Public Storage(PSA) - 2025 Q4 - Annual Results

Financial Performance - Net income per share for Q4 2025 was $2.60, a decrease of 19.0% from $3.21 in Q4 2024; full-year net income per share was $9.01, down 15.3% from $10.64 in 2024[2] - Core FFO per share for Q4 2025 was $4.26, an increase of 1.2% from $4.21 in Q4 2024; full-year Core FFO per share was $16.97, up 1.8% from $16.67 in 2024[2] - Net income for the year ended December 31, 2025, was $1,797,032, down from $2,084,410 in 2024, a decrease of 13.8%[38] - Net income allocable to common shareholders decreased by 19.0% to $456,979 in Q4 2025 from $564,398 in Q4 2024[40] - Funds from Operations (FFO) allocable to common shares decreased by 10.8% to $761,581 in Q4 2025 compared to $853,679 in Q4 2024[40] - Core FFO allocable to common shares increased by 1.2% to $749,853 in Q4 2025 from $740,962 in Q4 2024[40] Revenue and Occupancy - Same Store revenue growth was positive in 56% of markets, up from 49% in Q4 2024; Same Store net operating income margin was 78.4%[4] - Self-storage revenues from same store facilities were $936,172 in Q4 2025, slightly down from $937,686 in Q4 2024[43] - Total revenues for Q4 2025 reached $1,215,792, a 3.5% increase from $1,177,427 in Q4 2024[38] - Square foot occupancy at December 31, 2025, was 91.0%, an increase of 0.5% from 90.5% in the previous year[35] - Realized annual rental income per occupied square foot for 2025 was $22.54, a 0.5% increase from $22.43 in 2024[35] - The annual contract rent per occupied square foot decreased by 0.7% to $22.55 as of December 31, 2025, compared to $22.72 in 2024[35] Expenses and Liabilities - Total expenses for Q4 2025 were $739,743, up from $702,699 in Q4 2024, reflecting a 5.3% increase[38] - Interest expense rose to $81,185 in Q4 2025, compared to $72,135 in Q4 2024, marking a 12.8% increase[38] - As of December 31, 2025, the company had total indebtedness of $10.3 billion, with a weighted average interest rate of 3.2% and a weighted average term of 6.3 years[16] - Total liabilities rose to $10,866,770, compared to $9,941,282, reflecting an increase of approximately 9.3%[45] Acquisitions and Developments - The company acquired 13 self-storage facilities for $131.0 million, adding 0.9 million net rentable square feet; total acquisitions for the year reached 90 facilities for $966.3 million[11] - New developments and expansions added 1.0 million net rentable square feet at a cost of $140.1 million in Q4 2025; for the year, 2.1 million net rentable square feet were added at a cost of $408.9 million[12] - The company is in the process of developing facilities expected to add 3.5 million net rentable square feet at an estimated cost of $609.9 million over the next 18 to 24 months[13] Strategic Vision and Management - PS4.0 was announced as a new strategic vision aimed at enhancing shareholder returns and improving customer and employee experiences[18] - The company managed 362 facilities through its third-party property management program, with an additional 84 facilities under contract[15] Market Conditions and Future Outlook - The company anticipates potential impacts from inflation and macroeconomic conditions on future performance, as outlined in their forward-looking statements[31] - The company expects Same Store revenue growth in 2026 to range from (2.2)% to 0%; Core FFO per share guidance is set between $16.35 and $17.00[6] Financial Position - Total assets increased to $20,208,604, up from $19,754,934, representing a growth of approximately 2.3% year-over-year[45] - Cash and equivalents decreased to $318,095 from $447,416, a decline of about 29%[45] - Public Storage shareholders' equity decreased to $9,248,128 from $9,712,606, a decline of about 4.8%[45] - Accumulated deficit increased to $(1,219,273) from $(699,083), indicating a worsening financial position[45] - Total real estate facilities, net, increased to $18,804,558 from $18,360,653, a growth of approximately 2.4%[45] - Notes payable increased to $10,253,881 from $9,353,034, an increase of about 9.6%[45] - Investment in unconsolidated real estate entity rose to $388,586 from $382,490, a slight increase of about 1.3%[45] - Accumulated other comprehensive loss improved to $(47,799) from $(71,965), indicating a positive change[45] - Construction in process decreased to $194,355 from $308,101, a decline of approximately 37%[45]