Public Storage (PSA-N)

Not high organic growth. Saw waning momentum in same-store net operating income. Leveraged, interest-rate sensitive, valuation fairly high.

The original operator in the industry. $50-60B in size. Sophisticated use of technology. Rapid growth and demand during Covid, has now come off quite a bit. Extremely defensive, best balance sheet. Its spinoff in Europe is improving on European fundamentals. Discount to NAV.

Shares are down so it's a buying opportunity. Bears say there are too many companies in this space, but he disagrees. PSA are smart operators.

It yields 5% and is trading like a bond. If interest rates hit 6%, this will go down another 15-20%. Wait till $200 to buy.

The largest self-storage company in the US. Is growing its fund flows from operations at a high single-digit. They have pricing power as they increase rental rates around 9%. They benefit from sticky, long-term contracts, and are seeing record tenant lengths of stay. They watch costs, like installing solar panels on buildings. The dividend yield is 4.3%, growing around 9%. They grow organically and buying competitors. Trading near the low end of 52 weeks.

(Analysts’ price target is $332.78)

Solid stock and a good dividend. Fair valuation. If you own, Hold, but if you don’t, wait for a nice pullback. A steady Eddie, and if you have it in your portfolio, you are not going to lose any sleep over it. Dividend yield of 2.9%.

(Top Pick Aug 13’13, Up 12.24%) Great brand, consolidating the industry. Occupancy is over 94%. Gaining strength overseas. It is now going sideways in a range.

This company owns self storage. A big company in a very fragmented industry that will be consolidated and this company will lead the way in buying out competition. Because they are so big, they can offer things that the smaller companies can’t offer. Have a big European operation and with the current news out of Europe, this stock should do very well.