Public Storage (PSA) delivered operating results for Q3 2021, which ended September 30, 2021. Revenue and funds from operations came above consensus estimates. The company also achieved significant milestones in the quarter. PSA shares fell 0.16% to close at $331.64 on November 1.
Public Storage is a U.S. company that offers self-storage services. The company acquires, develops, owns, and operates self-storage facilities that it rents monthly for business and personal use.
Revenue in the quarter landed at $894.93 million, exceeding consensus estimates of $852.54 million. Net income totaled $442.33 million or $2.52 per diluted share, compared to $246.92 million or $1.41 per diluted share delivered the same quarter last year.
The core funds from operations totaled $3.42 per share, up from $2.63 per share delivered the same quarter last year and above consensus estimates of $3.23 a share. (See Top Smart Score Stocks on TipRanks)
During the quarter the company spent $300 million on the acquisition of twenty seven self-storage facilities. Consequently, it ended the quarter with 107 storage facilities, comprised of those it has acquired and those for which it had entered into contract, spread across 16 states.
It also incurred $85.5 million in costs on the opening of a new facility and other projects worth $0.7 million in rentable square feet. In addition, Public Storage issued €700 million of unsecured senior notes during the quarter.
Stifel Nicolaus analyst Steve Manaker reiterated a Buy rating on the stock with a $362 price target, implying 9.15% upside potential to the current levels.
Consensus among analysts is a Moderate Buy, based on 4 Buys and 6 Holds. The average Public Storage price target of $336.89 implies 1.58% upside potential to current levels.