Q3 2024 Public Storage Earnings Call Transcript
Key Points
- Public Storage (PSA) is experiencing stabilization and improvement in operating fundamentals across most markets, with move-in rents showing a significant recovery from earlier in the year.
- The company has successfully implemented a comprehensive digital engagement strategy, with 75% of move-ins now using e-rental and nearly 2 million users on the PS app.
- Public Storage (PSA) has reduced utility usage by 30% through LED lighting and solar power installations, with plans to expand solar installations to 1,300 properties by the end of 2025.
- The acquisition market is showing signs of picking up, with more one-off deals and portfolios becoming available, aligning with Public Storage (PSA)'s strong capital and liquidity profile.
- Public Storage (PSA) has maintained a strong existing customer base, with stable payment patterns, long average length of stay, and reduced move-outs year to date.
- Core FFO declined by 3% compared to last year, and revenues in the same-store portfolio decreased by 1.3% year over year.
- Move-in rents are still down 5% in October, indicating that while improving, pricing pressures remain.
- The company anticipates a slight decrease in development deliveries in 2025 compared to the record year of 2024.
- Promotional discounts increased in the third quarter, potentially impacting revenue, with 60% of customers receiving some form of promotion.
- Occupancy is down 90 basis points year over year, reflecting ongoing challenges in maintaining full capacity.
Welcome to Public Storage third 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, Mr. Ryan Burke. Thank you. You may begin.
Thank you, Rob. Hello, everyone. Thank you for joining us for our third 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, October 31, 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 in our earnings release.
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