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.
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.
PSB-U that is…
AGNC filed for a Series D fixed to floating preferred symbol will be AGNCM https://www.sec.gov/Archives/edgar/data/1423689/000142368919000010/preliminaryprospectus-22719.htm
Wishing you profitable investing, Nomad
Got it Nomad