PSA Set to Report Q3 Earnings: What to Expect From the Stock?

Public Storage PSA is slated to release third-quarter 2025 results on Oct. 29, after market close. The quarterly results are expected to reflect an increase in revenues as well as in core funds from operations (FFO) per share.

In the last reported quarter, this self-storage real estate investment trust (REIT) reported a core FFO per share of $4.28, surpassing the Zacks Consensus Estimate of $4.23. Results were backed by top-line growth, with the company experiencing higher realized annual rent per occupied square foot, though a fall in occupancy partly offset the positive.

Over the last four quarters, Public Storage surpassed the Zacks Consensus Estimate on two occasions and missed in the remaining period, the average surprise being 0.25%. The graph below depicts the surprise history of the company:

Public Storage Price and EPS Surprise

Public Storage price-eps-surprise | Public Storage Quote

Factors at Play and Projections for PSA’s Q3 Results

Public Storage is likely to have continued to benefit from its much-recognized and established name in the self-storage industry, with a presence in all major metropolitan markets of the country that have the highest population levels. As such, apart from benefiting from brand recognition, the company is likely to have gained from economies of scale.

The self-storage asset category is need-based and recession-resilient in nature, with low capital expenditure requirements and high operating margins. Moreover, acquisitions and expansionary efforts are contributing to growth.

The Zacks Consensus Estimate for third-quarter revenues from self-storage facilities stands at $1.122 billion. This suggests an increase from the $1.110 billion witnessed in the year-ago period. The consensus mark for quarterly revenues from ancillary operations stands at $82.33 million, up from the $77.64 million registered in the comparable period last year.

In addition, the company is also leveraging technology for revenue optimization and cost efficiencies, which is likely to have led to higher FFO for the quarter under consideration.

The Zacks Consensus Estimate for quarterly revenues stands at $1.21 billion. This indicates a 1.81% year-over-year increase.

PSA’s activities during the quarter under review were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the third-quarter core FFO per share has been revised southward marginally to $4.24 over the past month. However, it indicates growth of 0.95% year over year.

Here Is What Our Quantitative Model Predicts for PSA:

Our proven model does not conclusively predict a surprise in terms of FFO per share for Public Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

Public Storage currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT sector — Ventas VTR and Federal Realty Investment Trust FRT— that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

Ventas, scheduled to report quarterly numbers on Oct. 29, has an Earnings ESP of +0.84% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Federal Realty, slated to release quarterly numbers on Oct. 31, has an Earnings ESP of +0.26% and carries a Zacks Rank of 2 at present.

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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This article originally published on Zacks Investment Research (zacks.com).

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