Public Storage Posts 2nd-Quarter Profit Rise

Public Storage Inc., the largest owner of self-storage properties in the U.S., said second-quarter earnings rose 31% as higher rents and occupancies offset losses at its new “pick up and delivery” service. Public Storage, a Glendale-based real estate investment trust, said funds from operations rose to $65.3 million, or 55 cents a diluted share, from $49.8 million, or 49 cents, in the year-earlier period. Per-share results reflect an increase in the diluted number of shares outstanding to 118 million from 101.8 million. The results beat Wall Street’s expectations of 54 cents. Revenue rose 29% to $141 million from $109.3 million. Public Storage owns or has a stake in 1,083 self-storage properties in 37 states, triple the size of nearest competitor, Amerco, the parent of U-Haul. As a REIT, Public Storage is exempt from corporate income taxes if, among other requirements, it distributes at least 95% of its net income to shareholders as a dividend. Net income for the quarter rose to $57.2 million, or 32 cents a diluted a share, from $44.3 million, or 14 cents, a year ago. Public Storage shares fell 56 cents to $25 on the NYSE. Amerco shares fell $1.69 to $25 on Nasdaq.