Morningstar Rating

Stock Research and Analysis

by Todd Lukasik, CFA

Bulls Say

Smaller industry players are finding it difficult to finance projects today, which should limit the risk of overbuilding.
Currently struggling due to macro economic and political uncertainty in Europe, Public Storage's investment in Shurgard Europe should improve its results over time as the environment in Europe improves.
Public Storage should do well in an inflationary environment. Short-term leases should be able to reset at higher rates while perpetual preferred equity doesn't need to be refinanced at potentially higher rates. Read more 

Bears Say

Public Storage is just 5% of its industry, subjecting it to the competitive pressures of the other 95% and low bargaining power over tenants.
Self-storage is generally less attractive than other property types, owing to short-term leases, little product differentiation, and cheap building and maintenance costs, which lead to limited barriers to building competing supply and the potential for more cyclicality in results.
Recently, acquisition prices have exceeded the cost of new development, which may spur new development and lead to incremental supply coming online. Read more 

Management

Public Storage has earned an Exemplary stewardship rating.
Public Storage's historical value-creation has been outstanding. Since 1987, we estimate Public Storage investors have enjoyed an average annual total return exceeding 16%, roughly 600 basis   Read more 

Profile

Recently, Public Storage had ownership interests in more than 2,000 storage facilities in the U.S. and nearly 200 storage facilities in Europe (mainly through its 49% ownership   Read more 

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