Does Public Storage's Strong Q3 and Growth Plans Reinforce the Bull Case for PSA?

• Public Storage reported improved third quarter results, with sales of US$1.14 billion and net income of US$511.06 million for the period ended September 30, 2025, and raised its 2025 earnings guidance.
• The company also announced over US$1.3 billion in acquisitions and developments for the year, highlighting ongoing portfolio expansion efforts across multiple markets and seller types.
• We'll examine how Public Storage's stronger results and expanded growth plans affect the company's investment narrative and future outlook.

Find companies with promising cash flow potential yet trading below their fair value.

Public Storage Investment Narrative Recap

To be a shareholder in Public Storage, one needs to believe in the durability of self-storage demand amid urban densification and the company’s ability to expand its portfolio profitably. The recent acceleration of acquisitions and development, outlined in the third quarter update, enhances short-term growth catalysts but does not materially change the main risk, persistent oversupply in key Sunbelt and Southeast markets, which continues to challenge pricing power and margin recovery.

Among recent announcements, Public Storage’s increased earnings guidance for 2025 stands out. Although the revised forecast is modest, it signals management’s confidence in stabilizing operating income, which could reinforce near-term investor sentiment as acquisition activity ramps up and portfolio expansion takes center stage.

By contrast, the threat posed by regulatory shifts like potential rent control measures in California is something investors should be aware of, especially if...

Read the full narrative on Public Storage (it's free!)

Public Storage's narrative projects $5.3 billion revenue and $2.0 billion earnings by 2028. This requires 3.8% yearly revenue growth and a $0.4 billion earnings increase from $1.6 billion currently.

Uncover how Public Storage's forecasts yield a $326.16 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Five Community members provided fair value targets between US$260.01 and US$432.53, showing considerable diversity in expectations. With the company pursuing over US$1.3 billion in acquisitions, you can compare these contrasting viewpoints while weighing ongoing growth ambitions.

Explore 5 other fair value estimates on Public Storage - why the stock might be worth 6% less than the current price!

Build Your Own Public Storage Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Public Storage research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Public Storage research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Public Storage's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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