Public Storage Reports Results for the Fourth Quarter and Year Ended December 31, 2023
“Public Storage achieved record revenues and net operating income, quickly acquired and integrated the 90,000-customer Simply Self Storage portfolio, and reached more than 3,000 owned properties during 2023. I want to thank the entire team for their focus and determination,” said
Highlights for the Three Months Ended
-
Reported net income allocable to common shareholders of
$2.21 per diluted share. -
Reported core FFO allocable to common shareholders (“Core FFO”) of
$4.20 per diluted share, an increase of 1.0% relative to the same period in 2022. - Achieved 79.7% Same Store (as defined below) direct net operating income margin.
-
Acquired eleven self-storage facilities (0.8 million net rentable square feet) for
$171.9 million . -
Opened five newly developed facilities and various expansion projects which together added 0.8 million net rentable square feet at a cost of
$190.3 million . AtDecember 31, 2023 , we had various facilities in development and expansion expected to add 3.6 million net rentable square feet at an estimated cost of$766.2 million .
Highlights for the Year Ended
-
Reported net income allocable to common shareholders of
$11.06 per diluted share. -
Reported Core FFO of
$16.89 per diluted share, an increase of 6.1% from 2022. Core FFO per diluted share increased 8.3% excluding the contribution from our equity investment in PS Business Parks, Inc. (“PSB”), which we sold inJuly 2022 . -
Increased Same Store direct net operating income by 4.1%, resulting from a 4.7% increase in Same Store revenues. -
Closed acquisitions of
BREIT Simply Storage LLC , a self-storage company that owns and operates 127 self-storage facilities (9.4 million net rentable square feet) and manages 25 self-storage facilities for third parties for$2.2 billion in cash onSeptember 13, 2023 (the “Simply Acquisition”) and 37 self-storage facilities with 2.7 million net rentable square feet for$473.2 million . -
Opened eleven newly developed facilities and various expansion projects which together added 1.7 million net rentable square feet at a cost of
$362.9 million . -
In connection with the Simply Acquisition, issued
$2.2 billion of unsecured senior notes in 2-, 5.5-, 10-, and 30-year tranches bearing annual rates of Compounded SOFR + 0.60%, 5.125%, 5.100%, and 5.350%, respectively.
Operating Results for the Three Months Ended
For the three months ended
The
Operating Results for the Year Ended
In 2023, net income allocable to our common shareholders was
The
Funds from Operations
Funds from Operations (“FFO”) and FFO per share are non-GAAP measures defined by Nareit. We believe that FFO and FFO per share are useful to REIT investors and analysts in measuring our performance because Nareit’s definition of FFO excludes items included in net income that do not relate to or are not indicative of our operating and financial performance. FFO represents net income before real estate-related depreciation and amortization, which is excluded because it is based upon historical costs and assumes that building values diminish ratably over time, while we believe that real estate values fluctuate due to market conditions. FFO also excludes gains or losses on sale of real estate assets and real estate impairment charges, which are also based upon historical costs and are impacted by historical depreciation. FFO and FFO per share are not a substitute for net income or earnings per share. FFO is not a substitute for net cash flow in evaluating our liquidity or ability to pay dividends, because it excludes investing and financing activities presented on our consolidated statements of cash flows. In addition, other REITs may compute these measures differently, so comparisons among REITs may not be helpful.
For the three months ended
For the year ended
We also present “Core FFO” and “Core FFO per share,” non-GAAP measures that represent FFO and FFO per share excluding the impact of (i) foreign currency exchange gains and losses, (ii) charges related to the redemption of preferred securities, and (iii) certain other non-cash and/or nonrecurring income or expense items primarily representing, with respect to the periods presented below, the impact of contingency resolution, casualties, due diligence costs incurred in pursuit of strategic transactions, unrealized gain on private equity investments, UPREIT reorganization costs, Simply integration costs, amortization of acquired non real estate-related intangibles from the Simply Acquisition, and our equity share of deferred tax benefits of a change in tax status, merger transaction costs, lease termination income, and severance of a senior executive from our equity investees. We review Core FFO and Core FFO per share to evaluate our ongoing operating performance, and we believe they are used by investors and REIT analysts in a similar manner. However, Core FFO and Core FFO per share are not substitutes for net income and net income per share. Because other REITs may not compute Core FFO or Core FFO per share in the same manner as we do, may not use the same terminology, or may not present such measures, Core FFO and Core FFO per share may not be comparable among REITs.
The following table reconciles net income to FFO and Core FFO and reconciles diluted earnings per share to FFO per share and Core FFO per share (unaudited):
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Percentage Change |
|
|
2023 |
|
|
|
2022 |
|
|
Percentage Change |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Amounts in thousands, except per share data) |
||||||||||||||||||||
Reconciliation of Net Income to FFO and Core FFO: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income allocable to common shareholders |
$ |
389,657 |
|
|
$ |
362,622 |
|
|
7.5 |
% |
|
$ |
1,948,741 |
|
|
$ |
4,142,288 |
|
|
(53.0 |
)% |
Eliminate items excluded from FFO: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate-related depreciation and amortization |
|
284,847 |
|
|
|
224,438 |
|
|
|
|
|
962,703 |
|
|
|
881,569 |
|
|
|
||
Real estate-related depreciation from unconsolidated real estate investments |
|
10,628 |
|
|
|
9,837 |
|
|
|
|
|
36,769 |
|
|
|
54,822 |
|
|
|
||
Real estate-related depreciation allocated to noncontrolling interests and restricted share unitholders |
|
(1,818 |
) |
|
|
(1,781 |
) |
|
|
|
|
(6,635 |
) |
|
|
(6,622 |
) |
|
|
||
Gains on sale of real estate investments, including our equity share from investments |
|
(17,051 |
) |
|
|
— |
|
|
|
|
|
(17,290 |
) |
|
|
(54,403 |
) |
|
|
||
Gain on sale of equity investment in PS Business Parks, Inc. |
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
(2,116,839 |
) |
|
|
||
FFO allocable to common shares |
$ |
666,263 |
|
|
$ |
595,116 |
|
|
12.0 |
% |
|
$ |
2,924,288 |
|
|
$ |
2,900,815 |
|
|
0.8 |
% |
Eliminate the impact of items excluded from Core FFO, including our equity share from investments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency exchange loss (gain) |
|
71,121 |
|
|
|
138,956 |
|
|
|
|
|
51,197 |
|
|
|
(98,314 |
) |
|
|
||
Property losses and tenant claims due to casualties |
|
— |
|
|
|
(1,301 |
) |
|
|
|
|
— |
|
|
|
4,817 |
|
|
|
||
Other items |
|
2,869 |
|
|
|
(760 |
) |
|
|
|
|
447 |
|
|
|
(338 |
) |
|
|
||
Core FFO allocable to common shares |
$ |
740,253 |
|
|
$ |
732,011 |
|
|
1.1 |
% |
|
$ |
2,975,932 |
|
|
$ |
2,806,980 |
|
|
6.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of Diluted Earnings per Share to FFO per Share and Core FFO per Share: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted earnings per share |
$ |
2.21 |
|
|
$ |
2.06 |
|
|
7.3 |
% |
|
$ |
11.06 |
|
|
$ |
23.50 |
|
|
(52.9 |
)% |
Eliminate amounts per share excluded from FFO: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate-related depreciation and amortization |
|
1.67 |
|
|
|
1.32 |
|
|
|
|
|
5.64 |
|
|
|
5.27 |
|
|
|
||
Gains on sale of real estate investments, including our equity share from investments |
|
(0.10 |
) |
|
|
— |
|
|
|
|
|
(0.10 |
) |
|
|
(0.31 |
) |
|
|
||
Gain on sale of equity investment in PS Business Parks, Inc. |
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
(12.00 |
) |
|
|
||
FFO per share |
$ |
3.78 |
|
|
$ |
3.38 |
|
|
11.8 |
% |
|
$ |
16.60 |
|
|
$ |
16.46 |
|
|
0.9 |
% |
Eliminate the per share impact of items excluded from Core FFO, including our equity share from investments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency exchange loss (gain) |
|
0.40 |
|
|
|
0.79 |
|
|
|
|
|
0.29 |
|
|
|
(0.57 |
) |
|
|
||
Property losses and tenant claims due to casualties |
|
— |
|
|
|
(0.01 |
) |
|
|
|
|
— |
|
|
|
0.03 |
|
|
|
||
Other items |
|
0.02 |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
||
Core FFO per share |
$ |
4.20 |
|
|
$ |
4.16 |
|
|
1.0 |
% |
|
$ |
16.89 |
|
|
$ |
15.92 |
|
|
6.1 |
% |
Exclude the contribution from our equity investment in PS Business Parks, Inc. to Core FFO per share |
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
(0.33 |
) |
|
|
||
Core FFO per share, excluding the impact of PS Business Parks, Inc. |
$ |
4.20 |
|
|
$ |
4.16 |
|
|
1.0 |
% |
|
$ |
16.89 |
|
|
$ |
15.59 |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted weighted average common shares |
|
176,060 |
|
|
|
176,144 |
|
|
|
|
|
176,143 |
|
|
|
176,280 |
|
|
|
Property Operations – Same Store Facilities
The Same Store Facilities consist of facilities that have been owned and operated on a stabilized level of occupancy, revenues, and cost of operations since
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Percentage Change |
|
|
2023 |
|
|
|
2022 |
|
|
Percentage Change |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Dollar amounts in thousands, except for per square foot data) |
||||||||||||||||||||
Revenues (a): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rental income |
$ |
822,269 |
|
|
$ |
817,327 |
|
|
0.6 |
% |
|
$ |
3,312,597 |
|
|
$ |
3,169,132 |
|
|
4.5 |
% |
Late charges and administrative fees |
|
29,164 |
|
|
|
27,658 |
|
|
5.4 |
% |
|
|
115,270 |
|
|
|
104,691 |
|
|
10.1 |
% |
Total revenues |
|
851,433 |
|
|
|
844,985 |
|
|
0.8 |
% |
|
|
3,427,867 |
|
|
|
3,273,823 |
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct cost of operations (a): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Property taxes |
|
69,222 |
|
|
|
68,140 |
|
|
1.6 |
% |
|
|
300,505 |
|
|
|
290,605 |
|
|
3.4 |
% |
On-site property manager payroll |
|
31,645 |
|
|
|
30,654 |
|
|
3.2 |
% |
|
|
126,830 |
|
|
|
123,372 |
|
|
2.8 |
% |
Repairs and maintenance |
|
17,181 |
|
|
|
15,714 |
|
|
9.3 |
% |
|
|
64,565 |
|
|
|
60,317 |
|
|
7.0 |
% |
Utilities |
|
10,194 |
|
|
|
10,417 |
|
|
(2.1 |
)% |
|
|
44,775 |
|
|
|
45,578 |
|
|
(1.8 |
)% |
Marketing |
|
21,202 |
|
|
|
14,142 |
|
|
49.9 |
% |
|
|
69,158 |
|
|
|
47,863 |
|
|
44.5 |
% |
Other direct property costs |
|
23,257 |
|
|
|
20,554 |
|
|
13.2 |
% |
|
|
90,990 |
|
|
|
83,615 |
|
|
8.8 |
% |
Total direct cost of operations |
|
172,701 |
|
|
|
159,621 |
|
|
8.2 |
% |
|
|
696,823 |
|
|
|
651,350 |
|
|
7.0 |
% |
Direct net operating income (b) |
|
678,732 |
|
|
|
685,364 |
|
|
(1.0 |
)% |
|
|
2,731,044 |
|
|
|
2,622,473 |
|
|
4.1 |
% |
Indirect cost of operations (a): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Supervisory payroll |
|
(8,100 |
) |
|
|
(8,774 |
) |
|
(7.7 |
)% |
|
|
(33,846 |
) |
|
|
(36,327 |
) |
|
(6.8 |
)% |
Centralized management costs |
|
(14,605 |
) |
|
|
(16,433 |
) |
|
(11.1 |
)% |
|
|
(60,861 |
) |
|
|
(64,053 |
) |
|
(5.0 |
)% |
Share-based compensation |
|
(2,525 |
) |
|
|
(3,411 |
) |
|
(26.0 |
)% |
|
|
(10,739 |
) |
|
|
(14,675 |
) |
|
(26.8 |
)% |
Net operating income (c) |
$ |
653,502 |
|
|
$ |
656,746 |
|
|
(0.5 |
)% |
|
$ |
2,625,598 |
|
|
$ |
2,507,418 |
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross margin (before indirect costs, depreciation and amortization expense) |
|
79.7 |
% |
|
|
81.1 |
% |
|
(1.7 |
)% |
|
|
79.7 |
% |
|
|
80.1 |
% |
|
(0.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross margin (before depreciation and amortization expense) |
|
76.8 |
% |
|
|
77.7 |
% |
|
(1.2 |
)% |
|
|
76.6 |
% |
|
|
76.6 |
% |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average for the period: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Square foot occupancy |
|
92.7 |
% |
|
|
93.4 |
% |
|
(0.7 |
)% |
|
|
93.3 |
% |
|
|
94.8 |
% |
|
(1.6 |
)% |
Realized annual rental income per (d): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Occupied square foot |
$ |
22.90 |
|
|
$ |
22.60 |
|
|
1.3 |
% |
|
$ |
22.93 |
|
|
$ |
21.58 |
|
|
6.3 |
% |
Available square foot |
$ |
21.23 |
|
|
$ |
21.10 |
|
|
0.6 |
% |
|
$ |
21.38 |
|
|
$ |
20.45 |
|
|
4.5 |
% |
At |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Square foot occupancy |
|
|
|
|
|
|
|
91.6 |
% |
|
|
92.3 |
% |
|
(0.8 |
)% |
|||||
Annual contract rent per occupied square foot (e) |
|
|
|
|
|
|
$ |
23.04 |
|
|
$ |
22.88 |
|
|
0.7 |
% |
(a) |
|
Revenues and cost of operations do not include tenant reinsurance and merchandise sales and expenses generated at the facilities. |
(b) |
|
Direct net operating income (“Direct NOI”), a subtotal within NOI, is a non-GAAP financial measure that excludes the impact of supervisory payroll, centralized management costs, and share-based compensation in addition to depreciation and amortization expense. We utilize direct net operating income in evaluating property performance and in evaluating property operating trends as compared to our competitors. |
(c) |
|
See reconciliation of self-storage NOI to net income provided below. |
(d) |
|
Realized annual rent per occupied square foot is computed by dividing annualized rental income, before late charges and administrative fees, by the weighted average occupied square feet for the period. Realized annual rent per available square foot (“REVPAF”) is computed by dividing annualized rental income, before late charges and administrative fees, by the total available rentable square feet for the period. These measures exclude late charges and administrative fees in order to provide a better measure of our ongoing level of revenue. Late charges are dependent upon the level of delinquency, and administrative fees are dependent upon the level of move-ins. In addition, the rates charged for late charges and administrative fees can vary independently from rental rates. These measures take into consideration promotional discounts, which reduce rental income. |
(e) |
|
Annual contract rent represents the agreed upon monthly rate that is paid by our tenants in place at the time of measurement. Contract rates are initially set in the lease agreement upon move-in, and we adjust them from time to time with notice. Contract rent excludes other fees that are charged on a per-item basis, such as late charges and administrative fees, does not reflect the impact of promotional discounts, and does not reflect the impact of rents that are written off as uncollectible. |
Property Operations – Non-Same Store Facilities
In addition to the 2,339 Same Store Facilities, we have 705 facilities that were not stabilized with respect to occupancies, revenues, or cost of operations since
Investing and Capital Activities
During the three months ended
During 2023, we added 164 self-storage facilities (12.1 million net rentable square feet) to our self-storage portfolio through acquisitions including 127 self-storage facilities from the Simply Acquisition (38 in
The Simply portfolio of 127 properties (9.4 million net rentable square feet) generated self-storage revenues of
During 2021, we acquired a portfolio of 48 properties (4.1 million net rentable square feet) operated under the brand name of ezStorage for
During 2021, we acquired a portfolio of 56 properties (7.5 million net rentable square feet) operated under the brand name of All Storage for
During the three months ended
Outlook for the Year Ending
Set forth below are our current expectations with respect to full year 2024 Core FFO per share and certain underlying assumptions. In reliance on the exception provided by applicable
|
2024 Guidance |
|
|
Low |
High |
|
(Dollar amounts in thousands, except per share data) |
|
Same Store: |
|
|
Revenue growth |
(1.0)% |
1.0% |
Expense growth |
2.0% |
3.5% |
Net operating income growth |
(2.4)% |
0.7% |
|
|
|
Acquisitions |
|
|
Development openings |
|
|
|
|
|
Ancillary net operating income |
|
|
General and administrative expense |
|
|
Interest expense |
|
|
Preferred dividends |
|
|
Capital expenditures |
|
|
|
|
|
Core FFO per share |
|
|
Core FFO per share growth from 2023 Core FFO per share |
(1.7)% |
1.8% |
|
|
|
Incremental Non-Same Store NOI to stabilization (2025 and beyond) |
|
Fourth Quarter Conference Call
A conference call is scheduled for
About
This press release, our Form 10-K for the year ended
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements relating to our 2024 outlook and all underlying assumptions; our expected acquisition, disposition, development, and redevelopment activity; supply and demand for our self-storage facilities; information relating to operating trends in our markets; expectations regarding operating expenses, including property tax changes; expectations regarding the impacts from inflation and a potential future recession; our strategic priorities; expectations with respect to financing activities, rental rates, cap rates, and yields; leasing expectations; our credit ratings; and all other statements other than statements of historical fact. Such statements are based on management’s beliefs and assumptions made based on information currently available to management and may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” and similar expressions. These forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Risks and uncertainties that may impact future results and performance include, but are not limited to those described in Part 1, Item 1A, “Risk Factors” in our most recent Annual Report on Form 10-K that will be filed with the
SELECTED CONSOLIDATED INCOME STATEMENT DATA (Amounts in thousands, except per share data) (Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Self-storage facilities |
$ |
1,092,588 |
|
|
$ |
1,028,353 |
|
|
$ |
4,259,613 |
|
|
$ |
3,946,028 |
|
Ancillary operations |
|
67,280 |
|
|
|
60,189 |
|
|
|
258,077 |
|
|
|
236,135 |
|
|
|
1,159,868 |
|
|
|
1,088,542 |
|
|
|
4,517,690 |
|
|
|
4,182,163 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
||||||||
Self-storage cost of operations |
|
267,872 |
|
|
|
241,256 |
|
|
|
1,061,950 |
|
|
|
980,209 |
|
Ancillary cost of operations |
|
22,959 |
|
|
|
18,401 |
|
|
|
85,996 |
|
|
|
72,698 |
|
Depreciation and amortization |
|
287,525 |
|
|
|
226,538 |
|
|
|
970,056 |
|
|
|
888,146 |
|
Real estate acquisition and development expense |
|
12,764 |
|
|
|
10,397 |
|
|
|
26,451 |
|
|
|
28,744 |
|
General and administrative |
|
23,172 |
|
|
|
19,575 |
|
|
|
80,632 |
|
|
|
71,672 |
|
Interest expense |
|
68,602 |
|
|
|
36,141 |
|
|
|
201,132 |
|
|
|
136,319 |
|
|
|
682,894 |
|
|
|
552,308 |
|
|
|
2,426,217 |
|
|
|
2,177,788 |
|
|
|
|
|
|
|
|
|
||||||||
Other increases (decreases) to net income: |
|
|
|
|
|
|
|
||||||||
Interest and other income |
|
16,209 |
|
|
|
14,173 |
|
|
|
85,590 |
|
|
|
40,567 |
|
Equity in earnings of unconsolidated real estate entities |
|
5,110 |
|
|
|
6,852 |
|
|
|
27,897 |
|
|
|
106,981 |
|
Foreign currency exchange (loss) gain |
|
(71,121 |
) |
|
|
(138,956 |
) |
|
|
(51,197 |
) |
|
|
98,314 |
|
Gain on sale of real estate |
|
17,090 |
|
|
|
— |
|
|
|
17,178 |
|
|
|
1,503 |
|
Gain on sale of equity investment in PS Business Parks, Inc. |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,128,860 |
|
Income before income tax expense |
|
444,262 |
|
|
|
418,303 |
|
|
|
2,170,941 |
|
|
|
4,380,600 |
|
Income tax expense |
|
(2,365 |
) |
|
|
(3,369 |
) |
|
|
(10,821 |
) |
|
|
(14,326 |
) |
Net income |
|
441,897 |
|
|
|
414,934 |
|
|
|
2,160,120 |
|
|
|
4,366,274 |
|
Allocation to noncontrolling interests |
|
(2,605 |
) |
|
|
(2,574 |
) |
|
|
(11,793 |
) |
|
|
(17,127 |
) |
Net income allocable to |
|
439,292 |
|
|
|
412,360 |
|
|
|
2,148,327 |
|
|
|
4,349,147 |
|
Allocation of net income to: |
|
|
|
|
|
|
|
||||||||
Preferred shareholders – distributions |
|
(48,674 |
) |
|
|
(48,674 |
) |
|
|
(194,703 |
) |
|
|
(194,390 |
) |
Restricted share units |
|
(961 |
) |
|
|
(1,064 |
) |
|
|
(4,883 |
) |
|
|
(12,469 |
) |
Net income allocable to common shareholders |
$ |
389,657 |
|
|
$ |
362,622 |
|
|
$ |
1,948,741 |
|
|
$ |
4,142,288 |
|
|
|
|
|
|
|
|
|
||||||||
Per common share: |
|
|
|
|
|
|
|
||||||||
Net income per common share – Basic |
$ |
2.22 |
|
|
$ |
2.07 |
|
|
$ |
11.11 |
|
|
$ |
23.64 |
|
Net income per common share – Diluted |
$ |
2.21 |
|
|
$ |
2.06 |
|
|
$ |
11.06 |
|
|
$ |
23.50 |
|
Weighted average common shares – Basic |
|
175,532 |
|
|
|
175,345 |
|
|
|
175,472 |
|
|
|
175,257 |
|
Weighted average common shares – Diluted |
|
176,060 |
|
|
|
176,144 |
|
|
|
176,143 |
|
|
|
176,280 |
|
SELECTED CONSOLIDATED BALANCE SHEET DATA (Amounts in thousands, except share and per share data) |
|||||||
|
|
|
|
||||
ASSETS |
(Unaudited) |
|
|
||||
|
|
|
|
||||
Cash and equivalents |
$ |
370,002 |
|
|
$ |
775,253 |
|
Real estate facilities, at cost: |
|
|
|
||||
Land |
|
5,628,488 |
|
|
|
5,273,073 |
|
Buildings |
|
21,836,750 |
|
|
|
18,946,053 |
|
|
|
27,465,238 |
|
|
|
24,219,126 |
|
Accumulated depreciation |
|
(9,423,974 |
) |
|
|
(8,554,155 |
) |
|
|
18,041,264 |
|
|
|
15,664,971 |
|
Construction in process |
|
345,453 |
|
|
|
372,992 |
|
|
|
18,386,717 |
|
|
|
16,037,963 |
|
|
|
|
|
||||
Investments in unconsolidated real estate entities |
|
390,180 |
|
|
|
275,752 |
|
|
|
387,267 |
|
|
|
232,517 |
|
Other assets |
|
275,050 |
|
|
|
230,822 |
|
Total assets |
$ |
19,809,216 |
|
|
$ |
17,552,307 |
|
|
|
|
|
||||
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
|
|
|
|
||||
Notes payable |
$ |
9,103,277 |
|
|
$ |
6,870,826 |
|
Accrued and other liabilities |
|
598,993 |
|
|
|
514,680 |
|
Total liabilities |
|
9,702,270 |
|
|
|
7,385,506 |
|
|
|
|
|
||||
Equity: |
|
|
|
||||
|
|
|
|
||||
Preferred Shares, |
|
4,350,000 |
|
|
|
4,350,000 |
|
Common Shares, |
|
17,567 |
|
|
|
17,527 |
|
Paid-in capital |
|
5,980,760 |
|
|
|
5,896,423 |
|
Accumulated deficit |
|
(267,910 |
) |
|
|
(110,231 |
) |
Accumulated other comprehensive loss |
|
(67,239 |
) |
|
|
(80,317 |
) |
Total |
|
10,013,178 |
|
|
|
10,073,402 |
|
Noncontrolling interests |
|
93,768 |
|
|
|
93,399 |
|
Total equity |
|
10,106,946 |
|
|
|
10,166,801 |
|
Total liabilities and equity |
$ |
19,809,216 |
|
|
$ |
17,552,307 |
|
|
|
|
|
SELECTED FINANCIAL DATA
Computation of Funds Available for Distribution (“FAD”) (Unaudited – amounts in thousands except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
FFO allocable to common shares |
$ |
666,263 |
|
|
$ |
595,116 |
|
|
$ |
2,924,288 |
|
|
$ |
2,900,815 |
|
Eliminate effect of items included in FFO but not FAD: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense in excess of cash paid |
|
6,347 |
|
|
|
8,268 |
|
|
|
27,616 |
|
|
|
39,876 |
|
Foreign currency exchange loss (gain) |
|
71,121 |
|
|
|
138,956 |
|
|
|
51,197 |
|
|
|
(98,314 |
) |
Less: Capital expenditures in real estate facilities |
|
(136,679 |
) |
|
|
(123,063 |
) |
|
|
(460,454 |
) |
|
|
(452,316 |
) |
FAD (a) |
$ |
607,052 |
|
|
$ |
619,277 |
|
|
$ |
2,542,647 |
|
|
$ |
2,390,061 |
|
|
|
|
|
|
|
|
|
||||||||
Distributions paid to common shareholders: |
|
|
|
|
|
|
|||||||||
Regular |
$ |
526,693 |
|
|
$ |
350,256 |
|
|
$ |
2,106,065 |
|
|
$ |
1,400,998 |
|
Special (b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,302,414 |
|
Distributions paid to common shareholders |
$ |
526,693 |
|
|
$ |
350,256 |
|
|
$ |
2,106,065 |
|
|
$ |
3,703,412 |
|
Distribution payout ratio |
|
86.8 |
% |
|
|
56.6 |
% |
|
|
82.8 |
% |
|
|
155.0 |
% |
Distribution payout ratio (on regular dividends only) (c) |
|
86.8 |
% |
|
|
56.6 |
% |
|
|
82.8 |
% |
|
|
58.6 |
% |
Distributions per common share: |
|
|
|
|
|
|
|
||||||||
Regular |
$ |
3.00 |
|
|
$ |
2.00 |
|
|
$ |
12.00 |
|
|
$ |
8.00 |
|
Special (b) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
13.15 |
|
(a) |
|
FAD represents FFO adjusted to exclude certain non-cash charges and to deduct capital expenditures. We utilize FAD in evaluating our ongoing cash flow available for investment, debt repayment, and common distributions. We believe investors and analysts utilize FAD in a similar manner. FAD is not a substitute for GAAP net cash flow in evaluating our liquidity or ability to pay dividends, because it excludes investing and financing activities presented on our statements of cash flows. In addition, other REITs may compute this measure differently, so comparisons among REITs may not be helpful. |
(b) |
|
A special dividend of |
(c) |
|
Supplemental payout ratio, excluding the impact of the special dividend, which was due to the gain on sale of our equity investment in PSB. This supplemental measure is presented to portray regular dividends, because FAD excludes the gain on sale of our equity investment in PSB. |
SELECTED FINANCIAL DATA
Reconciliation of Self-Storage Net Operating Income to Net Income (Unaudited – amounts in thousands) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
||||||||
Self-storage revenues for: |
|
|
|
|
|
|
|
||||||||
Same Store Facilities |
$ |
851,433 |
|
|
$ |
844,985 |
|
|
$ |
3,427,867 |
|
|
$ |
3,273,823 |
|
Acquired facilities |
|
144,355 |
|
|
|
91,986 |
|
|
|
450,653 |
|
|
|
327,245 |
|
Newly developed and expanded facilities |
|
67,217 |
|
|
|
61,788 |
|
|
|
262,450 |
|
|
|
230,999 |
|
Other non-same store facilities |
|
29,583 |
|
|
|
29,594 |
|
|
|
118,643 |
|
|
|
113,961 |
|
Self-storage revenues |
|
1,092,588 |
|
|
|
1,028,353 |
|
|
|
4,259,613 |
|
|
|
3,946,028 |
|
|
|
|
|
|
|
|
|
||||||||
Self-storage cost of operations for: |
|
|
|
|
|
|
|
||||||||
Same Store Facilities |
|
197,931 |
|
|
|
188,239 |
|
|
|
802,269 |
|
|
|
766,405 |
|
Acquired facilities |
|
44,182 |
|
|
|
27,652 |
|
|
|
144,498 |
|
|
|
109,744 |
|
Newly developed and expanded facilities |
|
19,594 |
|
|
|
16,667 |
|
|
|
78,531 |
|
|
|
67,805 |
|
Other non-same store facilities |
|
6,165 |
|
|
|
8,698 |
|
|
|
36,652 |
|
|
|
36,255 |
|
Self-storage cost of operations |
|
267,872 |
|
|
|
241,256 |
|
|
|
1,061,950 |
|
|
|
980,209 |
|
|
|
|
|
|
|
|
|
||||||||
Self-storage NOI for: |
|
|
|
|
|
|
|
||||||||
Same Store Facilities |
|
653,502 |
|
|
|
656,746 |
|
|
|
2,625,598 |
|
|
|
2,507,418 |
|
Acquired facilities |
|
100,173 |
|
|
|
64,334 |
|
|
|
306,155 |
|
|
|
217,501 |
|
Newly developed and expanded facilities |
|
47,623 |
|
|
|
45,121 |
|
|
|
183,919 |
|
|
|
163,194 |
|
Other non-same store facilities |
|
23,418 |
|
|
|
20,896 |
|
|
|
81,991 |
|
|
|
77,706 |
|
Self-storage NOI (a) |
|
824,716 |
|
|
|
787,097 |
|
|
|
3,197,663 |
|
|
|
2,965,819 |
|
Ancillary revenues |
|
67,280 |
|
|
|
60,189 |
|
|
|
258,077 |
|
|
|
236,135 |
|
Ancillary cost of operations |
|
(22,959 |
) |
|
|
(18,401 |
) |
|
|
(85,996 |
) |
|
|
(72,698 |
) |
Depreciation and amortization |
|
(287,525 |
) |
|
|
(226,538 |
) |
|
|
(970,056 |
) |
|
|
(888,146 |
) |
Real estate acquisition and development expense |
|
(12,764 |
) |
|
|
(10,397 |
) |
|
|
(26,451 |
) |
|
|
(28,744 |
) |
General and administrative expense |
|
(23,172 |
) |
|
|
(19,575 |
) |
|
|
(80,632 |
) |
|
|
(71,672 |
) |
Interest and other income |
|
16,209 |
|
|
|
14,173 |
|
|
|
85,590 |
|
|
|
40,567 |
|
Interest expense |
|
(68,602 |
) |
|
|
(36,141 |
) |
|
|
(201,132 |
) |
|
|
(136,319 |
) |
Equity in earnings of unconsolidated real estate entities |
|
5,110 |
|
|
|
6,852 |
|
|
|
27,897 |
|
|
|
106,981 |
|
Gain on sale of real estate |
|
17,090 |
|
|
|
— |
|
|
|
17,178 |
|
|
|
1,503 |
|
Gain on sale of equity investment in PS Business Parks, Inc. |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,128,860 |
|
Foreign currency exchange (loss) gain |
|
(71,121 |
) |
|
|
(138,956 |
) |
|
|
(51,197 |
) |
|
|
98,314 |
|
Income tax expense |
|
(2,365 |
) |
|
|
(3,369 |
) |
|
|
(10,821 |
) |
|
|
(14,326 |
) |
Net income on our income statement |
$ |
441,897 |
|
|
$ |
414,934 |
|
|
$ |
2,160,120 |
|
|
$ |
4,366,274 |
|
(a) |
|
Net operating income or “NOI” is a non-GAAP financial measure that excludes the impact of depreciation and amortization expense, which is based upon historical costs and assumes that building values diminish ratably over time, while we believe that real estate values fluctuate due to market conditions. We utilize NOI in determining current property values, evaluating property performance, and evaluating operating trends. We believe that investors and analysts utilize NOI in a similar manner. NOI is not a substitute for net income, operating cash flow, or other related GAAP financial measures, in evaluating our operating results. This table reconciles from NOI for our self-storage facilities to the net income presented on our income statement. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240220785696/en/
(818) 244-8080, Ext. 1141
Source: