This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Public Storage Management Discusses Q2 2012 Results - Earnings Call Transcript

All forward-looking statements speak only as of today, August 3, 2012, and we assume no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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 the audio webcast replay of this conference call on our website at www.publicstorage.com.

I'll turn the call over to John Reyes.

Edward John Reyes

Thank you, Clem. Our second quarter core FFO per share was $1.62 compared to $1.43 last year, a 13% increase. Five items contributed to this growth. First, our same-store net operating income increased by 8.3%, adding $0.12 per share. Our non-same-store properties added $0.03. Last year's acquisition of affiliated partnership interests added $0.02, lower financing costs other added $0.04, ancillary operations, primarily our tenant reinsurance business, added $0.01. Partially offsetting this was $0.03 per share from lower interest income.

We completed several capital transactions in the second quarter. We issued $288 million of preferred securities, with a rate of 5.625%, and called for redemption $416 million, with an average rate of 6.7%. Assuming no further reissuances, preferred dividends are expected to be about $8 million lower in the third quarter of 2012 as compared to last year.

With that, I will now turn it over to Ron.

Ronald L. Havner

Thank you, John. The second quarter benefited from solid demand, resulting in record-high occupancies and higher realized rents. In Q2, we reduced media spend by 44% or about $1.5 million, as well as promotional discounts.

Net customer acquisition cost declined as customer move-in volumes remained constant despite lower media and promotional discounts. At the end of July 2012, occupancy, asking rents and in-place rents were all higher than the same period last year.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,192.01 -22.41 -0.12%
S&P 500 2,109.06 -1.68 -0.08%
NASDAQ 4,981.2390 -6.6510 -0.13%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs