This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Public Storage's CEO Discusses Q1 2012 Results - Earnings Call Transcript

A reconciliation to GAAP of the non-GAAP financial measures we are providing on this call is included in our earnings press release. You can find our press release, SEC reports and audio webcast replay of this conference call on our website at www.publicstorage.com.

I'll turn the call over to John Reyes.

John Reyes

Thank you, Clem. Our first quarter core FFO per share was $1.44 compared to $1.28 last year, a 13% increase. Five items contributed to this growth. First, our same-store net operating income increased by 6.3%, adding $0.09 per share. The non-same-store properties added $0.02. Last year's acquisition of affiliated partnership interest added $0.02. Lower financing cost added $0.02. And ancillary operations, primarily our tenant reinsurance business, added $0.01.

In the press release, we changed some of our presentation. First, we increased the size of our same-store pools to include properties that we have operated for the last 3 years at a stabilized occupancy level. For our U.S. same stores, we increased the pool by 10. For Shurgard Europe, the pool is increased by 13. We also modified our same-store expense classification to highlight other direct property costs, supervisory payroll and allocated overhead. Other self-storage companies may include some or all of these cost synergies in their G&A expenses. While we modified the presentation, we did not change what is included in our same-store expenses.

We completed several capital transactions in 2012. We issued $923 million of preferred securities with a blended rate of 5.8%, and redeemed $833 million with an average rate of 6.7%. We had about $4 million of negative carry in the first quarter associated with these issuances. In addition, on July 2, we will redeem $173 million of our 7% Series and preferred stock. We expect to record an EITF charge of approximately $5.4 million in the second quarter. Assuming no further issuances, preferred dividends are expected to be about $7 million lower in the second quarter as compared to last year. Our weighted average preferred coupon is now 6.3%.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs