Public Storage Has Hidden Problems | Is $PSA Stock A Sell?

Image sources: PSA, BYG, NAREIT, YCHARTS, EPRA, Canva

Important Disclaimer: I am long BYG. This video is impersonal and does not provide individualized advice or recommendations for any specific person. Viewers/readers should not make any investment decision without conducting their own due diligence and consulting their financial advisor about their specific situation. This video is for entertainment purposes only and you are responsible for your own investment decisions. The information is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The opinions expressed are those of the publisher and are subject to change without notice. This YouTube channel is managed by Leonberg Research OÜ, a subsidiary of Leonberg Capital OÜ.

#reits #dividend #passiveincome

[askjussi]

What other REITs should I cover next? Let me know in the comment section below. Thank you for all your support. Your likes help me a lot to grow this channel and I appreciate it! Have a great weekend.
Jussi

[jordankendall]

I just want to add that I have noticed that more small U.S. businesses are using storage facilities to run their business instead of leasing a dedicated commercial property location. For example lawn care companies will store their trucks, trailers, and other equipment at the storage facility and is significantly cheaper and more efficient than leasing a whole commercial property. This may be a trend that explains why the U.S. has a higher amount of self storage capacity than other countries. I don't know what the numbers are, but it would be nice to know what percentage of self storage is used by businesses vs use.

[davidwysocki]

Thanks, Jussi, for your discussion on PSA, one of the REITs I do not own. However, I do own CUBE and have for a very long time and will continue to hold it. Good stuff!

[MIA_DaDe]

Thanks for the update on PSA and calling out a possible risk to its current shareholders/potential new investors.

[TIXIAK]

My thoughts on PSA, is that the company has efficiency (only skeletal crew on sites) and brand advantage (nation-wide marketing). So even in worsening conditions (oversupply) company can buy poorly run private self storages in this very fragmented market, make efficiency and branding improvements and make a gain on the spread between its cost of capital, purchase price and cash flow from improved operation. In case of very big oversupply, some sellers may become even more desperate and there might be even more opportunities. This would of course also cause rent for storage to go down, but in the long run, I think company has opportunities to grow in every market condition, if they can manage to keep the leverage low. Also, americans are very materialistic and I don't think that it will change much in the coming years, even thou they will definitively spend more on experiences. What are your thoughts on this?

[theodoroseidler]

I own PSA and am buying more as my allotted percentage demands it. A good moment to rebalance. If PSA will suffer with oversupply, the competitors are bound to suffer more. I do own CubeSmart as well.

[mdmeyerpfa]

Thanks for your videos and related analysis. Not buying is different from selling. Do you consider PSA a sell?

[FxAndrej]

Thumbs up for the Muumi troll mug, my 3-year old loves the books ;)

[JoeShenanigans]

Big Yellow Group is an OTC for Americans, and it doesn't make sense to buy a stock that is not very liquid for investors. The dividend is only 3.52 and Exr is 3.66 and PSA is 3.49.
You would then be stuck with a hard to sale stock with less liquidity and a dividend that's not significantly better than the competition.
Cube stock is 3.94 for dividend.
I don't see any benefits that are worth it for Big yellow group.

[deborahd.]

🤔Friend just saw his Public Storage rental increase from $560 per month to $660, that's a bit over 17% of an increase. Is this typical in the storage industry? He says he is not receiving a cost of living increase like that from his VA disability. What do you think of this?

[druvaciam]

I like $NSA, it is cheap and good dividends.