Q1 2024 Public Storage Earnings Call Transcript
Key Points
- Sequential improvement in customer demand and move-in activity, matching expectations for the year.
- Positive trends in several major markets including San Francisco, New York, and Chicago, with expectations of adding more markets to this list.
- Strong performance from high-growth non-same-store pool assets, with NOI growth approaching nearly 50% during the first quarter.
- Reaffirmed core FFO guidance for the year, indicating stability in financial projections.
- Strong capital and liquidity position, with successful refinancing of 2024 maturities and a leverage of 3.9x net debt and preferred to EBITDA.
- First quarter core FFO declined by 1.2% compared to the first quarter of 2023.
- Challenges in the new move-in customer environment, although improving, remain a concern.
- Same-store portfolio revenue increased only by 0.1%, with move-in rates down 11% after adjusting for promotional activities.
- Increase in same-store cost of operations by 4.8% due to rises in property tax and marketing expenses.
- Subdued transaction market for acquisitions due to a volatile cost of capital environment, although some recovery is expected in the second half of the year.
Greeting, and welcome to Public Storage First Quarter 2024 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Ryan Burke, Vice President of Investor Relations and Strategic Partnerships. Thank you. You may begin.
Thank you, Rob. Hello, everyone. Thank you for joining us for our First Quarter 2024 Earnings Call. I'm here with Joe Russell and Tom Boyle. Before we begin, we want to remind you that certain matters discussed during this call may constitute forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to certain economic risks and uncertainties. All forward-looking statements speak only as of today, May 1, 2024, and we assume no obligation to update, revise or supplement statements that become untrue because of subsequent events.
A reconciliation to GAAP of the non-GAAP financial measures we provide on this call is included
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