Public Storage (NYSE: PSA) has reported the adjusted funds from operations per share of $2.65 in the fourth quarter 2016, beating the analysts’ estimates for the adjusted funds from operations per share of $2.63. As a result, the PSA stock soared over 1% in the pre-market session today (as of Feb 23rd, 2017; Source: Google finance).
However, the company had reported the adjusted revenue growth of 7 percent to $651.4 million in the fourth quarter 2016, missing the analysts’ estimates for revenue of $656.7 million. In the fourth quarter, PSA has recorded a $23 million currency translation gain from its euro-denominated debt. Overall, PSA’s fourth-quarter profit grew 14 percent to $413.7 million due to a $32.0 million increase in self-storage net operating income and a $23.3 million increase in foreign exchange translation gains associated with the euro-denominated debt.
The revenues for same-store facilities has increased 4.6 pct or $23.5 million in the fourth quarter due to the higher realized annual rent per occupied square foot. The cost of operations for the Same Store Facilities has increased by 2.7% or $2.9 million in the Q4 2016 as compared to 2015, due to the increased property taxes, repairs and maintenance and advertising and selling costs, offset partially by reduced allocated overhead costs. The increase in net operating income for the Non Same Store Facilities is due to the impact of 337 self-storage facilities acquired, developed or expanded since January 2013.
For the full year 2016, adjusted funds from operations per share grew 10.4 percent to $9.70.
Public Storage has appointed Leslie S. Heinz, 56, as an independent trustee of the Public Storage Board of Trustees effective from February 23rd, 2017. Ms. Heisz’s appointment has expanded the Board to nine trustees, six of whom are independent trustees.
Public Storage has opened the first of seven floors, which will be the largest facility in its portfolio. The company has converted the 100-year-old building at 133 2nd St. in Jersey City, N.J., that will comprise nearly 235,000 rentable square feet in about 4,000 units when completes later this year. Initially, 290 climate-controlled units are available for rent. The move came as part of the company’s effort to expand in the region.
Public Storage stock has fallen 10.21% in a year (source: Google Finance). According to tipranks.com, 4 analysts has covered the stock while recommending a “Hold”. PSA has an average price target of $223.67, which is a further downside of 1.14%.