Earnings at Public Storage Inc. rose in the first quarter due to higher rents and lower vacancies at the company’s storage facilities, even as it disappointed analysts.
After the markets closed on Thursday, the Glendale operator of storage units reported net income of $162 million (94 cents a share) in the quarter ended March 31, compared to $125 million (73 cents) in the same period a year earlier. Revenue rose 6.5 percent to $471 million.
The company reported funds from operations of $1.57 a share, up from $1.35 a year earlier. FFO is a key REIT metric that adds amortization and depreciation expenses back into net income to get a better picture of cash flow.
The FFO figure fell short by 5 cents of the consensus estimate of 19 analysts polled by Thomson/First Call.
During the quarter, the company acquired two self-storage properties in Arizona and Georgia. The acquisitions added 149,000 net rentable square feet to the company’s portfolio at a cost of $14 million. It also entered a contract to acquire an Arizona facility with 80,000 rentable square feet for $8 million.
The company also declared a quarterly dividend of $1.25 a share on Thursday. It will be paid on June 27 to shareholders of record as of June 12.
Shares earlier closed down 99 cents, or less than 1 percent, to $164.62 on the New York Stock Exchange, and were unchanged in after-hours trading.