Public Storage Reports Q4 Revenue of $1.216B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy PSA?
Reports Q4 revenue $1.216B, consensus $1.21B. "Public Storage's fourth quarter results reflect differentiated strategies that continue to drive our performance," said Joe Russell, President and Chief Executive Officer. "As industry fundamentals stabilize, new competitive supply declines, and acquisition market activity increases, we are well-positioned to capitalize on the opportunities ahead. With the launch of PS4.0, we are building on that foundation by elevating the customer and employee experience, accelerating value creation, and unlocking the next phase of long-term growth for Public Storage."
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Analyst Views on PSA
Wall Street analysts forecast PSA stock price to rise
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 302.000
Low
276.00
Averages
311.58
High
349.00
Current: 302.000
Low
276.00
Averages
311.58
High
349.00
About PSA
Public Storage is a real estate investment trust. Its principal business activities include the ownership and operation of self-storage facilities that offer storage spaces for lease, generally on a month-to-month basis, for personal and business use, and other related operations, such as tenant reinsurance, merchandise sales, third party management, and bridge lending to third-party self-storage owners, as well as the acquisition and development of additional self-storage space. Its Self-Storage Operations segment includes the aggregated rental operations from the self-storage facilities it owns from same store facilities, acquired facilities, newly developed and expanded facilities, and other non-same store facilities. Its Ancillary Operations segment includes the combined operations of its tenant reinsurance, merchandise sales, and third-party property management operating segments. It owned interests in over 3,085 self-storage facilities located in 40 states in the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of CubeSmart's Performance in Self-Storage Sector
- Improving Industry Fundamentals: CubeSmart achieved its first year-over-year increase in move-in rates in Q3 2023 since early 2022, indicating a gradual recovery in the self-storage market after several challenging years, which could lay the groundwork for future market performance.
- Market Share Disadvantage: With only 4.9% of the U.S. self-storage market, CubeSmart lags significantly behind leaders Extra Space Storage at 14.4% and Public Storage at 11.2%, placing it at a competitive disadvantage that impacts its growth potential.
- Lack of Differentiated Growth Strategy: Unlike its competitors, CubeSmart lacks an effective differentiated growth strategy, as Extra Space Storage boasts a leading third-party management platform while Public Storage has strong in-house development capabilities, making it difficult for CubeSmart to stand out in the market.
- Joint Ventures Driving Growth: CubeSmart recently formed a $250 million joint venture with CBRE Investment Management to invest in high-growth markets, and is also constructing a $19 million joint venture development property, demonstrating its potential to accelerate growth through joint ventures.
See More
CubeSmart Faces Market Challenges and Opportunities
- Underperformance: CubeSmart has underperformed the market over the past decade, holding only 4.9% of the U.S. self-storage market compared to Extra Space Storage's 14.4%, indicating a need for a differentiated growth strategy to enhance its competitive position.
- Supply-Demand Imbalance: The influx of new self-storage properties due to low interest rates post-pandemic has pressured CubeSmart, leading to declining occupancy and rental rates, which has adversely affected overall performance, necessitating close monitoring of market recovery.
- Joint Venture Opportunities: CubeSmart recently formed a $250 million joint venture with CBRE Investment Management to invest in high-growth markets, a strategic move that could provide new growth momentum and accelerate development in the coming years.
- Customer Growth Trend: Despite challenges, CubeSmart achieved its first year-over-year increase in move-in rates since early 2022 in Q3, indicating signs of market recovery, and if this trend continues, it could significantly improve the company's market performance.
See More
Public Storage Leadership Transition and Earnings Insights
- Leadership Transition: Public Storage announced Tom Boyle's promotion to CEO and Trustee, marking a significant shift in strategic direction, with Boyle's exceptional performance in finance and operations laying the groundwork for future growth.
- Financial Performance: Core FFO for Q4 was $4.26 per share, with full-year core FFO at $16.97, and despite same-store revenue and NOI declining by 0.2% and 1.5% respectively, a 20% growth in non-same-store NOI demonstrates the company's success in diversifying revenue sources.
- Future Outlook: The company established initial 2026 core FFO guidance in the range of $16.35 to $17, and while facing negative expectations for same-store NOI and revenue, management remains optimistic about contributions from non-same-store income and tenant insurance programs.
- Strategic Shift: The launch of PS4.0 represents not only a leadership update but also a strategic overhaul in capital allocation and digital transformation, aimed at enhancing overall performance and addressing market challenges.
See More
Public Storage Q4 Earnings Exceed Expectations
- Strong Financial Performance: Public Storage reported a Q4 core FFO of $4.26, beating expectations by $0.05, which reflects the company's robust market performance and boosts investor confidence.
- Stable Revenue Growth: The company achieved Q4 revenue of $1.22 billion, a 3.4% year-over-year increase, exceeding market expectations by $10 million, indicating a solid growth trajectory in the competitive REIT sector.
- 2026 Guidance Outlook: Public Storage forecasts 2026 same-store revenue growth between -2.2% and 0%, with expense growth projected at 1.5% to 2.8%, reflecting a cautious outlook on future market conditions that may impact long-term investor confidence.
- Non-Same Store NOI Projections: The expected non-same store net operating income for 2026 ranges from $335,000 to $355,000, with core FFO per share anticipated between $16.35 and $17.00, showcasing the company's potential for business expansion and strategic planning.
See More
Public Storage Set to Release Q4 Earnings on February 12
- Earnings Announcement Schedule: Public Storage (PSA) is set to announce its Q4 earnings on February 12 after market close, with consensus estimates predicting a FFO of $4.21 per share and revenue of $1.21 billion, providing crucial financial health indicators for investors.
- Market Expectation Analysis: Ahead of the earnings report, the market maintains a cautious stance on Public Storage's FFO and revenue expectations, reflecting investor concerns about its long-term growth potential, which may influence its stock performance.
- Rating Changes Impact: Prior to the earnings release, BofA downgraded Public Storage and Extra Space Storage, which could negatively affect market sentiment, particularly against a backdrop of waning investor confidence in REITs.
- Industry Dynamics Observation: Concurrently, J.P. Morgan adjusted ratings for other real estate firms like Realty Income and FRT, indicating fluctuations in market confidence regarding real estate investments, prompting investors to closely monitor potential impacts on Public Storage.
See More
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- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
Analysis of CubeSmart's Performance in Self-Storage Sector
- Improving Industry Fundamentals: CubeSmart achieved its first year-over-year increase in move-in rates in Q3 2023 since early 2022, indicating a gradual recovery in the self-storage market after several challenging years, which could lay the groundwork for future market performance.
- Market Share Disadvantage: With only 4.9% of the U.S. self-storage market, CubeSmart lags significantly behind leaders Extra Space Storage at 14.4% and Public Storage at 11.2%, placing it at a competitive disadvantage that impacts its growth potential.
- Lack of Differentiated Growth Strategy: Unlike its competitors, CubeSmart lacks an effective differentiated growth strategy, as Extra Space Storage boasts a leading third-party management platform while Public Storage has strong in-house development capabilities, making it difficult for CubeSmart to stand out in the market.
- Joint Ventures Driving Growth: CubeSmart recently formed a $250 million joint venture with CBRE Investment Management to invest in high-growth markets, and is also constructing a $19 million joint venture development property, demonstrating its potential to accelerate growth through joint ventures.
See More
CubeSmart Faces Market Challenges and Opportunities
- Underperformance: CubeSmart has underperformed the market over the past decade, holding only 4.9% of the U.S. self-storage market compared to Extra Space Storage's 14.4%, indicating a need for a differentiated growth strategy to enhance its competitive position.
- Supply-Demand Imbalance: The influx of new self-storage properties due to low interest rates post-pandemic has pressured CubeSmart, leading to declining occupancy and rental rates, which has adversely affected overall performance, necessitating close monitoring of market recovery.
- Joint Venture Opportunities: CubeSmart recently formed a $250 million joint venture with CBRE Investment Management to invest in high-growth markets, a strategic move that could provide new growth momentum and accelerate development in the coming years.
- Customer Growth Trend: Despite challenges, CubeSmart achieved its first year-over-year increase in move-in rates since early 2022 in Q3, indicating signs of market recovery, and if this trend continues, it could significantly improve the company's market performance.
See More
Public Storage Leadership Transition and Earnings Insights
- Leadership Transition: Public Storage announced Tom Boyle's promotion to CEO and Trustee, marking a significant shift in strategic direction, with Boyle's exceptional performance in finance and operations laying the groundwork for future growth.
- Financial Performance: Core FFO for Q4 was $4.26 per share, with full-year core FFO at $16.97, and despite same-store revenue and NOI declining by 0.2% and 1.5% respectively, a 20% growth in non-same-store NOI demonstrates the company's success in diversifying revenue sources.
- Future Outlook: The company established initial 2026 core FFO guidance in the range of $16.35 to $17, and while facing negative expectations for same-store NOI and revenue, management remains optimistic about contributions from non-same-store income and tenant insurance programs.
- Strategic Shift: The launch of PS4.0 represents not only a leadership update but also a strategic overhaul in capital allocation and digital transformation, aimed at enhancing overall performance and addressing market challenges.
See More
Public Storage Q4 Earnings Exceed Expectations
- Strong Financial Performance: Public Storage reported a Q4 core FFO of $4.26, beating expectations by $0.05, which reflects the company's robust market performance and boosts investor confidence.
- Stable Revenue Growth: The company achieved Q4 revenue of $1.22 billion, a 3.4% year-over-year increase, exceeding market expectations by $10 million, indicating a solid growth trajectory in the competitive REIT sector.
- 2026 Guidance Outlook: Public Storage forecasts 2026 same-store revenue growth between -2.2% and 0%, with expense growth projected at 1.5% to 2.8%, reflecting a cautious outlook on future market conditions that may impact long-term investor confidence.
- Non-Same Store NOI Projections: The expected non-same store net operating income for 2026 ranges from $335,000 to $355,000, with core FFO per share anticipated between $16.35 and $17.00, showcasing the company's potential for business expansion and strategic planning.
See More
Public Storage Set to Release Q4 Earnings on February 12
- Earnings Announcement Schedule: Public Storage (PSA) is set to announce its Q4 earnings on February 12 after market close, with consensus estimates predicting a FFO of $4.21 per share and revenue of $1.21 billion, providing crucial financial health indicators for investors.
- Market Expectation Analysis: Ahead of the earnings report, the market maintains a cautious stance on Public Storage's FFO and revenue expectations, reflecting investor concerns about its long-term growth potential, which may influence its stock performance.
- Rating Changes Impact: Prior to the earnings release, BofA downgraded Public Storage and Extra Space Storage, which could negatively affect market sentiment, particularly against a backdrop of waning investor confidence in REITs.
- Industry Dynamics Observation: Concurrently, J.P. Morgan adjusted ratings for other real estate firms like Realty Income and FRT, indicating fluctuations in market confidence regarding real estate investments, prompting investors to closely monitor potential impacts on Public Storage.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
