It has been about a month since the last earnings report for Public Storage (PSA Quick QuotePSA - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Public Storage due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Public Storage Tops Q1 FFO Estimates, Reiterates '22 View

Public Storage's first-quarter 2022 core FFO per share of $3.65 surpassed the Zacks Consensus Estimate of $3.59. The figure also increased 29.4% year over year.

Quarterly revenues of $973.4 million exceeded the Zacks Consensus Estimate of $965.7 million. Moreover, revenues increased 26.9% year over year.

Results reflect an improvement in the realized annual rent per available square foot in the reported quarter. The company also benefited from its expansion efforts through acquisitions, developments and extensions. Management restated its full-year guidance.

Behind the Headlines

Public Storage’s same-store revenues increased 15.8% year over year to $749.3 million in the first quarter, highlighting the higher realized annual rent per available square foot. This REIT experienced a 15.6% increase in the realized annual rental income per available square foot to $19.40. The weighted-average square foot occupancy of 95.6% remained flat year over year.

The same-store cost of operations increased 3.6% year over year, mainly reflecting an increase in property tax expenses, a rise in repair and maintenance expenses and an increase in centralized management costs, partially offset by a decrease in marketing expenses.

Consequently, PSA’s same-store net operating income (NOI) increased 20.5% to $561.3 million. Also, this REIT’s NOI growth from non-same-store facilities was $71.7 million due to the facilities acquired in 2021 and the fill-up of the recently developed and expanded facilities.

Portfolio Activity

In the March-end quarter, Public Storage acquired 10 self-storage facilities comprising 0.8 million net rentable square feet of area for $127.7 million. Following Mar 31, 2022, the company acquired or was under contract to acquire 11 self-storage facilities spanning 0.9 million net rentable square feet of space across nine states for $147.2 million.

In the first quarter, this REIT completed several expansion projects with 0.1 million net rentable square feet and costing $19.4 million. Finally, as of Mar 31, 2022, Public Storage had several facilities in development (2.2 million net rentable square feet), with an estimated cost of $406.1 million, as well as expansion projects (2.6 million net rentable square feet) worth $427.7 million. It expects to incur the remaining $496.2 million of development costs related to these projects, mainly over the next 18 to 24 months.

Balance Sheet Position

Public Storage exited the first quarter of 2022 with $940.5 million of cash and equivalents, up from the $734.6 million recorded at the end of 2021.

Guidance

For 2022, Public Storage reiterated its core FFO per share guidance in the range of $14.75-$15.65.

The company’s full-year assumption is backed by 12-15% growth in same-store revenues, a 6% to 8% rise in same-store expenses and a 13.4% to 18.0% expansion in same-store NOI. Further, the company expects $1 billion of acquisitions and $250 million of development openings.

PSA’s guidance excludes estimates for the impact of the potential sale of its investment in PS Business Parks, Inc. pursuant to PS Business Parks’ merger agreement with Blackstone.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

At this time, Public Storage has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Public Storage has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Public Storage belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, American Tower (AMT Quick QuoteAMT - Free Report) , has gained 2.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.

American Tower reported revenues of $2.66 billion in the last reported quarter, representing a year-over-year change of +23.3%. EPS of $1.56 for the same period compares with $2.46 a year ago.

For the current quarter, American Tower is expected to post earnings of $2.45 per share, indicating a change of +1.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

American Tower has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.