Seeking Alpha·1d ago
1 Popular REIT To Sell And 1 Smaller REIT To BuySelf-storage REITs have a long history of exceptional returns. The sector is now unusually cheap after recent oversupply. CubeSmart may offer better upside than Public Storage.
Public Storage's core self-storage portfolio continues to generate resilient NOI margins above 72%, with Q2 2026 FFO per share of $4.46 and AFFO coverage of 1.37x. However, revenue growth has decelerated to 2.6% and leverage has crept up to a 1.10 debt-to-equi...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has slowed to 2.6% in Q2 2026 from 5.8% in Q1 2024, yet NOI margins remain robust at 72.1%, with FFO per share of $4.46 reflecting a 22.8% YoY increase.
Public Storage operates over 3,300 facilities and holds approximately 245 million square feet of rentable space, giving it a dominant footprint in the U.S. self‑storage market. This scale is supported by a strong local presence and high‑quality demographic profiles that drive demand.
The company’s non‑same‑store pool is projected to grow 9 % year‑over‑year, and its development capabilities are considered unique and accretive. Goldman Sachs notes PSA can acquire large asset amounts at a lower cost of capital, enabling it to pursue deals competitors may pass on.
PSA’s robust balance sheet provides ample funding options for future growth initiatives, reinforcing its financial stability and capacity to finance acquisitions and development projects.
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 29, 2026 | $2.55+0.8% vs $2.53 | $1.2B-0.1% vs $1.2B |
Q2 2026 Apr 27, 2026 | $2.71+12.0% vs $2.42 | $1.2B+0.2% vs $1.2B |
Q1 2026 Feb 12, 2026 | $2.60+4.4% vs $2.49 | $1.2B+0.2% vs $1.2B |
Q4 2025 Oct 29, 2025 | $2.63+4.0% vs $2.53 | $1.2B+0.6% vs $1.2B |
Self-storage REITs have a long history of exceptional returns. The sector is now unusually cheap after recent oversupply. CubeSmart may offer better upside than Public Storage.
REITs have evolved into a larger, more diversified, and better-capitalized asset class, now less sensitive to Treasury yields than in prior cycles. Modern REITs feature lower leverage (34.4% debt), predominantly fixed-rate, long-maturity debt, and strong liquidity, supporting resilience amid higher rates. Supply constraints and rising replacement costs create durable moats for select REIT sectors, especially those with HALO (Heavy Assets, Low Obsolescence) characteristics.
Public Storage (PSA) stands as the REIT sector benchmark, boasting strong financials and investment-grade credit ratings. PSA's preferred stocks yield nearly 7%, trade below par, and reflect interest rate risk—not credit risk—amid Fed rate hikes. With net debt/EBITDA at 2.9x and an asset coverage ratio above 1080%, PSA's balance sheet remains robust.
On September 16, 2026, we delve into the DCF analysis for Public Storage (PSA), a company that has shown a mixed price performance recently, with a year-to-date
Benchmark PSA against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Public Storage (PSA)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $286.73 | $53.47B | 31.82 | 2.74% | 36.99% | 18.63% | 4.57% | |
| $133.84 | $28.28B | 29.16 | 1.19% | 27.96% | 6.7% | — | |
| $38.14 | $8.66B | 26.12 | 5.33% | 29.41% | 12.17% | — | |
| $43.40 | $3.35B | 62.00 | -2.26% | 10.48% | 5.05% | — | |
| $204.16 | $66.21B | 14.44 | 6.72% | 68.41% | 87.97% | — | |
| $134.00 | $124.93B | 37.85 | 7.18% | 41.54% | 6.46% | — |
Public Storage (PSA) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Public Storage (PSA) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 29, 2026·SEC
Jul 22, 2026·SEC
Jul 20, 2026·SEC
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Public Storage (PSA) stock FAQ — growth, dividends, profitability & financials explained
Public Storage (PSA) reported $4.89B in revenue for fiscal year 2025. This represents a 1343% increase from $339.0M in 1996.
Public Storage (PSA) grew revenue by 2.7% over the past year. Growth has been modest.
Yes, Public Storage (PSA) is profitable, generating $2.04B in net income for fiscal year 2025 (37.0% net margin).
Yes, Public Storage (PSA) pays a dividend with a yield of 4.57%. This makes it attractive for income-focused investors.
Public Storage (PSA) has a return on equity (ROE) of 18.6%. This is reasonable for most industries.
Public Storage (PSA) generated Funds From Operations (FFO) of $3.21B in the trailing twelve months. FFO is the primary profitability metric for REITs.
Public Storage (PSA) offers a 4.57% dividend yield, which is attractive for income investors. REITs are required to distribute at least 90% of taxable income to shareholders.
