Public Storage's Q4 Results Largely in Line With Our Expectations; Maintain $326 Fair Value Estimate

No-moat-rated Public Storage’s fourth-quarter results were largely in line with our expectations as the firm reported core funds from operations of $4.16 per share, 18% higher than the $3.54 during the fourth quarter of 2021. Core FFO increased approximately 22% after removing the contribution of the company’s equity investment in PS Business Parks, which was sold in July 2022. The self-storage sector has started to moderate after two strong years of growth. The company gave 2023 core FFO guidance of $16.10-$16.80 per share, representing growth of 3.3% at the midpoint when compared with 2022. We are maintaining our $326 fair value estimate as we incorporate fourth-quarter results.