Public Storage (PSA) Reopens Self-Storage Facility in Cupertino

Public Storage PSA recently announced the reopening of an existing 40-year-old self-storage facility in Cupertino, CA. PSA enhanced the self-storage facility from 51,000 square feet to 195,000 square feet.

The move illustrates how Public Storage has been enhancing its 200 million square feet portfolio across the United States through acquisition, development and redevelopment.

Moreover, the Cupertino location reflects one of the company’s unique competitive advantages, specifically the ability to redevelop and expand properties driven by its experienced development team.

Further, the facility is located adjacent to Apple, Inc. offices in Silicon Valley’s Cupertino market.

The Public Storage, 20565 Valley Green Drive, Cupertino location now features two five-level state-of-the-art buildings. With this, the company will be able to offer its industry-leading customer experience, including app-enabled digital property access and account management, eRental® capability and smart security cameras.

The facility was built keeping in mind the sustainability aspect and includes energy-efficient solar panels, motion-sensor LED lighting and sustainable landscaping improvements. Earlier, the site accommodated 585 first-generation storage units and has now been expanded to 2,593 climate-controlled units. It is also being certified to LEED Silver® standards.

Markedly, this self-storage REIT is one of the largest owners and operators of storage facilities in the United States. The ‘Public Storage’ brand is the most recognized and established name in the self-storage industry, with its presence across all the major metropolitan markets of the United States.

Public Storage has been focusing on several acquisitions to maximize its growth opportunities. In the nine months ended Sep 30, 2022, the company acquired 44 self-storage facilities comprising 3.2 million net rentable square feet of area for $501.9 million.

Moreover, the company’s current total development pipeline of around $1 billion includes more than $500 million in redevelopment opportunities with 20 projects totaling 3 million square feet of new space, which seems encouraging.

With a solid balance-sheet position and ample financial flexibility, PSA is well-positioned to capitalize on long-term growth opportunities.

Shares of Public Storage, currently carrying a Zacks Rank #3 (Hold), have gained 3% in the quarter-to-date period compared with its industry’s growth of 6.2%.

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Stocks to Consider

Some better-ranked stocks from the REIT sector are VICI Properties VICI, Lamar Advertising LAMR and Equity Commonwealth EQC.

The Zacks Consensus Estimate for VICI Properties’ current-year FFO per share is currently pegged at $1.92. VICI carries a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for Lamar Advertising’s 2022 FFO per share presently stands at $7.34. LAMR carries a Zacks Rank of 2, currently.

The Zacks Consensus Estimate for Equity Commonwealth’s ongoing year’s FFO per share is pegged at 33 cents presently. EQC sports a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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