Public Storage (PSA) Stock Forecast & Price Target

Public Storage, as the largest owner of self-storage facilities in the U.S. with over 3,300 locations and approximately 245 million square feet of rentable space, is strategically positioned to leverage its significant market presence for future growth. The company anticipates a stabilization in storage fundamentals, supported by an increase in move-in volumes and opportunities for pricing power recovery, which could enhance revenue performance. Furthermore, initiatives to improve operational efficiencies and the potential for a resurgence in third-party management and acquisition activity are expected to contribute positively to Public Storage’s financial outlook.

Public Storage's outlook is negatively influenced by its guidance for 2025, which remains below prior expectations, alongside a significant drop in move-in rates from -5% year-over-year in 4Q24 to -8% year-to-date. The company has consistently struggled to match its growth rates with those of its peers, particularly in same-store revenue and funds from operations (FFO), which could hinder its competitive position in the self-storage market. Additionally, challenges such as low moving velocity, weak operational performance, stagnation in its third-party management segment, and increasing regulatory scrutiny pose significant risks to the company’s growth potential.