Public Storage, a real estate investment trust (REIT) based in Glendale, California, specializes in acquiring, developing, owning, and operating self-storage facilities. As of March 31, 2025, it managed 3,399 self-storage facilities across 40 states, with approximately 247 million net rentable square feet, and has a 35% common equity stake in Shurgard Self Storage Limited in Europe.

For the first quarter ended March 31, 2025, Public Storage reported net income allocable to common shareholders of $358.2 million, or $2.04 per diluted share, a decrease from $459.2 million, or $2.60 per diluted share, in the same period in 2024. This decline is attributed primarily to a $106.2 million increase in foreign currency exchange losses, despite a $13.2 million increase in self-storage net operating income. Core funds from operations (Core FFO) also decreased 12.5%, to $3.71 per diluted share, compared to $4.24 in the prior year.

In terms of revenue, same-store revenues increased by 0.1%, totaling $934.54 million, largely driven by higher realized annual rent per occupied square foot. Same-store expenses grew by 0.3%, resulting in a same-store direct net operating income margin of 77.1%. For same-store facilities, net income was effectively flat year-over-year, while occupancy rates fell slightly, from 92.1% to 91.5%.

Public Storage’s acquisitions during the quarter included nine self-storage facilities comprising 0.7 million net rentable square feet for $141 million. Additionally, three newly developed facilities contributed 0.7 million net rentable square feet at a cost of $144.4 million. The total investment in facilities currently under development is expected to be around $665.5 million, with projected additions of 3.7 million net rentable square feet.

Guidance for 2025 remains unchanged, with expectations for same-store revenue growth ranging from a decline of 1.3% to an increase of 0.8%. Expense growth for the same-store segment is anticipated between 2.5% and 4.0%, with net operating income growth projected to be in the range of -2.9% to 0.2%. The anticipated impact from L.A. price restrictions is expected to be approximately 100 basis points on same-store revenue growth for the year.

Public Storage expects to retain approximately $600 million in cash flow, reflecting a 50% increase compared to the prior year. This retained cash will primarily fund acquisitions, development, and operational improvements. Despite fluctuations in revenue and some adverse trends in occupancy, Public Storage maintains its focus on optimizing leasing strategies and enhancing operational efficiency.