We came across a bullish thesis on Public Storage on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on PSA. Public Storage’s share was trading at $304.11 as of February 24th. PSA’s trailing and forward P/E were 31.53 and 28.41 respectively according to Yahoo Finance.
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Public Storage, a member of the S&P 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. PSA has reinforced its leadership in the self-storage sector following a strong fourth-quarter earnings report released on February 12, which beat consensus estimates on both revenue and Funds From Operations (FFO).
Core FFO came in at $4.26 per share versus expectations of $4.21, while revenue rose 3.2% year-over-year, supported by resilient pricing power in high-barrier urban markets such as New York and Boston. Management’s 2026 FFO guidance of $16.35–$17.00 signals confidence that sector normalization is underway, positioning the stock at a reasonable multiple for an industry leader.
Against this backdrop, a large institutional investor expressed a bullish outlook by selling 1,050 March 20, 2026, $270 put contracts at $2.30 per contract, collecting $241,500 in premium on roughly $28 million in notional exposure. With shares trading near $292, the $270 strike provides a 7.5% buffer and a break-even level of $267.70, effectively anchoring the position near a recently tested technical support zone around $271 that previously attracted strong institutional buying.
The strategy reflects confidence that downside risk remains limited as supply growth moderates across the self-storage industry and operating fundamentals stabilize. Additionally, Public Storage’s 4.1% dividend yield and 78% institutional ownership provide structural support to the stock. Even without significant upside, the trade monetizes volatility while betting that disciplined execution and improving fundamentals will keep shares above key support levels.
Previously, we covered a bullish thesis on Public Storage (PSA) by Antoni Nabzdyk in December 2024, which highlighted the company’s market dominance, strong profitability metrics, and undervaluation relative to intrinsic value. PSA’s stock price has appreciated by approximately 2.01% since our coverage. OppCost shares a similar view but emphasizes on recent earnings strength, sector normalization, and supportive institutional options positioning.
Public Storage is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held PSA at the end of the third quarter which was 36 in the previous quarter. While we acknowledge the risk and potential of PSA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PSA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
