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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 Q4 2025 Earnings: A New Era Unfolds

In the fourth quarter of 2025, Public Storage reported core FFO of $4.26 per share, beating analyst estimates of $4.21. The company's full-year core FFO came in at $16.97 per share. Same-store revenue and NOI growth were minus 0.2% and minus 1.5%, respectively. Despite a challenging environment, the company acquired $131 million of accretive new acquisitions and had $409 million of development and expansion openings.

Publication Date: Feb -22

📋 Highlights
  • Leadership Restructuring: Tom Boyle promoted to CEO, Joe Fisher as CFO, with Shankh Mitra as Board Chairman, signaling strategic realignment.
  • Top-Line Performance: Led sector with 18.6% total shareholder returns (2023–2025), outperforming peers in same-store NOI margins and FFO growth.
  • PS4.0 Strategic Framework: Introduced three pillars—PS Next (digital/digital-first platform), value creation engine ($131M in 2025 acquisitions), and "Own It" culture (performance-based incentives).
  • 2026 Outlook: Core FFO guidance set at $16.35–$17/share (1.7% YoY decline), with same-store NOI expected to fall 2.2% amid supply constraints and LA state emergency drag.
  • Balance Sheet Strength: Debt-to-EBITDA at 4.2x, $1.5B in capacity, and $1B in 2025 acquisitions, with $7B under consideration for 2026–2027 as cap rates narrow.

Financial Performance and Guidance

For 2026, Public Storage established an initial core FFO range of $16.35 to $17, with a midpoint of $16.68, representing a year-over-year decline of 1.7%. The company expects negative same-store NOI growth to be offset by positive contributions from its non-same-store pool and tenant insurance program. Analysts estimate next year's revenue growth at 4.1%.

Operational Highlights and Strategy

The company's strategic vision, PS4.0, focuses on three core pillars: PS Next, the value creation engine, and the "own it" culture. PS Next combines the industry's leading owned property portfolio with a scaled omnichannel digital-first platform and advanced data science. As Tom Boyle noted, "we are excited about the value creation engine and potential to be offensive with the balance sheet." The company is investing in technology, including AI-infused experiences for customers and teams.

Valuation and Ratios

With a P/E Ratio of 29.99, P/B Ratio of 5.79, and EV/EBITDA of 19.55, Public Storage's valuation multiples indicate a premium relative to peers. However, the company's ROE of 19.03% and ROIC of 12.96% suggest strong profitability. The Dividend Yield of 3.93% and Free Cash Flow Yield of 5.77% provide a relatively attractive return for investors.

Outlook and Growth Prospects

Public Storage is optimistic about 2026 and 2027 as cap rate ranges narrow, with $7 billion of potential acquisitions under consideration. The company is well-positioned to deploy capital, having confidence in future industry fundamentals. The development business has slowed, but the company remains passionate about this business, viewing it as a strong risk-adjusted capital return.

Regulatory Risks and Opportunities

The company is monitoring regulatory developments, particularly around pricing transparency, and views these developments as an opportunity to educate regulators and legislators on the benefits of the self-storage industry. Public Storage is confident in its ability to comply with laws and regulations, ensuring minimal disruption to its business.

3. NewsRoom

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REITs: A Regime Change Is Needed

Mar -24

Source: seekingalpha.com

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The Next 3 REIT Buyout Targets

Mar -24

Source: seekingalpha.com

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National Storage Investor Alert: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of National Storage Affiliates Trust - NSA

Mar -18

Source: businesswire.com

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America's biggest public storage company is about to get even bigger

Mar -17

Source: fastcompany.com

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Public Storage to Buy NSA: Is This a Smart Growth Move for Investors?

Mar -17

Source: zacks.com

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Public Storage to acquire National Storage Affiliates in $10.5B deal

Mar -16

Source: proactiveinvestors.com

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Public Storage (PSA) M&A Call Transcript

Mar -16

Source: seekingalpha.com

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Public Storage to acquire National Storage Affiliates in $10.5B deal

Mar -16

Source: proactiveinvestors.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: 7.4/10

Value: 5.1

Growth: 7.7

Quality: 7.2

Yield: 10.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Global Self Storage

A-Score: 6.5/10

Value: 4.5

Growth: 4.3

Quality: 7.0

Yield: 10.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Prologis

A-Score: 6.2/10

Value: 2.0

Growth: 6.7

Quality: 6.7

Yield: 6.0

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Public Storage

A-Score: 6.1/10

Value: 2.9

Growth: 5.8

Quality: 7.5

Yield: 8.0

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Innovative Industrial Properties

A-Score: 6.1/10

Value: 6.8

Growth: 6.2

Quality: 8.2

Yield: 10.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Extra Space Storage

A-Score: 5.9/10

Value: 3.3

Growth: 6.0

Quality: 6.4

Yield: 8.0

Momentum: 3.5

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

267.63$

Current Price

267.63$

Potential

-0.00%

Expected Cash-Flows