Key Reasons to Add Public Storage Stock to Your Portfolio Now

Public Storage PSA is one of the most recognized names in the self-storage industry, with high brand value and presence across key metropolitan markets of the United States. The need-based and recession-resilient nature of the self-storage industry shields it from market volatility, assuring stable revenues.

Its efforts to leverage technology for operational efficiencies are encouraging. Accretive buyouts, development and expansion activities foster future growth prospects. A strong balance sheet yields financial flexibility.

Analysts seem positive about this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for PSA’s 2025 funds from operations (FFO) per share has moved 1 cent northward over the past month to $16.91.

However, shares of the company have declined 11.2% over the past three months compared with the industry’s fall of 1.6%.

Factors That Make Public Storage Stock a Solid Pick

High Brand Value: Public Storage is a leading owner and operator of self-storage facilities across the United States, backed by one of the most recognized brands in the industry. With a strong presence across major metropolitan markets, particularly in densely populated urban centers, the company benefits from both broad brand visibility and significant market concentration. This positioning enables Public Storage to capitalize on economies of scale while maintaining a competitive edge in high-demand regions.

Industry Tailwinds & Favorable Demographics: The self-storage sector is a need-driven and relatively recession-resistant asset class. It typically requires low capital expenditures while delivering strong operating margins. Additionally, favorable demographic trends continue to support industry growth. Population migration, downsizing and the rising share of renters have increased demand for self-storage, as consumers seek flexible space to store their belongings.

Technology Upgrade: Public Storage is increasingly leveraging technology to drive revenue optimization and improve cost efficiency, supported by sustained investments in digital initiatives over recent years. These technology-driven initiatives are expected to further strengthen its competitive positioning.

Expansionary Efforts: Public Storage has been capitalizing on growth opportunities. From the beginning of 2023 through the third quarter of 2025, Public Storage acquired a total of 260 facilities with 19 million net rentable square feet for $3.76 billion. During the third quarter of 2025, these facilities contributed a net operating income (NOI) of $46.3 million. With solid access to capital, the company is well-poised to take advantage of any potential opportunity.

Balance Sheet Strength: Public Storage maintains a strong financial profile characterized by solid credit metrics, including low leverage relative to its total capitalization. The company concluded the third quarter of 2025 with net debt and preferred equity to EBITDA of 4.2X and an EBITDA to fixed charges of 6.8 times. It also enjoys an “A” credit rating from Standard & Poor’s and an “A2” from Moody’s. The sturdy credit profile and ratings enable the company to access both public and private capital markets to raise capital at favorable rates.

Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Host Hotels & Resorts HST and Prologis Inc. PLD, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for HST’s 2025 FFO per share is pegged at $2.05, which indicates year-over-year growth of 4.1%.

The Zacks Consensus Estimate for PLD’s 2025 FFO per share is pinned at $5.80, which calls for an increase of 4.3% from the year-ago period.

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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