In This Article:
Public Storage PSA is slated to release fourth-quarter and full-year 2024 results on Feb. 24, after market close. Its quarterly core funds from operations (FFO) per share and revenues are expected to witness a year-over-year increase.
See the Zacks Earnings Calendar to stay ahead of market-making news.
In the last reported quarter, this self-storage real estate investment trust (REIT) delivered a miss of 1.18% in terms of core FFO per share. However, the figure declined 3.3% year over year. Quarterly revenues of $1.19 billion increased 3.8% year over year.
Over the last four quarters, Public Storage surpassed the Zacks Consensus Estimate on two occasions and missed in the remaining periods, the average miss being 0.06%. 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 to Note Ahead of PSA's Upcoming Results
Public Storage is likely to have continued to benefit from its strong presence in major metropolitan markets, well-established brand and technological edge during the fourth quarter.
The company is likely to have maintained its solid financial position, backed by one of the strongest balance sheets in the industry. With sufficient liquidity, it remained well-positioned to capitalize on expansion opportunities through acquisitions and development, a trend that is likely to have persisted in the December-end quarter.
However, the self-storage industry is continuing to experience a softening in demand and operating trends through 2023 and the first nine months of 2024, and this trend is expected to have continued in the fourth quarter as well.
High interest expenses are expected to have been a spoilsport during the to-be-reported quarter.
PSA’s Q4 Projections
The Zacks Consensus Estimate for fourth-quarter revenues from self-storage facilities stands at $1.10 billion. This suggests an increase from the $1.09 billion witnessed in the year-ago period.
The consensus mark for quarterly revenues from ancillary operations is presently projected at $74.6 million, up from the $67.3 million registered in the comparable period last year.
The Zacks Consensus Estimate for quarterly revenues stands at $1.18 billion. This indicates a 1.5% year-over-year increase.
However, we project the fourth-quarter 2024 weighted average square foot occupancy to be 92.2%, down from 92.7% recorded in the prior quarter.
Further, we estimate an 8.1% year-over-year increase in interest expenses in the fourth quarter.
PSA’s activities during the quarter under review were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the fourth-quarter core FFO per share has remained unchanged at $4.23 in the past month. However, it calls for a 0.7% increase year-over-year.