Public Storage, a real estate investment trust, released its operating results for the first quarter ending March 31, 2010. The self-storage company reported funds from operations fell from last year. Highlights include:
- Net income allocable to its common shareholders for the first quarter was $34.7 million or $0.21 per share, compared to $159.5 million or $0.95 per share for the year-ago quarter.
- Funds from operations (FFO) allocable to common shares for the first quarter was $131.2 million or $0.78 per share, compared to $254.5 million or $1.51 per share in the prior year quarter.
- Revenue declined to $398.06 million from $404.24 million in the same quarter last year.
- Self-storage rental income fell to $364.7 million from $370.8 million a year ago.
- Revenue for the same-store facilities decreased 2.2 percent or $7.7 million compared to the same quarter last year, mainly due to a 3 percent reduction in realized rent per occupied square foot, offset by a 0.6 percent increase in average occupancies.
The company recently entered into an agreement to acquire 30 self-storage facilities for $189 million, including $100 million of assumed debt and $89 million of cash. Twenty-eight of the facilities (1.8 million square feet) are in the Los Angeles area and the surrounding communities of Southern California. The other two facilities are in the Chicago area.
Public Storage also owns a 49 percent equity interest in Shurgard Europe, with the remaining 51 percent equity interest owned by an institutional investor.