Public Storage(PSA) - 2023 Q4 - Annual Results

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]