Public Storage-PSA Set to Announce Q1 Results: What Could Be in Store for the Stock?

Core Viewpoint - Public Storage (PSA) is expected to report an increase in revenues and core funds from operations (FFO) per share for the first quarter of 2025, with results to be released on April 30, after market close [1]. Financial Performance - In the last reported quarter, PSA had a core FFO per share of $4.21, which was below the Zacks Consensus Estimate of$ 4.23, attributed to lower same-store revenues and move-in rental rates due to decreased occupancy [2]. - Over the past four quarters, PSA has surpassed the Zacks Consensus Estimate once and missed in the other three instances, with an average miss of 0.48% [3]. Factors Influencing Upcoming Results - PSA is likely to benefit from its strong presence in major metropolitan markets, established brand, and technological advantages, maintaining a solid financial position with one of the strongest balance sheets in the industry [4]. - The self-storage industry faced softer demand and lower operating trends in 2024, with occupancy expected to remain under pressure in the first quarter [5]. Revenue Projections - The Zacks Consensus Estimate for first-quarter revenues from self-storage facilities is $1.092 billion, indicating a slight increase from$ 1.086 billion in the previous year [6]. - The consensus for quarterly revenues from ancillary operations is projected at $78.36 million, up from$ 71.18 million year-over-year [6]. - Overall, the Zacks Consensus Estimate for quarterly revenues stands at $1.17 billion, reflecting a 1.5% year-over-year increase [6]. Expense and Income Expectations - A 0.3% year-over-year increase in same-store facilities revenues is estimated, while same-store facilities expenses are expected to rise by 3.3%, leading to a 0.8% decline in same-store facilities net operating income [7]. - Interest expenses are anticipated to see a marginal year-over-year increase in the first quarter [7]. Analyst Sentiment - The Zacks Consensus Estimate for first-quarter core FFO per share has been revised down by two cents to$ 4.07, although it still represents a nearly 1% year-over-year increase [8]. - PSA currently holds a Zacks Rank of 3 and an Earnings ESP of +0.49%, indicating a potential surprise in FFO per share for the upcoming quarter [9][10].