Public Storage Earnings: Same-Store NOI Growth Should Moderate in Upcoming Quarters

No-moat-rated Public Storage achieved strong same-store NOI growth in the first quarter, but the growth should moderate in the upcoming quarters. The firm reported core funds from operations, or FFO, of $4.08 per share, 11.8% higher than the $3.65 per share FFO during the first quarter of 2022. If we exclude the contribution from the company’s equity investment in PS Business Parks, which was sold in July 2022, then core FFO grew by 16.2% in the first quarter. The company largely maintained its 2023 full-year core FFO guidance of $16.15 to $16.80 per share, representing around 3.5% growth at the midpoint when compared with the 2022 core FFO of $15.92. We are maintaining our $326 fair value estimate for the company after incorporating first-quarter results.