Is Public Storage Stock Underperforming the S&P 500?

Company Overview - Public Storage (PSA) is a real-estate investment trust (REIT) focused on self-storage facilities, offering month-to-month leases for personal and business use, along with ancillary services [1] - The company is headquartered in Glendale, California, and operates thousands of storage locations across the United States, with a market capitalization of approximately $47.9 billion [1][2] Market Position - Public Storage is classified as a "large-cap" stock, exceeding the $10 billion valuation threshold, and is recognized as a leading self-storage operator due to its extensive network [2] Stock Performance - The stock has decreased by 20.9% from its 52-week high of $345.10 reached in December 2024, and is down 5.2% over the past three months, underperforming the S&P 500 Index, which rose by 6.5% during the same period [3] - Over the past 52 weeks, PSA has slumped 20.6% and is down 8.8% year-to-date, lagging behind the S&P 500's returns of 12.9% and 16.1% respectively [4] - The stock has been trading below the 200-day moving average for most of the past year, with a brief period above it in October [4] Industry Challenges - The decline in Public Storage's stock in 2025 is attributed to soft industry demand, decreasing move-in rental rates, and rising operating costs [5] - The self-storage sector is facing challenges due to ongoing economic uncertainties and a subdued housing market, which significantly impacts storage demand [5] Recent Financial Performance - In Q3 2025, the company's core funds from operations (Core FFO) per share were reported at $4.31, reflecting a 2.6% increase from the same quarter last year [6] - However, the same-store performance showed weakness, with square foot occupancy dropping by approximately 0.5% to 92.2%, and same-store revenue remaining flat year-over-year at $948.9 million [6] - Concerns over same-store performance led to a 3% drop in stock price on October 29, followed by an additional 2.9% decline the next day [6]