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$PSA 1Q15 10-Q: 1Q15-end total assets were $9.77Bil vs. $9.68Bil in 1Q14 and total liabilities were $0.47Bil. At March 31, 2015, PSA had capital commitments totaling approx. $552MM, consisting primarily of $300MM of remaining spend on development pipeline, $145MM for redemption of Series O Preferred Shares on April 15, 2015.
$PSA has priced a public offering of 12MM depositary shares at $25 per share, each representing 1/1,000 of a 5.05% Cumulative Preferred Share of Beneficial Interest, Series G. The offering is expected to result in $300MM of gross proceeds and to close on or about Aug 9, 2017. Net proceeds will be used to make investments in self-storage facilities.
$PSA BoT declared a regular quarterly dividend of $2 per common share. The Board also declared dividends with respect to various series of preferred shares. All the dividends are payable on June 29, 2017 to shareholders as on June 14, 2017.
During 1Q17, $PSA acquired four self-storage facilities (one each in Minnesota, New York, North Carolina and Ohio) with 0.2MM net rentable sq feet for $23MM. Additionally, it completed two newly developed facilities and various expansion projects (0.5MM net rentable sq feet) costing $89MM.
$PSA, which develops and operates self storage facilities, posted 5% growth in revenue to $645.5MM in 1Q17. Net income was $281.1MM or $1.62 per share, compared to $241.3MM or $1.39 per share in 1Q16. The higher results reflect a 4% increase in revenues from Same Store Facilities to $20.9MM in the quarter.
$PSA said that on the expense side for 2017, the company expects expenses to be somewhere in the 3-4% range. The company will also be doing more advertising in 2017 than 2016. The driver of this expense growth is property taxes, which is going to be in the 4-5% range.
$PSA said that Shurgard same store NOI was up 9.8% in 4Q16 and it was due to 3% revenue growth and a 5.7% reduction in expenses mainly from various adjustments and lower marketing YonY. The company also added that the best performing market was Holland, up 22% and the worst was the UK, down 5%.
$PSA, a self-storage REIT reported 16.4% rise in its 4Q16 earnings, mainly due to $32MM increase in self-storage net operating income. Net income was $352.8MM, or $2.03 per share, compared to $303MM, or $1.74 per share during 4Q15. Revenue for same store facilities rose 4.6% YoY to $530MM,helped by higher realized annual rent per occupied sq.ft.
$PSA said on Oct. 26, 2016 its Board of Trustees declared a regular common quarterly dividend of $2.00 per common share, which is an increase of 11% over last quarter's distribution. The Board also declared dividends on various series of preferred shares. All the dividends are payable on Dec. 29, 2016 to shareholders of record as of Dec. 14, 2016.
$PSA purchased 8 self-storage facilities with 0.6MM net rentable square feet for $73MM in 3Q16. Subsequent to Sept. 30, 2016, the company acquired or was under contract to acquire 21 self-storage facilities with 1.7MM net rentable square feet for $149MM.
$PSA reported a rise in 3Q16 earnings driven by higher self-storage net operating income and income allocated to preferred shareholders. Net income rose to $308.96MM or $1.78 per share from $273.51MM or $1.58 per share last year. Revenue grew to $663.15MM from $618.87MM. Funds from operations per share increased to $2.51 from $2.27.
$PSA said it has priced a public offering of 14MM depositary shares at $25 per share, with each depositary share representing 1/1,000 of a 4.90% Cumulative Preferred Share of Beneficial Interest, Series E. The offering is expected to result in $350MM of gross proceeds and to close on or about Oct. 14, 2016, subject to customary closing conditions.
Gwen Clark with Evercore ISI asks about how Shurgard did during the quarter? $PSA said Shurgard had 7% NOI growth, occupancy was up to average 90.6 versus 90.1 last year, and realized rents were up 3%. Overall, revenue was up 3.5%, expenses were down 1.3%, that's how you got to the 7% NOI growth.
George Hoglund with Jefferies asks about the development pipeline of about $630MM, if this number will continue to grow. $PSA said the company is pleased with what it does have in the pipeline. The company is going to have about $118MM of that deliver in 2H16, so it will come down and see if the team can replace that $118MM.