Public Storage Shares Drop 5.79% as 98% Volume Surge Pushes It to 288th in Market Activity

Public Storage (PSA) closed July 31 with a 5.79% decline, trading at $288.65, as its Q2 2025 earnings report revealed a 30.98% earnings per share (EPS) shortfall against expectations. The stock’s $0.51 billion trading volume marked a 97.96% surge from the prior day, ranking it 288th in market activity. Despite the EPS miss, revenue met the $1.2 billion forecast, and the company raised its 2025 core FFO guidance, signaling confidence in operational stability and market recovery.

Public Storage reported Q2 core FFO growth of 1.2%, driven by non-same-store and ancillary revenue streams. West Coast markets, including San Francisco and Seattle, posted 2-4% same-store revenue growth, while Los Angeles faced ongoing challenges from fire-related pricing restrictions. The company emphasized its geographically diversified portfolio and strong brand positioning, with a 73% gross profit margin and consistent 45-year dividend history. Management highlighted $785 million in acquisitions year-to-date and a $648 million development pipeline, targeting 8% returns.

Analysts noted the stock’s proximity to its 52-week low of $256.60, reflecting investor caution amid the earnings miss. Public Storage’s 4.16% dividend yield and low beta of 0.85 contrasted with broader sector resilience. Management reiterated optimism about post-Los Angeles emergency restriction growth, with Joe Russell stating, “We’ve seen stabilization in many markets and expect continued improvement.” Tom Boyle added that capital allocation and access remain strong, with leverage at 4.1x net debt-to-EBITDA.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to July 30, 2025, outperforming the benchmark by 137.53%. This approach, focused on high-liquidity stocks, effectively captured momentum-driven market shifts, as seen in volume surges for assets like VICI Properties and Verisign. The results underscore the role of liquidity and timing in capitalizing on market dynamics.