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By Brian Nelson, CFA
Public Storage (PSA) recently released second quarter results that were roughly in-line with consensus expectations. For the three months ended June 30, net income per share increased to $2.55 rom $1.76, but core funds from operations (FFO) dropped to $4.17 per share from $4.28 in last year’s quarter. Management had the following to say about the results:
Public Storage’s second quarter results reflect the strength of our platform and the disciplined execution of our long-term strategy, allowing us to raise our outlook for the back half of the year. With the successful closing of the National Storage Affiliates acquisition and our announced agreement to acquire Public Storage Canada, the power of our PS4.0 Value Creation Engine and the operational advantages of the PS Next Platform are on full display. These strategic expansions allow us to deepen and broaden our portfolio, deliver value creation to our stakeholders, and improve customer experience across a rapidly growing footprint.
The agreement to acquire PS Canada consists of 68 properties totaling 5.3 million square feet. During the quarter, Public Storage acquired 20 additional self-storage properties with 1.5 million net rental square feet. Looking to all of 2026, management raised its guidance, now calling for revenue growth of 0.3% at the high end of the range from flat previously. Core FFO for the year was raised to the range of $16.75-$17.05 from $16.35-$17.00. Net debt to EBITDA stood at 2.9x and the firm continues to boast an investment-grade A2/A credit rating. We continue to like Public Storage as an idea in the High Yield Dividend Newsletter portfolio.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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