5 Best Self Storage Stocks to Buy Now

4. Public Storage (NYSE:PSA)

Number of Hedge Fund Holders: 32

Public Storage (NYSE:PSA) is a real estate investment trust that acquires, owns, and operates self-storage facilities. On June 12, Public Storage (NYSE:PSA) obtained a $1.5 billion unsecured revolving credit facility, which will fully replace the existing $500 million facility. The new facility will be valid until June 12, 2027, with a possible extension of up to one additional year. As per the terms of the updated credit agreement, Public Storage (NYSE:PSA) has the ability to borrow up to $1.5 billion initially, with the option to increase its borrowing capacity to $2.5 billion.

According to Insider Monkey’s first quarter database, 32 hedge funds were bullish on Public Storage (NYSE:PSA), compared to 34 funds in the earlier quarter. Jeffrey Furber’s AEW Capital Management is the largest stakeholder of the company, with 421,920 shares worth about $127.5 million. 

Baron Real Estate Fund made the following comment about Public Storage (NYSE:PSA) in its first quarter 2023 investor letter:

“Self-Storage REITs that offer a compelling combination of scale and cost of capital advantages, low capital expenditure requirements, strong balance sheets, and monthly leases that provide an opportunity for landlords to increase rents to combat inflation. Examples: Public Storage (NYSE:PSA) and Extra Space Storage Inc.

Public Storage Incorporated is the world’s largest owner, operator, and developer of self-storage facilities. Public Storage has achieved the #1 market position in 14 of its top 15 markets and is widely recognized as the leading self-storage company with a premier brand.

It is currently valued at a 5.7% implied capitalization rate or a 20% discount to its estimated net asset value.”