Cash Machine REIT Public Storage Reports Earnings

Yesterday the cash machine we call Public Storage (NYSE:PSA) reported earnings for the last quarter and for last year, ending 12/31/2018, and as we have come to expect PSA continues to churn out massive net income.

Public Storage had 2018 revenue of $2.74 billion, with a full $1.711 billion being reported as net income. If we add back non cash depreciation of $483 million we would have about $2.2 billion of free cash.

PSA paid out $1.4 billion to common shareholders with another $216 million paid out to preferred shareholders.. This is a true cash machine unlike any other REIT.

The company carries debt of just $1.4 billion against equity of $9.1 billion–wow!!

Of course PSA has 12 preferred stock issues outstanding right now (it was 13, but the company called for redemption of the PSA-Y 6.375% issue) as they have chosen to finance the business with equity instead of with debt.

The companies earning release can be read here.

4 thoughts on “Cash Machine REIT Public Storage Reports Earnings”

  1. Tim, this really is a cash machine. Added a few to my page in December about $1.50 under par yielding 6%+. Like you I prefer term-dated for these type companies though this IG issue adds diversification and should be a back-stop issue in a downturn when storage demand increases.

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