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Public Storage (PSA)
NYSE:PSA
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Public Storage (PSA) AI Stock Analysis

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PSA

Public Storage

(NYSE:PSA)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
$327.00
â–²(15.09% Upside)
Public Storage's strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. While the technical analysis and valuation present some concerns, the company's robust growth outlook and strategic expansion efforts, particularly in international markets, support a favorable investment perspective. Challenges in specific markets like Los Angeles and valuation concerns slightly temper the overall score.
Positive Factors
International Expansion
International expansion into Europe and potential markets like Australia and New Zealand provides long-term growth opportunities and diversification, enhancing the company's global footprint and revenue streams.
Strong Financial Performance
Consistent growth in core FFO indicates robust financial health and operational efficiency, supporting sustainable profitability and the ability to reinvest in growth initiatives.
Acquisition Strategy
A proactive acquisition strategy enhances asset base and revenue potential, positioning the company for sustained growth and competitive advantage in the self-storage industry.
Negative Factors
Increased Leverage
Rising leverage could strain financial flexibility and increase risk, potentially impacting the company's ability to finance future growth or weather economic downturns.
Los Angeles Market Challenges
Regulatory challenges in key markets like Los Angeles can hinder revenue growth and operational efficiency, affecting overall performance and market competitiveness.
Move-In Rent Declines
Declining move-in rents indicate potential pricing pressure and demand challenges, which could impact revenue growth and profitability in the near to medium term.

Public Storage (PSA) vs. SPDR S&P 500 ETF (SPY)

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 primarily generates revenue through the rental of storage units to customers. The company charges monthly fees based on the size and location of the storage units, with pricing structures that vary according to market demand and competition. Additionally, Public Storage earns revenue from ancillary services such as the sale of packing supplies (boxes, tape, etc.), insurance for stored items, and administrative fees. The company also benefits from operational efficiencies and economies of scale, as it manages a large portfolio of facilities. Seasonal demand fluctuations, local market conditions, and effective marketing strategies play significant roles in shaping its revenue streams.

Public Storage Key Performance Indicators (KPIs)

Any
Any
Realized Annual Rental Income per Occupied Square Foot
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.
Chart InsightsPublic Storage's rental income per square foot shows a steady upward trend from 2020 to 2023, with recent stabilization. Despite a slight dip in early 2025, the company remains optimistic, raising its 2025 outlook due to strong acquisition and development strategies. Challenges like fire-related pricing restrictions in Los Angeles and declining move-in rents are noted, but strategic focus on acquisitions and international growth, particularly in Australia and New Zealand, are expected to drive future performance.
Data provided by:Main Street Data

Public Storage Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with strong growth in non-same-store NOI, increased 2025 outlook, and successful international expansion opportunities. However, challenges in the Los Angeles market due to fire-related pricing restrictions and certain difficulties in Sunbelt markets temper the overall enthusiasm.
Q2-2025 Updates
Positive Updates
Increased 2025 Outlook
Public Storage is raising its outlook for 2025 based on stabilizing operations and accelerated acquisitions, with $785 million closed or under contract year-to-date.
Strong Non-Same-Store NOI Growth
The non-same-store pool is expected to generate approximately $470 million of high-growth NOI in 2025, with an additional $110 million through stabilization in 2026 and beyond.
Successful Capital Allocation
With more than $1.1 billion in acquisitions and development already announced for this year, Public Storage is expanding the high-growth non-same-store pool through additional acquisitions and a $648 million development pipeline.
Strong Financial Performance
Core FFO increased by 1.2% in the quarter, with FFO growth accelerating 240 basis points from the level achieved during the second quarter of last year.
International Growth Opportunities
Public Storage is positioned to grow internationally, demonstrated by success with Shurgard in Europe and potential new partnerships in Australia and New Zealand.
Negative Updates
Los Angeles Market Challenges
The impact of fire-related pricing restrictions in Los Angeles will be more felt in the second half of the year, contributing to a deceleration in performance.
Mid-Single Digit Decline in Move-In Rents
Move-in rents were down about 5% for the quarter, with July trends showing similar declines in mid-single digits.
Market Challenges in Certain Sunbelt Areas
Markets such as Atlanta, Dallas, and some Florida regions are still working through normalization, with Atlanta facing significant supply challenges.
Company Guidance
In the second quarter of 2025, Public Storage provided an optimistic outlook, raising their guidance for the year due to stabilizing operations and accelerated acquisitions, totaling $785 million. The company highlighted strong performance in the West Coast markets, with same-store revenue growth ranging from 2% to 4%, and noted specific strength in Washington, D.C., and Chicago. Public Storage's acquisition strategy resulted in more than $1.1 billion in acquisitions and developments announced for the year, with a $648 million development pipeline set for delivery over the next two years. Their portfolio's non-same-store pool is expected to generate approximately $470 million in high-growth NOI in 2025, with an additional $110 million anticipated from stabilization in 2026 and beyond. Additionally, the company has seen core FFO increase by 1.2% during the quarter, prompting an adjustment in the lower end of their 2025 core FFO guidance from $16.35 to $16.45 per share. Despite challenges such as fire-related pricing restrictions in Los Angeles, Public Storage remains confident in the market's long-term prospects and continues to explore international growth opportunities, including a potential partnership in Australia and New Zealand.

Public Storage Financial Statement Overview

Summary
Public Storage demonstrates strong financial health with consistent revenue and profitability growth, robust operational performance, and effective cash flow generation. However, there are minor concerns about increased financial leverage.
Income Statement
88
Very Positive
Public Storage has demonstrated strong income statement performance. The company has experienced consistent revenue growth with a noticeable increase from 2021 to TTM 2025. Gross profit and net profit margins are robust, indicating efficient cost management and profitability. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.
Balance Sheet
82
Very Positive
The balance sheet of Public Storage shows a solid financial position. The equity ratio is satisfactory, indicating a good proportion of equity financing. However, the debt-to-equity ratio has increased over time, which presents some financial leverage risks. The return on equity remains strong, indicating efficient use of shareholders' funds.
Cash Flow
85
Very Positive
Public Storage's cash flow statement shows a positive trend in free cash flow growth, supporting the company's ability to invest and return value to shareholders. The operating cash flow to net income ratio is stable, indicating strong cash generation relative to net income. However, the fluctuations in investing and financing cash flows suggest some volatility in cash management strategies.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.75B4.70B4.52B4.18B3.42B2.92B
Gross Profit3.46B3.44B3.37B3.13B2.50B2.05B
EBITDA3.25B3.51B3.34B5.41B2.78B1.97B
Net Income1.81B2.07B2.15B4.35B1.95B1.36B
Balance Sheet
Total Assets20.54B19.75B19.81B17.55B17.38B11.82B
Cash, Cash Equivalents and Short-Term Investments1.10B447.42M370.00M775.25M734.60M257.56M
Total Debt10.44B9.35B9.10B6.87B7.48B2.54B
Total Liabilities11.07B9.94B9.70B7.39B7.96B3.24B
Stockholders Equity9.37B9.71B10.01B10.07B9.34B8.56B
Cash Flow
Free Cash Flow2.82B2.71B2.79B2.66B2.27B1.87B
Operating Cash Flow3.15B3.13B3.25B3.12B2.54B2.04B
Investing Cash Flow-1.25B-1.00B-3.54B1.12B-5.56B-1.12B
Financing Cash Flow-1.36B-2.08B-112.93M-4.19B3.50B-1.08B

Public Storage Technical Analysis

Technical Analysis Sentiment
Negative
Last Price284.13
Price Trends
50DMA
284.14
Negative
100DMA
288.90
Negative
200DMA
290.97
Negative
Market Momentum
MACD
0.71
Positive
RSI
46.84
Neutral
STOCH
4.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSA, the sentiment is Negative. The current price of 284.13 is below the 20-day moving average (MA) of 287.95, below the 50-day MA of 284.14, and below the 200-day MA of 290.97, indicating a bearish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 4.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$50.28B31.2718.98%4.17%2.49%-14.10%
76
Outperform
31.73B31.177.08%4.53%4.83%18.94%
76
Outperform
9.45B24.9913.32%5.02%3.14%-8.01%
72
Outperform
1.59B12.377.30%13.41%-7.80%-18.78%
62
Neutral
57.48M23.295.27%5.72%4.08%11.03%
59
Neutral
4.15B49.516.77%7.43%-7.33%-66.93%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSA
Public Storage
284.13
-62.55
-18.04%
CUBE
Cubesmart
41.22
-10.34
-20.05%
EXR
Extra Space Storage
143.18
-30.73
-17.67%
NSA
National Storage Affiliates
30.70
-14.69
-32.36%
IIPR
Innovative Industrial Properties
56.69
-64.45
-53.20%
SELF
Global Self Storage
5.07
0.21
4.32%

Public Storage Corporate Events

Business Operations and StrategyFinancial Disclosures
Public Storage Releases August 2025 Operating Update
Negative
Sep 8, 2025

On September 8, 2025, Public Storage released an operating update for the periods ending August 31, 2025, highlighting a decrease in average annual contract rent per square foot and contract rents gained from move-ins compared to the previous year. Despite these declines, the company has been active in expanding its footprint, acquiring or contracting to acquire 74 self-storage facilities with 5.1 million net rentable square feet for $811.0 million since the start of the year.

The most recent analyst rating on (PSA) stock is a Buy with a $345.00 price target. To see the full list of analyst forecasts on Public Storage stock, see the PSA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 16, 2025