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Public Storage Results Show $12.3M Increase in Self-Storage NOI

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Glendale, CA-based Public Storage revealed operating results for the three and six months ended June 30, 2018. For the three months ended June 30, 2018, net income allocable to the company’s common shareholders was $348.3 million or $2.00 per diluted common share, compared to $276.7 million or $1.59 per diluted common share in 2017. That number represents an increase of $71.6 million or $0.41 per diluted common share.

According to the report, the increase is due primarily to a $12.3 million increase in self-storage net operating income, the company’s $24 million equity share of a gain on sale of assets recorded by PS Business Parks in the three months ended June 30, 2018, a $47.4 million increase due to the impact of foreign currency exchange gains and losses associated with our euro denominated debt and a $14.6 million allocation to preferred shareholders associated with preferred share redemptions in the three months ended June 30, 2017.

The report notes that these increases were offset partially by a $13 million increase in general and administrative expense due to the acceleration of share-based compensation expense accruals for the REIT’s CEO and CFO in 2018 as a result of their upcoming retirement and the reversal of share-based compensation accruals forfeited by retiring executives in 2017.

The $12.3 million increase in self-storage net operating income is a result of a $4.7 million increase in the REIT’s same store facilities and a $7.6 million increase in its non same store facilities. Revenues for the same store facilities increased 1.5% or $8.5 million in the three months ended June 30, 2018 as compared to 2017, due primarily to higher realized annual rent per occupied square foot.

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