In This Article:
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Move-in Volumes: Increased over 2%.
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Same-Store Occupancy Gap: Closed from down 80 basis points on December 31 to down 30 basis points on March 31.
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Same-Store Revenue Growth: Turned positive after more than two years of deceleration.
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Non-Same-Store Revenue Growth: Accelerated to nearly 11%.
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Core FFO per Share Growth: More than 2% for the quarter, a 200 basis point improvement sequentially.
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Acquisitions: $184 million acquired or under contract, ahead of $35 million at this time last year.
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Development Delivered: $144 million during the quarter.
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Development Pipeline: About $650 million to be delivered over the next two years.
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Retained Cash Flow: Expected to increase by 50% to approximately $600 million.
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Same-Store Expenses Growth: Controlled at 30 basis points.
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Core FFO per Share: Up 2.2% year-over-year to $4.12 per share.
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Guidance for 2025: Unchanged.
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Fire-Related Pricing Restrictions Impact: Expected to have a 100 basis points impact on same-store revenue growth for the year.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Public Storage (NYSE:PSA) reported a 2% increase in move-in volumes, driven by enhanced digital engagement and customer conversion.
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Revenue growth in the non-same-store pool accelerated to nearly 11%, contributing significantly to overall growth.
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Core FFO per share grew by more than 2% for the quarter, marking a 200 basis point improvement sequentially.
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The company is advancing a comprehensive digital transformation, with 85% of customer interactions now digital.
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Public Storage (NYSE:PSA) has a strong acquisition pipeline, with $184 million in acquisitions or contracts, significantly higher than the previous year.
Negative Points
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Move-in rents have declined significantly, with new customers moving in at rates not seen since 2013.
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The company anticipates a 100 basis point impact on same-store revenue growth due to fire-related pricing restrictions in Los Angeles.
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The overall acquisition environment remains challenging, with transaction volumes being abnormally light.
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Move-in rates were down 8% in April, indicating potential pricing pressure.
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The self-storage industry is experiencing a multiyear deceleration in development completions, which could impact future growth opportunities.
Q & A Highlights
Q: Can you help us understand the level of conservatism in your guidance, given the confidence in fundamentals bottoming and the rate gap staying down 5% through the year? A: H. Thomas Boyle, CFO: Our performance was in line with expectations, with strong move-in volumes and rates down slightly. April showed good customer behavior, with move-in volumes up 3% and rates down 8%. We are seeing demand stabilize, and we'll keep monitoring trends closely.