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Monday, Sep 25, 2023

Public Storage Beats Expectations Despite Hurricane Losses

Public Storage in Glendale exceeded Wall Street expectations on revenue and earnings despite incurring damages to its facilities from Hurricanes Harvey and Irma. For the period ended Sept. 30, the self-storage focused real estate investment trust reported revenue of $686 million, a jump from $663 million for the same period last year. That exceeded analysts’ expectations of $685.6 million, according to Thomson Financial Network. The company reported adjusted funds from operations, which it refers to as core FFO, of $2.61 a share, compared to $2.53 a share for the prior year quarter. Analysts expected $1.88 a share. The adjusted funds excluded, among other factors, $7.8 million in casualty loss and $5.2 million in tenant reinsurance losses for repairs, cleanup and disposal of debris for facilities in Houston and Florida damaged by the storms in August and September. It temporarily closed 115 properties in Houston and 125 in Florida due to damages. Public Storage said it expects to spend about $10 million to repair the facilities, and the amount won’t be covered by insurance because it falls below the deductibles. The damages contributed to a $29 million drop in net income, or 17 cents a share, Public Storage reported. Public Storage (PSA) reported earnings Wednesday after the market closed. On Thursday, shares fell $5.79, or 2.8 percent, to close at $204.21 on the New York Stock Exchange.

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