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Is Public Storage Stock Still Worth Watching After a 19.9% YTD Gain?
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Key Takeaways
PSA is up 19.9% YTD, beating industry growth of 10.5% despite interest-rate pressure.
PSA occupancy improved as move-outs fell; move-in rents stayed negative but better than expected.
PSA's National Storage Affiliates deal would add 1,000 assets and targets $110M-$130M synergies.
Public Storage (PSA - Free Report) has delivered a strong run so far this year, with the stock up 19.9% year to date, outperforming the industry’s growth of 10.5%. The gain stands out in the REIT space, where investors have been selective because of interest-rate pressure and uneven property-level trends. The move suggests that the market is looking past some near-term softness and giving PSA credit for better operating execution, a strong balance sheet and long-term growth opportunities.
The company is a major player in the self-storage industry, with a large national footprint and a well-known brand. Self-storage demand is tied to life events such as moving, downsizing, family changes and business needs.
The sector has faced pressure from slower move-in activity and new supply in some markets, but Public Storage’s scale, technology investments and capital access give it tools that smaller operators may not have.
Image Source: Zacks Investment Research
Factors Behind PSA Stock Price Rise: Will This Trend Continue?
One reason investors have supported PSA is its steady first-quarter performance. Core FFO rose 2.4% year over year to $4.22 per share, while same-store NOI increased 0.4%. That was not rapid growth, but it was encouraging in an uneven market. Move-in rents were still negative, yet better than expected, and occupancy improved as move-outs declined.
Customer retention is another key part of the story. Management highlighted a meaningful drop in move-outs during the quarter, which helped occupancy improve from a year earlier. In self-storage, keeping existing customers can be very valuable because it reduces the need to fill vacant units with discounted pricing or heavier promotions. PSA also noted that delinquency and payment patterns remained healthy, showing that current customers are still in decent shape.
The company’s PS Next operating platform is also playing a role. Public Storage is using data, digital tools and better pricing systems to improve customer conversion, manage inventory and control costs. This helped expenses decline in the first quarter, with lower payroll, repairs, utilities and marketing costs. If PSA can keep using technology to support margins, it could protect earnings, even if revenue growth remains modest.
Investors are also focused on the planned National Storage Affiliates acquisition. The deal is expected to expand PSA’s scale and add more than 1,000 assets through full ownership and joint ventures. Management expects $110 million to $130 million in synergies over time and anticipates the deal to be breakeven to 2026 earnings while adding 35 to 50 cents per share at stabilization. This gives the market a clear growth story beyond the current operating cycle.
Still, the rally may not move in a straight line. Sun Belt markets remain pressured by new supply, and management kept 2026 guidance unchanged despite the better start. Same-store revenue growth is still expected to be weak, and the busy leasing season will be important.
View on PSA Stock
Public Storage has several things working in its favor, including scale, strong liquidity, improving retention and the NSA growth opportunity. However, after a 19.9% YTD rally, the stock already reflects a fair amount of optimism. A neutral stance looks appropriate until investors see more evidence that revenue growth is improving and acquisition benefits are coming through as planned.
The Zacks Consensus Estimate for Stag Industrial’s 2026 FFO per share calls for 3.1% growth year over year.
The consensus mark for Lamar Advertising’s 2026 FFO per share has been revised 2.2% upward to $8.81 over the past two months.
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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Is Public Storage Stock Still Worth Watching After a 19.9% YTD Gain?
Key Takeaways
Public Storage (PSA - Free Report) has delivered a strong run so far this year, with the stock up 19.9% year to date, outperforming the industry’s growth of 10.5%. The gain stands out in the REIT space, where investors have been selective because of interest-rate pressure and uneven property-level trends. The move suggests that the market is looking past some near-term softness and giving PSA credit for better operating execution, a strong balance sheet and long-term growth opportunities.
The company is a major player in the self-storage industry, with a large national footprint and a well-known brand. Self-storage demand is tied to life events such as moving, downsizing, family changes and business needs.
The sector has faced pressure from slower move-in activity and new supply in some markets, but Public Storage’s scale, technology investments and capital access give it tools that smaller operators may not have.
Image Source: Zacks Investment Research
Factors Behind PSA Stock Price Rise: Will This Trend Continue?
One reason investors have supported PSA is its steady first-quarter performance. Core FFO rose 2.4% year over year to $4.22 per share, while same-store NOI increased 0.4%. That was not rapid growth, but it was encouraging in an uneven market. Move-in rents were still negative, yet better than expected, and occupancy improved as move-outs declined.
Customer retention is another key part of the story. Management highlighted a meaningful drop in move-outs during the quarter, which helped occupancy improve from a year earlier. In self-storage, keeping existing customers can be very valuable because it reduces the need to fill vacant units with discounted pricing or heavier promotions. PSA also noted that delinquency and payment patterns remained healthy, showing that current customers are still in decent shape.
The company’s PS Next operating platform is also playing a role. Public Storage is using data, digital tools and better pricing systems to improve customer conversion, manage inventory and control costs. This helped expenses decline in the first quarter, with lower payroll, repairs, utilities and marketing costs. If PSA can keep using technology to support margins, it could protect earnings, even if revenue growth remains modest.
Investors are also focused on the planned National Storage Affiliates acquisition. The deal is expected to expand PSA’s scale and add more than 1,000 assets through full ownership and joint ventures. Management expects $110 million to $130 million in synergies over time and anticipates the deal to be breakeven to 2026 earnings while adding 35 to 50 cents per share at stabilization. This gives the market a clear growth story beyond the current operating cycle.
Still, the rally may not move in a straight line. Sun Belt markets remain pressured by new supply, and management kept 2026 guidance unchanged despite the better start. Same-store revenue growth is still expected to be weak, and the busy leasing season will be important.
View on PSA Stock
Public Storage has several things working in its favor, including scale, strong liquidity, improving retention and the NSA growth opportunity. However, after a 19.9% YTD rally, the stock already reflects a fair amount of optimism. A neutral stance looks appropriate until investors see more evidence that revenue growth is improving and acquisition benefits are coming through as planned.
Currently, PSA carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Stag Industrial (STAG - Free Report) and Lamar Advertising (LAMR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Stag Industrial’s 2026 FFO per share calls for 3.1% growth year over year.
The consensus mark for Lamar Advertising’s 2026 FFO per share has been revised 2.2% upward to $8.81 over the past two months.
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.