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1. Company Snapshot

1.a. Company Description

Public 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.

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1.b. Last Insights on PSA

Soft industry demand and escalating medical care costs negatively impacted Public Storage's recent performance. Despite revenue growth, core FFO per share remained flat, and occupancy rates fell. The company's operating model transformation and strategic initiatives, however, are enhancing the customer experience and bolstering growth.

1.c. Company Highlights

2. Public Storage's Q3 2025 Earnings: A Strong Performance

Public Storage's third-quarter 2025 results showcased a robust financial performance, with revenue growth in the same-store pool exceeding expectations, driven by strong in-place customer behavior, with overall in-place rents up 0.6%, offset by lower occupancy. The company's actual EPS came out at $4.31, beating estimates of $4.24. Same-store NOI growth was also better than anticipated, and outside of the same-store pool, outperformance in the high-growth non-same-store pool drove core FFO per share higher by 2.6%. The company's core FFO per share growth outlook was increased by nearly 1% with one quarter left in the year.

Publication Date: Nov -01

📋 Highlights
  • 2025 Outlook Raised: Core FFO per share growth outlook increased by nearly 1% with one quarter remaining, driven by 2.6% non-same-store NOI growth and $1.3B in acquisitions.
  • Acquisition Momentum: $1.3 billion in wholly owned acquisitions and developments announced in 2025, with a $650 million development pipeline for 2026–2027.
  • Balance Sheet Strength: Net debt/EBITDA leverage at 4.2x, with $650 million in retained cash flow, supporting continued growth and margin advantages (10% target for acquired assets).
  • Operational Efficiency: 85% of customers transact digitally, enabling $10 million non-same-store NOI guidance increase and labor cost savings via predictive analytics.
  • West Coast Stabilization: 2–4% same-store revenue growth in West Coast markets, with LA expected to improve post-expiration of state rent restrictions (1–2% revenue dip vs. prior 3% forecast).

Operational Highlights

Public Storage has been actively advancing its platform, including leading operations, capital allocation, and capital access. The company has accelerated portfolio growth with over $1.3 billion in wholly owned acquisitions and developments announced this year and a $650 million development pipeline to be delivered over the next two years. Leverage stands at 4.2x net debt and preferred to EBITDA, with retained cash flow reaching about $650 million this year.

Valuation Metrics

Analyzing the company's valuation metrics, we see that the P/E Ratio stands at 25.78, indicating a relatively high valuation. The P/B Ratio is 5.25, and the P/S Ratio is 10.21. The EV/EBITDA ratio is 17.56, and the Dividend Yield is 4.31%. The company's ROIC is 447.97%, and ROE is 19.97%. With a Net Debt / EBITDA ratio of 2.92, the company's leverage is manageable. Analysts estimate next year's revenue growth at 4.1%, which is a relatively modest growth rate considering the company's strong operational performance.

Growth Prospects

The company expects continued growth, driven by its compounding returns platform, with a focus on revenue as the most important metric. It continues to invest in digital initiatives, driving operating efficiency and revenue growth, and sees opportunities for further expense control. The company's development activity is expected to continue, driven by its unique capabilities, including inherent knowledge, market-to-market data, and ability to underwrite assets from a development and risk standpoint.

Digital Transformation

The company has made significant progress in its digital transformation, with 85% of customers now transacting digitally. This has driven operating efficiency and revenue growth, and the company sees opportunities for further expense control. The company's technology investments continue to drive performance, with a focus on data optimization and digital processes.

3. NewsRoom

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Only 3 REITs For The Next 10 Years

Dec -01

Source: seekingalpha.com

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Public Storage (NYSE:PSA) Given Average Rating of “Moderate Buy” by Analysts

Dec -01

Source: defenseworld.net

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B&I Capital AG Sells 3,400 Shares of Public Storage $PSA

Nov -27

Source: defenseworld.net

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5 Blue-Chip Dividend Compounders I'm Buying On Discount

Nov -22

Source: seekingalpha.com

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Bank Julius Baer & Co. Ltd Zurich Decreases Position in Public Storage $PSA

Nov -21

Source: defenseworld.net

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Trump's 50-Year Mortgage Idea Could Be A Big Gift To REITs

Nov -20

Source: seekingalpha.com

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The Preferred Dividend Of Public Storage Is Essentially Safe

Nov -12

Source: seekingalpha.com

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Public Storage: Robust Balance Sheet Makes Preferred Shares Worth A Look

Nov -11

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.31%)

6. Segments

Self-Storage

Expected Growth: 4.3%

Growing demand for secure storage spaces, increasing urbanization, and rising need for decluttering drive the self-storage industry's growth, with Public Storage offering convenient and accessible solutions for personal and business use.

Ancillary

Expected Growth: 4.5%

Public Storage's ancillary services revenue is expected to grow, driven by increasing demand for storage units, administrative fees, late fees, and other charges related to rental services.

7. Detailed Products

Self-Storage Units

Rentable storage spaces of various sizes to store personal or business items

Climate-Controlled Units

Temperature-controlled storage units to protect sensitive items from extreme temperatures

Outdoor RV and Vehicle Storage

Secure outdoor parking spaces for RVs, cars, boats, and other vehicles

Business Storage Solutions

Customized storage solutions for businesses, including inventory management and logistics support

Moving and Packing Supplies

Wide range of moving and packing materials, including boxes, tape, and bubble wrap

Storage Insurance

Optional insurance coverage for stored items, providing financial protection against loss or damage

8. Public Storage's Porter Forces

Forces Ranking

Threat Of Substitutes

Public Storage has a low threat of substitutes due to the lack of alternative options for customers seeking self-storage solutions.

Bargaining Power Of Customers

Customers have some bargaining power due to the presence of competitors, but Public Storage's brand recognition and extensive network of facilities mitigate this power.

Bargaining Power Of Suppliers

Suppliers have limited bargaining power due to the company's large scale and diversified supplier base.

Threat Of New Entrants

While there are barriers to entry, new entrants can still pose a threat to Public Storage, particularly if they offer innovative solutions or disrupt the traditional self-storage model.

Intensity Of Rivalry

The self-storage industry is highly competitive, with many established players, which increases the intensity of rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.75%
Debt Cost 3.95%
Equity Weight 50.25%
Equity Cost 6.73%
WACC 5.35%
Leverage 99.01%

11. Quality Control: Public Storage passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
VICI Properties

A-Score: 7.6/10

Value: 5.0

Growth: 7.7

Quality: 8.1

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Global Self Storage

A-Score: 6.7/10

Value: 4.3

Growth: 4.3

Quality: 7.0

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Innovative Industrial Properties

A-Score: 6.1/10

Value: 6.6

Growth: 6.3

Quality: 8.4

Yield: 10.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Public Storage

A-Score: 5.9/10

Value: 2.1

Growth: 5.8

Quality: 7.3

Yield: 8.0

Momentum: 2.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Prologis

A-Score: 5.7/10

Value: 1.9

Growth: 6.7

Quality: 6.7

Yield: 6.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Extra Space Storage

A-Score: 5.6/10

Value: 2.9

Growth: 6.0

Quality: 6.3

Yield: 8.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

276.63$

Current Price

276.63$

Potential

-0.00%

Expected Cash-Flows