Public Storage: Strong REIT With An A2 Credit Profile, But The Opportunity Is In The Preferreds
Public Storage (PSA) Q4 2025 Earnings Call Transcript
PSA tops Q4 FFO and revenue estimates, launches its PS4.0 strategy and issues a 2026 outlook amid mixed same-store trends and expansion plans.
The headline numbers for Public Storage (PSA) give insight into how the company performed in the quarter ended December 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Public Storage (PSA) came out with quarterly funds from operations (FFO) of $4.26 per share, beating the Zacks Consensus Estimate of $4.21 per share. This compares to FFO of $4.21 per share a year ago.
Public Storage heads into its Q4 earnings report with revenues expected to rise to $1.21B, while core FFO per share is seen flat year over year.
Beyond analysts' top-and-bottom-line estimates for Public Storage (PSA), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended December 2025.
Public Storage: Solid REIT To Watch, But Don't Ignore The Preferred Stock
Public Storage is rated a Buy, with current valuations near decade lows despite strong margins and a robust balance sheet. PSA's growth is driven by capital deployment and acquisitions, with gradual earnings impact due to initially lower margins in new properties. Same-store NOI margins remain high at 78.5%, but organic growth is muted and occupancy is drifting slightly lower.
PSA's strong brand, recession-resistant model, tech-driven efficiencies and $3.76B in acquisitions position it well for steady long-term growth.
Public Storage PFD SHS F 5.15% preferred stock offers a 5.9% yield after a recent correction, supported by a strong REIT business model and balance sheet. PSA.PR.F trades at a 12% discount to par, providing potential for capital appreciation if called, with the preferred dividend considered very safe. Public Storage benefits from resilient cash flows, industry tailwinds, and sector-leading credit ratings, ensuring preferred dividend stability.
Public Storage ( PSA ) Q3 2025 Earnings Call October 30, 2025 12:00 PM EDT Company Participants Ryan Burke - Vice President of Investor Relations Joseph Russell - CEO, President & Trustee H. Boyle - Senior VP, Chief Investment Officer & CFO Conference Call Participants Eric Wolfe - Citigroup Inc., Research Division Michael Griffin - Evercore ISI Institutional Equities, Research Division Samir Khanal - BofA Securities, Research Division Caitlin Burrows - Goldman Sachs Group, Inc., Research Division Ronald Kamdem - Morgan Stanley, Research Division Eric Luebchow - Wells Fargo Securities, LLC, Research Division Spenser Allaway Todd Thomas - KeyBanc Capital Markets Inc., Research Division Juan Sanabria - BMO Capital Markets Equity Research Michael Goldsmith - UBS Investment Bank, Research Division Michael Mueller - JPMorgan Chase & Co, Research Division Brendan Lynch - Barclays Bank PLC, Research Division Presentation Operator Greetings, and welcome to Public Storage Third Quarter 2025 Earnings Conference Call.