Public Storage (NYSE: PSA) stock rose over 0.5% on 25th Feb, 2021 (as of 12:15:28 UTC-5 ; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 20. During the quarter ended December 31, 2020, the company had acquired 43 self-storage facilities (five each in Michigan and Pennsylvania, four each in Alabama, Illinois and Texas, three each in Georgia and Missouri, two each in Arizona, Colorado, Florida, Minnesota and Ohio and one each in Maryland, Nevada, Oklahoma, Oregon and Washington) with 3.7 million net rentable square feet for $513.7 million. Subsequent to December 31, 2020, the company has acquired or were under contract to acquire 40 self-storage facilities across 18 states with 3.5 million net rentable square feet, for $580.1 million.
During the fourth quarter, the company opened one newly developed facility and various expansion projects (0.4 million net rentable square feet – 0.2 million in Missouri and 0.1 million each in Florida and Texas) costing $41.3 million. The company’s aggregate 3.6 million net rentable square foot pipeline of development and expansion facilities includes 1.3 million in California, 1.0 million in Florida, 0.2 million each in New York, Texas, Virginia and Washington and 0.5 million in other states. The remaining $373 million of development costs for these projects is anticipated to be incurred primarily in the next 18 to 24 months.
PSA in the fourth quarter of FY 20 has reported the adjusted funds from operations (FFO) per share of $2.93, beating the analysts’ estimates for the adjusted earnings per share of $2.85, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $748.54 million in the fourth quarter of FY 20, beating the analysts’ estimates for revenue by 2.99%. The company has reported the net income allocable to the common shareholders of $292.2 million in the fourth quarter of 2020 compared to $327.3 million, representing a decrease of $35.1 million. For the period, the funds from operations (“FFO”) was $2.57 per diluted common share, as compared to $2.72 in 2019, representing a decline of 5.5%. Further, in the quarter the revenues for the Same Store Facilities rose 0.8% or $4.7 million in the three months ended December 31, 2020 as compared to 2019, mainly due to improved occupancy.
Additionally, the company has declared a regular common quarterly dividend of $2.00 per common share, which will be payable on March 31, 2021 to shareholders of record as of March 16, 2021.