Public Storage Set to Report Solid Earnings Amid Market Fluctuations

Public Storage (PSA), valued at $50.7 billion and based in Glendale, California, is a leader in the self-storage industry. As the largest self-storage provider globally, PSA operates in 38 U.S. states and several European countries, focusing on acquiring, developing, owning, and managing self-storage facilities.

The real estate investment trust (REIT) is scheduled to announce its first-quarter results after market close on Wednesday, April 30. Analysts anticipate that PSA will report core funds from operations (FFO) of $4.07 per share, reflecting a nearly 1% increase from the $4.03 per share reported in the same quarter last year. Notably, the company has exceeded Wall Street’s FFO estimates only once in the past four quarters, falling short on three occasions.

Expectations for Future Performance

Looking ahead to fiscal 2025, PSA is projected to deliver core FFO of $16.78 per share, up slightly from the $16.67 reported in fiscal 2024. Projections for fiscal 2026 show core FFO growth of 4.8% year-over-year, reaching $17.59 per share.

Stock Performance Compared to Peers

Currently, PSA stock has gained 10.2% over the past 52 weeks. This performance slightly lags behind the Real Estate Select Sector SPDR Fund’s (XLRE) 10.5% return. Meanwhile, PSA has outperformed the S&P 500 Index ($SPX), which saw a 4.4% increase during the same period.

Recent Market Reactions

Recently, on February 24, Public Storage’s stock rose by 1.7% following the release of its mixed Q4 results. The company reported comparable revenues for its facilities decreased, primarily due to lower occupancy rates. This drop was mostly mitigated by higher rent realization per occupied square footage. Overall, PSA’s topline revenue for the quarter climbed 1.5% year-over-year to $1.2 billion, aligning with market expectations. However, core FFO rose by a modest 24 basis points to $4.21 per share, falling short of analysts’ estimates by 47 basis points. Following the initial gain, PSA stock experienced a subsequent drop of 1.4% in the next trading session.

Analyst Sentiment

The consensus outlook for PSA stock is moderately bullish, earning a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, 12 recommend a “Strong Buy,” and eight suggest a “Hold” rating. The mean price target of $328.39 implies a 13.6% upside from current price points.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data herein are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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