Public Storage(PSA) - 2025 Q3 - Quarterly Results

Financial Performance - Reported net income allocable to common shareholders was $2.62 per diluted share, an increase of 21.3% compared to $2.16 per diluted share in the same period in 2024[6] - For the nine months ended September 30, 2025, net income was $1.1 billion or $6.42 per diluted share, a decrease of 13.6% from $7.43 per diluted share in the same period in 2024[8] - Net income for Q3 2025 was $514,773,000, compared to $433,143,000 in Q3 2024, reflecting an increase of 18.9%[28] - The company reported a net income allocable to common shareholders of $461,408,000 for Q3 2025, compared to $380,712,000 in Q3 2024, an increase of 21.2%[28] - The company’s net income for the nine months ended September 30, 2025, was $1,286,975, down from $1,466,049 in the same period of 2024, indicating a decline of about 12.2%[35] Funds from Operations (FFO) - Core FFO allocable to common shareholders was $4.31 per diluted share, reflecting a 2.6% increase from $4.20 per diluted share in the same period in 2024[13] - Funds from Operations (FFO) for the quarter was $4.33 per diluted common share, a 13.9% increase from $3.80 per diluted common share in the same period in 2024[11] - Core FFO for the nine months was $12.71 per diluted common share, a 2.0% increase from $12.46 per diluted common share in the same period in 2024[13] - Core FFO per share guidance for 2025 is set between $16.70 and $17.00, indicating a growth of 0.2% to 2.0% from 2024[21] Revenue and Income Growth - Public Storage reported Q3 2025 revenues of $1,224,043,000, a 3.1% increase from $1,187,758,000 in Q3 2024[28] - Revenues for Same Store Facilities increased by 0.1% or $2.8 million, driven by higher realized annual rent per occupied square foot[9] - Self-storage revenues for the three months ended September 30, 2025, reached $1,138,837, an increase from $1,110,115 in the same period of 2024, representing a growth of approximately 2.5%[35] - Same Store Facilities generated revenues of $948,925 for the three months ended September 30, 2025, slightly up from $948,693 in 2024, indicating a stable performance[35] Acquisitions and Expansion - Acquired 49 self-storage facilities with 3.4 million net rentable square feet for $511.4 million, with additional acquisitions under contract for 0.9 million square feet at $119.9 million[5] - Year-to-date acquisitions totaled 6.1 million net rentable square feet for approximately $934.5 million[5] - Development and expansion projects are expected to deliver 3.9 million net rentable square feet at an aggregate cost of approximately $649.2 million[17] Operating Income and Expenses - Achieved 78.5% Same Store direct net operating income margin for the quarter[5] - Self-storage net operating income increased by $21.7 million for the quarter, primarily from Non-Same Store Facilities[7] - Direct net operating income for the same period was $745.3 million, reflecting a 0.2% increase from $743.8 million in 2024[14] - Net Operating Income (NOI) for Self-storage facilities was $844,372 for the three months ended September 30, 2025, up from $822,680 in 2024, showing an increase of about 2.6%[35] - The cost of operations for Self-storage increased to $294,465 for the three months ended September 30, 2025, compared to $287,435 in 2024, marking a rise of approximately 2.5%[35] Dividends and Payout Ratios - The company declared a regular common quarterly dividend of $3.00 per common share, payable on December 30, 2025[18] - The distribution payout ratio for Q3 2025 was 73.4%, down from 81.1% in Q3 2024[32] Assets and Liabilities - Public Storage owned and operated 3,491 self-storage facilities with approximately 254 million net rentable square feet as of September 30, 2025[24] - The company’s total assets increased to $20,114,318,000 as of September 30, 2025, compared to $19,754,934,000 at the end of 2024[30] - Total liabilities rose to $10,707,211,000 as of September 30, 2025, from $9,941,282,000 at the end of 2024[30] Market Outlook - Public Storage anticipates continued growth in rental rates and operating trends, despite potential macroeconomic challenges[26]