Core Insights - Public Storage (PSA) is expected to report quarterly earnings of $4.23 per share, unchanged from the same period last year, with revenues projected at $1.19 billion, reflecting a year-over-year increase of 1.8% [1] - The consensus EPS estimate has remained stable over the last 30 days, indicating analysts have not altered their initial projections significantly during this period [1][2] Revenue Estimates - Analysts forecast 'Revenues- Self-storage facilities' to be $1.11 billion, indicating a year-over-year increase of 1.1% [4] - The estimate for 'Revenues- Ancillary operations' is projected at $79.66 million, representing a year-over-year increase of 8.4% [4] Key Metrics - The consensus estimate for 'Square Foot Occupancy' is 92.7%, slightly down from 93.0% a year ago [4] - 'Rent per Occupied Square Foot' is expected to reach $22.23, down from $22.72 a year ago [5] - Analysts predict 'Depreciation and amortization' will total $285.08 million [5] Market Performance - Public Storage shares have decreased by 0.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of 4.6% [6] - PSA holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

Core Insights - Public Storage (PSA) is expected to report second-quarter 2025 results on July 30, with anticipated revenue growth and stable core funds from operations (FFO) per share [1][11] Financial Performance - In the last reported quarter, PSA achieved a core FFO per share of $4.12, exceeding the Zacks Consensus Estimate of $4.06, driven by top-line growth despite a decline in occupancy [2][11] - The Zacks Consensus Estimate for second-quarter revenues from self-storage facilities is projected at $1.112 billion, reflecting an increase from $1.099 billion in the same period last year, with total quarterly revenues expected to reach $1.19 billion, indicating a 1.8% year-over-year increase [6][11] Market Dynamics - The self-storage industry is characterized by need-based demand and resilience during economic downturns, with low capital expenditure requirements and high operating margins contributing to favorable performance [5] - Despite softer demand and lower operating trends in the first quarter of 2025, management is focusing on attracting tenants by lowering rental rates and increasing promotional discounts [7][11] Strategic Factors - PSA's strong presence in major metropolitan markets, established brand, and technological upgrades are likely to support revenue growth in the second quarter [4][11] - Strategic acquisitions are expected to further enhance revenue generation during the quarter [4][11] Analyst Sentiment - The Zacks Consensus Estimate for second-quarter core FFO per share has remained unchanged at $4.23, indicating no year-over-year change [8][11] - PSA currently holds a Zacks Rank of 3 and an Earnings ESP of 0.00%, suggesting uncertainty regarding a surprise in FFO per share this quarter [10]

Group 1 - Public Storage (PSA) and Ki Corporation have made a revised, non-binding offer to acquire Abacus Storage King at A$1.65 per stapled security, up from A$1.47 [1][8] - The consortium aims to acquire all outstanding stapled securities of Abacus not held by Ki Group, with each party set to own a 50% stake if the acquisition is completed [2] - Abacus Storage King operates around 126 properties, 21 development sites, and 75 managed or licensed locations, making it a leading self-storage operator in Australia and New Zealand [2] Group 2 - Public Storage plans to leverage its collaboration with Shurgard Self Storage Limited to enhance Abacus's customer experience, optimize operations, and accelerate portfolio expansion [3] - The self-storage market in Australia and New Zealand is characterized by strong population growth and stable economic conditions, presenting attractive opportunities for market consolidation [4] Group 3 - Public Storage has acquired 195 facilities with 14.5 million net rentable square feet for $3.1 billion from the beginning of 2023 through the first quarter of 2025, contributing a net operating income of $35.8 million in Q1 2025 [6] - The company is well-positioned to capitalize on potential opportunities due to solid access to capital [6] Group 4 - Despite the growth prospects, the industry faces challenges such as soft demand and lower occupancy rates, with expectations for a decline in the 2025 weighted average square foot occupancy to 91.8% [7] - High supply in the market is increasing competition, which affects pricing power and margins [7]

Group 1 - The iREIT® Tracker provides comprehensive data on over 250 tickers, including quality scores, buy targets, and trim targets, focusing on various investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers [1] - There is a prevalent misconception in the REIT sector that issuing stock is dilutive to investors, which is frequently discussed on platforms like Seeking Alpha and social media [1] Group 2 - The investing group iREIT®+HOYA Capital, led by Brad and HOYA Capital, specializes in REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives, backed by a team of analysts with over 100 years of combined experience [2] - Brad Thomas has over 30 years of experience in real estate investing, having been involved in over $1 billion in commercial real estate transactions, and has been featured in major media outlets [3]

Investment Ratings - Cold Storage REITs: Lineage Inc. (LINE, Buy) [5] - Industrial REITs: Prologis Inc. (PLD, Neutral) [16] - Industrial REITs: Terreno Realty Corp (TRNO, Buy) [31] - Self Storage REITs: Extra Space Storage Inc. (EXR, Buy) [44] - Self Storage REITs: Public Storage Inc. (PSA, Buy) [54] - Retail REITs: Brixmor Property Group (BRX, Buy) [63] - Retail REITs: Phillips Edison & Co (PECO, Buy) [74] Core Insights - The report highlights a mixed outlook across various REIT sectors, with some companies like LINE, TRNO, EXR, PSA, BRX, and PECO receiving "Buy" ratings, while PLD is rated "Neutral" [5][16][31][44][54][63][74] - Economic occupancy for LINE decreased by 290 basis points sequentially and 260 basis points year-over-year in Q1 2025, indicating potential challenges in maintaining occupancy levels [5] - Prologis Inc. is focusing on the implications of tariff policies on global supply chains, which may disrupt tenant activities and leasing demand [16] - Terreno Realty Corp is observing a shift in leasing dynamics post-tariff announcements, with domestic customers becoming more active compared to those operating across borders [31] - Extra Space Storage Inc. is prioritizing occupancy over rent in the current environment, reflecting a strategic shift in response to market conditions [44] - Public Storage Inc. is experiencing a significant impact from regional events, such as fires in Los Angeles, which account for 15% of its NOI [54] - Brixmor Property Group is seeing a steady increase in billed occupancy, which has risen by an average of 100 basis points over the last four years [63] Summary by Sections Cold Storage REITs - Lineage Inc. (LINE) reported a decline in economic occupancy and revenue per occupied pallet, with management expressing confidence in maintaining AFFO/share and EBITDA guidance for 2025 [5][6][7] Industrial REITs - Prologis Inc. (PLD) is navigating the complexities of global supply chains and tariff impacts, with expectations for occupancy and rent growth improvements in the second half of 2025 [16][20] - Terreno Realty Corp (TRNO) is adapting to changes in leasing activity and tenant retention amid tariff uncertainties, focusing on domestic customer engagement [31][36] Self Storage REITs - Extra Space Storage Inc. (EXR) is adjusting its strategy to prioritize occupancy over rent, with a focus on counter-cyclical demand drivers [44][46] - Public Storage Inc. (PSA) is managing its rent versus occupancy strategy while facing challenges from regional disruptions [54][56] Retail REITs - Brixmor Property Group (BRX) is experiencing a positive trend in occupancy and leasing spreads, with a focus on tenant credit and market dynamics [63][66] - Phillips Edison & Co (PECO) is observing volatility in the market due to tariff updates, impacting leasing velocity and transaction activity [74]

Core Insights - Real estate remains a timeless asset that continues to generate wealth for individuals today [1] - Real Estate Investment Trusts (REITs) allow individuals to invest in real estate without needing significant capital or expertise [2] Group 1: Prologis - Prologis specializes in logistics and data center properties, owning nearly 5,900 buildings across 20 countries [5] - The company enhances property value through high maintenance standards and energy efficiency [6] - Prologis has an 11-year streak of consecutive dividend increases, with a current dividend yield of 3.6% and strong growth prospects in e-commerce and data centers [7] Group 2: NNN REIT - NNN REIT has raised its dividend for 36 consecutive years, demonstrating resilience through economic challenges [8] - The company owns over 3,600 buildings, focusing on consumer-facing tenants, and utilizes triple net leases for revenue stability [9] - NNN REIT offers a current yield of 5.5%, with low to mid-single-digit growth, emphasizing stability over rapid growth [10] Group 3: Public Storage - Public Storage is the largest owner-operator of self-storage facilities, with over 3,400 properties in the U.S. and Europe [11] - The company has invested $11 billion since 2019 to expand its portfolio by 35%, although this has affected consistent dividend growth [11][12] - The stock currently yields 3.9%, providing a dependable income stream, with expected low to mid-single-digit growth over the next few years [13]

Group 1 - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income for continuous cash flow [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1] - An active chat room is available for discussions on the latest developments of the portfolio holdings [1]

Core Insights - Public Storage (PSA) reported first-quarter 2025 core funds from operations (FFO) per share of $4.12, exceeding the Zacks Consensus Estimate of $4.06 and reflecting a 2.2% year-over-year increase from $4.03 [1] - Quarterly revenues reached $1.18 billion, surpassing the Zacks Consensus Estimate of $1.17 billion and also showing a 2.2% year-over-year growth [2] Financial Performance - Same-store revenues increased by 0.1% year over year to $934.5 million, driven by higher realized annual rent per occupied square foot, despite a decline in occupancy [3] - Realized annual rental income per occupied square foot rose by 0.6% to $22.48, while weighted average square foot occupancy decreased by 0.6% to 91.5% [3] - Same-store net operating income (NOI) remained nearly flat at $691.5 million, with an additional $13.5 million in NOI growth from non-same-store facilities due to acquisitions [4] - The same-store direct NOI margin was stable at 77.1%, while interest expenses increased by 6.2% to $72 million [5] Portfolio Activity - In Q1 2025, PSA acquired nine self-storage facilities for $141 million, adding 0.7 million net rentable square feet [6] - Following March 31, 2025, PSA was under contract to acquire five additional facilities for $43.2 million, contributing another 0.4 million net rentable square feet [6] - The company has ongoing development projects expected to add around 2.4 million net rentable square feet at an estimated cost of $492.9 million [7] Balance Sheet Position - As of March 31, 2025, PSA had $287.2 million in cash and equivalents, a decrease from $447.4 million at the end of 2024 [8] 2025 Guidance - PSA reaffirmed its 2025 core FFO per share guidance in the range of $16.35-$17.00, with the Zacks Consensus Estimate at $16.79 [9] - The company anticipates a 1.3% decline to 0.8% growth in same-store revenues and a 2.5% to 4% rise in same-store expenses [10]

Financial Data and Key Metrics Changes - The company reported a core FFO per share growth of more than 2% for the quarter, representing a 200 basis point improvement sequentially compared to the previous quarter [7][16] - Same store occupancy gap improved from down 80 basis points at the end of December to down 30 basis points by the end of March [6][7] - Revenue growth in the same store pool turned positive after two years of deceleration, while revenue growth in the non-same store pool accelerated to nearly 11% [7][15] Business Line Data and Key Metrics Changes - Move-in volumes increased over 2%, indicating stronger customer conversion and engagement [6][7] - Same store expenses grew by only 30 basis points, reflecting effective cost control measures [15][92] - The company delivered $144 million of development during the quarter, with a robust pipeline of approximately $650 million expected over the next two years [13][14] Market Data and Key Metrics Changes - The self-storage industry is experiencing favorable dynamics, with demand driven by customer events that occur across various economic conditions [11] - Move-in rents have declined significantly, aligning with levels not seen since February 2013, indicating a potential for future rent increases as demand improves [12][11] - The company noted that occupancy improved in April, with a decrease in move-out volumes contributing to this trend [22][23] Company Strategy and Development Direction - The company is focused on digital transformation, with 85% of customer interactions now occurring through digital channels, enhancing operational efficiency [9][68] - The acquisition strategy is active, with $184 million in properties acquired or under contract, indicating a strong growth trajectory [10][13] - The company is well-positioned to capitalize on both domestic and international growth opportunities, including a proposal to acquire Abacus Storage King in Australia and New Zealand [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the self-storage industry, noting that it tends to perform well even in challenging economic conditions [11][102] - The company is monitoring customer behavior closely, especially in light of macroeconomic volatility, but has seen encouraging trends in customer payment patterns and occupancy [21][72] - The guidance for 2025 remains unchanged, with expectations of continued stabilization and growth in the portfolio [16][72] Other Important Information - The company anticipates a 100 basis point impact on same store revenue growth for the year due to fire-related pricing restrictions in Los Angeles, which will be back half weighted [16][50] - Retained cash flow is expected to increase by 50% to approximately $600 million, which will be reinvested into development and acquisitions [14][115] Q&A Session Summary Question: Can you help us gauge the level of conservatism in the guidance? - Management noted that move-in volumes were strong, and customer behavior in April was categorized as very good, with payment patterns remaining solid [21][22] Question: Can you comment on the private capital raising environment for storage? - Management indicated that while institutional capital remains interested in the sector, transaction volumes have been light in 2024 and into 2025 [26][27] Question: What are the trends in revenue and advertising? - Management reported consistent positive trends in search and advertising, with higher web visits and sales calls indicating increased demand [32] Question: What is the impact of rent restrictions in LA? - Management confirmed that the impact of rent restrictions will grow over time, with an anticipated 100 basis point impact on same store revenue [50][90] Question: How is the company managing expenses? - Management reaffirmed the overall expense outlook, noting good expense control in the first quarter but expecting some elements to not persist [92] Question: How is the ECRI program performing? - The ECRI program is performing well, with consistent price sensitivity and stable costs to replace tenants [98] Question: How does the company view the demand for third-party management services? - Management expressed optimism about the growth of the third-party management business, noting good adoption and demand [82][84]

Financial Data and Key Metrics Changes - The company reported a core FFO per share growth of more than 2% for the quarter, with a 200 basis point improvement sequentially compared to the previous quarter [6][15]. - Same store occupancy gap improved from down 80 basis points at the end of December to down 30 basis points by the end of March [6]. - Revenue growth in the same store pool turned positive after two years of deceleration, while revenue growth in the non-same store pool accelerated to nearly 11% [6][14]. Business Line Data and Key Metrics Changes - Move-in volumes increased over 2%, indicating stronger customer conversion and engagement [5]. - Same store revenues turned positive after three consecutive quarters of declines, driven by higher rental rates [14]. - Same store expenses were well controlled, with only 30 basis points of growth, attributed to operational initiatives and moderated advertising spend [14]. Market Data and Key Metrics Changes - The company noted favorable industry dynamics, stating that self-storage is resilient to changing economic conditions due to its needs-based nature [9][10]. - Move-in rents have declined significantly, aligning with levels not seen since February 2013, which positions the company to benefit from rising rents and occupancy in an improving demand environment [11]. Company Strategy and Development Direction - The company is focused on digital transformation, with 85% of customer interactions now digital, and is utilizing AI to optimize staffing [7]. - The acquisition strategy is active, with $184 million in properties acquired or under contract, significantly ahead of the previous year's $35 million [8][12]. - The company is exploring international growth opportunities, exemplified by the proposal to acquire Abacus Storage King in Australia and New Zealand [8][12]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the self-storage industry, noting strong consumer trends and good payment patterns despite macroeconomic uncertainties [21][70]. - The company anticipates a 100 basis point impact on same store revenue growth due to fire-related pricing restrictions in Los Angeles, which will be back half weighted [15][48]. - Management is closely monitoring customer behavior and market conditions, indicating a cautious but optimistic outlook for the remainder of the year [70][71]. Other Important Information - The company expects retained cash flow to increase by 50% to approximately $600 million, which will be reinvested into development and acquisitions [13][108]. - The company is committed to maintaining operational efficiency through payroll optimizations and investments in solar power generation [88]. Q&A Session Summary Question: Level of conservatism in guidance - Management indicated that the guidance reflects a cautious outlook, with move-in rates down approximately 5% year-to-date, but positive trends in occupancy and move-in volumes were noted [20][22]. Question: Private capital raising environment for storage - Management acknowledged increased institutional interest in the sector, despite light transaction volumes in 2024 and early 2025 [25][26]. Question: Revenue indicators and advertising trends - Consistent positive trends in search and advertising indicators were reported, with year-over-year improvements in web visits and sales calls [31]. Question: Move-in rate strategy - Management explained that fluctuations in move-in rates are expected by market and month, with a focus on optimizing revenue [39][40]. Question: Development landscape and cost increases - The company noted a continued deceleration in national development completions, which is seen as healthy for the industry [42]. Question: Rent restrictions in LA - Management confirmed that the fire-related state of emergencies will last until early 2026, impacting revenue growth [47][48]. Question: Peak leasing season expectations - The company does not anticipate a significant uptick in peak leasing activity compared to previous years, given the current market conditions [50]. Question: ECRI program performance - The ECRI program is performing well, with stable price sensitivity and replacement costs observed [92]. Question: Business customer trends - Business customers make up approximately 15% of the portfolio, with no significant changes noted in their behavior [112][115].