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Public Storage PSA reported a fourth-quarter 2024 core funds from operations (FFO) per share of $4.21, missing the Zacks Consensus Estimate of $4.23. However, the figure increased marginally year over year.
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Results reflect lower same-store revenues year over year, owing to a decline in occupancy. However, a decent increase in realized annual rent per occupied square foot positively impacted the performance. The company also benefited from its expansion efforts through acquisitions, developments and extensions.
Quarterly revenues of $1.18 billion matched the Zacks Consensus Estimate. Moreover, revenues increased 1.5% year over year.
For 2024, Public Storage reported core FFO per share of $16.67, down 1.3% from the prior year and missed the Zacks Consensus Estimate of $16.70. Revenues of $4.70 billion increased 3.9% year over year.
Public Storage Price, Consensus and EPS Surprise
Public Storage price-consensus-eps-surprise-chart | Public Storage Quote
PSA's Fourth Quarter in Detail
Public Storage’s same-store revenues decreased marginally year over year to $915.6 million in the fourth quarter, highlighting a decline in occupancy partially offset by higher realized annual rent per occupied square foot. This storage REIT witnessed a 0.1% increase in realized annual rental income per occupied square foot to $22.66. However, the weighted average square foot occupancy of 91.8% was down 0.6% year over year. Our estimate was 92.5%.
The cost of operations for same-store facilities increased 1.3% year over year to $190 million, mainly due to a rise in property taxes.
Consequently, PSA’s same-store direct net operating income (NOI) decreased 1% to $698.7 million. Also, this REIT’s NOI growth from non-same-store facilities was $4.3 million, mainly due to the impact of facilities acquired in 2023.
The company achieved a 79.2% same-store direct NOI margin in the quarter, down from 79.7% in the prior-year quarter.
PSA’s Portfolio Activity
In the fourth quarter, Public Storage acquired 17 self-storage facilities, comprising 1.3 million net rentable square feet of area, for $221.2 million.
It opened three newly developed facilities and completed several expansion projects with 0.4 million net rentable square feet, costing $80.9 million.
As of Dec. 31, 2024, PSA had several facilities in development (expected to contribute around 2.5 million net rentable square feet) estimated to cost $498.9 million and various expansion projects (expected to contribute around 1.5 million net rentable square feet) estimated to cost $242.7 million. It expects to incur the remaining $433.5 million of development costs related to these projects over the next 18 to 24 months.