Public Storage(PSA) ZACKS·2025-02-19 18:15Core Viewpoint - Public Storage (PSA) is expected to report an increase in core funds from operations (FFO) per share and revenues for the fourth quarter and full year of 2024, despite facing challenges in demand and rising interest expenses [1][5]. Financial Performance - In the last reported quarter, PSA missed the core FFO per share estimate by 1.18%, with a year-over-year decline of 3.3%. Quarterly revenues were 1.10 billion, up from 74.6 million, an increase from 1.18 billion, indicating a 1.5% year-over-year increase [7]. Occupancy and Expenses - The estimated weighted average square foot occupancy for the fourth quarter is 92.2%, down from 92.7% in the previous quarter. Interest expenses are projected to increase by 8.1% year-over-year [7]. - For the full year, PSA anticipates core FFO per share in the range of 16.85, with expectations of a same-store revenue decline of 1.3-0.5% and a same-store expense increase of 2-3.5% [9]. Market Position and Outlook - PSA is likely to benefit from its strong presence in major metropolitan markets, established brand, and technological advantages [3]. - The company maintains a solid financial position with one of the strongest balance sheets in the industry, allowing it to capitalize on expansion opportunities through acquisitions and development [4]. - Despite these strengths, the self-storage industry is experiencing a softening in demand and operating trends, which is expected to continue into the fourth quarter [5].