PSA - A Public Service Announcement On Public Storage - It's A 'Buy'

2024-05-05 09:59:50 ET

Summary

• Some REITs are losing their appeal due to slower growth and questionable fundamentals.
• Public Storage is the leader in the self-storage sector and offers a conservative investment with a strong operational history.
• Despite a growth slowdown, Public Storage stock remains undervalued and has a potential upside of over 15% annually. I view the company as a "BUY" with an upside.

Dear subscribers,

The recent market has taken some of the shine off some REITs that were once considered blue-chip A-rated bargains. Some no longer consider them as such for a myriad of reasons, this (among other things) being that they are no longer growing as quickly, that their safety and fundamentals might be in question, or that something on the horizon might put into question or into danger some of the fundamental upsides that these companies some have had.

Public Storage ( PSA ) is one of the leaders in self-storage - it is, in fact, the leader, going by several metrics. I don't believe it can be faulted to believe that Public Storage would at any one time once again be down below 15x P/FFO. In my last article, I made it very clear that because the company was, in fact, very cheap, I would be loading up. I did, and the company has done very well, providing me with almost a 5% yield due to a very appealing entry....

For further details see: