Skip to Content

Public Storage PSA

Morningstar Rating
$263.09 +1.54 (0.59%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Following Two Years of Rising Interest Rates, We Believe REITs Are Trading at Significant Discounts

We believe that there are several attractive opportunities across the US REIT sector for investors to consider. Following the recovery of many REIT sector fundamentals from the pandemic by mid-2021, we viewed the REIT sector as fairly valued through early 2022. However, the past two years have seen the rapid rise in interest rates and a slowing economy, which has led to major valuation declines across the sector. Our analysis of the REIT sector over the past 25 years suggests that the relative stock performance of REITs is negatively correlated with interest rate movements. The second and third quarters of 2023 saw large interest rate increases with the 10-year Treasury approaching 5%, which led to the sector underperforming. This occurred even as many REITs reported same-store net operating income, or NOI, growth at historical highs in 2022 due to high inflation. Higher interest rates, lower liquidity, tighter capital market conditions, and decelerating same-store NOI growth all led to a significant correction in the stock price for many REITs.

Price vs Fair Value

PSA is trading at a 16% discount.
Price
$261.44
Fair Value
$819.00
Uncertainty
Medium
1-Star Price
$177.80
5-Star Price
$332.00
Economic Moat
Gshy
Capital Allocation
Pdvrrzxmk

Bulls Say, Bears Say

Bulls

Public Storage’s commanding lead in supply-restricted West Coast markets leads to consistent revenue growth.

Bears

Supply has increased over the past few years, which could significantly affect management’s ability to pass along price increases.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if PSA is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$261.55
Day Range
$261.14263.89
52-Week Range
$233.31312.23
Bid/Ask
$262.67 / $263.00
Market Cap
$46.23 Bil
Volume/Avg
152,413 / 719,641

Key Statistics

Price/Earnings (Normalized)
21.97
Price/Sales
10.15
Dividend Yield (Trailing)
4.61%
Dividend Yield (Forward)
4.61%
Total Yield
4.59%

Company Profile

Public Storage is the largest owner of self-storage facilities in the US with more than 3,000 self-storage facilities in 40 states and approximately 218 million square feet of rentable space. Through equity interests, it also has exposure to the European self-storage market through Shurgard Self Storage. The company also has a merchandise business, a third-party property management business, and an insurance business that offers products to cover losses for the goods in self-storage facilities.
Sector
Real Estate
Industry
REIT - Industrial
Stock Style Box
Mid Core
Total Number of Employees
6,200

Competitors

Valuation

Metric
PSA
PLD
EXR
Price/Earnings (Normalized)
21.9739.4525.01
Price/Book Value
8.071.821.95
Price/Sales
10.1512.428.77
Price/Cash Flow
14.2018.7916.01
Price/Earnings
PSA
PLD
EXR

Financial Strength

Metric
PSA
PLD
EXR
Quick Ratio
0.620.330.77
Current Ratio
0.620.550.85
Interest Coverage
11.476.602.80
Quick Ratio
PSA
PLD
EXR

Profitability

Metric
PSA
PLD
EXR
Return on Assets (Normalized)
12.33%3.93%5.13%
Return on Equity (Normalized)
39.85%6.71%12.17%
Return on Invested Capital (Normalized)
13.46%4.89%7.27%
Return on Assets
PSA
PLD
EXR
See how this stock stacks up to its competitors with Morningstar Investor

REIT - Industrial Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
PLD
Prologis IncQpszfnjcsFtx$96.8 Bil
EXR
Extra Space Storage IncMxrjzfmtzBhyy$28.1 Bil
SEGXF
Segro PLCNvww$14.2 Bil
CUBE
CubeSmartHqklwkfblDlhv$9.5 Bil
REXR
Rexford Industrial Realty IncZldp$9.4 Bil
ACDSF
CapitaLand Ascendas REIT UnitsZjy$8.4 Bil
EGP
EastGroup Properties IncDwglsfh$7.8 Bil
COLD
Americold Realty Trust IncDbxwbnpwpKkyb$6.5 Bil
STAG
Stag Industrial IncCfsbl$6.3 Bil

Sponsor Center