Public Storage(PSA) - 2024 Q4 - Annual Results

Financial Performance - Reported net income allocable to common shareholders for Q4 2024 was $564.4 million or $3.21 per diluted share, an increase of 44.8% compared to $389.7 million or $2.21 per diluted share in Q4 2023[7]. - Total net income allocable to common shareholders for the year 2024 was $1.873 billion or $10.64 per diluted share, down 3.9% from $1.949 billion or $11.06 per diluted share in 2023[9]. - Net income for the year ended December 31, 2024, was $2,084,410,000, a decrease of 3.5% from $2,160,120,000 in 2023[32]. - Funds from Operations (FFO) allocable to common shares for Q4 2024 was $853,679,000, up 28.1% from $666,263,000 in Q4 2023[36]. - The distribution payout ratio for the year ended December 31, 2024, was 81.1%, compared to 80.8% in 2023[36]. Revenue and Income Analysis - Same Store Facilities generated total revenues of $915.6 million for Q4 2024, a decrease of 0.6% compared to Q4 2023, with annual revenues of $3.68 billion, down 0.7% year-over-year[17]. - Direct net operating income (NOI) for Same Store Facilities was $725.6 million in Q4 2024, reflecting a 1.0% decline from Q4 2023, with annual Direct NOI of $2.89 billion, down 1.9% year-over-year[17]. - Self-storage revenues for the three months ended December 31, 2024, were $1,100,097, an increase from $1,092,588 in the same period of 2023, representing a growth of 0.7%[39]. - Same Store Facilities generated self-storage revenues of $915,571 for the three months ended December 31, 2024, down from $920,829 in 2023, a decline of 1.4%[39]. - Net Operating Income (NOI) for Same Store Facilities was $698,726 for the three months ended December 31, 2024, compared to $705,975 in 2023, a decrease of 1.0%[39]. Operational Highlights - Self-storage net operating income increased by $61.6 million in 2024, driven by a $108.9 million increase from Non-Same Store Facilities, despite a $47.3 million decrease from Same Store Facilities[10]. - The company acquired 17 self-storage facilities in Q4 2024 for $221.2 million, adding 1.3 million net rentable square feet, and a total of 22 facilities for $267.5 million during 2024[19]. - The acquisition of BREIT Simply Storage LLC in 2023 for $2.2 billion added 127 facilities with 9.4 million square feet, generating revenues of $151.8 million and NOI of $103.9 million in 2024[20]. - The company opened three newly developed facilities in Q4 2024, contributing 0.4 million net rentable square feet at a cost of $80.9 million, and a total of seven facilities in 2024, adding 1.5 million square feet at a cost of $343.4 million[21]. - Non-Same Store Facilities generated NOI of $415.1 million in 2024, with expectations for incremental NOI stabilization of $80,000 in 2026 and beyond[24]. Future Guidance - For 2025, the company expects Same Store revenue growth between -1.3% and 0.8%, with net operating income growth projected between -2.9% and 0.2%[25]. - The guidance for Core FFO per share in 2025 is between $16.35 and $17.00, reflecting a growth rate of -1.9% to 2.0% from 2024[25]. - Anticipated impact of approximately $0.23 per share to Core FFO in 2025 due to pricing restrictions related to the Los Angeles community fires[3]. Capital Structure and Financing - The company issued 184,390 common shares for net proceeds of approximately $60.3 million through its "at the market" offering program[6]. - Completed a public offering of $1.0 billion in unsecured senior notes and issued €150 million in senior notes to institutional investors[6]. - Total assets as of December 31, 2024, were $19,754,934,000, a slight decrease from $19,809,216,000 in 2023[34]. - Public Storage's total liabilities increased to $9,941,282,000 as of December 31, 2024, from $9,702,270,000 in 2023[34]. - Interest expense for the year ended December 31, 2024, was $287,401,000, up from $201,132,000 in 2023[32]. Cash Flow and Expenses - Cash and equivalents increased to $447,416,000 as of December 31, 2024, from $370,002,000 in 2023[34]. - General and administrative expenses rose to $32,547 for the three months ended December 31, 2024, from $23,172 in 2023, an increase of 40.5%[39]. - The cost of operations for Same Store Facilities was $216,845 for the three months ended December 31, 2024, slightly up from $214,854 in 2023, an increase of 0.9%[39]. Foreign Currency and Other Gains - The company reported a foreign currency exchange gain of $122,824,000 for Q4 2024, compared to a loss of $71,121,000 in Q4 2023[32]. - Foreign currency exchange gain for the three months ended December 31, 2024, was $122,824, compared to a loss of $71,121 in 2023, indicating a significant positive shift[39]. - The company reported a gain on the sale of real estate of $109 for the three months ended December 31, 2024, compared to $17,090 in 2023, indicating a substantial decrease[39].