Jefferies Discusses Public￿ Storage￿ (PSA)

Jefferies & Co. is out with a research report on Public� Storage� PSA after it reported earnings. It has a Hold rating and a $110 price target on shares. In a note to clients, Jefferies writes, "�For� 4Q10, �PSA� reported� YoY SS �NOI �growth �of �4.2%, �driven �by � a �2.4%� increase �in �total �SS �revenues �and �a �-2.1% �decline �in total �SS �operating �expenses �(opex). �SS �gross �margins �also �improved �120 bps �YoY �to �72.2%, from� 71.0%. �Total �SS �revenue� growth �of �2.4% �was �derived �from� a �2.0% �increase �in �SS �rental income �(150 bps �increase �in �occupancy �to �89.0% �and �a �0.3%� increase �in �realized �annual �rent per�occupied� sq. �ft. �to �$12.79) �and� a �10.0% �increase� in �late �charges� and �admin�fees �collected. We �note �that �the �total �SS �opex �decline� of �2.1%� in �4Q10 �was �aided� by �a �16.6%� decline �in property �taxes �and �a �100% �decline �in �media� advertising �spend �(i.e., �no �media �advertising �in 4Q10). �We �look �forward �to �the �earnings �call �for �mgmt's �outlook �on �opex �mgmt �in �2011, �as well �as �their �thoughts �on �the �use �of �media �advertising �on �a �going-forward �basis." Shares of PSA gained $1.61 to close at $110.57, a gain of 1.5%.