Public Storage (PSA) is listed on NYSE and operates in the REIT - Industrial industry (Real Estate sector).
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.
| Rating | Analysts |
|---|---|
| Strong Buy | 1 |
| Buy | 11 |
| Hold | 22 |
| Sell | 2 |
| Strong Sell | 0 |
Public Storage is a real estate investment trust (REIT) that focuses on acquiring, developing, owning, and operating self-storage facilities. As of September 30, 2020, the company held interests in 2,504 self-storage facilities across 38 U.S. states, totaling approximately 171 million net rentable square feet. Additionally, Public Storage has a 35% equity interest in Shurgard Self Storage SA, which operates 239 facilities in seven Western European countries, covering about 13 million net rentable square feet. The company also holds a 42% equity interest in PS Business Parks, Inc., which manages approximately 28 million rentable square feet of commercial space. Public Storage is headquartered in Glendale, California.
Over the past three fiscal years, the company has experienced a consistent increase in revenue, growing at a 3.3% CAGR from $4.52 billion in 2023 to $4.82 billion in 2025. Despite this top-line growth, profitability metrics have shown a downward trend. Gross margin compressed significantly by 49.6pp, from 74.6% in 2023 to 24.9% in 2025, while operating and net margins also decreased by 4.6pp and 10.6pp, respectively. This margin compression has impacted earnings per share, which declined at a -9.7% CAGR, from $11.06 to $9.01. On the cash flow front, the company maintained positive free cash flow, which increased from $2.79 billion to $2.90 billion, although the free cash flow margin slightly decreased by 1.6pp. The company's cash conversion ratio improved to 1.77, indicating strong earnings quality backed by cash. However, net debt increased consistently, reaching $9.94 billion by 2025, and the interest coverage ratio decreased to 6.88x, reflecting a potential concern for financial flexibility. Despite these challenges, the company has managed to reduce its capex intensity to 6.0%, suggesting a more capital-efficient operation. The liquidity position remains a concern with a current ratio below 1, indicating potential short-term liquidity constraints.
No significant news developments were reported for Public Storage in the recent period.