Public Storage faces risks from fluctuating demand for self-storage, macroeconomic changes, natural disasters, regulatory changes (property taxes), and potential adverse economic events. Increased interest rates, inflation, currency fluctuations, and changes in REIT tax laws also pose risks. The company's debt, totaling $9.5 billion, is sensitive to market conditions. Foreign currency exposure from Shurgard investment and Euro-denominated notes adds another layer of risk. Potential losses from legal proceedings and insurance claims are also possible.
Financial Upside
Public Storage anticipates growth through acquisitions and development of new and expanded facilities. The company's strong credit rating allows access to capital markets for debt and preferred equity. Continued dividend payouts are expected, though subject to REIT requirements. Recent acquisitions, like Simply Storage, and ongoing development projects offer potential for increased revenue and operating income. The company's Property of Tomorrow program and solar installations aim to enhance competitiveness and reduce operating costs.
