Public Storage (PSA, Financial) announced its Q3 2023 earnings on October 30, 2023. The company reported a net income allocable to common shareholders of $3.20 per diluted share. The Core FFO per diluted share was $4.33, marking a 4.8% increase relative to the same period in 2022. The company also reported a 1.9% increase in Same Store direct net operating income, driven by a 2.5% increase in Same Store revenues.
Financial Performance
For the three months ended September 30, 2023, net income allocable to common shareholders was $563.2 million or $3.20 per diluted common share, compared to $2.7 billion or $15.38 per diluted common share for the same period in 2022. This represents a decrease of $2.1 billion or $12.18 per diluted common share. The decrease is primarily due to a $2.1 billion gain on the sale of the equity investment in PS Business Parks, Inc. in July 2022, a decrease in foreign currency exchange gains, and an increase in interest expense.
Acquisitions and Developments
During Q3 2023, Public Storage (PSA, Financial) successfully integrated the $2.2 billion Simply Self Storage portfolio, welcoming approximately 90,000 customers to its platform. The company also closed acquisitions of BREIT Simply Storage LLC, a self-storage company that owns and operates 127 self-storage facilities, and ten self-storage facilities for $110.5 million. Additionally, PSA opened three newly developed facilities and completed various expansion projects costing $88.2 million.
Funds from Operations
For the three months ended September 30, 2023, FFO was $4.58 per diluted common share as compared to $4.66 for the same period in 2022, representing a decrease of 1.7%. For the nine months ended September 30, 2023, FFO was $12.82 per diluted common share, as compared to $13.08 in the same period in 2022, representing a decrease of 2.0%.
Outlook
Public Storage (PSA, Financial) is uniquely positioned to deliver growth and value to its stakeholders in an industry with strong secular fundamentals. The company's industry-leading platform drove higher move-in volumes, improved occupancy, and better-than-expected NOI growth in the stabilized and lease-up portfolios during the third quarter.
Explore the complete 8-K earnings release (here) from Public Storage for further details.
