Valued at a market cap of around $51.2 billion, California-based Public Storage (PSA) is a Real Estate Investment Trust (REIT) that specializes in acquiring, developing, owning, and operating self-storage facilities that offer month-to-month lease options for both personal and business storage needs.
Companies valued at $10 billion or more are generally classified as "large-cap" stocks, and Public Storage fits right into that category, boasting a market cap that surpasses this threshold. Since opening its first facility in 1972, Public Storage has grown into one of the world's largest self-storage owners and operators, with thousands of locations across the U.S. and Europe and over 170 million net rentable square feet. With a customer-first approach and a strong presence in major markets, Public Storage has led the self-storage industry for nearly 50 years.
Despite a 6.5% dip from its 52-week high of $312.25, achieved this February, Public Storage has shown resilience. Over the past three months, it has outperformed the Global REIT iShares ETF (REET) with a 3.5% surge, while REET experienced a decline of 1.4% during the same period.
Over the longer term, PSA is down 4.3% on a YTD basis, slightly better than REET’s around 4.6% loss. Moreover, shares of PSA have surged 2.4% over the past 52 weeks, compared to REET’s marginal return over the same time frame.
The stock has been trading above its 200-day and 50-day moving averages since the beginning of this month, indicating a bullish price trend.
PSA’s outperformance can be attributed to its substantial presence in major urban centers, bolstered by its established brand and technological edge. Despite REIT’s sensitivity to interest rates, the company has maintained solid financial health through strategic acquisitions and developments. Moreover, on April 30, the company announced its Q1 earnings results, after which it ended most of its sessions in greens. Despite falling short of bottom-line estimates, its better-than-expected revenue and aggressive expansion strategy drove this positive market sentiment.
However, PSA has underperformed its rival, Extra Space Storage Inc. (EXR). Shares of EXR have dropped 1.5% on a YTD basis, compared to PSA’s more significant loss during the same time frame. Plus, over the past 52 weeks, EXR’s gain of 9.9% outpaces PSA’s return.
Nevertheless, given PSA’s relative outperformance compared to the industry, analysts remain cautiously optimistic about its prospects, with a consensus rating of "Moderate Buy" from 17 analysts. The mean price target of $310.67 suggests a 6.4% upside potential from current levels.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
