Public Storage (PSA)

Customers tend to rent these spaces longer than they expected, and the rates are not crazy. So, it's a good business based on demand. Also, PSA doesn't need to spend much money on these buildings (who cares what their storage space looks like?) compared to an office building. Low capex, so cash flow is strong. PSA is a pioneer in this space and they have grown it well in past decades. A caveat is that low fewer home sales means that fewer people are selling their homes and putting stuff in storage, hence decreasing demand. That said, PSA is a quality long-term hold and lower interest rates will increase demand.

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.