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Public Storage(PSA) - 2024 Q4 - Annual Results
PSAPublic Storage(PSA)2025-02-24 21:23

Financial Performance - Reported net income allocable to common shareholders for Q4 2024 was 564.4millionor564.4 million or 3.21 per diluted share, an increase of 44.8% compared to 389.7millionor389.7 million or 2.21 per diluted share in Q4 2023[7]. - Total net income allocable to common shareholders for the year 2024 was 1.873billionor1.873 billion or 10.64 per diluted share, down 3.9% from 1.949billionor1.949 billion or 11.06 per diluted share in 2023[9]. - Net income for the year ended December 31, 2024, was 2,084,410,000,adecreaseof3.52,084,410,000, 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,up28.1853,679,000, 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 915.6millionforQ42024,adecreaseof0.6915.6 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 725.6millioninQ42024,reflectinga1.0725.6 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,anincreasefrom1,100,097, 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 915,571forthethreemonthsendedDecember31,2024,downfrom915,571 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 698,726forthethreemonthsendedDecember31,2024,comparedto698,726 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 61.6millionin2024,drivenbya61.6 million in 2024, driven by a 108.9 million increase from Non-Same Store Facilities, despite a 47.3milliondecreasefromSameStoreFacilities[10].−Thecompanyacquired17self−storagefacilitiesinQ42024for47.3 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 267.5millionduring2024[19].−TheacquisitionofBREITSimplyStorageLLCin2023for267.5 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 151.8millionandNOIof151.8 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 80.9million,andatotalofsevenfacilitiesin2024,adding1.5millionsquarefeetatacostof80.9 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 415.1millionin2024,withexpectationsforincrementalNOIstabilizationof415.1 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 16.35and16.35 and 17.00, reflecting a growth rate of -1.9% to 2.0% from 2024[25]. - Anticipated impact of approximately 0.23persharetoCoreFFOin2025duetopricingrestrictionsrelatedtotheLosAngelescommunityfires[3].CapitalStructureandFinancing−Thecompanyissued184,390commonsharesfornetproceedsofapproximately0.23 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 1.0billioninunsecuredseniornotesandissued€150millioninseniornotestoinstitutionalinvestors[6].−TotalassetsasofDecember31,2024,were1.0 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 19,809,216,000in2023[34].−PublicStorage′stotalliabilitiesincreasedto19,809,216,000 in 2023[34]. - Public Storage's total liabilities increased to 9,941,282,000 as of December 31, 2024, from 9,702,270,000in2023[34].−InterestexpensefortheyearendedDecember31,2024,was9,702,270,000 in 2023[34]. - Interest expense for the year ended December 31, 2024, was 287,401,000, up from 201,132,000in2023[32].CashFlowandExpenses−Cashandequivalentsincreasedto201,132,000 in 2023[32]. Cash Flow and Expenses - Cash and equivalents increased to 447,416,000 as of December 31, 2024, from 370,002,000in2023[34].−Generalandadministrativeexpensesroseto370,002,000 in 2023[34]. - General and administrative expenses rose to 32,547 for the three months ended December 31, 2024, from 23,172in2023,anincreaseof40.523,172 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 214,854in2023,anincreaseof0.9214,854 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 71,121,000inQ42023[32].−ForeigncurrencyexchangegainforthethreemonthsendedDecember31,2024,was71,121,000 in Q4 2023[32]. - Foreign currency exchange gain for the three months ended December 31, 2024, was 122,824, compared to a loss of 71,121in2023,indicatingasignificantpositiveshift[39].−Thecompanyreportedagainonthesaleofrealestateof71,121 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].