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Public Storage PSA

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Raising Public Storage FVE to $279 on Acquisition of ezStorage and Strong Pandemic Performance

Kevin Brown Equity Analyst

Analyst Note

| Kevin Brown |

We are increasing our fair value estimate for no-moat Public Storage to $279 from $207 after incorporating the recently announced acquisition of ezStorage for $1.8 billion into our model. The 48 self-storage facilities acquired are almost all high quality in Mid-Atlantic markets with higher-than-average barriers to entry and a strong growth outlook. Given that Public Storage is entirely funding the deal with unsecured debt, we anticipate the deal being immediately accretive to funds from operations while Public Storage's debt to EBITDA ratio will remain well below REIT industry average.

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Company Profile

Business Description

Public Storage owns and operates over 2,500 self-storage facilities in 38 states, with over 150 million net rentable square feet of storage space. Through equity interests, it also has exposure to the European self-storage market through Shurgard Europe and to an additional 29 million net rentable square feet of commercial space in the United States through PS Business Parks.

Contact
701 Western Avenue
Glendale, CA, 91201-2349
T +1 818 244-8080
Sector Real Estate
Industry REIT - Industrial
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Hard Assets
Employees 5,400

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