In a report released yesterday, Ki Bin Kim from Truist Financial maintained a Hold rating on Public Storage (PSA – Research Report), with a price target of $316.00.
Ki Bin Kim’s rating is based on several factors impacting Public Storage’s financial outlook. The recent rent moratoriums in Los Angeles due to wildfires have negatively affected the company’s revenue projections, leading to a lower-than-expected funds from operations (FFO) for the fourth quarter of 2024. The full-year 2025 FFO guidance is also below consensus estimates, primarily due to the impact of these rent restrictions.
Los Angeles represents a significant portion of Public Storage’s revenue, and the moratoriums are expected to dampen the company’s same-store revenue growth. While the overall same-store net operating income (SSNOI) growth remains relatively stable, the specific challenges in the LA market have contributed to a cautious outlook. These factors combined have led Ki Bin Kim to maintain a Hold rating on the stock, reflecting a balanced view of the company’s potential risks and opportunities.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PSA in relation to earlier this year.