This morning I added Public Storage (NYSE:PSA) to the Barchart Van Meerten New High portfolio not only for its recent price movement but also for its very solid balance sheet.
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PSA is a fully integrated, self-administered and self-managed real estate investment trust that primarily acquires, develops, owns and operates self-storage facilities. The company's headquarters is located in Glendale, California. Public Storage is America's premier storage company. Over the past three decades, the company has shown consistent growth in the number of properties owned, as well as in the range of services provided.
The company has added properties on a very steady basis and now own over 2,000 properties. This is not a highly leveraged portfolio. Debt is only 8% of assets and there is a 24 times interest coverage. I look for a conservative total return of 10% over the next several years.
The stock hit 17 new highs and appreciated 8.98% in the last month earning it a 96% Barchart technical buy signal. The Relative Strength Index is 70.67% and climbing. It trades around 110.96 with a 50 day moving average of 102.39.
Wall Street brokerages have 9 buy and 12 hold reports published for their clients and consider this a good long term income stock. Sales are projected to increase about 3.20% a year and earnings are also expected to increase by around 3.95% for at least the next 5 years.
Investor sentiment is high and positive with the CAPS members on Motley Fool voting 159 to 86 that the stock will beat the market.
If you are looking for an REIT with very low leverage, an occupancy rate that exceeds 90%, and a 24 times interest coverage, then Public Storage might be a nice fit in your portfolio.