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PSA Set to Report Q2 Earnings: What to Expect From the Stock?
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Key Takeaways
PSA's Q2 revenues are projected to rise to $1.19B, with core FFO per share holding steady at $4.23.
Growth is likely to have been supported by acquisitions, tech upgrades and metro market exposure.
Weaker demand led PSA to increase discounts and lower new rental rates to attract tenants.
Public Storage (PSA - Free Report) is slated to release second-quarter 2025 results on July 30, after market close. The quarterly results are expected to reflect an increase in revenues and no change in 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 $4.12, surpassing the Zacks Consensus Estimate of $4.06. Results were backed by top-line growth, with the company experiencing higher realized annual rent per occupied square foot, though a fall in occupancy partly offset the positive.
Over the last four quarters, Public Storage surpassed the Zacks Consensus Estimate on two occasions and missed in the remaining period, the average surprise being 0.14%. The graph below depicts the surprise history of the company:
Let’s see how things have shaped up before this announcement.
Factors at Play and Projections for PSA’s Q2 Results
Public Storage is likely to have continued to benefit from its strong presence in major metropolitan markets, well-established brand and technological upgradation during the second quarter. The company’s strategic acquisitions are likely to have aided higher revenue generation in the quarter under consideration.
Moreover, the self-storage asset category is need-based and recession-resilient in nature. This asset class has low capital expenditure requirements and generates high operating margins. Additionally, the self-storage industry continues to benefit from favorable demographic changes. All these factors cumulatively are likely to have contributed to the company’s top-line growth.
The Zacks Consensus Estimate for second-quarter revenues from self-storage facilities stands at $1.112 billion. This suggests an increase from the $1.099 billion witnessed in the year-ago period. The consensus mark for quarterly revenues from ancillary operations stands at $79.66 million, up from the $73.48 million registered in the comparable period last year.
The Zacks Consensus Estimate for quarterly revenues stands at $1.19 billion. This indicates a 1.8% year-over-year increase.
However, the self-storage industry experienced softer demand and lower operating trends in the first quarter of 2025. Although demand trends improved in some markets, stabilization will take time. To lure tenants into such an environment, management continues to focus on lowering rental rates for new customers and increasing promotional discounting.
PSA’s activities during the quarter under review were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the second-quarter core FFO per share has remained unchanged at $4.23 in the past three months. Also, it calls for no change year over year.
Here Is What Our Quantitative Model Predicts for PSA:
Our proven model does not conclusively predict 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 not the case here.
Public Storage currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — AvalonBay Communities (AVB - Free Report) and Cousins Properties (CUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Cousins Properties, slated to release quarterly numbers on July 31, has an Earnings ESP of +0.36% and carries a Zacks Rank of 3 at present.
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 Report Q2 Earnings: What to Expect From the Stock?
Key Takeaways
Public Storage (PSA - Free Report) is slated to release second-quarter 2025 results on July 30, after market close. The quarterly results are expected to reflect an increase in revenues and no change in 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 $4.12, surpassing the Zacks Consensus Estimate of $4.06. Results were backed by top-line growth, with the company experiencing higher realized annual rent per occupied square foot, though a fall in occupancy partly offset the positive.
Over the last four quarters, Public Storage surpassed the Zacks Consensus Estimate on two occasions and missed in the remaining period, the average surprise being 0.14%. 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 at Play and Projections for PSA’s Q2 Results
Public Storage is likely to have continued to benefit from its strong presence in major metropolitan markets, well-established brand and technological upgradation during the second quarter. The company’s strategic acquisitions are likely to have aided higher revenue generation in the quarter under consideration.
Moreover, the self-storage asset category is need-based and recession-resilient in nature. This asset class has low capital expenditure requirements and generates high operating margins. Additionally, the self-storage industry continues to benefit from favorable demographic changes. All these factors cumulatively are likely to have contributed to the company’s top-line growth.
The Zacks Consensus Estimate for second-quarter revenues from self-storage facilities stands at $1.112 billion. This suggests an increase from the $1.099 billion witnessed in the year-ago period. The consensus mark for quarterly revenues from ancillary operations stands at $79.66 million, up from the $73.48 million registered in the comparable period last year.
The Zacks Consensus Estimate for quarterly revenues stands at $1.19 billion. This indicates a 1.8% year-over-year increase.
However, the self-storage industry experienced softer demand and lower operating trends in the first quarter of 2025. Although demand trends improved in some markets, stabilization will take time. To lure tenants into such an environment, management continues to focus on lowering rental rates for new customers and increasing promotional discounting.
PSA’s activities during the quarter under review were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the second-quarter core FFO per share has remained unchanged at $4.23 in the past three months. Also, it calls for no change year over year.
Here Is What Our Quantitative Model Predicts for PSA:
Our proven model does not conclusively predict 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 not the case here.
Public Storage currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — AvalonBay Communities (AVB - Free Report) and Cousins Properties (CUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
AvalonBay Communities, scheduled to report quarterly numbers on July 30, has an Earnings ESP of +0.02% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties, slated to release quarterly numbers on July 31, has an Earnings ESP of +0.36% and carries a Zacks Rank of 3 at present.
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.