unconsolidated real
estate entities
5,995
43,424
Foreign currency exchange (loss) gain
(26,860
)
35,377
Net income on our income statement
$
520,415
$
516,295
(a)
Net operating income or “NOI” is a
non-GAAP financial measure that excludes the impact of depreciation
and amortization expense, which is based upon historical costs and
assumes that building values diminish ratably over time, while we
believe that real estate values fluctuate due to market conditions.
We utilize NOI in determining current property values, evaluating
property performance, and evaluating operating trends. We believe
that investors and analysts utilize NOI in a similar manner. NOI is
not a substitute for net income, operating cash flow, or other
related GAAP financial measures, in evaluating our operating
results. This table reconciles from NOI for our self-storage
facilities to the net income presented on our income statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503005155/en/
Ryan Burke (818) 244-8080, Ext. 1141
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