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Public Storage (PSA)
NYSE:PSA
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Public Storage
(NYSE:PSA)
76Outperform
Positive Factors
Financial Performance
PSA had a solid Q1, with same-store metrics coming in ahead of expectations and the guide looking achievable based on performance year-to-date.
Market Expansion
PSA's proposed acquisition of a 50% stake in Abacus would mark a strategic entry into the Australian/NZ storage market, which remains relatively nascent, with low penetration.
Negative Factors
Financial Risk
The expected funding for Public Storage's share of the acquisition through unsecured debt could imply a higher financial risk.
Profitability Concerns
The portfolio is not stabilized with only 88% occupancy, and management fees could affect the profitability of the deal.
Public Storage (PSA) vs. S&P 500 (SPY)
Market Cap
$53.34B
Dividend Yield3.95%
Average Volume (3M)924.21K
Price to Earnings (P/E)30.2
Beta (1Y)0.58
Revenue Growth3.08%
EPS Growth-8.54%
CountryUS
Employees5,900
SectorReal Estate
Sector Strength83
IndustryREIT - Industrial
Share Statistics
EPS (TTM)2.04
Shares Outstanding175,431,350
10 Day Avg. Volume839,988
30 Day Avg. Volume924,206
Financial Highlights & Ratios
PEG Ratio-5.07
Price to Book (P/B)5.58
Price to Sales (P/S)0.00
P/FCF Ratio19.00
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue3.34
Enterprise Value/Gross Profit18.11
Enterprise Value/Ebitda4.57
Forecast
1Y Price Target
$329.79Price Target Upside8.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Public Storage Business Overview & Revenue Model
Company DescriptionPublic Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At September 30, 2020, we had: (i) interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the Shurgard brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2020. Our headquarters are located in Glendale, California.
How the Company Makes MoneyPublic Storage makes money primarily through the rental of storage units. Customers pay monthly fees to rent these units, and the company charges based on the size and location of the unit, as well as any additional services or amenities provided. The company's revenue model is largely based on maximizing occupancy rates and optimizing pricing strategies to reflect demand fluctuations. Public Storage also generates income from ancillary services such as the sale of packing supplies and insurance products. Significant factors contributing to its earnings include strategic acquisitions to expand its portfolio, maintaining high operational efficiency, and leveraging its brand strength to attract and retain customers.
Public Storage Key Performance Indicators (KPIs)
Any
Realized Annual Rental Income per Occupied Square Foot
Measures the average income generated per square foot of rented space, indicating pricing power and efficiency in space utilization.
Measures the average income generated per square foot of rented space, indicating pricing power and efficiency in space utilization.
Data provided by:
Main Street Data
Main Street DataPublic Storage Financial Statement Overview
Summary
Public Storage exhibits a strong financial profile with consistent revenue growth and efficient operations reflected in healthy margins. The balance sheet maintains a solid equity base, though increasing leverage needs monitoring. Cash flow management is exemplary, sustaining growth and operational needs, ensuring financial flexibility.Income Statement
Public Storage demonstrates strong income statement performance with a consistent increase in total revenue over the years, growing from $2.92 billion in 2020 to $4.72 billion in TTM (Trailing-Twelve-Months). The gross profit margin remains robust at approximately 73.1% TTM. However, there is a slight decline in net income from 2022 to TTM, impacting the net profit margin. Despite this, EBIT and EBITDA margins remain healthy, indicating strong operational efficiency.85
Very Positive
Balance Sheet
The balance sheet of Public Storage is stable, with a solid equity base of $9.57 billion TTM. The debt-to-equity ratio has increased slightly over the period, reflecting a higher leverage but remains manageable. The equity ratio is strong at about 48.8% TTM, suggesting a balanced capital structure and financial stability. However, increasing debt levels pose a potential risk if not managed carefully.78
Positive
Cash Flow
Public Storage shows strong cash flow management, with operating cash flow consistently covering its capital expenditures, resulting in positive free cash flow each year. There has been a steady increase in free cash flow from 2020, reaching $2.87 billion TTM, reflecting effective cash management. The operating cash flow to net income ratio is robust, indicating efficient conversion of income into cash.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.72B | 4.70B | 4.52B | 4.18B | 3.42B | 2.92B | Gross Profit |
| 3.45B | 3.44B | 3.35B | 3.13B | 2.50B | 2.05B | EBIT |
| 2.50B | 2.20B | 3.30B | 2.17B | 1.71B | 1.41B | EBITDA |
| 3.37B | 3.50B | 3.34B | 3.79B | 2.86B | 2.44B | Net Income Common Stockholders |
| 1.97B | 2.07B | 2.15B | 4.35B | 1.95B | 1.36B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 287.18M | 447.42M | 370.00M | 775.25M | 734.60M | 257.56M | Total Assets |
| 19.62B | 19.75B | 19.81B | 17.55B | 17.38B | 11.82B | Total Debt |
| 9.42B | 9.35B | 9.10B | 6.87B | 7.48B | 2.54B | Net Debt |
| 9.14B | 8.91B | 8.73B | 6.10B | 6.74B | 2.29B | Total Liabilities |
| 9.95B | 9.94B | 9.70B | 7.39B | 7.96B | 3.24B | Stockholders Equity |
| 9.57B | 9.71B | 10.01B | 10.07B | 9.34B | 8.56B |
| Cash Flow | Free Cash Flow | ||||
| 2.81B | 2.71B | 2.79B | 2.66B | 2.27B | 1.87B | Operating Cash Flow |
| 3.18B | 3.13B | 3.25B | 3.12B | 2.54B | 2.04B | Investing Cash Flow |
| -1.12B | -1.00B | -3.54B | 1.12B | -5.56B | -1.12B | Financing Cash Flow |
| -2.08B | -2.08B | -112.93M | -4.19B | 3.50B | -1.08B |
Public Storage Technical Analysis
Positive
305.18
Price Trends
295.29
Positive
295.60
Positive
312.47
Negative
Market Momentum
3.03
Negative
61.49
Neutral
87.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSA, the sentiment is Positive. The current price of 305.18 is above the 20-day moving average (MA) of 296.03, above the 50-day MA of 295.29, and below the 200-day MA of 312.47, indicating a neutral trend. The MACD of 3.03 indicates Negative momentum. The RSI at 61.49 is Neutral, neither overbought nor oversold. The STOCH value of 87.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSA.
Public Storage Risk Analysis
Public Storage disclosed 37 risk factors in its most recent earnings report. Public Storage reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Public Storage Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $32.89B | 34.50 | 6.46% | 4.37% | 14.72% | -4.21% | |
77 Outperform | $1.53B | 10.50 | 7.78% | 13.92% | -1.33% | -8.62% | |
76 Outperform | $53.34B | 30.20 | 20.20% | 3.95% | 3.08% | -8.54% | |
74 Outperform | $9.78B | 25.19 | 13.72% | 4.83% | 2.15% | -5.99% | |
60 Neutral | $2.81B | 11.05 | 0.20% | 8508.34% | 6.12% | -16.02% | |
60 Neutral | $4.88B | 61.16 | 5.66% | 6.17% | -9.89% | -70.29% | |
48 Neutral | $10.43B | ― | -9.72% | 1.99% | ― | ― |
* Real Estate Sector Average
Performance Comparison
PSA
Public Storage
305.18
38.78
14.56%
CUBE
Cubesmart
42.93
2.44
6.03%
EXR
Extra Space Storage
148.89
6.94
4.89%
NSA
National Storage Affiliates
36.29
1.44
4.13%
IIPR
Innovative Industrial Properties
55.88
-40.32
-41.91%
LINE
Lineage, Inc.
47.55
-33.46
-41.30%
Public Storage Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 1.58%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in non-same-store revenue growth, digital transformation, and development activities, with a resilient industry backdrop. However, the impact of pricing restrictions in Los Angeles and declining move-in rates pose challenges. The overall sentiment is balanced, acknowledging both positive growth areas and notable challenges.Q1-2025 Updates
Positive Updates
Increased Move-Ins and Improved Occupancy
Move-in volumes increased over 2%, closing the same-store occupancy gap from down 80 basis points to down 30 basis points year-over-year.
Revenue Growth in Non-Same-Store Pool
Revenue growth in the non-same-store pool accelerated to nearly 11%, contributing significantly to overall growth.
Digital Transformation and Efficiency
85% of customer interactions are now digital, contributing to higher operating margins and efficiency.
Strong Development and Acquisition Activity
Delivered $144 million of development in the quarter with $650 million in the pipeline, and acquired or under contract for $184 million, ahead of last year's pace.
Core FFO Growth
Core Funds from Operations (FFO) per share grew by 2.2% year-over-year, representing a 200 basis point sequential improvement.
Resilient Industry with Growth Potential
Self-storage is resilient to economic changes with low nominal rents and demand drivers shifting favorably.
Negative Updates
Impact of Los Angeles Fire-Related Pricing Restrictions
Anticipated 100 basis point impact on same-store revenue growth due to fire-related pricing restrictions in Los Angeles.
Decline in Move-In Rates
Move-in rates were down approximately 5% year-to-date, with April specifically seeing an 8% decline.
Muted Housing Market Impact
Existing home sale-driven move-ins, a key demand driver, remain subdued, affecting overall demand.
Company Guidance
During the first quarter of 2025, Public Storage experienced positive performance, aligning with expectations, by successfully increasing move-in volumes by over 2%. This was achieved through enhanced online engagement and improved customer conversion rates. Notably, the same-store occupancy gap decreased from a deficit of 80 basis points at the end of December to a 30 basis point deficit by March 31. Revenue growth in the same-store pool turned positive after a period of deceleration, while the non-same-store pool, comprising 520 properties, accelerated its revenue growth to nearly 11%. The company's core Funds from Operations (FFO) per share grew by more than 2% quarter-over-quarter, improving by 200 basis points sequentially. Public Storage remains well-positioned due to its high-quality portfolio, innovative digital platform, and competitive advantages, which include an industry-leading revenue management system that achieves the highest revenues per square foot in their markets. The company is advancing its digital transformation, with 85% of customer interactions now digital, and has implemented an efficient operating model utilizing AI for staffing. Public Storage's development and acquisition activities have also been robust, with $144 million of development delivered during the quarter and a pipeline of about $650 million projected for the next two years. The company is pursuing international expansion, illustrated by its proposal to acquire Abacus Storage King, enhancing its growth avenues amid a resilient self-storage industry.Public Storage Corporate Events
Executive/Board ChangesShareholder Meetings
Public Storage Holds Annual Shareholders Meeting
Neutral
May 8, 2025
On May 7, 2025, Public Storage held its Annual Meeting of Shareholders where four proposals were voted on. Shareholders elected twelve trustees to the Board, approved executive compensation, ratified Ernst & Young LLP as the accounting firm, and amended the 2021 Equity and Performance-Based Incentive Compensation Plan.
Spark’s Take on PSA Stock
According to Spark, TipRanks’ AI Analyst, PSA is a Outperform.
Public Storage demonstrates solid financial health with effective cash flow management and consistent growth. Technical indicators show moderate upward momentum, but valuation appears high. The recent earnings call highlighted positive momentum from digital transformations and non-same-store growth, though market conditions pose challenges. Overall, the stock is positioned well, though investors should monitor leverage and market dynamics.
To see Spark’s full report on PSA stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.