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Public Storage Q4 FFO Misses Estimates, Same-Store Revenues Fall Y/Y
PSAPublic Storage(PSA) ZACKS·2025-02-25 17:16

Core Insights - Public Storage (PSA) reported a fourth-quarter 2024 core funds from operations (FFO) per share of 4.21,slightlymissingtheZacksConsensusEstimateof4.21, slightly missing the Zacks Consensus Estimate of 4.23, but showing a marginal year-over-year increase [1][3] - The company’s quarterly revenues reached 1.18billion,matchingtheZacksConsensusEstimateandreflectinga1.51.18 billion, matching the Zacks Consensus Estimate and reflecting a 1.5% year-over-year increase [2] Financial Performance - Same-store revenues for PSA decreased marginally year over year to 915.6 million in the fourth quarter, primarily due to a decline in occupancy, which was partially offset by a 0.1% increase in realized annual rent per occupied square foot to 22.66[4]−Theweightedaveragesquarefootoccupancywasreportedat91.822.66 [4] - The weighted average square foot occupancy was reported at 91.8%, down 0.6% year over year [4] - The cost of operations for same-store facilities increased by 1.3% year over year to 190 million, leading to a 1% decrease in same-store direct net operating income (NOI) to 698.7million[5]PortfolioActivity−Inthefourthquarter,PSAacquired17self−storagefacilitiesfor698.7 million [5] Portfolio Activity - In the fourth quarter, PSA acquired 17 self-storage facilities for 221.2 million, adding 1.3 million net rentable square feet [6] - The company opened three newly developed facilities and completed several expansion projects, contributing an additional 0.4 million net rentable square feet at a cost of 80.9million[6]DevelopmentPlans−AsofDecember31,2024,PSAhadseveralfacilitiesindevelopmentexpectedtocontributearound2.5millionnetrentablesquarefeet,withestimatedcostsof80.9 million [6] Development Plans - As of December 31, 2024, PSA had several facilities in development expected to contribute around 2.5 million net rentable square feet, with estimated costs of 498.9 million [7] - The company anticipates incurring the remaining 433.5millionofdevelopmentcostsoverthenext18to24months[7]BalanceSheet−PSAendedthefourthquarterof2024with433.5 million of development costs over the next 18 to 24 months [7] Balance Sheet - PSA ended the fourth quarter of 2024 with 447.4 million in cash and equivalents, a decrease from 599millionasofSeptember30,2024[8]FutureGuidance−For2025,PSAprojectscoreFFOpershareintherangeof599 million as of September 30, 2024 [8] Future Guidance - For 2025, PSA projects core FFO per share in the range of 16.35 to 17.00,whiletheZacksConsensusEstimateiscurrentlyat17.00, while the Zacks Consensus Estimate is currently at 17.22 [9] - The company expects a decline of 1.3% to 0.8% in same-store revenues and a rise of 2.5% to 4% in same-store expenses [10] Dividend Information - On February 21, 2025, PSA's board declared a first-quarter dividend of $3 per share, payable on March 28 to shareholders of record as of March 13, 2025 [11]