Public Storage (PSA - Free Report) recently unveiled more than 1,300 self-storage units in Deerfield Beach, FL. The move comes as part of the company’s effort to expand in this fast growing region.
Located at 39 SE 1 st St., Deerfield Beach, FL 33441, the new storage facility has units ranging from indoor, climate-controlled units to convenient drive-up outdoor storage. The property is less than two miles from the town’s boardwalk and also marks the company’s fourth location in town.
Notably, Public Storage’s latest expansion of its footprint in the region is a strategic fit as population has been growing at a double-digit pace in South Florida. This, in turn, is spurring demand for storage facilities and giving ample scope to storage-facility providers like Public Storage to capitalize.
Moreover, being positioned between I-95 and Highway 1 at Hillsboro Boulevard, this four-story storage facility near City Hall is likely to grab attention from residents of the nearby coastal cities.
Public Storage is one of the largest owners and operators of storage facilities in the United States. The ‘Public Storage’ brand is the most recognized and established name in the self-storage industry, with presence in all major metropolitan markets of the nation.
The company has been banking on growth opportunities and apart from this latest storage facility, the company opened another facility in the nearby area a year ago — Public Storage 3460 SW 8th Street, Miami FL 33135.
Not only in Florida, the company has, in fact, hinged upon strategic acquisitions and expansion efforts to fortify its presence in other key cities. In fact, since the beginning of 2013 through Jun 30, 2018, the company acquired 276 facilities with 19.4 million net rentable square feet from third parties for around $2.5 billion. Further, the has company opened newly-developed and expanded self-storage space for a total cost of $1.1 billion, adding approximately 10.0 million net rentable square feet during this period.
Nonetheless, supply has been rising in a number of markets. This is a concern as it limits the company’s power to raise rents and turn on more discounting. Also, rate hike adds to its woes.
As such, shares of Public Storage have underperformed the industry it belongs to, in the past six months. This Zacks Rank #3 (Hold) company’s shares have logged in a gain of 2.2%, while the industry has rallied 6.4% during the same time period.
Stocks to Consider
A few better-ranked stocks from the REIT space are Innovative Industrial Properties, Inc. (IIPR - Free Report) , Park Hotels & Resorts Inc. (PK - Free Report) and W. P. Carey Inc. (WPC - Free Report) . While Innovative Industrial Properties flaunts a Zacks Rank #1 (Strong Buy), Park Hotels and W. P. Carey carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Innovative Industrial Properties’ Zacks Consensus Estimate for 2018 FFO per share remained unchanged at $1.19 in the last seven days.
Park Hotels & Resorts’ current-year FFO per share estimates inched up 1.4% to $2.93 over the last 60 days.
W. P. Carey’s FFO per share estimates for 2018 moved 0.7% north to $5.43 in 60 days’ time.
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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