Analyst Note| Suryansh Sharma |
No-moat-rated Public Storage reported a strong set of numbers in the second quarter. The firm reported core funds from operations, or FFO, of $3.99 per share, 27% higher than the $3.15 in FFO during the second quarter of 2021. The company also increased its full-year 2022 FFO guidance to $15.00-15.70 per share from $14.75-15.65 per share. After adjusting for the corresponding $0.22 per share impact from the sale of PS business parks, the updated guidance represented an increase of around 2.4% at the midpoint. We are maintaining our $326 fair value estimate for the company after incorporating the second-quarter results and the impact of PS business park divestment.