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Public Storage: A Top-Tier REIT Worth Holding Forever
ByAinvest
Tuesday, Jan 14, 2025 4:11 am ET1min read
Public Storage, a leading self-storage REIT, has seen its share price drop 30% since 2022 due to market overreaction. Despite weaker industry conditions, the company's sales have grown 12% over the past two years. Public Storage's best-in-class financial health, digital operating model, and superior cash-generating capabilities make it a top-tier investment worth holding for decades.
Public Storage, the largest self-storage provider in the United States, has experienced a 30% drop in its share price since 2022 [1]. Despite this decline, the company's financial health, digital operating model, and sales growth make it an attractive investment opportunity.Between 2020 and 2022, Public Storage's share price more than doubled due to the pandemic-driven boom in the self-storage industry [1]. However, since then, the company's stock has underperformed, primarily due to weaker industry conditions and market overreaction [1]. It's essential to note that Public Storage's operational performance remains strong, with sales growing by 12% over the past two years [1].
Public Storage's financial health is unparalleled among U.S. REITs, with the highest Moody's and S&P Global credit ratings [1]. This solid foundation enables the company to secure funding at attractive rates, allowing it to expand its portfolio by 36% since 2019 [1]. Furthermore, Public Storage was a pioneer in implementing a digital operating model, with over 2 million customers using its mobile app [1].
The self-storage industry's cyclical nature, combined with the slight market overreaction, presents an opportunity to invest in Public Storage at an attractive price. With its best-in-class financial health, digital operating model, and superior cash-generating capabilities, Public Storage is a top-tier investment worth holding for decades.
References:
[1] "1 magnificent SP-500 dividend stock down 30%: 4 reasons buy Public Storage in 2025." Nasdaq.com. 2023. https://www.nasdaq.com/articles/1-magnificent-sp-500-dividend-stock-down-30-4-reasons-buy-public-storage-2025-and-hold
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