Public Storage (PSA) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Public Storage

Updated on October 27, 2026 · accounts published on October 26, 2026

Reading of October 26, 2026: A profitable REIT with steady revenue and margins below their long-term norm

Public Storage trades at 18.3× fiscal 2025 FFO, inside the 15× to 20× range seen as healthy for REITs, and FFO covers its dividend 1.3×.

• Is Public Storage expensive or cheap? At 18.3× fiscal 2025 FFO, Public Storage sits inside the 15× to 20× range considered healthy for REITs.
• How is the business doing? Operating margin over the last 12 months is 36 %, well below the 50 % average of fiscal years 2014-2025.
• How strong is the balance sheet? Net debt is 3.1× fiscal 2025 EBITDA, comfortably under the 5× that counts as excellent for a REIT.
• What to expect from the next earnings? Next results come on February 11, 2027, with analysts expecting EPS of $2.46 after a 32 % miss in October.
• Does FFO cover the dividend, and at what multiple does it trade? FFO covered the dividend 1.3× in fiscal 2025, above the 1.1× floor considered healthy for REITs.

Is Public Storage expensive or cheap?

For a REIT, price to FFO comes first. Public Storage trades at 18.3× its fiscal 2025 FFO of $16.74 per share, in the upper half of the 15× to 20× band that counts as healthy. Price to book is 3.9× over the last 12 months. That premium only holds up while the properties keep generating strong cash, and for now they do: the free cash flow yield over the last 12 months is 8.1 %, with EV/EBITDA at 20.2×. The stock is up 5 % over 12 months and sits 7 % below its 52-week high of $330.47.

How is the business doing?

Revenue grew 2.7 % over the last 12 months, a modest pace. The weak spot is profitability. The operating margin over the last 12 months is 36 %, against an average of 50 % across the twelve fiscal years from 2014 to 2025. Fiscal 2025 already marked the low of that series at 47 %, and the trailing figure is lower still. The data does not explain the slide. Two readings in a row below the long-run norm make margin recovery the figure to track.

How strong is the balance sheet?

Leverage is moderate by REIT standards. Net debt was 3.1× EBITDA in fiscal 2025, well inside the 5× ceiling for an excellent rating and roughly half the 6× limit. Debt made up 51 % of assets in fiscal 2025, below the 60 % the sector treats as healthy, and debt to equity over the last 12 months is 0.83. That leaves room to absorb a stretch of weaker margins without straining the balance sheet. Shareholders receive a dividend yield of 3.9 % over the last 12 months, paid from cash flow that still covers it with a cushion.

What to expect from the next earnings?

The latest report, published on October 26, 2026, showed EPS of $1.69 against $2.49 expected. That 32 % shortfall is the largest surprise in either direction of the last eight quarters. Public Storage had beaten estimates in 5 of those 8 quarters, so the miss stands out. Even so, analysts have barely moved: over the last 30 days the 2026 EPS consensus went from $10.04 to $10.07. Of 36 analysts, 10 rate the stock a buy, 23 a hold and 2 a sell. Because depreciation distorts EPS in a REIT, FFO in the next report will say more than the headline beat or miss.

Does FFO cover the dividend, and at what multiple does it trade?

In a REIT, EPS and the P/E mislead because property depreciation cuts accounting profit without any cash leaving the company. FFO adds it back, which is why the sector judges itself by FFO. Public Storage generated $16.74 of FFO per share in fiscal 2025 and covered the dividend 1.3×, above the 1.1× healthy threshold. The payout on operating cash flow was 72 % in fiscal 2025. That is under the 80 % limit but close to it, so a further margin squeeze would shrink the cushion. At 18.3× FFO, the multiple sits inside the 15× to 20× healthy range.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.