Public Storage · NYSE:PSA
Public Storage — Corporate Update (November 2023)
20 slides from Public Storage's corporate update, November 2023
Slide 1: Company Update
Company Update November 2023 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 2023 outlook and all underlying assumptions, our expected
Slide 3: Company Highlights
Company Highlights I. Self-Storage Industry Leader II. Innovation-Powered Organic Growth III. Multi-Factor External Growth IV. Growth-Oriented Balance Sheet V. Attractive Valuation and Outlook 3
Slide 4: The Self-Storage Industry Leader
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook The Self-Storage Industry Leader NYSE / S&P 500 3,297 company properties 51 238M years in operation rentable square feet A2 / A 40 credit rating (Moody’s/S&P) states $4.3B 2.0M TTM revenues customer
Slide 5: Unique Competitive Advantages
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Unique Competitive Advantages High-Integrity Team & Culture An innovation-driven culture with broad diversity Unmatched Owned Scale & Locations Multi-Lever External Growth Half of the U.S. populatio
Slide 6: Committed to Sustainable Growth
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Committed to Sustainable Growth Environmental Social Governance A Low Impact Company A People Focus Integral to operational, financial, and reputational resilience Light footprint I Carbon, water, a
Slide 7: Strong and Resilient Income Growth Profile
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Strong and Resilient Income Growth Profile Public Storage’s income generation outpaces and is more resilient than the broader real estate space Same-Store Net Operating Income Growth Indexed to 2004
Slide 8: Delivering the Digital Customer Experience
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Delivering the Digital Customer Experience Digital transformation enhances the customer experience while also enabling our operating model transformation Finding a Space Lease Exe
Slide 9: Industry's First End-to-End Digital Ecosystem
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Industry’s First End-to-End Digital Ecosystem Proprietary digital ecosystem enables transformation beyond the traditional property manager dependent operating model Convenience, M
Slide 10: Growth Tailwind From Our Largest Market
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Growth Tailwind From Our Largest Market Revenue growth in Los Angeles is a tailwind on strong demand dynamics, limited new supply, and the expiration of pricing restrictions Revenue Growth Premium A
Slide 11: Strengthening Our Operating Advantage
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Strengthening Our Operating Advantage First-mover technology implementation and operating model transformation are further enhancing our profitability Same-Store NOI Margin1 Further margin expansion
Slide 12: Accelerated External Growth
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Accelerated External Growth Multiple channels to grow and enhance our portfolio Growth Since Beginning of 20191 Total Owned Portfolio By Property Type1 217+ million square feet $11 billion Non-Same
Slide 13: Advantages and Unique Capabilities Drive Growth
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Advantages and Unique Capabilities Drive Growth Portfolio Expansion via Private Market Transactions Differentiated Acquisition Strategy (2019 – 2023 YTD)1 Square feet added, millions Infuses Proprie
Slide 14: Significant Income Growth & Value Creation
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Significant Income Growth & Value Creation Historically strong acquisition and development performance with embedded earnings upside Considerable future earnings growth through occupancy and rent le
Slide 15: Balance Sheet Positioned to Fund Additional Growth
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Balance Sheet Positioned to Fund Additional Growth Capacity remains following balance sheet evolution towards utilizing debt to fund external growth Net Debt and Preferred Equity on Balance Sheet1 (
Slide 16: Strong Performance and Outlook
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Strong Performance and Outlook 3Q23 Core FFO Per Share Growth1 2023 Core FFO Per Share Growth Guidance 8.1% 5.6% 5.5% 3.0% 6.5% 4.7% (2.8%) (4.3%) (6.9%) (4.6%) (8.6%) (6.4%) Public Storage CubeSmar
Slide 17: Attractive Valuation
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Attractive Valuation Quality and Growth 2024 FFO Multiple1 Strong geographic mix with the most owned and “A” locations Multiple upside to historical premium valuation 16x 14x Margin-expanding operat
Slide 18: Public Storage is…
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook Public Storage is… Strengthening our wide-ranging competitive advantages Transforming our operating model through customer experience, employee satisfaction, and margin expanding digitalization Enha
Slide 19: Appendix
Appendix Public Storage
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Net Income to EBITDA Reconciliation 2015 2020 3Q23 TTM Net income $1,318 $1,361 $2,133 Net operating income attributed to noncontrolling interests (8) (6) (17) Depreciation and amortization 425 553 909 Interest expense 1 56 169 Extraordinary and nonrecurring gains and losses