PSA Stock Recent News

Public Storage (PSA) reported earnings 30 days ago. What's next for the stock?

PSA rides tech and expansion tailwinds, but soft demand and elevated interest expenses weigh on near-term same-store growth.

REITs offer diversified, inflation-hedged income and capital appreciation, making them a compelling addition to any long-term investment portfolio. Current REIT valuations are attractive, with strong growth projected in sectors like data centers, industrial, net lease, and residential properties. I recommend focusing on quality REITs trading below historical multiples, emphasizing margin of safety and reliable dividend growth.

The recent market selloff in dividend stocks, especially REITs and utilities, presents attractive buying opportunities despite broader indices holding up. The House budget bill's rapid rollback of clean energy tax credits triggered a sharp selloff in renewables, but I see this as a long-term buying opportunity. I remain optimistic about renewables due to resilient demand, potential Senate moderation, and likely reinstatement of subsidies if Democrats regain power.

Land symbolized wealth and prosperity in humankind's earliest times, long before the stock market existed. That hasn't changed much.

Some REITs are truly exceptional. They consistently outperform the market. I highlight three such exceptional REITs to buy and hold "forever".

Public Storage's preferred equity offers a well-covered 6.1% yield, making it attractive for income-focused investors given the low payout ratio versus FFO. The REIT's preferred dividends are well-covered, needing only 6.3% of Core FFO, with a substantial common equity cushion of over $5 billion. Series F preferred shares, trading at $20.99, offer a 6.13% yield with potential for capital gains if interest rates decrease.

Scale is a critical competitive advantage for companies, enabling them to expand, attract capital, and achieve strong market positions, as seen with Realty Income, Prologis, and Public Storage. Realty Income leverages its scale and diversification to maintain high occupancy rates and strong financial performance, boasting a fortress balance sheet and impressive dividend growth. Prologis excels with its vast warehouse portfolio, robust development pipeline, and strategic expansion into data centers, supported by a strong balance sheet and high earnings growth.

I'm always on the lookout for high-quality REITs on sale, focusing on blue-chip companies with proven management, strong balance sheets, and conservative dividend policies. Realty Income, Public Storage, and EastGroup are top blue-chip REITs, trading below normal valuation levels, offering attractive dividend yields, and expected to deliver strong returns. Realty Income boasts a diversified portfolio, strong balance sheet, and consistent dividend growth, with potential 20% annualized returns.

Public Storage (NYSE:PSA ) Q1 2025 Results Conference Call May 1, 2025 12:00 PM ET Company Participants Ryan Burke - Vice President, Investor Relations and Strategic Partnerships Joe Russell - President and Chief Executive Officer Tom Boyle - Chief Financial Officer Conference Call Participants Daniel Tricarico - Scotiabank Ron Kamdem - Morgan Stanley Todd Thomas - KeyBanc Capital Markets Salil Mehta - Green Street Michael Goldsmith - UBS Michael Griffin - Evercore Juan Sanabria - BMO Capital Markets Eric Wolfe - Citi Caitlin Burrows - Goldman Sachs Ravi Vaidya - Mizuho Ki Bin Kim - Truist Securities Jeff Spector - Bank of America Eric Luebchow - Wells Fargo Tayo Okusanya - Deutsche Bank Mike Mueller - JPMorgan Operator Greetings and welcome to Public Storage First Quarter 2025 Earnings Call At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.