For Release

Immediately

Date

April 25, 2018

Contact

Ryan Burke



(818) 244-8080, Ext. 1141





Three Months Ended March 31,



Percentage



2018

2017

Change



FFO per share

$

$

Eliminate the per share impact of

items excluded from Core FFO, including

our equity share from investments:

Foreign currency exchange loss

Accelerated expense of executive officer

share based awards due to upcoming retirement

 -

Core FFO per share

$

$





Selected Operating Data for the Same

Store Facilities (2,052 facilities)

(unaudited):



Three Months Ended March 31,



Percentage



2018

2017

Change





Revenues:

Rental income

$

$

Late charges and administrative fees

Total revenues (a)



Cost of operations:

Property taxes

On-site property manager payroll

Supervisory payroll

(5.4)%

Repairs and maintenance

(2.9)%

Snow removal

Utilities

Advertising and selling

(4.1)%

Other direct property costs

Allocated overhead

Total cost of operations (a)

Net operating income (b)

$

$



Gross margin

(0.4)%



Weighted average for the period:

Square foot occupancy

(0.9)%

Realized annual rental income per (c):

Occupied square foot

$

$

Available square foot (“REVPAF”)

$

$

At March 31:

Square foot occupancy

(1.2)%

Annual contract rent per occupied

square foot (d)

$

$

(a)

Revenues and cost of operations do not include ancillary revenues and expenses generated at the facilities with respect to tenant reinsurance and retail sales.

(b)

See attached reconciliation of self-storage net operating income (“NOI”) to operating income.

(c)

Realized annual rent per occupied square foot is computed by dividing annualized rental income, before late charges and administrative fees, by the weighted average occupied square feet for the period.  Realized annual rent per available square foot (“REVPAF”) is computed by dividing annualized rental income, before late charges and administrative fees, by the total available rentable square feet for the period.  These measures exclude late charges and administrative fees in order to provide a better measure of our ongoing level of revenue.  Late charges are dependent upon the level of delinquency and administrative fees are dependent upon the level of move-ins.  In addition, the rates charged for late charges and administrative fees can vary independently from rental rates.  These measures take into consideration promotional discounts, which reduce rental income. 

(d)

Contract rent represents the applicable contractual monthly rent charged to our tenants, excluding the impact of promotional discounts, late charges and administrative fees.  







For the Quarter Ended



March 31

June 30

September 30

December 31

Entire Year





(Amounts in thousands, except for per square foot amounts)

Total revenues:

2018

$

2017

$

$

$

$

$



Total cost of operations:

2018

$

2017

$

$

$

$

$



Property taxes:

2018

$

2017

$

$

$

$

$



Repairs and maintenance, including

snow removal expenses:

2018

$

2017

$

$

$

$

$



Advertising and selling expense:

2018

$

2017

$

$

$

$

$



REVPAF:

2018

$

2017

$

$

$

$

$



Weighted average realized annual

rent per occupied square foot:

2018

$

2017

$

$

$

$

$



Weighted average occupancy levels

for the period:

2018

2017





NON SAME STORE

Three Months Ended March 31,

FACILITIES

2018

2017

Change





Revenues:

2018 acquisitions

$

$

 -

$

2017 acquisitions

2016 acquisitions

2016 - 2018 new developments

2013 - 2015 new developments

Other facilities

    Total revenues



Cost of operations before depreciation

and amortization expense:

2018 acquisitions

 -

2017 acquisitions

2016 acquisitions

2016 - 2018 new developments

2013 - 2015 new developments

Other facilities

    Total cost of operations



Net operating income:

2018 acquisitions

 -

2017 acquisitions

2016 acquisitions

2016 - 2018 new developments

2013 - 2015 new developments

Other facilities

    Net operating income (a)

$

$

$



At March 31:

Square foot occupancy:

2018 acquisitions

 -

 -

2017 acquisitions

(1.0)%

2016 acquisitions

2016 - 2018 new developments

2013 - 2015 new developments

Other facilities



(0.4)%

Annual contract rent per occupied square foot:

2018 acquisitions

$

$

 -

 -

2017 acquisitions

2016 acquisitions

2016 - 2018 new developments

(6.8)%

2013 - 2015 new developments

Other facilities



$

$

(0.9)%





NON SAME STORE

Three Months Ended March 31,

FACILITIES (Continued)

2018

2017

Change



At March 31:

Number of facilities:

2018 acquisitions

 -

2017 acquisitions

2016 acquisitions

 -

2016 - 2018 new developments

2013 - 2015 new developments

 -

Other facilities

 -



Net rentable square feet (in thousands):

2018 acquisitions

 -

2017 acquisitions

2016 acquisitions

2016 - 2018 new developments

2013 - 2015 new developments

 -

Other facilities



(a)

See attached reconciliation of self-storage NOI to operating income.





Three Months Ended



March 31,



2018

2017



Revenues:

Self-storage facilities

$

$

Ancillary operations





Expenses:

Self-storage cost of operations

Ancillary cost of operations

Depreciation and amortization

General and administrative





Operating income



Other income (expense):

Interest and other income

Interest expense

Equity in earnings of unconsolidated real estate entities

Gain on real estate investment sales

 -

Foreign currency exchange loss

Net income

Allocation to noncontrolling interests

Net income allocable to Public Storage shareholders

Allocation of net income to:

Preferred shareholders – distributions

Restricted share units 

Net income allocable to common shareholders

$

$



Per common share:

Net income per common share – Basic

$

$

Net income per common share – Diluted

$

$

Weighted average common shares – Basic

Weighted average common shares – Diluted





March 31, 2018

December 31, 2017

ASSETS

(Unaudited)



Cash and equivalents

$

$



Operating real estate facilities:

Land and buildings, at cost

Accumulated depreciation



Construction in process

Investments in unconsolidated real estate entities

Goodwill and other intangible assets, net

Other assets

Total assets

$

$







LIABILITIES AND EQUITY



Senior unsecured notes

$

$

Mortgage notes

Accrued and other liabilities

Total liabilities



Equity:

Public Storage shareholders’ equity:

Cumulative Preferred Shares, $0.01 par value, 100,000,000 shares

authorized, 161,000 shares issued (in series) and outstanding,

(161,000 at December 31, 2017) at liquidation preference

Common Shares, $0.10 par value, 650,000,000 shares authorized,

173,927,759 shares issued and outstanding, (173,853,370 shares

at December 31, 2017)

Paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total Public Storage shareholders’ equity

Noncontrolling interests

Total equity

Total liabilities and equity

$

$





Three Months Ended



March 31,



2018

2017



Computation of FFO per Share:



Net income allocable to common shareholders

$

$

Eliminate items excluded from FFO:

Depreciation and amortization

Depreciation from unconsolidated real estate investments

Depreciation allocated to noncontrolling interests

and restricted share unitholders

Gains on sale of real estate investments, including

our equity share from investments

FFO allocable to common shares (a)

$

$

Diluted weighted average common shares

FFO per share (a)

$

$



Reconciliation of Earnings per Share to FFO per Share:



Earnings per share—Diluted

$

$

Eliminate per share amounts excluded from FFO:

Depreciation and amortization allocable to

common shareholders

Gains on sale of real estate investments, including

our equity share from investments and other

FFO per share (a)

$

$



Computation of Funds Available for Distribution ("FAD"):



FFO allocable to common shares

$

$

Eliminate effect of items included in FFO but not FAD:

Share-based compensation expense in excess of

(less than) cash paid

Foreign currency exchange loss

Less: Capital expenditures to maintain real estate facilities



FAD (a)

$

$



Distributions paid to common shareholders and restricted

share units

$

$



Distribution payout ratio



Distributions per common share

$

$



(a)

FFO and FFO per share are non-GAAP measures defined by the National Association of Real Estate Investment Trusts and, along with the non-GAAP measure FAD, are considered helpful measures of REIT performance by REITs and many REIT analysts. FFO represents net income before real estate depreciation, gains or losses and impairment charges, which are excluded because they are based upon historical real estate costs and assume that building values diminish ratably over time, while we believe that real estate values fluctuate due to market conditions. FAD represents FFO adjusted to exclude certain non-cash charges and to deduct capital expenditures.  We utilize FAD in evaluating our ongoing cash flow available for investment, debt repayment, and common distributions. We believe investors and analysts utilize FAD in a similar manner.    FFO and FFO per share are not a substitute for net income or earnings per share.  FFO and FAD are not substitutes for GAAP net cash flow in evaluating our liquidity or ability to pay dividends, because they exclude investing and financing activities presented on our statements of cash flows.  In addition, other REITs may compute these measures differently, so comparisons among REITs may not be helpful.





Three Months Ended



March 31,



2018

2017



Self-storage revenues for:

Same Store Facilities

$

$

Non Same Store Facilities

Self-storage revenues



Self-storage cost of operations for:

Same Store Facilities

Non Same Store Facilities

Self-storage cost of operations



Self-storage net operating income for:

Same Store Facilities

Non Same Store Facilities

Self-storage net operating income (a)

Ancillary revenues

Ancillary cost of operations

Depreciation and amortization

General and administrative expense

Operating income on our income statement

$

$

(a)

Net operating income or “NOI” is a non-GAAP financial measure that excludes the impact of depreciation and amortization expense, which is based upon historical real estate costs and assumes that building values diminish ratably over time, while we believe that real estate values fluctuate due to market conditions.  We utilize NOI in determining current property values, evaluating property performance, and in evaluating operating trends.  We believe that investors and analysts utilize NOI in a similar manner.  NOI is not a substitute for net income, net operating cash flow, or other related GAAP financial measures, in evaluating our operating results.  This table reconciles from NOI for our self-storage facilities to the operating income presented on our income statement.