Public Storage Set to Release Fiscal Q4 Earnings: What Analysts Are Predicting

Public Storage (PSA), based in Glendale, California, focuses on acquiring, developing, owning, and operating self-storage facilities. The company’s market cap stands at $51.8 billion, offering monthly lease storage spaces for both personal and business needs. In addition to storage, PSA provides tenant reinsurance and third-party self-storage management services. The firm is slated to release its fiscal Q4 earnings results on Tuesday, February 18.

Analysts Forecast Minor Growth in FFO

As the earnings announcement approaches, analysts anticipate that Public Storage will report Funds From Operations (FFO) of $4.23 per share. This figure represents a slight increase from $4.20 per share in the same quarter last year. Over the past four quarters, PSA has exceeded Wall Street’s FFO estimates in two instances while falling short in the other two. The previous quarter’s FFO of $4.20 was approximately 1.2% below expectations.

Projected Decline in Fiscal 2024, But Positive Outlook for 2025

Looking ahead to fiscal 2024, analysts predict PSA’s FFO will be $16.70 per share, reflecting a 1.1% decrease compared to $16.89 per share in fiscal 2023. However, there’s optimism for 2025, with expected growth of 3.4% to $17.27 per share.

Stock Performance Trails Major Indices

Over the past year, shares of Public Storage have seen only slight gains, significantly lagging behind the S&P 500 Index’s rise of 26.5% and the Real Estate Select Sector SPDR Fund’s increase of 6.5% during the same period.

Mixed Q3 Results and Investor Sentiment

After the company’s mixed Q3 earnings report on October 30, shares of PSA fell by 2%. The report showed a year-over-year revenue increase of 3.8% to $1.2 billion, slightly beating Wall Street estimates. However, the core FFO of $4.20 per share was down 3% from the previous year and missed consensus estimates by 1.2%. Increases in direct property costs, repairs, maintenance, marketing, and interest expenses contributed to the shortfall.

Additionally, same-store revenues dropped 1.3% year-over-year, totaling $926.3 million, attributed to lower annual rent per occupied square foot and decreased occupancy rates. This decline may have contributed to waning investor confidence.

Wall Street’s Outlook Remains Cautiously Optimistic

Despite recent challenges, analysts maintain a relatively positive stance on Public Storage’s stock, offering a “Moderate Buy” rating overall. Out of 19 analysts, 10 recommend a “Strong Buy” and nine suggest holding. The average price target for PSA is set at $342.65, indicating a potential upside of 15.7% from current price levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.