Public Storage bought 25 self-storage facilities for $258.4 million during the third quarter and raised its full-year outlook, as occupancy and same-store revenue improved.
The purchases added 1.7 million net rentable square feet and exclude the company’s separate acquisitions of National Storage Affiliates and Public Storage Canada, according to its third-quarter results released Monday.
Including activity after September 30, Public Storage said it had acquired or was under contract to acquire 65 facilities with 4.7 million net rentable square feet for $713.2 million this year. That figure includes properties still under contract, rather than only completed purchases.
Occupancy edges higher
Average occupancy across the company’s 2,755 same-store facilities rose to 92.2% in the quarter from 91.9% a year earlier. Same-store revenue and net operating income each increased 0.5%.
Core funds from operations, a non-GAAP measure used to assess the performance of real estate investment trusts, rose to $4.34 a share from $4.31. Net income per share fell 35.5% to $1.69 from $2.62.
Public Storage raised its full-year core FFO outlook to $16.90 to $17.10 a share, compared with its previous range of $16.75 to $17.05. The figures are management’s forecast, not results already earned.
Development and expansion pipeline
During the first nine months of the year, the company opened four newly developed facilities and expansion projects that together added 500,000 net rentable square feet at a cost of $84.1 million.
At September 30, it had 3.3 million square feet of development projects with estimated costs of $571.2 million and 1.3 million square feet of expansion projects estimated at $217.8 million. It said $466.6 million of its aggregate development and expansion costs remained to be incurred, primarily over the next 18 to 24 months.
The company added a net 31 facilities to its third-party management program during the quarter. At quarter-end it managed or was under contract to manage 493 facilities, including 70 under construction.
JBizNews Desk | Frisco, Texas
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