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Public Storage lifts 2025 forecast, misses Street estimates; shares fall

Public Storage, the operator of storage facilities, raised its core 2025 funds from operations forecast (FFO), citing an increased pace of acquisitions as well as stabilizing operations.

The company expects to achieve annual core FFO of between $16.45 per share and $17, as opposed to the previous expectation of $16.35 per share and $17. The midpoint is below analyst estimates of $16.84 a share, according LSEG data.

After-hours, shares of the company dropped by 1.3%.

CEO Joe Russell said, "We have raised our outlook due to stabilizing operations and an increased acquisition volume."

Russell said that "we are investing more than $1 billion in acquisitions and developments this year."

The company's profit has been affected by higher operating costs due to inflation and a decline in the occupancy of storage units.

Public Storage, a company that leases monthly storage space for both personal and commercial use, has reported revenue of $945.2 million for the three months ended June 30. This compares to analyst estimates of $1.19billion.

Core FFO was $4.28 per share for the second quarter, compared with Wall Street expectations of $4.24.

The company announced that it has appointed Luke Petherbridge to its board as a new trustee, with immediate effect. He will be a member in the committees for nominating, sustainability, and governance. (Reporting from Abhinav Paramar in Bengaluru, Editing by Mohammed Safi Shamsi.)

(source: Reuters)