We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Public Storage (PSA) Q1 FFO Beats on Rent & Occupancy Gains
Read MoreHide Full Article
Public Storage's (PSA - Free Report) first-quarter 2021 core funds from operations (FFO) per share of $2.82 surpassed the Zacks Consensus Estimate of $2.70. The figure also increased 9.3% year on year.
Quarterly revenues of $767.3 million exceeded the Zacks Consensus Estimate of $750.4 million. Moreover, revenues increased 6.7% year on year.
Results reflect an improvement in realized annual rent per available square foot and weighted average square foot occupancy in the reported quarter. The company also benefited from its expansion efforts through acquisitions, development and extensions. In addition, it witnessed a decrease in on-site property manager payroll and a positive impact due to the timing of property tax expense. Management has also issued the initial core FFO guidance.
Behind the Headlines
Public Storage’s same-store revenues increased 3.4% year over year to $647.8 million during the first quarter, highlighting higher realized annual rent per available square foot and weighted average square foot occupancy. Particularly, this upswing was backed by a 4.6% increase in realized annual rental income per available square foot to $16.86. Also, weighted-average square foot occupancy of 95.6% expanded 2.8% year over year.
Same-store cost of operations fell 4.3% year over year, mainly reflecting a change in property tax timing leading to an 8.6% decrease in property tax expense, 13.2% fall in on-site property manager payroll, partly dampened by an increase in share-based compensation. Consequently, the company’s same-store net operating income (NOI) increased 6.7% to $466.8 million.
Also, the REIT’s NOI growth from non-same store facilities was $11.8 million, on the back of the facilities acquired in 2020 and 2021, as well as the fill-up of the recently-developed and expanded facilities.
Portfolio Activity
During the March-end quarter, Public Storage acquired 15 self-storage facilities, comprising 1.1 million net rentable square feet of area, for $203.1 million. Following Mar 31, 2021, the company acquired or was under contract to acquire 87 self-storage facilities, spanning 7.6 million net rentable square feet of space across 18 states, for $2.3 billion. These included 48 properties, spanning 4.2 million net rentable square feet, currently owned and operated by ezStorage Corp. that Public Storage is under contract to purchase in April 2021 for $1.8 billion.
During the first quarter, the REIT opened one newly-developed facility, encompassing 0.2 million net rentable square feet in Virginia costing $45.4 million.
Finally, as of Mar 31, 2021, Public Storage had several facilities in development (1.4 million net rentable square feet), with an estimated cost of $224 million, as well as expansion projects (2.0 million net rentable square feet) worth $286 million. It expects to incur the remaining $309 million of development costs related to these projects, mainly over the next 18-24 months.
Balance Sheet Position
Public Storage exited first-quarter 2021 with $159.6 million of cash and equivalents, down from the $257.6 million recorded at the end of 2020.
Outlook
For 2021, the company projects core FFO per share in the range of $11.35-$11.75. The Zacks Consensus Estimate for the same is currently pinned at $11.38.
The company’s full-year assumption is backed by 4-5.5% growth in same-store revenues, a 1-2% rise in same-store expenses and a 4.8-7.3% expansion in same-store NOI. Further, the company expects $2.7 billion of acquisitions and $215 million of development openings.
Dividend Update
On Apr 21, management announced a regular quarterly dividend of $2 per common share. The dividend will be paid on Jun 30, to shareholders of record as of Jun 15, 2021.
We now look forward to the earnings releases of other REITs, including Vornado Realty Trust (VNO - Free Report) , Realty Income Corporation (O - Free Report) and Healthpeak Properties, Inc. , which are slated to release results next week.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Public Storage (PSA) Q1 FFO Beats on Rent & Occupancy Gains
Public Storage's (PSA - Free Report) first-quarter 2021 core funds from operations (FFO) per share of $2.82 surpassed the Zacks Consensus Estimate of $2.70. The figure also increased 9.3% year on year.
Quarterly revenues of $767.3 million exceeded the Zacks Consensus Estimate of $750.4 million. Moreover, revenues increased 6.7% year on year.
Results reflect an improvement in realized annual rent per available square foot and weighted average square foot occupancy in the reported quarter. The company also benefited from its expansion efforts through acquisitions, development and extensions. In addition, it witnessed a decrease in on-site property manager payroll and a positive impact due to the timing of property tax expense. Management has also issued the initial core FFO guidance.
Behind the Headlines
Public Storage’s same-store revenues increased 3.4% year over year to $647.8 million during the first quarter, highlighting higher realized annual rent per available square foot and weighted average square foot occupancy. Particularly, this upswing was backed by a 4.6% increase in realized annual rental income per available square foot to $16.86. Also, weighted-average square foot occupancy of 95.6% expanded 2.8% year over year.
Same-store cost of operations fell 4.3% year over year, mainly reflecting a change in property tax timing leading to an 8.6% decrease in property tax expense, 13.2% fall in on-site property manager payroll, partly dampened by an increase in share-based compensation. Consequently, the company’s same-store net operating income (NOI) increased 6.7% to $466.8 million.
Also, the REIT’s NOI growth from non-same store facilities was $11.8 million, on the back of the facilities acquired in 2020 and 2021, as well as the fill-up of the recently-developed and expanded facilities.
Portfolio Activity
During the March-end quarter, Public Storage acquired 15 self-storage facilities, comprising 1.1 million net rentable square feet of area, for $203.1 million. Following Mar 31, 2021, the company acquired or was under contract to acquire 87 self-storage facilities, spanning 7.6 million net rentable square feet of space across 18 states, for $2.3 billion. These included 48 properties, spanning 4.2 million net rentable square feet, currently owned and operated by ezStorage Corp. that Public Storage is under contract to purchase in April 2021 for $1.8 billion.
During the first quarter, the REIT opened one newly-developed facility, encompassing 0.2 million net rentable square feet in Virginia costing $45.4 million.
Finally, as of Mar 31, 2021, Public Storage had several facilities in development (1.4 million net rentable square feet), with an estimated cost of $224 million, as well as expansion projects (2.0 million net rentable square feet) worth $286 million. It expects to incur the remaining $309 million of development costs related to these projects, mainly over the next 18-24 months.
Balance Sheet Position
Public Storage exited first-quarter 2021 with $159.6 million of cash and equivalents, down from the $257.6 million recorded at the end of 2020.
Outlook
For 2021, the company projects core FFO per share in the range of $11.35-$11.75. The Zacks Consensus Estimate for the same is currently pinned at $11.38.
The company’s full-year assumption is backed by 4-5.5% growth in same-store revenues, a 1-2% rise in same-store expenses and a 4.8-7.3% expansion in same-store NOI. Further, the company expects $2.7 billion of acquisitions and $215 million of development openings.
Dividend Update
On Apr 21, management announced a regular quarterly dividend of $2 per common share. The dividend will be paid on Jun 30, to shareholders of record as of Jun 15, 2021.
Public Storage currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Public Storage Price, Consensus and EPS Surprise
Public Storage price-consensus-eps-surprise-chart | Public Storage Quote
We now look forward to the earnings releases of other REITs, including Vornado Realty Trust (VNO - Free Report) , Realty Income Corporation (O - Free Report) and Healthpeak Properties, Inc. , which are slated to release results next week.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>