Public Storage beats fourth-quarter FFO estimates on higher rent income

By Thomson Reuters Feb 20, 2024 | 4:46 PM

(Reuters) – Public Storage on Tuesday reported fourth-quarter funds from operations above Wall Street estimates, as higher rent for its storage units offset falling occupancy.

The company reported fourth-quarter core FFO of $4.20 per share, above analysts’ estimates of $4.14, according to LSEG data.

Demand for storage space has waned from the heights of the pandemic, as people return to offices. However, Public Storage was able to pad its margins with higher rent.

The company reported an about 6% rise in its quarterly revenue to $1.16 billion, above estimates of $1.14 billion.

The real estate investment trust, which leases out storage spaces on a monthly basis for personal and business use, reported fourth-quarter profit of $2.21 per share, below analysts’ estimates of $2.73 per share.

Shares of the company were down 1.5% in after-hours trading.

(Reporting by Abhinav Parmar and Kannaki Deka in Bengaluru; Editing by Maju Samuel)