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Public Storage Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 6, 2012 06:19AM

Public Storage Inc. (PSA) filed Quarterly Report for the period ended 2012-06-30. Public Storage has a market cap of $25.36 billion; its shares were traded at around $147.96 with a P/E ratio of 25.2 and P/S ratio of 14.48. The dividend yield of Public Storage stocks is 2.97%. Public Storage had an annual average earning growth of 5.5% over the past 10 years. GuruFocus rated Public Storage the business predictability rank of 3.5-star.



Highlight of Business Operations:

For the three months ended June 30, 2012, net income allocable to our common shareholders was $132.3 million compared to $131.5 million for the same period in 2011. Diluted earnings per common share was flat at $0.77 for each period, as improved property operations and reduced income allocations to our preferred shareholders were offset by a $34.2 million reduction in income caused by foreign currency exchange gains and losses incurred in translating the value of our Euro-denominated loan receivable from Shurgard Europe into a U.S. Dollar equivalent.

Net income with respect to our self-storage operations increased by $26.4 million or 14.9% during the three months ended June 30, 2012, when compared to the same period in 2011. This was due primarily to a 8.3% increase in net operating income with respect to our Same Store Facilities due to increased revenues driven primarily by higher realized rents per occupied square foot, and a 39.0% increase in net operating income with respect to the Non Same Store Facilities, due primarily to the impact of the properties acquired in 2012 and 2011. Net income with respect to our self-storage operations increased by $47.0 million or 13.9% during the six months ended June 30, 2012, when compared to the same period in 2011. This was due primarily to a 7.3% increase in net operating income with respect to our Same Store Facilities due to increased revenues driven primarily by higher realized rents per occupied square foot, and a 37.3% increase in net operating income with respect to the Non Same Store Facilities, due primarily to the impact of the properties acquired in 2012 and 2011.

Equity in earnings from Shurgard Europe for the three months ended June 30, 2012 was $7.5 million as compared to $6.2 million for the same period in 2011, representing an increase of $1.3 million. Equity in earnings from Shurgard Europe for the six months ended June 30, 2012 was $14.3 million as compared to $10.8 million for the same period in 2011, representing an increase of $3.5 million. The increases were primarily due to Shurgard Europe s acquisition on March 2, 2011 of the 80% interests it did not own in two joint ventures that owned 72 self-storage facilities. This was offset partially by a reduction in the average exchange rate for the U.S. Dollar to the Euro from 1.438 for the three months ended June 30, 2011 to 1.284 for the same period in 2012 and from 1.402 for the six months ended June 30, 2011 to 1.297 for the same period in 2012.

The increase in tenant reinsurance revenues for the three and six months ended June 30, 2012, as compared to the same periods in 2011, was due primarily to an increase in the number of our tenants that participate in the insurance program (approximately 5% higher) combined with an increase in average premium rates (approximately 6% higher). On average, approximately 63% of our tenants had such policies during each of the three and six month periods ended June 30, 2012, as compared to 61% and 60% for the same periods in 2011. We expect less growth in the percentage of tenants that participate in the insurance program and a moderation in the growth in the average premium rate in the remainder of 2012 as compared to the same periods in 2011.

The increase in tenant reinsurance revenues for the three and six months ended June 30, 2012, as compared to the same periods in 2011, was due primarily to an increase in the number of our tenants that participate in the insurance program (approximately 5% higher) combined with an increase in average premium rates (approximately 6% higher). On average, approximately 63% of our tenants had such policies during each of the three and six month periods ended June 30, 2012, as compared to 61% and 60% for the same periods in 2011. We expect less growth in the percentage of tenants that participate in the insurance program and a moderation in the growth in the average premium rate in the remainder of 2012 as compared to the same periods in 2011.

Read the The complete Report



Stocks Discussed: PSA,
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