PSA Stock Overview
Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities.
Public Storage Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$292.81|
|52 Week High||US$421.76|
|52 Week Low||US$284.01|
|1 Month Change||-11.49%|
|3 Month Change||-7.74%|
|1 Year Change||-1.48%|
|3 Year Change||18.63%|
|5 Year Change||37.20%|
|Change since IPO||2,561.91%|
Recent News & Updates
Here's Why We Think Public Storage (NYSE:PSA) Is Well Worth Watching
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
Public Storage goes ex-dividend tomorrow
Public Storage (NYSE:PSA) had declared $2.00/share quarterly dividend, in line with previous. Payable Sept. 29; for shareholders of record Sept. 14; ex-div Sept. 13. See PSA Dividend Scorecard, Yield Chart, & Dividend Growth.
Public Storage: Outperformance And A Looming Dividend Hike
Summary In this article, I reiterate my bullish stance on Public Storage as it continues to benefit from extremely healthy industry fundamentals. The company is in a great spot thanks to high investments in new assets, which are now paying off. While the company hasn't hiked its dividend since 2016, we are looking at a potential start of new hikes in 2023 as financials have improved substantially. The PSA valuation is fair, and I have little doubt that the company can continue long-term outperformance with subdued volatility. Introduction The good news keeps coming. One of my largest holdings - and only REIT holding as of now - keeps benefiting from subdued supply growth in the self-storage space, high demand, and strong pricing. It even allows Public Storage (PSA) to avoid weakness in residential housing as self-storage continues to be in high demand due to a shift in demand. Moreover, the company is outperforming the "average" REIT, it distributed a high special dividend, and the company is poised to keep outperforming the market thanks to rapidly improving fundamentals and high investments that are poised to pay off - even if it meant unchanged dividends for many consecutive years. In this article, I will walk you through my thoughts and explain why Public Storage remains not only one of my favorite REIT investments, but one of my favorite dividend (growth) investments in general. This includes the chance of new dividend hikes starting in 2023. So, bear with me! A Macro-Dependent Self-Storage Giant To avoid making things sound too complicated or fancy, with "macro-dependent", I mean that Public Storage is so large that major economic trends tend to influence the stock price more than management decisions that have minor impacts on the day-to-day operations of the company. With a market cap of $60.7 billion, PSA is the nation's largest self-storage REIT. It isn't even close as the company is more than twice as large as its largest competitor Extra Space Storage (EXR). The company operates in almost all states, owning more than 2,800 properties, covering more than 200 million rentable square feet, and serving 1.8 million customers. Public Storage One number on the presentation slide above is more interesting than the others - I think. Since 2019, the company has expanded its portfolio by 23%. That's almost an addition of a quarter in less than three full years for a company with a 50-year history. That's a huge deal and it's very important for two reasons. Reason one is obvious as most investors are buying PSA because of its ability to expand. Reason two is that the company hasn't hiked its dividend in years, focussing on growth and financial stability. Excluding special dividends, the company hasn't hiked its base dividend since 2016. That's almost six years without a dividend hike. That's a big deal for a lot of investors who like to buy reliably-rising dividends. TIKR.com While there's nothing wrong with dumping stocks that halt dividend growth on a prolonged basis, I tend to apply what I like to call an "ownership" focus by putting myself in the shoes of the company's management. As a long-term investor in PSA, I currently care more about being well-positioned for what I believe will be a very long bull market in self-storage. Between 2012 and 2021, the company boosted its gross property, plant, and equipment (mainly property, in the case of REITs) from $11.1 billion to $23.1 billion. Since 2019, the company has invested $7.4 billion in new assets as I briefly mentioned. This added 38 million square feet, making it the biggest addition of new assets in the industry. As a matter of fact, the company almost added more assets than number two and three combined. Public Storage What matters is that the acquisition and development yields are good. Adding properties isn't that hard. Managing them is what makes or breaks a company. Looking at PSA's results, acquisitions are successful, resulting in high occupancy rates, strong rent growth (more on that later), and high yields just 1-2 years after deals close. The same goes for developments, where yields are rising towards double-digits with high occupancy rates and outperforming rent growth as the company is adding value to its properties making it easier to ask for higher rents. Public Storage Now, with that said, the company is highly macro-dependent. Hence, it's a good thing that market fundamentals remain highly favorable, even if the company is losing some occupancy. In 2Q22, occupancy fell to 95.8%, that's down from 97.0%. The company calls this a seasonal effect, even if it's stronger than in previous years. According to the most recent Yardi Matrix national self-storage report, fundamentals remain strong, backed by high demand. Essentially, while growth has moderated after a rapid pandemic-fueled expansion, demand is maintaining steady growth in rates according to the report: As street rates have leveled at record highs, year-over-year growth has decelerated. The slowdown in growth was to be expected, as much of the industry anticipated gains in 2022 were unlikely to match the above-trend increases posted last year. Nationwide, the overall average street rate, which includes all unit sizes and types, grew 2.1% year-over-year in July, a 210-basis-point drop compared to June's annual rate growth. Yardi Matrix Moreover, one of the major issues facing the industry is new supply. Entry barriers are low to open new facilities. As of July 2022, new supply under construction and planned is at 10.1% of the national existing inventory. Growth is especially high in New York, Las Vegas, and Philadelphia. Yardi Matrix The good news for operators is that rapidly rising construction costs will likely prevent any major surges in new supply over the coming years. According to the latest Yardi Matrix forecast, the amount of new supply delivered across the nation in 2022 will be equal to 3.2% of existing stock and annual deliveries will moderate to 2.5% of total stock by 2027. That's terrific news for large operators who not only have a large footprint already, but also better "value-adding" assets that most no-name operators cannot compete with. After all, the long-term surge in storage demand also comes with a demand for high-quality storage including safety, self-service support, climate control, and whatnot. Strong pricing, acquired growth, and a high occupancy rate are what drive PSA. The company saw 15.9% higher revenues in 2Q22. Total direct operating costs rose by 8.7%, which resulted in 17.8% direct operating income growth. Net operating income margins improved by another 160 basis points to 80.6%. Even before 2Q22, PSA was the leader in profitability in its industry. Public Storage Related to that, the company has outperformed the core real estate sector when it comes to same-store net operating income growth on a long-term basis. Public Storage's Dividend I already briefly discussed the dividend but wanted to add some more color. PSA has not hiked its dividend since 4Q16 as a result of its focus on expanding its asset base and managing its balance sheet. The company currently pays a $2.00 per share per quarter dividend, which translates to $8.00 per year, or 2.3% of the company's stock price. Because the company hasn't hiked since late 2016 the dividend yield is close to multi-year lows as the stock price continued to climb. PSA Dividend Yield data by YCharts The good news is that shareholders did receive a special dividend in August of $13.15 per share. This was part of a $2.3 billion gain from the sale of PS Business Parks to Blackstone Real Estate. The company received $187.5 per share and unit for its 41% stake in PSB. The company had to distribute this cash to its shareholders to meet the REIT requirements. When asked by analyst Mike Mueller (in the 2Q22 earnings call) what we can expect in terms of regular dividend growth, the company answered: [...] it's been some time and growth has been strong. It's that as well as taxable income increasing that is likely to increase our dividend over time here as we move forward. And that's something that we highlighted at Investor Day as well as taxable income increases. We'll be poised to increase the current return to our shareholders. And that is, as we move forward into 2023, something that will begin to be more of a topic.
|PSA||US REITs||US Market|
Return vs Industry: PSA exceeded the US REITs industry which returned -20.3% over the past year.
Return vs Market: PSA exceeded the US Market which returned -21.5% over the past year.
|PSA Average Weekly Movement||3.3%|
|REITs Industry Average Movement||4.1%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: PSA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: PSA's weekly volatility (3%) has been stable over the past year.
About the Company
Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At September 30, 2020, we had: (i) interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the “Shurgard” brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2020. Our headquarters are located in Glendale, California.
Public Storage Fundamentals Summary
|PSA fundamental statistics|
Is PSA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PSA income statement (TTM)|
|Cost of Revenue||US$989.80m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||11.78|
|Net Profit Margin||52.89%|
How did PSA perform over the long term?See historical performance and comparison
2.7%Current Dividend Yield
Is PSA undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for PSA?
Other financial metrics that can be useful for relative valuation.
|What is PSA's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does PSA's PE Ratio compare to its peers?
|PSA PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
CCI Crown Castle
SBAC SBA Communications
DLR Digital Realty Trust
PSA Public Storage
Price-To-Earnings vs Peers: PSA is good value based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (57.5x).
Price to Earnings Ratio vs Industry
How does PSA's PE Ratio compare vs other companies in the US REITs Industry?
Price-To-Earnings vs Industry: PSA is good value based on its Price-To-Earnings Ratio (24.9x) compared to the US REITs industry average (25.5x)
Price to Earnings Ratio vs Fair Ratio
What is PSA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||24.9x|
|Fair PE Ratio||43.8x|
Price-To-Earnings vs Fair Ratio: PSA is good value based on its Price-To-Earnings Ratio (24.9x) compared to the estimated Fair Price-To-Earnings Ratio (43.8x).
Share Price vs Fair Value
What is the Fair Price of PSA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: PSA ($292.81) is trading below our estimate of fair value ($553.8)
Significantly Below Fair Value: PSA is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Public Storage forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSA's forecast earnings growth (4% per year) is above the savings rate (1.9%).
Earnings vs Market: PSA's earnings (4% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: PSA's earnings are forecast to grow, but not significantly.
Revenue vs Market: PSA's revenue (7.8% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: PSA's revenue (7.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PSA's Return on Equity is forecast to be high in 3 years time (30.3%)
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How has Public Storage performed over the past 5 years?
Past Performance Score6/6
Past Performance Score 6/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSA has high quality earnings.
Growing Profit Margin: PSA's current net profit margins (52.9%) are higher than last year (40.4%).
Past Earnings Growth Analysis
Earnings Trend: PSA's earnings have grown by 6.3% per year over the past 5 years.
Accelerating Growth: PSA's earnings growth over the past year (62.7%) exceeds its 5-year average (6.3% per year).
Earnings vs Industry: PSA earnings growth over the past year (62.7%) exceeded the REITs industry 45.8%.
Return on Equity
High ROE: PSA's Return on Equity (22.8%) is considered high.
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How is Public Storage's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: PSA's short term assets ($1.0B) exceed its short term liabilities ($973.5M).
Long Term Liabilities: PSA's short term assets ($1.0B) do not cover its long term liabilities ($6.8B).
Debt to Equity History and Analysis
Debt Level: PSA's net debt to equity ratio (63%) is considered high.
Reducing Debt: PSA's debt to equity ratio has increased from 4.5% to 73.1% over the past 5 years.
Debt Coverage: PSA's debt is well covered by operating cash flow (39.1%).
Interest Coverage: PSA's interest payments on its debt are well covered by EBIT (17.7x coverage).
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What is Public Storage current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Public Storage Dividend Yield vs Market|
|Company (Public Storage)||2.7%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (REITs)||4.1%|
|Analyst forecast in 3 Years (Public Storage)||3.9%|
Notable Dividend: PSA's dividend (2.73%) is higher than the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: PSA's dividend (2.73%) is low compared to the top 25% of dividend payers in the US market (4.7%).
Stability and Growth of Payments
Stable Dividend: PSA's dividends per share have been stable in the past 10 years.
Growing Dividend: PSA's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (57.7%), PSA's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (52.3%), PSA's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joe Russell (62 yo)
Mr. Joseph D. Russell Jr., also known as Joe, has been the President at Public Storage since July 1, 2016 and serves as its Chief Executive Officer and Director since January 01, 2019. Mr. Russell served a...
CEO Compensation Analysis
|Joe Russell's Compensation vs Public Storage Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$10m||US$800k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$5m||US$700k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$4m||US$700k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$2m||US$600k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$3m||US$600k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$4m||US$300k|
Compensation vs Market: Joe's total compensation ($USD10.36M) is about average for companies of similar size in the US market ($USD13.04M).
Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.
Experienced Management: PSA's management team is considered experienced (3.7 years average tenure).
Experienced Board: PSA's board of directors are considered experienced (3.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PSA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
|22 Aug 22||SellUS$502,553||Tamara Gustavson||Individual||1,430||US$353.15|
|18 Aug 22||SellUS$961,251||Tamara Gustavson||Individual||2,720||US$356.98|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||75,472||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Public Storage's employee growth, exchange listings and data sources
- Name: Public Storage
- Ticker: PSA
- Exchange: NYSE
- Founded: 1971
- Industry: Specialized REITs
- Sector: Real Estate
- Implied Market Cap: US$51.544b
- Market Cap: US$51.400b
- Shares outstanding: 176.04m
- Website: https://www.publicstorage.com
Number of Employees
- Public Storage
- 701 Western Avenue
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PSA||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Nov 1980|
|PUP||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Nov 1980|
|PUP||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Nov 1980|
|0KS3||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Nov 1980|
|PSA *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Nov 1980|
|PSA.PRF||NYSE (New York Stock Exchange)||PFD SHS F 5.15%||US||USD||May 2017|
|PSA.PRG||NYSE (New York Stock Exchange)||5.05% CUM PFD G||US||USD||Aug 2017|
|PSA.PRH||NYSE (New York Stock Exchange)||5.60 DEPSHS RP H||US||USD||Mar 2019|
|PSA.PRI||NYSE (New York Stock Exchange)||4.875% DP SH PFD||US||USD||Sep 2019|
|PSA.PRJ||NYSE (New York Stock Exchange)||4.7% DP RP PFD J||US||USD||Nov 2019|
|PSA.PRK||NYSE (New York Stock Exchange)||4.75 DP PFD SH K||US||USD||Dec 2019|
|P1SA34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 5 REPR 1 COM||BR||BRL||Jan 2020|
|PSA.PRL||NYSE (New York Stock Exchange)||4.625 DEP PFD L||US||USD||Jun 2020|
|PSA.PRM||NYSE (New York Stock Exchange)||4.125 DP SH PF M||US||USD||Aug 2020|
|PSA.PRN||NYSE (New York Stock Exchange)||3.875% DEP PFD N||US||USD||Sep 2020|
|PSA.PRO||NYSE (New York Stock Exchange)||3.900% DEP PFD O||US||USD||Nov 2020|
|PSA.PRP||NYSE (New York Stock Exchange)||4% DEP SHS PFD P||US||USD||Jun 2021|
|PSA.PRQ||NYSE (New York Stock Exchange)||3.950% DEP PFD Q||US||USD||Aug 2021|
|PSA.PRR||NYSE (New York Stock Exchange)||4% DEP PFD SHS R||US||USD||Nov 2021|
|PSA.PRS||NYSE (New York Stock Exchange)||4.100% DP PFD S||US||USD||Jan 2022|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/30 00:00|
|End of Day Share Price||2022/09/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.