NEW YORK - Public Storage (NYSE:PSA) reported a slight earnings beat for the first quarter of 2024, with revenue showing modest growth compared to the same period last year.
The company, a leader in self-storage solutions, announced its financial results for the three months ending March 31, 2024, which saw earnings per share (EPS) come in at $2.60, surpassing analyst estimates by $0.11. Revenue for the quarter was reported at $1.16 billion, also exceeding the consensus estimate of $1.14 billion.
President and Chief Executive Officer Joe Russell remarked on the quarter's performance, "With first quarter performance in-line with our expectations, the Public Storage team is encouraged as we approach the busy season."
He attributed this to positive customer behavior trends and a decrease in competitive new supply. The company's revenue growth, month-over-month, was seen re-accelerating in a growing number of markets.
In comparison to the first quarter of the previous year, the company's net income allocable to common shareholders decreased slightly from $467.6 million, or $2.65 per diluted common share, to $459.2 million, or $2.60 per diluted common share.
This decrease was primarily due to increased depreciation and amortization expense and higher interest expense, which were partially offset by a rise in foreign currency exchange gains and an increase in self-storage net operating income.
Specifically, self-storage net operating income rose by $25.1 million, driven by the impact of facilities acquired in 2023 and the fill-up of recently developed and expanded facilities.
The company's funds from operations (FFO), a key metric for real estate investment trusts, increased by 7.6% to $4.24 per diluted common share, up from $3.94 in the same period last year. This growth reflects the company's ongoing development and expansion efforts, which added 0.3 million net rentable square feet in the first quarter at a cost of $35.0 million.
Looking ahead, Public Storage did not provide specific guidance for full-year 2024 Core FFO per share, citing the unpredictability of certain items that could significantly impact GAAP net income. However, the company's strategic acquisitions and development projects, including the acquisition of BREIT Simply Storage LLC and the continued expansion of its facilities, indicate a forward momentum in its operations.
Investors should note that the stock movement percentage following the earnings release was not available, and therefore no market reaction can be reported. However, the earnings beat and revenue growth are likely to be of interest to shareholders and potential investors as they assess the company's performance and future prospects.
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