Public Storage Inc. said its earnings increased in the fourth quarter due to improved property operations, helping the real estate investment trust beat Wall Street projections for its funds from operations.
The Glendale operator of storage units reported net income of $210 million ($1.22 a share) in the quarter ended Dec. 31, compared to $164 million (96 cents) in the same period a year earlier. Revenue rose 4.9 percent to $405 million.
The company reported funds from operations of $1.86 a share, up from $1.50 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 exceeded by 8 cents the consensus estimate of 19 analysts polled by Thomson/First Call.
During the fourth quarter, the company acquired 10 self-storage properties in Florida, Georgia, California, Arizona, New York and Texas. The acquisitions added 761,000 net rentable square feet to the company’s portfolio at a cost of $82 million.
For the year ended 2012, the company reported a net income of $670 million ($3.90 a share) compared to $562 million ($3.29) in the previous year.
Shares lost 45 cents, or less than 1 percent, to close $152.01 on the New York Stock Exchange.