Public Storage (NYSE:PSA) stock rose 1.57% (As on February 21, 11:41:12 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter funds from operations above Wall Street estimates, as higher rent for its storage units offset falling occupancy. For the three months ended December 31, 2023, net income allocable to our common shareholders was $389.7 million or $2.21 per diluted common share, compared to $362.6 million or $2.06 per diluted common share for the same period in 2022, representing an increase of $27.1 million or $0.15 per diluted common share. The increase is due primarily to (i) a $37.6 million increase in self-storage net operating income, (ii) a $67.8 million decrease in foreign currency exchange losses primarily associated with our Euro denominated notes payable, and (iii) a $17.1 million increase in gain on sale of real estate, partially offset by (iv) a $61.0 million increase in depreciation and amortization expense and (v) a $32.5 million increase in interest expense.

The $37.6 million increase in self-storage net operating income in the three months ended December 31, 2023 as compared to the same period in 2022 is a result of a $40.8 million increase attributable to our Non-Same Store Facilities, partially offset by a $3.2 million decrease attributable to our Same Store Facilities. Revenues for the Same Store Facilities increased 0.8% or $6.4 million in the three months ended December 31, 2023 as compared to the same period in 2022, due primarily to higher realized annual rent per occupied square foot, partially offset by a decline in occupancy. Cost of operations for the Same Store Facilities increased by 5.1% or $9.7 million in the three months ended December 31, 2023 as compared to the same period in 2022, due primarily to increased marketing expense. The increase in net operating income of $40.8 million for the Non-Same Store Facilities is due primarily to the impact of facilities acquired in 2023.

PSA in the fourth quarter of FY 23 has reported the adjusted FFO per share of $4.20, beating the analysts’ estimates for the adjusted FFO per share of $4.14, according to LSEG data. The company had reported the adjusted revenue growth of 6 percent to $1.16 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $1.14 billion. The real estate investment trust, which leases out storage spaces on a monthly basis for personal and business use, reported fourth-quarter profit of $2.21 per share, below analysts’ estimates of $2.73 per share.