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PSA Set to Announce Q1 Results: What Could Be in Store for the Stock?
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Public Storage (PSA - Free Report) is slated to release first-quarter 2025 results on April 30, after market close. The quarterly results are expected to reflect an increase in both revenues and core funds from operations (FFO) per share.
In the last reported quarter, this self-storage real estate investment trust (REIT) reported a core FFO per share of $4.21, missing the Zacks Consensus Estimate of $4.23. Results reflected lower same-store revenues and move-in rental rates for new tenants year over year amid a decline in occupancy due to softer demand. However, decent revenues from non-same-store facilities positively impacted the performance to an extent. The company also benefited from its expansion efforts through acquisitions, developments and extensions.
Over the last four quarters, Public Storage surpassed the Zacks Consensus Estimate on one occasion and missed in the remaining period, the average miss being 0.48%. The graph below depicts the surprise history of the company:
Let’s see how things have shaped up before this announcement.
Factors to Note Ahead of PSA’s Upcoming Results
Public Storage is likely to have continued to benefit from its strong presence in major metropolitan markets, well-established brand and technological edge during the first quarter.The company is likely to have maintained its solid financial position, backed by one of the strongest balance sheets in the industry. With sufficient liquidity, it remained well-positioned to capitalize on expansion opportunities through acquisitions and development, a trend that is likely to have persisted in the March-end quarter.
However, the self-storage industry experienced softer demand and lower operating trends in 2024. Although demand trends improved in some markets, stabilization will take time. Demand in the first quarter is expected to be on the same lines as in the previous year. We expect occupancy to have remained under pressure in the first quarter. To lure tenants into such an environment, management continues to focus on lowering rental rates for new customers and increasing promotional discounting. This is expected to have affected its same-store facility revenues. Also, interest expenses are likely to have remained elevated in the quarter.
Q1 Projections for PSA
The Zacks Consensus Estimate for first-quarter revenues from self-storage facilities stands at $1.092 billion. This suggests an increase from the $1.086 billion witnessed in the year-ago period. The consensus mark for quarterly revenues from ancillary operations stands at $78.36 million, up from the $71.18 million registered in the comparable period last year.
The Zacks Consensus Estimate for quarterly revenues stands at $1.17 billion. This indicates a 1.5% year-over-year increase.
We estimate a 0.3% year-over-year increase in same-store facilities revenues in the first quarter, while same-store facilities expenses are expected to flare up 3.3%, resulting in a 0.8% decline in same-store facilities net operating income. Further, we estimate a marginal year-over-year increase in interest expenses in the first quarter.
PSA’s activities during the quarter under review were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the first-quarter core FFO per share has been revised two cents south to $4.07 in the past month. However, it calls for a nearly 1% increase year over year.
Here is What Our Quantitative Model Predicts for PSA:
Our proven model predicts a surprise in terms of FFO per share for Public Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
Public Storage currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two other stocks from the broader REIT sector — American Tower Corporation (AMT - Free Report) and Welltower Inc. (WELL - Free Report) — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.
Welltower, scheduled to report quarterly numbers on April 28, has an Earnings ESP of +1.69% and carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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PSA Set to Announce Q1 Results: What Could Be in Store for the Stock?
Public Storage (PSA - Free Report) is slated to release first-quarter 2025 results on April 30, after market close. The quarterly results are expected to reflect an increase in both revenues and core funds from operations (FFO) per share.
In the last reported quarter, this self-storage real estate investment trust (REIT) reported a core FFO per share of $4.21, missing the Zacks Consensus Estimate of $4.23. Results reflected lower same-store revenues and move-in rental rates for new tenants year over year amid a decline in occupancy due to softer demand. However, decent revenues from non-same-store facilities positively impacted the performance to an extent. The company also benefited from its expansion efforts through acquisitions, developments and extensions.
Over the last four quarters, Public Storage surpassed the Zacks Consensus Estimate on one occasion and missed in the remaining period, the average miss being 0.48%. The graph below depicts the surprise history of the company:
Public Storage Price and EPS Surprise
Public Storage price-eps-surprise | Public Storage Quote
Let’s see how things have shaped up before this announcement.
Factors to Note Ahead of PSA’s Upcoming Results
Public Storage is likely to have continued to benefit from its strong presence in major metropolitan markets, well-established brand and technological edge during the first quarter.The company is likely to have maintained its solid financial position, backed by one of the strongest balance sheets in the industry. With sufficient liquidity, it remained well-positioned to capitalize on expansion opportunities through acquisitions and development, a trend that is likely to have persisted in the March-end quarter.
However, the self-storage industry experienced softer demand and lower operating trends in 2024. Although demand trends improved in some markets, stabilization will take time. Demand in the first quarter is expected to be on the same lines as in the previous year. We expect occupancy to have remained under pressure in the first quarter. To lure tenants into such an environment, management continues to focus on lowering rental rates for new customers and increasing promotional discounting. This is expected to have affected its same-store facility revenues. Also, interest expenses are likely to have remained elevated in the quarter.
Q1 Projections for PSA
The Zacks Consensus Estimate for first-quarter revenues from self-storage facilities stands at $1.092 billion. This suggests an increase from the $1.086 billion witnessed in the year-ago period. The consensus mark for quarterly revenues from ancillary operations stands at $78.36 million, up from the $71.18 million registered in the comparable period last year.
The Zacks Consensus Estimate for quarterly revenues stands at $1.17 billion. This indicates a 1.5% year-over-year increase.
We estimate a 0.3% year-over-year increase in same-store facilities revenues in the first quarter, while same-store facilities expenses are expected to flare up 3.3%, resulting in a 0.8% decline in same-store facilities net operating income. Further, we estimate a marginal year-over-year increase in interest expenses in the first quarter.
PSA’s activities during the quarter under review were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the first-quarter core FFO per share has been revised two cents south to $4.07 in the past month. However, it calls for a nearly 1% increase year over year.
Here is What Our Quantitative Model Predicts for PSA:
Our proven model predicts a surprise in terms of FFO per share for Public Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
Public Storage currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two other stocks from the broader REIT sector — American Tower Corporation (AMT - Free Report) and Welltower Inc. (WELL - Free Report) — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.
American Tower is slated to report quarterly numbers on April 29. AMT has an Earnings ESP of +0.27% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Welltower, scheduled to report quarterly numbers on April 28, has an Earnings ESP of +1.69% and carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.