Public Storage.

Financial Performance and Improvement: The company reported a core FFO of $4.21 per share for Q4 2024, marking a 20 basis point year-over-year increase and the first sequential improvement in over two years. Same-store revenue declined by 0.6% year-over-year, but this represents an improvement from a 1.3% decline in the previous quarter. This positive trend signifies stabilization in the company’s financial fundamentals as they experience broad operational improvements.

Outlook for 2025: For 2025, the company provided guidance for core FFO per share between $16.35 and $17. The midpoint reflects no significant growth from 2024, primarily impacted by a $0.23 per share deduction related to pricing restrictions due to a state of emergency in California. Same-store revenues are expected to be slightly down, with an anticipated 5% decline in move-in rents on average.

Challenges in Los Angeles Market: The company estimates a 100 basis point negative impact on same-store revenues specifically due to ongoing pricing restrictions in Los Angeles and surrounding areas, resulting from the fire-related state of emergency. This regulatory environment is likely to weigh on revenue growth in the near term.