Public Storage Slips In Extended Trade As Core FFO Misses Estimates, Retail’s Bearish

The company said it expects the pricing restrictions associated with the California wildfires last month to impact Core FFO by $0.23 per share in 2025.

Public Storage (PSA) stock fell 0.9% in extended trade on Monday after the company’s core funds from operations (FFO) fell short of Wall Street’s estimates.

The company said its core FFO, a metric used to gauge the profitability of REITs, was $4.21 per share, while analysts, on average, expected it to post $4.24 per share, according to FinChat data.

Public Storage reported fourth-quarter revenue of $1.18 billion, roughly in line with Wall Street estimates.

The company posted a net income of $564.4 million, or $3.21 per share, for the quarter ended Dec. 31, compared with $389.7 million, or $2.21 per share, in the year-ago quarter. The REIT attributed the rise to an increase in foreign currency gains.

The company’s square foot occupancy in same-store facilities declined to 91.8% during the fourth quarter from 92.4% last year.

Its average annual contract rent per square foot declined 5% to $13.04 for customers moving in.

During the quarter, it acquired 17 self-storage facilities with 1.3 million net rentable square feet for $221.2 million.

The company forecast 2025 core FFO to be in the range of $16.35 and $17 per share. On the other hand, analysts expect it to post $16.9 per share.

Public Storage expects the pricing restrictions associated with the California wildfires last month to impact Core FFO by $0.23 per share in 2025.

Retail sentiment on Stocktwits moved to the ‘bearish’ (32/100) territory from ‘extremely bearish’(2/100) a day ago, while retail chatter rose to ‘extremely high.’

Over the past year, Public Storage stock has gained 6.8%.

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