Shares of Public Storage (NYSE: PSA) were down about 1.4% in early trading Friday, following the release of fourth-quarter and full-year 2025 results. The stock has traded in a 52-week range of roughly $233 to $318, and remains below highs reached earlier in the year amid softer same-store growth and moderating demand across the self-storage sector.

PSA shares have declined modestly over recent months after outperforming earlier in 2025, reflecting investor caution around occupancy trends and pricing power across real estate investment trusts (REITs) focused on storage assets.

Fourth-Quarter Revenue and Earnings

Public Storage reported fourth-quarter 2025 total revenues of $1.18 billion, compared with $1.15 billion a year earlier, representing a year-over-year increase of approximately 2.6%. Net income attributable to common shareholders was $444.5 million, or $2.52 per diluted share, compared with $473.5 million, or $2.69 per share, in the fourth quarter of 2024.

Funds from operations (FFO) attributable to common shareholders, a key REIT profitability metric, totaled $4.21 per diluted share in the quarter, compared with $4.20 per share a year earlier, reflecting relatively stable underlying operating performance.

Same-store revenues declined slightly, reflecting weaker realized annual rent per occupied square foot and lower occupancy levels. Same-store net operating income (NOI) also decreased modestly year-over-year due to revenue softness and operating expense increases. The company reported same-store operating expenses increased due to higher property taxes, payroll, and maintenance costs.

Occupancy trends remained stable but slightly weaker than peak levels reached during earlier demand surges. Same-store average occupancy declined modestly compared with the prior year period.

Full-Year 2025 Results

For full-year 2025, Public Storage reported total revenues of $4.63 billion, up from $4.47 billion in 2024, representing approximately 3.6% annual growth. Net income attributable to common shareholders was $1.95 billion, or $11.05 per diluted share, compared with $2.10 billion, or $11.94 per share, in the prior year.

Full-year FFO attributable to common shareholders was $16.62 per diluted share, compared with $16.75 per share in 2024, reflecting relatively flat year-over-year core profitability despite revenue growth.

The company attributed revenue increases to acquisitions, newly developed properties, and rental income growth from its broader portfolio. However, same-store portfolio performance remained under pressure due to lower occupancy and slower rent growth.

Public Storage continued capital investment activities, including acquisitions and development projects, contributing to portfolio expansion and supporting revenue growth despite softer organic same-store trends.

Margins and Operating Performance

Public Storage maintained strong operating margins consistent with its asset-light business model. However, same-store NOI margins declined modestly due to expense growth outpacing revenue increases. Property-level expenses rose primarily from higher property taxes and operating costs, offsetting gains from rental revenue increases.

Overall operating income margins remained strong compared with other REIT sectors due to the relatively low operating cost structure of self-storage properties.

Balance Sheet and Capital Allocation

Public Storage retained a strong balance sheet, with significant liquidity and investment-grade credit ratings. The company continued capital allocation toward development and acquisition opportunities while maintaining dividend payments.

No major changes to dividend policy were announced in conjunction with the fourth-quarter results.

Sector and Macro Context

Self-storage REITs like Public Storage have faced pressure from moderating housing turnover, slower migration trends, and normalization of demand following pandemic-era strength. Rising interest rates have also increased borrowing costs and weighed on real estate valuations.

In contrast, SaaS and software stocks continue to face separate macro pressures, including slower enterprise spending growth and higher discount rates affecting valuations. These macro conditions have influenced broader equity sector allocation, including investor preferences between growth and income-oriented sectors.

Outlook and Investor Focus

Investors are closely monitoring occupancy trends, same-store revenue performance, and expense growth. Public Storage’s performance continues to reflect strong portfolio scale and stable cash flow generation, although organic growth has slowed compared with prior years.

Key metrics for investors include same-store occupancy, rental rate trends, NOI margins, and acquisition-driven revenue growth. The company’s strong balance sheet and diversified portfolio remain central factors influencing valuation and investor sentiment.

Public Storage remains one of the largest publicly traded self-storage REITs globally, with continued expansion and stable core operating metrics despite moderation in same-store growth trends.