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Public Storage: A REIT I Love

May 02, 2021 3:21 PM ETPublic Storage (PSA)9 Comments


  • Public Storage has been avoided by many as the company hasn't hiked its dividend in years - most major REITs have hiked consistently.
  • However, the company finally seems to have entered a new growth phase as it is seeing the benefits from successful acquisitions and subdued operating expenses.
  • The valuation is a bit lofty as investors have been frontrunning the good news. Nonetheless, I advise investors to add on any weakness.

Public Storage Facility In Millbrae, Kalifornien
Photo by DNY59/iStock Unreleased via Getty Images

Right now, I own just one REIT. While this is about to change this year, it is no surprise given my articles on Seeking Alpha that I am extremely picky when it comes to REITs. I

This article was written by

Leo Nelissen profile picture

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT on Alpha.

As a member of the iREIT on Alpha team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure: I am/we are long PSA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article serves the sole purpose of adding value to the research process. Always take care of your own risk management and asset allocation.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (9)

Hillandale Advisors profile picture
Builds to 8.0% yield and trades at 4.0% yld. Huge value creation!
Recent pressures on exec mgmt. forced a change in corp finance policy whereby they took out some debt rather than rely on high cost preferred. This was long overdue. Traditionally, this company was "first" to this asset class and built a big portfolio...best days are long past. Having to pay a premium for other companies to buy market share...not a good long term strategy. Reliance on preferred stock due to the founding family's stranglehold on the company not good either. Too much share in less than desirable markets...things have changed since the 1970s...California is not the place to be any more. Just how many places are needed in the US to store your junk? And pay incrementally more for that storage?
Awayk profile picture
I like the sector, too, but prefer NSA, which has clobbered PSA in terms of total return and dividend growth.
I took my profits and walked out on PSA... the storage market is completely saturated and it has not even raised its dividend in years... maybe if PSA goes under 200 then I’ll back up the truck, knowing there is ZERO dividend growth...
LookingAtStocks profile picture
@Nicholas Ward I'm curious as to your opinion on PSA, Nicholas. I don't see it on your current holdings list unless you recently added it. Thanks.
Nicholas Ward profile picture
@LookingAtStocks I believe this is a very high quality company, but its slow growth and high valuation has kept me from owning it.
LookingAtStocks profile picture
Very good analysis...I don't own PSA, but will look seriously at buying shares on 10% or so pullback.
Leo Nelissen profile picture
@LookingAtStocks I'm very glad I could add some value here. Thanks for reading!
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