Public Storage Shares Lower After Q4 Results Show Modest Revenue Growth, Weak Same-Store Trends
Shares of Public Storage (NYSE: PSA ) fell about 1.4% in early trading on Friday, following the release of results for the fourth quarter and full year 2025. The stock traded in a 52-week range of $233 to $318, and remains below the highs reached earlier this year amid soft same-store growth and limited demand across the self-storage sector.
Shares of PSA have fallen slightly in recent months after a strong performance in early 2025, reflecting investor caution about the downward trend and price strength across real estate investment trusts (REITs) that focus on end-to-end assets.
Public Storage reported revenue for the fourth quarter of 2025 of $1.18 billion, compared to $1.15 billion a year ago, representing a year-over-year increase of approximately 2.6%. Net income attributable to common shareholders was $444.5 million, or $2.52 per diluted share, compared to $473.5 million, or $2.69 per share, in the fourth quarter of 2024.
Funds from Operations (FFO) attributable to common shareholders, a key metric of REIT profitability, reached $4.21 per diluted share in the quarter, compared to $4.20 per share last year, reflecting a relatively stable bottom line.
Same-store revenue declined slightly, reflecting the year’s weaker rental income per occupied square foot and lower occupancy rates. Same-store operating income (NOI) also declined modestly year-over-year due to softer revenue and higher operating costs. The company reported that same-store operating expenses increased due to higher property taxes, payroll, and maintenance costs.
Residential trends remain stable but slightly weaker than the highs reached during previous demand booms. Average same-store occupancy decreased slightly compared to the previous period.
For the full year 2025, Public Storage reported revenue of $4.63 billion, up from $4.47 billion in 2024, representing a compound annual growth rate of 3.6%. Net income attributable to common shareholders was $1.95 billion, or $11.05 per diluted share, compared to $2.10 billion, or $11.94 per share, last year.
Full-year FFO attributable to common shareholders was $16.62 per diluted share, compared to $16.75 per share in 2024, reflecting lower year-over-year underlying profit despite revenue growth.
The company attributed the increase in revenue to acquisitions, newly developed properties, and rental income growth from its broader portfolio. However, same-store portfolio performance remained under pressure due to low occupancy and slow rent growth.
Public Storage continued investment activities, including acquisitions and development projects, contributing to portfolio expansion and supporting revenue growth despite soft same-store trends.
Public Storage has maintained strong operating margins in line with its transparent business model. However, same-store NOI margins declined due to expense growth outstripping revenue. Property-level costs increased primarily from higher property taxes and operating costs, which reduced benefits from rent increases.
Overall operating income margins remain relatively strong compared to other REIT sectors due to the low cost of the property structure.
Public Storage has maintained a strong balance sheet, with significant capital and investment grade credit ratings. The company continued to allocate capital towards development and acquisitions while maintaining dividend payments.
No major changes in dividend policy were announced in line with the fourth quarter results.
Self-storage REITs like Public Storage have faced pressure to balance housing turnover, slow migration trends, and normalization of demand following the pandemic’s momentum. Rising interest rates also increased the cost of borrowing and measured mortgage rates.
In contrast, SaaS and software stocks continue to face various major pressures, including slower growth in business expenses and higher discount rates affecting valuations. These major trends have contributed to the broad distribution of the equity sector, including investor preference among income-oriented sectors.
Investors closely monitor occupancy trends, same-store revenue performance, and cost growth. Community Storage’s performance continues to demonstrate strong portfolio scale and stable cash flow generation, although organic growth has slowed compared to previous years.
Key metrics for investors include same-store occupancy, average rental trends, NOI margins, and acquisition-driven revenue growth. The company’s strong balance sheet and diversified portfolio remain key factors influencing valuation and investor sentiment.
Public Storage remains one of the largest publicly traded REITs in the world, with continued expansion and stable underlying performance metrics despite moderation in same-store growth trends.
