Public Storage Files Q2 2024 10-Q

TL;DR

Public Storage dropped its Q2 10-Q. All systems go.

AI Summary

Public Storage filed its 10-Q for the period ending June 30, 2024. The company, a real estate investment trust, is incorporated in Maryland and headquartered in Glendale, California. The filing covers the first two quarters of 2024, with the fiscal year ending December 31st.

Why It Matters

This filing provides investors with a detailed look at Public Storage's financial performance and operational status for the first half of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024 Q2 — Quarterly Period (Filing covers the second quarter of 2024.)
• 12/31 — Fiscal Year End (Public Storage's fiscal year concludes on December 31st.)

Key Players & Entities

• Public Storage (company) — Filer of the 10-Q
• Glendale, CA (location) — Company Headquarters
• Maryland (location) — State of Incorporation
• 20240630 (date) — Reporting Period End Date

FAQ

Key Financial Figures

• $0.10 — nge on which registered Common Shares, $0.10 par value PSA New York Stock Exchange
• $0.01 — 0 of a 5.150% Cum Pref Share, Series F, $0.01 par value PSAPrF New York Stock Exchang

Filing Documents

• psa-20240630.htm (10-Q) — 2166KB
• psa-63024xex10_2.htm (EX-10.2) — 79KB
• psa-63024xex10_3.htm (EX-10.3) — 47KB
• psa-63024xex31_1.htm (EX-31.1) — 10KB
• psa-63024xex31_2.htm (EX-31.2) — 10KB
• psa-63024xex32.htm (EX-32) — 8KB
• 0001393311-24-000167.txt ( ) — 8796KB
• psa-20240630.xsd (EX-101.SCH) — 68KB
• psa-20240630_cal.xml (EX-101.CAL) — 79KB
• psa-20240630_def.xml (EX-101.DEF) — 299KB
• psa-20240630_lab.xml (EX-101.LAB) — 717KB
• psa-20240630_pre.xml (EX-101.PRE) — 512KB
• psa-20240630_htm.xml (XML) — 1039KB

FINANCIAL INFORMATION Pages

PART I FINANCIAL INFORMATION Pages

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets 1 Consolidated Statements of Income 2 Consolidated Statements of Comprehensive Income 3 Consolidated Statements of Equity 4 Consolidated Statements of Cash Flows 8 Condensed Notes to Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk 50

Item 3. Quantitative and Qualitative Disclosures About Market Risk 50

Controls and Procedures 50

Item 4. Controls and Procedures 50

OTHER INFORMATION (Items 3 and 4 are not applicable)

PART II OTHER INFORMATION (Items 3 and 4 are not applicable)

Legal Proceedings 51

Item 1. Legal Proceedings 51

Risk Factors 51

Item 1A. Risk Factors 51

Unregistered Sales of Equity Securities and Use of Proceeds 51

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 51 Item 5. Other Information 51

Exhibits 51

Item 6. Exhibits 51 PUBLIC STORAGE CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) June 30, 2024 December 31, 2023 (Unaudited) ASSETS Cash and equivalents $ 542,263 $ 370,002 Real estate facilities, at cost: Land 5,644,056 5,628,488 Buildings 22,170,780 21,836,750 27,814,836 27,465,238 Accumulated depreciation ( 9,921,201 ) ( 9,423,974 ) 17,893,635 18,041,264 Construction in process 380,746 345,453 18,274,381 18,386,717 Investment in unconsolidated real estate entity 374,161 390,180 Goodwill and other intangible assets, net 320,794 387,267 Other assets 277,163 275,050 Total assets $ 19,788,762 $ 19,809,216 LIABILITIES AND EQUITY Notes payable $ 9,400,520 $ 9,103,277 Accrued and other liabilities 584,594 598,993 Total liabilities 9,985,114 9,702,270 Commitments and contingencies (Note 14) Equity: Public Storage shareholders' equity: Preferred Shares, $ 0.01 par value, 100,000,000 shares authorized, 174,000 shares issued (in series) and outstanding, ( 174,000 shares at December 31, 2023) at liquidation preference 4,350,000 4,350,000 Common Shares, $ 0.10 par value, 650,000,000 shares authorized, 175,010,887 shares issued ( 175,670,727 shares at December 31, 2023) 17,501 17,567 Paid-in capital 6,006,460 5,980,760 Accumulated deficit ( 592,665 ) ( 267,910 ) Accumulated other comprehensive loss ( 74,051 ) ( 67,239 ) Total Public Storage shareholders' equity 9,707,245 10,013,178 Noncontrolling interests 96,403 93,768 Total equity 9,803,648 10,106,946 Total liabilities and equity $ 19,788,762 $ 19,809,216 See accompanying notes. 1 PUBLIC STORAGE CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues: Self-storage facilities $ 1,099,736 $ 1,056,120 $ 2,185,781 $ 2,088,304 Ancillary operations 73,475 63,650 144,650 125,698 1,173,211 1,119,770 2,330,431 2,214,002 Expen

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (Unaudited) 1. Description of the Business Public Storage (referred to herein as "the Company," "we," "us," or "our") is a Maryland real estate investment trust ("REIT") engaged in the ownership and operation of self-storage facilities that offer storage spaces for lease, generally on a month-to-month basis, for personal and business use, ancillary activities such as tenant reinsurance, merchandise sales, and third party management, as well as the acquisition and development of additional self-storage space. Effective August 14, 2023, we are structured as an umbrella partnership REIT, or UPREIT, under which substantially all of our business is conducted through Public Storage OP, L.P. ("PSA OP"), an operating partnership, and its subsidiaries including Public Storage Operating Company ("PSOC"). The primary assets of the parent entity, Public Storage, are general partner and limited partner interests in PSA OP, which holds all of the Company's assets through its ownership of all of the equity interests in PSOC. As a limited partnership, PSA OP is a variable interest entity and is consolidated by the Company as its primary beneficiary. As of June 30, 2024, the Company owned all of the general partner interests and approximately 99.95 % of the limited partnership interests of PSA OP, with the remaining 0.05 % of limited partnership interests owned by certain trustees and officers of the Company. At June 30, 2024, we owned interests in 3,049 self-storage facilities (with approximately 218.8 million net rentable square feet) located in 40 states in the United States ("U.S.") operating under the Public Storage name, and 1.1 million net rentable square feet of commercial and retail space. In addition, we managed 260 facilities for third parties at June 30, 2024. At June 30, 2024, we owned a 35 % common equity interest in Shurgard Self Storage Limited ("Shurgard"), a public company traded on the Euronext Bruss

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (Unaudited) Summary of Significant Accounting Policies There have been no significant changes to the Company's significant accounting policies described in Note 2, Basis of Presentation and Summary of Significant Accounting Policies , in Notes to Consolidated Financial Statements included in Item 8 of Part II of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. 3. Real Estate Facilities Activity in real estate facilities during the six months ended June 30, 2024 is as follows: Six Months Ended June 30, 2024 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ 27,465,238 Capital expenditures to maintain real estate facilities 112,775 Capital expenditures for property enhancements 69,290 Capital expenditures for energy efficiencies (LED lighting, solar) 27,566 Acquisitions 21,609 Dispositions and other ( 1,569 ) Developed or expanded facilities opened for operation 119,927 Ending balance 27,814,836 Accumulated depreciation: Beginning balance ( 9,423,974 ) Depreciation expense ( 497,227 ) Ending balance ( 9,921,201 ) Construction in process: Beginning balance 345,453 Costs incurred to develop and expand real estate facilities 155,826 Write-off of cancelled projects ( 606 ) Developed or expanded facilities opened for operation ( 119,927 ) Ending balance 380,746 Total real estate facilities at June 30, 2024 $ 18,274,381 During the six months ended June 30, 2024, we acquired two self-storage facilities ( 0.1 million net rentable square feet of storage space), for a total cost of $ 22.0 million in cash. Approximately $ 0.4 million of the total cost was allocated to intangible assets. During the six months ended June 30, 2024, we completed development and redevelopment activities costing $ 119.9 million, adding 0.7 million net rentable square feet of self-storage space. Construction in process at June 30, 2024 consisted of projects

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (Unaudited) 4. Investment in Unconsolidated Real Estate Entity Throughout all periods presented, we had a 35 % equity interest in Shurgard. On November 14, 2023, Shurgard issued 8,163,265 new common shares to institutional investors. Public Storage participated on a pro-rata basis in the offering and acquired 2,863,674 common shares for a cost of $ 112.6 million, maintaining our 35 % equity interest in Shurgard. As a result of the offering, Shurgard common shares that we effectively owned increased from 31,268,459 to 34,132,133 as of June 30, 2024. Based upon the closing price at June 30, 2024 ( 36.05 per share of Shurgard common stock, at 1.072 exchange rate of U.S. Dollars to the Euro), the shares we owned had a market value of approximately $ 1.3 billion. Our equity in earnings of Shurgard comprised our equity share of Shurgard's net income, less amortization of the Shurgard Basis Differential (defined below). During the six months ended June 30, 2024 and 2023, we received $ 2.0 million and $ 1.9 million of trademark license fees that Shurgard pays to us for the use of the Shurgard trademark, respectively. We eliminated $ 0.7 million of intra-entity profits and losses for each of the six months ended June 30, 2024 and 2023, representing our equity share of the trademark license fees. We classify the remaining license fees we receive from Shurgard as interest and other income on our income statement. During the six months ended June 30, 2024 and 2023, we received cash dividend distributions from Shurgard totaling $ 21.9 million and $ 19.8 million, respectively. Approximately $ 13.3 million and $ 3.2 million of total cash distributions from Shurgard during the six months ended June 30, 2024 and 2023, respectively, represented distributions in excess of cumulative equity in earnings from Shurgard, which was classified within cash flows from investing activities in the Consolidated Statements of Cash Fl

View Full Filing

View this 10-Q filing on SEC EDGAR