Public Storage · NYSE:PSA
Public Storage — Corporate Update (January 2025)
27 slides from Public Storage's corporate update, January 2025
Slide 1: Company Update
Company Update January 2025 1
Slide 2: Important Information
Important Information FORWARD-LOOKING STATEMENTS: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements relating to our 2024 outlook and all underlying assumptions; our expected
Slide 3: Company Highlights
Company Highlights I. The Self-Storage Industry Leader II. Favorable Sector Dynamics III. Transforming Our Operating Model IV. Multi-Factor External Growth V. Growth-Oriented Balance Sheet VI. Outperformer at an Attractive Valuation Appendix: 4Q24 Operating Update 3
Slide 4: The Self-Storage Industry Leader
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update The Self-Storage Industry Leader NYSE / S&P 500 3,333 company properties 52 241M years in operation rentable square feet A2 / A 40 credit rating (Moody’s/
Slide 5: Unique Competitive Advantages
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Unique Competitive Advantages High-Integrity Team & Culture An innovation-driven culture with broad diversity Unmatched Owned Scale & Locations Multi-Leve
Slide 6: Committed to Sustainable Growth
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Committed to Sustainable Growth Environmental Social Governance A Low Impact Company A People Focus Integral to operational, financial, and reputational r
Slide 7: A Superior Cash Flow Profile
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update A Superior Cash Flow Profile Strong NOI Growth1 High NOI Margin1 Low Capital Expenditures1 % of NOI Cumulative = 118% CAGR = 5.7% 78% 21% Public Storage 5
Slide 8: Industry Stabilizing from Extraordinary Times
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Industry Stabilizing from Extraordinary Times Revenue Growth1 Revenue Growth Deceleration1 Trailing twelve month sequential change Record Growth -0.2% 14.
Slide 9: The Affordable Space Alternative
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update The Affordable Space Alternative Consumer Spend Move-In Rents vs. Inflation (% of monthly income) Indexed to 100 in 2012 Pre-Pandemic Today 150 Demand mod
Slide 10: New Supply Growth Decelerating
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update New Supply Growth Decelerating New Self-Storage Supply Growth 5.0% 5.0% 4.1% 3.9% 3.5% 3.2% 3.0% 2.8% 2.5% Further reductions 2.0% expected over the next
Slide 11: Our Hybrid Digital Operating Model Transformation
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Our Hybrid Digital Operating Model Transformation Omni-Channel Digital Customer Experience Operating Model Digital Field Website PS App Kiosk Digital Spec
Slide 12: Tracking Ahead of Our Transformation Plan
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Tracking Ahead of Our Transformation Plan Select Progress & Goals al Innovation Digit Current progress Goal Digital customer rentals 75% (% of move-in cus
Slide 13: Industry-Leading Revenue Management
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Industry-Leading Revenue Management Public Storage Self-Storage REIT Peer Average1 Industry Average2 Occupancy Rent per Square Foot 98% $25 Consistently o
Slide 14: Transformation is Enhancing Our Outperformance
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Transformation is Enhancing Our Outperformance Highest Revenues1 Most Optimized Labor Hours1 Highest NOI1 Most Profitable1 (payroll costs) (NOI margin) $2
Slide 15: Superior External Growth Strategy
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Superior External Growth Strategy Acquisitions Infuses Proprietary Big Data and Analytics Deep analytics underpin investment decisions made by our experie
Slide 16: Significant Growth Achieved & Ahead
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Significant Growth Achieved & Ahead Total Owned Portfolio By Property Type1 Five-Year Cumulative External Growth Activity ~221 million square feet Square
Slide 17: Acquisition Execution & Integration
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Acquisition Execution & Integration Case Study: Acquiring & Executing at Scale Integrated on day one $2.2B acquisition in 2023 152 properties I 11M square
Slide 18: Best-in-Class Development Program
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Best-in-Class Development Program NOI Yield by Delivery Year1 Largest and most experienced team in the industry Data-driven submarket and site selection 1
Slide 19: Balance Sheet Positioned to Fund Additional Growth
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Balance Sheet Positioned to Fund Additional Growth Net Debt and Preferred Equity on Balance Sheet1 (billions) $7.8 Debt and free cash flow fund significan
Slide 20: Industry-Leading Cash Flow Generation
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Industry-Leading Cash Flow Generation Free Cash Flow Margin1 Free Cash Flow Conversion2 83% 77% 68% 61% 61% 53% 50% 41% Strongest operating metrics, lowes
Slide 21: Total Shareholder Return Outperformance
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Total Shareholder Return Outperformance 1-Year Total Return 3-Year Total Return 5-Year Total Return 73% 70% 64% 41% 4% 1% 0% -3% -5% -12% -23% -34% PSA EX
Slide 22: Premium Valuation Drivers
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Premium Valuation Drivers Valuation Drivers 2025 FFO Multiple2 Most recognizable brand 20x Unmatched owned portfolio scale and locations 18x Leading end-t
Slide 23: Public Storage is…
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Public Storage is… Strengthening our wide-ranging competitive advantages Transforming our operating model through customer experience, employee satisfacti
Slide 24: Appendix
Appendix Public
Slide 25: Same Store Move-In and Move-Out Update
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Same Store Move-In and Move-Out Update Rents Gained from Move-Ins Rents Lost from Move-Outs (Amounts in thousands, except for per square foot amounts) (Am
Slide 26: Same Store Occupancy and Rent Trends
Industry Leader I Industry Update I Transformation I External Growth I Balance Sheet I Outperformer at an Attractive Valuation I Operating Update Same Store Occupancy and Rent Trends Square Foot Occupancy at Period End Annual Contract Rent Per Square Foot at Period End 2023 2024 2023 2024 $23.16 $23
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Net Income to EBITDA Reconciliation 2015 2020 3Q24 TTM Net income $1,318 $1,361 $1,908 Net operating income attributed to noncontrolling interests (8) (6) (18) Depreciation and amortization 425 553 1,136 Interest expense 1 56 283 Income tax expense 8 8 9 Extraordinary and no