Public Storage · NYSE:PSA
Public Storage — Corporate Update (September 2023)
22 slides from Public Storage's corporate update, September 2023
Slide 1: Company Update
Company Update September 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 Appendix: July & August Operating Update 3
Slide 4: The Self-Storage Industry Leader
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update The Self-Storage Industry Leader NYSE / S&P 500 3,266 company properties 51 235M years in operation rentable square feet A2 / A 40 credit rating (Moody’s/S&P) states $4.2B 1.9M TT
Slide 5: Unique Competitive Advantages
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Unique Competitive Advantages High-Integrity Team & Culture An innovation-driven culture with broad diversity Unmatched Owned Scale & Locations Multi-Lever External Growth Half of
Slide 6: Committed to Sustainable Growth
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Committed to Sustainable Growth Environmental Social Governance A Low Impact Company A People Focus Integral to operational, financial, and reputational resilience Light footprint
Slide 7: Strong and Resilient Income Growth Profile
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update 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 Gro
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: Infusing Digital Remote Property Management
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Infusing Digital Remote Property Management Proprietary digital ecosystem enables transformation beyond the traditional property manager dependent operating model Convenience, Mon
Slide 10: Growth Tailwind From Our Largest Market
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update 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 Reven
Slide 11: Strengthening Our Operating Advantage
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Strengthening Our Operating Advantage First-mover technology implementation and operating model transformation are further enhancing our profitability Same-Store NOI Margin1 Furth
Slide 12: Accelerated External Growth
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Accelerated External Growth Multiple channels to grow and enhance our portfolio Growth Since Beginning of 20191 Total Owned Portfolio By Property Type1 216+ million square feet $1
Slide 13: Advantages and Unique Capabilities Drive Growth
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Advantages and Unique Capabilities Drive Growth Portfolio Expansion via Private Market Transactions Differentiated Acquisition Strategy (2019 – 2023 YTD)1 Square feet added, milli
Slide 14: Significant Income Growth & Value Creation
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Significant Income Growth & Value Creation Historically strong acquisition and development performance with embedded earnings upside Considerable future earnings growth through oc
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 I Operating Update 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
Slide 16: Strong Performance and Outlook
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Strong Performance and Outlook 2Q23 Core FFO Per Share Growth1 2023 Core FFO Per Share Growth Guidance 9% 7.8% 11.5% 7% 5.9% 5% 6.5% 5.2% 4.3% 3% 1% (1%) (2.3%) (3%) (4.3%) (3.3%)
Slide 17: Attractive Valuation
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Attractive Valuation Quality and Growth 2023 FFO Multiple1 Strong geographic mix with the most owned and “A” locations Multiple upside to historical premium valuation 20x Margin-e
Slide 18: Public Storage is…
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Public Storage is… Strengthening our wide-ranging competitive advantages Transforming our operating model through customer experience, employee satisfaction, and margin expanding
Slide 19: Appendix
Appendix Public Storage
Slide 20: Same Store Move-In and Move-Out Update
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook 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) (Amounts in thousands, excep
Slide 21: Same Store Occupancy and Rent Trends
Industry Leader I Organic Growth I External Growth I Balance Sheet I Attractive Valuation and Outlook I Operating Update Same Store Occupancy and Rent Trends Square Foot Occupancy at Period End Annual Contract Rent Per Square Foot at Period End 2022 2023 2022 2023 $23.34 $23.45 94.8% $22.68 $21.80 9
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Net Income to EBITDA Reconciliation 2015 2020 2Q23 TTM Net income $1,318 $1,361 $4,295 Net operating income attributed to noncontrolling interests (8) (6) (16) Depreciation and amortization 425 553 891 Interest expense 1 56 144 Extraordinary and nonrecurring gains and losses