Public Storage’s Profit Up 25% on Higher Rents

Public Storage Inc., the largest owner of self-storage properties in the U.S., said first-quarter earnings rose 25% on higher rents, though it warned it expects rental growth to slow.

The Glendale-based real estate investment trust posted funds from operations of $92.6 million, or 60 cents a share, up from $74.2 million, or 49 cents, a year earlier. Per-share results reflect preferred dividend payments. Revenue rose 4% to $148.3 million from $142.6 million.

The results, reported just before the close of trading, matched Wall Street’s expectations, according to a survey of analysts by First Call Corp. Shares of Public Storage rose 13 cents to close at $28.63 on the New York Stock Exchange. The shares are up 5.8% this year.

Public Storage owns or has a stake in 1,313 self-storage properties in 37 states, up 15% from a year ago. Its holdings, worth about $3.4 billion on a book value basis, are triple the size of its nearest competitor, Amerco, the parent of U-Haul International Inc.

In March, the company completed the purchase of rival Storage Realty Trust for about $600 million in stock and assumed debt. Public Storage said its average annual rents rose 6.4% to $10.04 a square foot, down from a 6.9% gain in the fourth quarter.

Rental growth has slowed over the last year, and the company said it expects further slowing because it doesn’t anticipate “significant” increases in occupancies. The occupancy rate at properties it has owned for at least a year stood at 91.9% at the end of April, compared with 91.6% a year earlier, Public Storage said.

At a Glance

Other earnings, excluding one-time gains and charges unless noted:

* Burbank-based Iwerks Entertainment Inc., a maker of high-tech entertainment systems and ride simulators, reported a fiscal third-quarter net loss of $389,000, or 3 cents per share, compared with a net loss of $5.1 million, or 42 cents, a year ago. Revenue rose 133% to $10.4 million from $4.5 million last year.

* Panavision Inc., the Woodland Hills-based maker of film camera systems, reported a first-quarter net loss of $6.1 million, or 75 cents per share, contrasted with net income of $2.5 million, or 13 cents, a year ago. Revenue was up $3.8 million to $47 million, compared with $43.2 million last year.