Currency exchange rates and noncash charges hurt Public Storage in the first quarter ended March 31, even though self storage revenues grew 5 percent to $442.6 million.
The Glendale real estate investment trust that has a stake in 2,064 self storage facilities in 38 states, reported net income of $125.3 million, or $0.73 per diluted common share, a 15 percent decline from $148.1 million, or $0.87 per common share in the same period a year ago.
The company attributed to the decrease to a $19.1 million decrease in foreign currency exchange gain and $27 million in non-cash charges for the redemption of preferred securities, which were partly offset by improved property operations.
Revenue from same store facilities increased 4.8 percent from the same quarter a year ago to $17.4 million due primarily to a .6 percent increase in average occupancy and a 4.1 percent increase in realized rent per occupied square foot. Cost of operations for same store facilities increase 1.9 percent to $2.4 million for the quarter. Net operating income for same store facilities increased 6.3 percent to $15 million for the quarter.
Funds from operations, a key measure for REITs, fell to $1.35 per diluted common share, compared to $1.48 for the same period in 2011. The results were adversely affected by foreign currency exchange gains, which was $31.3 million in the 2011 quarter, but only $12.2 million for the same period in 2012.