Public Storage (PSA) is the world’s largest owner, operator and developer of self-storage facilities and one of only five publicly traded U.S. self-storage REITs. Public Storage benefits from several economic advantages, both inherent to the self-storage industry and specific to their company size and reach. Here's a breakdown:
Industry-wide benefits:
Recession-resistant: Self-storage tends to perform well during economic downturns. People may downsize homes or businesses may delay expansion, requiring storage for belongings or inventory.
Low maintenance costs: Compared to other real estate sectors, self-storage facilities are relatively simple structures with lower ongoing maintenance needs.
Flexible lease agreements: Month-to-month leases allow Public Storage to adjust rental rates based on demand and ensure consistent income.
Public Storage specific advantages:
Economies of scale: Being the industry leader, Public Storage enjoys lower costs through bulk purchasing and leveraging their size for better deals with vendors.
Strong brand recognition: Public Storage is a well-known name, reducing marketing expenses needed to attract customers.
In short, Public Storage benefits from the inherent stability of the self-storage industry, along with their size and brand recognition that grant them additional economic advantages.
On a technical basis, the stock has been trading in a precise, upward channel for >30 years! Let’s review the charts and fractal that it has been tracking for 2 years.