Public Storage Inc. on Thursday reported third quarter funds from operations that beat analysts’ estimates, citing higher rents and occupancy rates at its storage facilities.
The Glendale real estate investment trust reported funds from operations of $2 a share for the quarter ended Sept. 30, compared to $1.73 a year for the same period a year earlier. Revenue rose 5.5 percent to $441 million.
Analyst had expected FFO of $1.89 on revenue of $465 million, according to Thomson Financial. FFO is a REIT metric that adds amortization and depreciation expenses back into net income to get a better picture of cash flow.
The company’s net income was $231 million ($1.34), compared to $203 million ($1.18) a year earlier.
The company also declared a quarterly dividend of $1.40 a share. It will be paid Dec. 30 to shareholders of record on Dec. 13.
During the quarter, Public Storage spent $371 million to acquire 29 storage facilities with roughly 2.2 million net rentable square feet in California, Florida, Massachusetts, Rhode Island and Texas.
As of Sept. 30, Public Storage had interests in 2,110 self-storage facilities in 38 states with about 135 million net-rentable square feet, and 188 storage facilities in Europe with 10 million net rentable square feet.
Public Storage continued acquisitions in the fourth quarter, buying 44 storage facilities for roughly $324 million this month. The company is under contract for more.
Shares closed down 66 cents, or a fraction of a percent, to $166.97 on the New York Stock Exchange.