News Release Public Storage 701 Western Avenue Glendale, CA 91201-2349 www.publicstorage.com | For Release | Immediately | | --- | --- | | Date | April 30, 2024 | | Contact | Ryan Burke | | | (818) 244-8080, Ext. 1141 | Public Storage Reports Results for the Three Months Ended March 31, 2024 GLENDALE, California – Public Storage (NYSE:PSA) announced today operating results for the three months ended March 31, 2024. "With first quarter performance in-line with our expectations, the Public Storage team is enc ...

Public Storage (NYSE:PSA) Q4 2023 Results Conference Call February 21, 2024 12:00 PM ET Company Participants Ryan Burke - Vice President, Investor Relations Joe Russell - President and Chief Executive Officer Tom Boyle - Senior Vice President, Chief Financial Officer, and Chief Investment Officer Conference Call Participants Steve Sakwa - Evercore ISI Michael Goldsmith - UBS Juan Sanabria - BMO Capital Markets Jeff Spector - Bank of America Keegan Carl - Wolfe Research Spenser Allaway - Green Street Advisor ...

Financial Performance - In 2023, net income allocable to common shareholders was $1.9 billion or $11.06 per diluted common share, a decrease of $2.2 billion or $12.44 per diluted common share compared to 2022[161]. - Net income allocable to common shareholders decreased by 53.0% to $1,948,741 in 2023 from $4,142,288 in 2022[170]. - Total net income increased by 7.2% to $2,227,607 in 2023 from $2,077,673 in 2022[174]. - FFO allocable to common shares increased by 0.8% to $2,924,288 in 2023 compared to $2,900,815 in 2022[170]. - Core FFO allocable to common shares rose by 6.0% to $2,975,932 in 2023 from $2,806,980 in 2022[170]. - Total revenues for 2023 reached $3,427.867 million, a 4.7% increase from 2022[199]. - Total revenues for 2022 reached $3,273.8 million, a 15.2% increase from $2,841.6 million in 2021[203]. - Net operating income for 2023 was $2,625.598 million, reflecting a 4.7% growth compared to the previous year[199]. - Net operating income for 2022 was $2,507.4 million, reflecting an 18.5% growth compared to $2,116.9 million in 2021[203]. Revenue Sources - Revenues from Same Store Facilities increased by 4.7% ($154.0 million) in 2023, while Same Store cost of operations also increased by 4.7% ($35.9 million)[155]. - Same Store Facilities revenue increased by 4.7% to $3,427,867 in 2023 from $3,273,823 in 2022[174]. - Acquired Facilities revenue surged by 37.7% to $450,653 in 2023 compared to $327,245 in 2022[174]. - Total revenues from ancillary operations rose to $258.1 million in 2023, up from $236.1 million in 2022, reflecting a growth of $21.9 million[232]. Operational Metrics - The average square foot occupancy for Same Store Facilities was 93.3% in 2023, a decrease of 1.6% compared to 2022[184]. - Realized annual rent per occupied square foot increased by 6.3% to $22.93 in 2023 compared to $21.58 in 2022[182]. - Move-in volumes increased by 8.8% in 2023, which helped offset a 5.9% increase in move-out volumes[184]. - The average annual contract rent per square foot for tenants moving in was $18.12 in 2023, a decrease of 13.9% compared to 2022[190]. - Average occupancy across same store facilities was 93.3% in 2023, a slight decrease of 1.6% from 2022[198]. Acquisitions and Expansions - The company acquired BREIT Simply Storage LLC for $2.2 billion, adding 127 self-storage facilities (9.4 million square feet) to its portfolio[157]. - The company has acquired a total of 470 facilities since the beginning of 2021 for $8.5 billion, totaling 38.8 million net rentable square feet[156]. - The company completed expansion projects on four properties from the ezStorage portfolio, adding 169,000 net rentable square feet at a cost of $26.5 million[210]. - The company expects to add 1.3 million net rentable square feet of storage space through ongoing expansions at a direct development cost of $304.8 million[225]. Cost Management - The company experienced inflationary impacts on operations, including labor and utilities, and has implemented initiatives to manage these costs[159]. - Cost of operations (excluding depreciation and amortization) increased by 4.7% in 2023 compared to the previous year, driven primarily by higher property tax, marketing, and direct property costs[192]. - Property tax expense rose by 3.4% in 2023, attributed to higher assessed values[193]. - Marketing expenses surged by 44.5% in 2023, utilizing more online paid search programs to attract new tenants[194]. Debt and Financing - As of December 31, 2023, the company had $9.1 billion in notes payable outstanding, with a weighted average interest rate of approximately 3.1%[246]. - Interest expense for 2023 was $210.4 million, up from $142.4 million in 2022, primarily due to the issuance of $2.2 billion in notes payable[246]. - The company plans to refinance $810 million in scheduled principal repayments on unsecured notes due in April 2024[261]. - The company has a revolving line of credit with a borrowing capacity of $1.5 billion, with no outstanding borrowings as of February 20, 2024[255]. Risks and Challenges - The company faces risks from public health crises, economic downturns, and regulatory changes that could adversely impact demand for self-storage[83][86]. - Cybersecurity threats pose risks to the company's confidential information, potentially damaging its reputation and financial condition[94][98]. - High interest rates and challenging market conditions could limit the company's ability to raise capital at attractive terms[81]. - The company may incur adverse tax consequences if it fails to qualify as a REIT, which could lead to substantial U.S. federal corporate income taxes[109]. Future Outlook - The company anticipates that same store revenues in 2024 will be similar to those earned in 2023 due to stabilizing demand and fewer new self-storage completions[187]. - The company plans to continue leveraging internet advertising and other channels to support move-in volumes in 2024[194].

Financial Performance - Reported net income allocable to common shareholders of $2.21 per diluted share for Q4 2023, an increase from $2.06 per diluted share in Q4 2022[7] - Total net income allocable to common shareholders for 2023 was $1.9 billion, or $11.06 per diluted share, down from $4.1 billion in 2022[9] - Net income allocable to common shareholders for Q4 2023 was $389.7 million, a 7.5% increase from $362.6 million in Q4 2022[14] - Net income for the year ended December 31, 2023, was $2.16 billion, down from $4.37 billion in 2022, a decrease of 50.51%[37] Funds from Operations (FFO) - Core FFO for Q4 2023 was $4.20 per diluted share, a 1.0% increase compared to the same period in 2022[6] - FFO for Q4 2023 was $3.78 per diluted common share, an 11.8% increase from Q4 2022[12] - FFO allocable to common shares increased by 12.0% to $666.3 million in Q4 2023, compared to $595.1 million in Q4 2022[14] - Core FFO allocable to common shares rose by 1.1% to $740.3 million in Q4 2023, up from $732.0 million in Q4 2022[14] - Core FFO per share for the year ended December 31, 2023, was $16.89, a 6.1% increase from $15.92 in 2022[14] - Funds from Operations (FFO) allocable to common shares for Q4 2023 was $666.26 million, compared to $595.12 million in Q4 2022, an increase of 11.97%[34] Revenue and Income Growth - Same Store revenues increased by 4.7% in 2023, contributing to a $231.8 million increase in self-storage net operating income[10] - Total revenues from Same Store Facilities for Q4 2023 were $851.4 million, a 0.8% increase from $845.0 million in Q4 2022[15] - Rental income from Same Store Facilities for the year ended December 31, 2023, was $3.31 billion, reflecting a 4.5% increase from $3.17 billion in 2022[15] - In 2023, the self-storage facilities generated revenues of $1,092.6 million, an increase from $1,028.4 million in 2022, representing a growth of 6.2%[30] - Self-storage revenues for same store facilities reached $851.43 million in Q4 2023, slightly up from $844.99 million in Q4 2022, indicating a growth of 0.53%[37] Acquisitions and Developments - Acquired eleven self-storage facilities for $171.9 million, adding 0.8 million net rentable square feet[6] - Closed the Simply Acquisition for $2.2 billion, which included 127 self-storage facilities[6] - The company acquired 164 self-storage facilities in 2023, adding 12.1 million net rentable square feet to its portfolio for a total cost of $2.7 billion[18] - The Simply portfolio of 127 properties generated self-storage revenues of $44.4 million and an NOI of $29.4 million since acquisition in 2023[19] - Opened eleven newly developed facilities in 2023, adding 1.7 million net rentable square feet at a cost of $362.9 million[6] - The company completed expansion projects on four facilities for $26.5 million, adding 169,000 net rentable square feet of storage space[20] Occupancy and Operating Metrics - Same Store direct net operating income margin reached 79.7% in Q4 2023[6] - The weighted average square foot occupancy for Same Store Facilities was 92.7% in Q4 2023, down from 93.4% in Q4 2022[15] - The average square footage occupancy for the ezStorage facilities was 86.3% in 2023[20] - The total net operating income (NOI) for Same Store Facilities was $2,828.6 million in 2023, while Non-Same Store Facilities generated NOI of $369.1 million[23] - Self-storage net operating income (NOI) for same store facilities was $653.50 million in Q4 2023, slightly down from $656.75 million in Q4 2022, a decrease of 0.34%[37] Financial Position and Liabilities - Total assets increased to $19.81 billion as of December 31, 2023, up from $17.55 billion in 2022, representing a growth of 12.85%[32] - Total liabilities rose to $9.70 billion as of December 31, 2023, from $7.39 billion in 2022, marking an increase of 31.19%[32] - Goodwill and other intangible assets increased to $387.27 million as of December 31, 2023, from $232.52 million in 2022, reflecting a growth of 66.73%[32] Future Guidance - For 2024, the company expects Same Store revenue growth to range from -1.0% to 1.0% and net operating income growth to range from -2.4% to 0.7%[24] - The Core FFO per share guidance for 2024 is projected to be between $16.60 and $17.20, reflecting a growth rate of -1.7% to 1.8% from 2023[24] Dividends and Distributions - The distribution payout ratio for regular dividends was 86.8% in Q4 2023, compared to 56.6% in Q4 2022, showing a significant increase[34] - Regular distributions per common share increased to $3.00 in Q4 2023, up from $2.00 in Q4 2022, a rise of 50%[34] Interest Expenses - The company incurred interest expenses of $201.1 million for the year ended December 31, 2023, compared to $136.3 million in 2022[30]

imaginima Dear readers, Today, I would like to take a look at a self-storage REIT, Public Storage (NYSE:PSA), and why it might make a good investment. Self-storage REITs can benefit from two major demand shifters that we are seeing in the market right now. 1. Migration - which has been on the rise as many people move because of work. This often makes it harder for them to store their belongings which is why they opt for a self-storage unit. 2. Downsizing - since the price of living is increasing many people ...

Public Storage (NYSE:PSA) Q3 2023 Earnings Conference Call October 31, 2023 12:00 PM ET Company Participants Ryan Burke - Vice President, Investor Relations Joe Russell - President and Chief Executive Officer Tom Boyle - Senior Vice President, Chief Financial Officer, and Chief Investment Officer Conference Call Participants Michael Goldsmith - UBS Steve Sakwa - Evercore ISI Spenser Allaway - Green Street Advisors Juan Sanabria - BMO Capital Markets Jeff Spector - Bank of America Todd Thomas - KeyBanc Capit ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____________ to ____________. Commission File Number: 001-33519 Public Storage (Exact name of registrant as specified in its charter) | Maryland | 93-2834996 | | --- ...

Public Storage (NYSE:PSA) Q2 2023 Earnings Call Transcript August 3, 2023 12:00 PM ET Company Participants Ryan Burke - Vice President of Investor Relations Joseph Russell - President and Chief Executive Officer Tom Boyle - Senior Vice President, Chief Financial Officer, and Chief Investment Officer Conference Call Participants Michael Goldsmith - UBS Samir Khanal - Evercore Todd Thomas - KeyBanc Capital Markets Jeff Spector - Bank of America Spenser Allaway - Green Street Advisors Smedes Rose - Citigroup J ...

Financial Performance - Revenues from Same Store Facilities increased by 6.3% ($51.1 million) for Q2 2023 and 8.0% ($126.5 million) for the first half of 2023 compared to the same periods in 2022[125]. - Net income allocable to common shareholders for Q2 2023 was $528.3 million ($3.00 per diluted share), down from $603.4 million ($3.42 per diluted share) in Q2 2022, a decrease of $75.1 million or 12.4%[133]. - Funds from Operations (FFO) for Q2 2023 was $4.29 per diluted share, a decrease of 6.3% from $4.58 per diluted share in Q2 2022[138]. - Core FFO for the first half of 2023 was $8.24 per diluted share, down 2.0% from $8.41 per diluted share in the same period of 2022[139]. - Total revenues from self-storage operations rose by 8.5% to $1,056,120,000 for the three months ended June 30, 2023, compared to $973,286,000 in 2022[145]. - Total revenues for the first half of 2023 reached $1,711,673,000, representing an 8.0% increase compared to $1,585,210,000 in 2022[173]. - Total revenues for the three months ended June 30, 2023, were $64.705 million, an increase of 15.2% compared to $56.177 million in the same period of 2022[182]. - Net income for the six months ended June 30, 2023, was $58.875 million, up 18.1% from $49.842 million in the prior year[182]. Operational Metrics - Net operating income from Acquired Facilities and Newly Developed and Expanded Facilities increased by 24.1% ($21.8 million) for Q2 2023 and 27.7% ($47.1 million) for the first half of 2023 compared to the same periods in 2022[126]. - Net operating income (NOI) for self-storage operations increased by 8.6% to $798,442,000 for the three months ended June 30, 2023, compared to $735,297,000 in 2022[145]. - Average square foot occupancy decreased to 93.7% for the three months ended June 30, 2023, down 2.1% from 95.7% in 2022[155]. - Average occupancy across Same Store Facilities was 93.7% as of June 30, 2023, down from 95.7% in 2022, indicating a decline of 2.1%[169]. - Average occupancy across all markets was 93.5% in 2023, down from 95.6% in 2022, reflecting a 2.2% decrease[172]. - Average square foot occupancy for the 2021 acquisitions was 85.2% as of June 30, 2023, a decrease of 0.9% from the previous year[174]. - Average occupancy for self-storage facilities was 88.4% for the three months ended June 30, 2023, compared to 91.5% in the same period of 2022[193]. Acquisitions and Developments - The company acquired 322 facilities since the beginning of 2021, totaling 28.0 million net rentable square feet for $6.0 billion[126]. - The company entered into a definitive agreement to acquire BREIT Simply Storage LLC for $2.2 billion, which includes 127 self-storage facilities[129]. - The company completed expansion projects on the ezStorage portfolio, adding 169,000 net rentable square feet at a cost of $26.4 million[177]. - The company plans to add 127 wholly-owned self-storage facilities (9.4 million net rentable square feet) as part of the Simply Acquisition announced on July 24, 2023[179]. - The company has 136 facilities in total, an increase of 11 from 125 in the previous year[183]. - As of June 30, 2023, the company had 25 additional facilities in development, totaling 2.5 million net rentable square feet with an aggregate development cost of approximately $554.0 million[189]. Expenses and Costs - The company experienced a $165.1 million decrease in foreign currency exchange gains for the first half of 2023 compared to the same period in 2022[135]. - Total direct cost of operations increased by 6.7% to $169,999 for the three months ended June 30, 2023, from $159,366 in 2022[162]. - Property tax expense increased by 3.6% and 4.3% for the three and six months ended June 30, 2023, respectively, compared to the same periods in 2022, with an expected growth of 5.3% for the full year 2023 due to higher assessed values[163]. - On-site property manager payroll expense rose by 3.1% and 2.8% for the three and six months ended June 30, 2023, respectively, primarily due to competitive labor conditions, with expectations of inflationary increases in 2023[164]. - Repairs and maintenance expense increased by 7.2% and 10.4% for the three and six months ended June 30, 2023, respectively, influenced by various factors including equipment malfunctions and local supply conditions[165]. - Marketing expense surged by 59.2% and 44.3% for the three and six months ended June 30, 2023, respectively, as the company increased online paid search programs to attract new tenants[166]. - Other direct property costs rose by 5.6% and 8.8% for the three and six months ended June 30, 2023, respectively, mainly due to increased credit card fees associated with higher revenues[167]. Future Outlook - The company expects weaker industry-wide demand for the remainder of 2023, with potential revenue growth rates declining significantly compared to previous years[158]. - The company expects a moderate increase in other direct property costs for the remainder of 2023, primarily driven by rising credit card fees[167]. - The company expects future growth to primarily come from customers of newly acquired and developed facilities, as well as additional tenants at existing unstabilized self-storage facilities[197]. - Annual operating retained cash flow increased from $200 million in previous years to approximately $1 billion in 2022, with an expected retained cash flow of $400 million for 2023[212]. Debt and Financing - The principal outstanding on the company's debt totaled approximately $6.9 billion as of June 30, 2023, with a weighted average effective rate of 2.3%[235]. - The company amended its revolving line of credit, increasing the borrowing limit from $500 million to $1.5 billion, with no outstanding borrowings as of August 2, 2023[215]. - The company plans to refinance $700 million of U.S. Dollar denominated unsecured notes and €100 million of Euro denominated unsecured notes maturing in April 2024[222]. Shareholder Returns - The company declared a quarterly dividend of $3.00 per common share, totaling approximately $526 million, representing a 50% increase from the previous year[227]. - The company has authorized the repurchase of up to 35 million common shares, with a total of 23,721,916 shares repurchased at an aggregate cost of approximately $679.1 million[234].

Financial Data and Key Metrics Changes - The company reported core FFO of $4.08 for the quarter, representing a 16.2% growth over the first quarter of 2022, excluding contributions from PSB [12] - Same-store revenues increased by nearly 10% year-over-year, with a 9.8% increase specifically noted for the same-store pool [4][12] - Same-store cost of operations rose by 5.6%, leading to a total net operating income growth of 11.2% for the same-store pool [13] Business Line Data and Key Metrics Changes - Same-store move-in volume was up nearly 13%, indicating strong performance from existing customers [1][4] - The lease-up performance of recently acquired and developed facilities grew by 29% compared to last year [13] - The non-same store acquisition and development pool now constitutes nearly 25% of the overall portfolio and continues to outperform [1] Market Data and Key Metrics Changes - The transaction market has been relatively quiet, with potential sellers cautious due to macroeconomic conditions, but the company has closed or is under contract to acquire nearly $200 million worth of assets, on track for a $750 million outlook for the year [11][12] - The company noted that move-in volume growth has been favorable, with April being characterized as strong [7][21] Company Strategy and Development Direction - The company is focused on leading the self-storage industry's digital evolution and enhancing its operating model [97] - A development pipeline exceeding $1 billion is being driven to be delivered over the next 24 months, with a focus on growth and value for shareholders [98][6] - The company is well-positioned to capitalize on acquisition opportunities, particularly in off-market transactions, leveraging its reputation as a preferred buyer [3][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current operating environment, noting that the inherent demand in the market is strong and that they are encouraged by performance trends [115][122] - Despite macroeconomic uncertainties, the company has lifted its outlook for the year based on strong first-quarter performance [5][122] - Management acknowledged the challenges in the lending environment but sees potential for lower new supply, which could benefit their positioning [134] Other Important Information - The company has achieved significant milestones in its digital initiatives, including over 60% of customers moving in through eRental and the installation of solar at more than 200 properties [107][108] - The average length of stay for tenants is over 36 months, indicating strong customer retention [81] Q&A Session Summary Question: What trends are being observed in April regarding demand and price sensitivity? - Management noted that April showed strong demand and occupancy growth, with move-in volumes increasing and move-out volumes decreasing [21][115] Question: How does the company view the potential for revenue growth rates in the second half of the year? - Management indicated that while there is a wide range of potential outcomes, the strength observed in the first quarter has led to an increase in revenue guidance for the year [122] Question: What is the company's perspective on the LA market's sustainability? - The LA market has shown strong performance, with good demand and occupancy levels, and management believes there is potential for continued growth [124][125] Question: How is the company adapting its development underwriting processes in the current environment? - Management stated that they are consistently looking to improve underwriting processes and are focused on maintaining a yield on cost of around 8% for new developments [75][134]