Public Storage Slips In Extended Trade As Core FFO Misses Estimates, Retail’s Bearish

Public Storage (PSA) stock fell 0.9% in extended trade on Monday after the company’s core funds from operations (FFO) fell short of Wall Street’s estimates.

The company said its core FFO, a metric used to gauge the profitability of REITs, was $4.21 per share, while analysts, on average, expected it to post $4.24 per share, according to FinChat data.

Public Storage reported fourth-quarter revenue of $1.18 billion, roughly in line with Wall Street estimates.

The company posted a net income of $564.4 million, or $3.21 per share, for the quarter ended Dec. 31, compared with $389.7 million, or $2.21 per share, in the year-ago quarter. The REIT attributed the rise to an increase in foreign currency gains.

The company’s square foot occupancy in same-store facilities declined to 91.8% during the fourth quarter from 92.4% last year.

Its average annual contract rent per square foot declined 5% to $13.04 for customers moving in.

During the quarter, it acquired 17 self-storage facilities with 1.3 million net rentable square feet for $221.2 million.

The company forecast 2025 core FFO to be in the range of $16.35 and $17 per share. On the other hand, analysts expect it to post $16.9 per share.

Public Storage expects the pricing restrictions associated with the California wildfires last month to impact Core FFO by $0.23 per share in 2025.

Retail sentiment on Stocktwits moved to the ‘bearish’ (32/100) territory from ‘extremely bearish’(2/100) a day ago, while retail chatter rose to ‘extremely high.’

Over the past year, Public Storage stock has gained 6.8%.

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