What Public Storage actually does

Public Storage is the largest operator of self-storage facilities in the United States. Customers rent units by the month to store belongings during a move, renovation, downsizing or business needs. It was founded in 1972 and owns thousands of locations.

How the business makes money

It earns monthly rent on units, plus fees and insurance. Rents can be adjusted often, which helps pass inflation to customers, and brand strength, size and online marketing help it keep units filled.

The dividend story

PSA is a REIT and pays a regular quarterly dividend. Its payout has been generally solid, and the company has historically used less debt than many peers. The yield is moderate, and growth depends on rents and acquisitions.

What to keep an eye on

  • Home sales and moves. Fewer moves mean less demand.
  • Supply. New storage buildings in the same area.
  • Rent growth. It slows when occupancy is lower.
  • Interest rates. Affect REIT valuations and borrowing costs.

Quick take

Public Storage is a market leader in a simple, sticky business, with a REIT dividend that follows rents and occupancy.