PSA - REIT Public Storage Has Been And May Continue To Be A Terrible Investment
2024-04-22 16:49:01 ET
Summary
- 4Q'23 move-in rates for new renters dropped to $13.73 from $16.71 in 4Q'22 per square foot.
- There is over-capacity in the self-storage industry.
- Interest rates may continue much higher for longer, which will negatively impact PSA.
Public Storage ( PSA ) rode the wave of soaring demand for self-storage units for decades, but with a huge increase in construction of new storage facilities using "free" money supplied by the Federal Reserve, there is now over-capacity in the industry. With interest rates expected to stay much higher for longer, this REIT faces a bleak future, in my opinion. I recommended selling PSA in a July 2016 article . The total return for PSA holders since July 2016 was only 41% compared to almost 162% for the S&P 500. I am maintaining my PSA sell recommendation....
REIT Public Storage Has Been And May Continue To Be A Terrible Investment