Public Storage Inc. (PSA, Financial) filed Quarterly Report for the period ended 2010-03-31.
Public Storage Inc. has a market cap of $15.77 billion; its shares were traded at around $92.96 with a P/E ratio of 18.7 and P/S ratio of 9.69. The dividend yield of Public Storage Inc. stocks is 2.8%. Public Storage Inc. had an annual average earning growth of 6.3% over the past 10 years. GuruFocus rated Public Storage Inc. the business predictability rank of 5-star.PSA is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Jim Simons of Renaissance Technologies LLC, Stanley Druckenmiller of Duquesne Capital Management, LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Richard Aster Jr of Meridian Fund, Jeremy Grantham of GMO LLC, First Pacific Advisors of First Pacific Advisors, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
At March 31, 2010, we had approximately $720 million of cash on hand, $95 million of short-term investments in high-grade corporate notes and we have access to an additional $300 million line of credit that does not expire until March 27, 2012. In addition, in April and May, 2010 we raised in aggregate gross proceeds of approximately $145 million through the issuance of our Series O Cumulative Preferred Shares. Our capital commitments in the 12 months ending March 31, 2011 total approximately $575 million and include (i) $205 million paid in April 2010 to redeem our Equity Shares, Series A, (ii) the $89 million cash portion of the acquisition cost of the 30 self-storage facilities as well as $12 million in related incremental capital expenditures noted below, (iii) $155 million to be paid to redeem our Series V Cumulative Preferred Shares and (iv) $117 million in principal payments on debt. We have no further significant capital commitments until 2013, when $251 million of existing debt comes due.
For the three months ended March 31, 2010, net income allocable to our common shareholders was $34.7 million or $0.21 per common share, on a diluted basis, compared to $159.5 million or $0.95 per common share, on a diluted basis, for the same period in 2009, representing a decrease of $124.8 million or $0.74 per common share. This decrease is primarily due to the application of Emerging Issues Task Force D-42 (“EITF D-42”) in connection with the redemption of our Equity Shares, Series A and repurchases of our preferred securities at costs which differ from the original net issuance proceeds for such securities. Overall, the application of EITF D-42 resulted in a net year-over-year reduction in net income allocable to our common shareholders of approximately $120.2 million or $0.71 per common share on a diluted basis.
During the three months ended March 31, 2010, we called for redemption our Equity Shares, Series A and in applying EITF D-42 the excess redemption cost over the original net issuance proceeds reduced net income allocable to our common shareholders by $25.7 million. Conversely, during the three months ended March 31, 2009, we repurchased a portion of our preferred securities at an aggregate cost that was less than the original net issuance proceeds for these securities and as a result of applying EITF D-42, combined with our 41% equity share of PSB s benefit from repurchases of preferred securities, net income allocable to our common shareholders was increased by $94.5 million.
Revenues for the Same Store Facilities (defined below) decreased 2.2% or $7.7 million in the quarter ended March 31, 2010 as compared to the same period in 2009, primarily due to a 3.0% reduction in realized rent per occupied square foot, offset by a 0.6% increase in average occupancies. Cost of operations for the Same Store Facilities decreased 0.7% or $0.9 million in the quarter ended March 31, 2010 as compared to the same period in 2009. Net operating income for our Same Store Facilities decreased 3.0% or $6.8 million in the quarter ended March 31, 2010 as compared to the same period in 2009.
Net income with respect to our self-storage operations decreased by $6.4 million during the three months ended March 31, 2010, when compared to the same period in 2009. This was primarily due to a $7.7 million reduction in Same Store revenues, offset by a $1.6 million increase in revenues for the other facilities.
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Public Storage Inc. has a market cap of $15.77 billion; its shares were traded at around $92.96 with a P/E ratio of 18.7 and P/S ratio of 9.69. The dividend yield of Public Storage Inc. stocks is 2.8%. Public Storage Inc. had an annual average earning growth of 6.3% over the past 10 years. GuruFocus rated Public Storage Inc. the business predictability rank of 5-star.PSA is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Jim Simons of Renaissance Technologies LLC, Stanley Druckenmiller of Duquesne Capital Management, LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Richard Aster Jr of Meridian Fund, Jeremy Grantham of GMO LLC, First Pacific Advisors of First Pacific Advisors, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Highlight of Business Operations:
Another important determinant of our long-term growth is our access to capital and deployment of that capital in order to expand our asset base. Acquisitions of self-storage facilities were minimal during 2008 and 2009. On April 1, 2010, we entered into an agreement to acquire 30 self-storage facilities for $189 million, consisting of cash of $89 million and debt assumption of $100 million. Twenty-eight of the facilities (1.8 million square feet) are located in the Los Angeles area and the surrounding communities of Southern California. The other two facilities (107,000 square feet) are located in the Chicago area. As of May 7, 2010, we have acquired eight of these properties and the remaining properties are expected to close in stages through June 30, 2010. There can be no assurance that the remaining properties will be acquired.At March 31, 2010, we had approximately $720 million of cash on hand, $95 million of short-term investments in high-grade corporate notes and we have access to an additional $300 million line of credit that does not expire until March 27, 2012. In addition, in April and May, 2010 we raised in aggregate gross proceeds of approximately $145 million through the issuance of our Series O Cumulative Preferred Shares. Our capital commitments in the 12 months ending March 31, 2011 total approximately $575 million and include (i) $205 million paid in April 2010 to redeem our Equity Shares, Series A, (ii) the $89 million cash portion of the acquisition cost of the 30 self-storage facilities as well as $12 million in related incremental capital expenditures noted below, (iii) $155 million to be paid to redeem our Series V Cumulative Preferred Shares and (iv) $117 million in principal payments on debt. We have no further significant capital commitments until 2013, when $251 million of existing debt comes due.
For the three months ended March 31, 2010, net income allocable to our common shareholders was $34.7 million or $0.21 per common share, on a diluted basis, compared to $159.5 million or $0.95 per common share, on a diluted basis, for the same period in 2009, representing a decrease of $124.8 million or $0.74 per common share. This decrease is primarily due to the application of Emerging Issues Task Force D-42 (“EITF D-42”) in connection with the redemption of our Equity Shares, Series A and repurchases of our preferred securities at costs which differ from the original net issuance proceeds for such securities. Overall, the application of EITF D-42 resulted in a net year-over-year reduction in net income allocable to our common shareholders of approximately $120.2 million or $0.71 per common share on a diluted basis.
During the three months ended March 31, 2010, we called for redemption our Equity Shares, Series A and in applying EITF D-42 the excess redemption cost over the original net issuance proceeds reduced net income allocable to our common shareholders by $25.7 million. Conversely, during the three months ended March 31, 2009, we repurchased a portion of our preferred securities at an aggregate cost that was less than the original net issuance proceeds for these securities and as a result of applying EITF D-42, combined with our 41% equity share of PSB s benefit from repurchases of preferred securities, net income allocable to our common shareholders was increased by $94.5 million.
Revenues for the Same Store Facilities (defined below) decreased 2.2% or $7.7 million in the quarter ended March 31, 2010 as compared to the same period in 2009, primarily due to a 3.0% reduction in realized rent per occupied square foot, offset by a 0.6% increase in average occupancies. Cost of operations for the Same Store Facilities decreased 0.7% or $0.9 million in the quarter ended March 31, 2010 as compared to the same period in 2009. Net operating income for our Same Store Facilities decreased 3.0% or $6.8 million in the quarter ended March 31, 2010 as compared to the same period in 2009.
Net income with respect to our self-storage operations decreased by $6.4 million during the three months ended March 31, 2010, when compared to the same period in 2009. This was primarily due to a $7.7 million reduction in Same Store revenues, offset by a $1.6 million increase in revenues for the other facilities.
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