Public Storage PSA recently unveiled a new facility in Jersey City, NJ. Specifically, the company transformed a 100-year old building into one of the largest modern self-storage facilities with climate controlled units. The move came as part of the company’s effort to expand in the region.
This facility at the 133 2nd Street, Jersey City, currently has 290 available spaces in a seven-story, block-long building. Moreover, around 4,000 self-storage spaces will come up in this location later this year, thereby transforming it to the “largest Public Storage with the most spaces under one roof nationwide”, per the company.
Notably, expansion in the Jersey City is a strategic fit for Public Storage. This is because over the last five years, the population of Jersey City has grown by 7%, per the U.S. Census. It is also within a short train ride from Manhattan. The community is growing and there is an added demand for self-storage facilities from this expanding population. Also, with a range of prices, the small- to extra-large facilities can meet both personal and business needs.
Public Storage is a recognized and established name in the self-storage industry in the U.S. Its strong presence in major cities serves as a key growth driver. Acquisition and expansion initiatives are expected to propagate growth.
Further, right before its fourth-quarter 2016 earnings, scheduled to release on Feb 22, there is another reason to be positive on the stock. This is because, the stock has a Zacks Rank #3 (Hold) and a positive Earnings ESP of 1.14%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that for stocks having a combination of a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 – and a positive Earnings ESP, chances of a positive earnings surprise are high. An earnings beat serves as a catalyst, raises investors’ confidence in stock, results in rapid price appreciation and ensures more gains from one’s investments.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Further, shares of Public Storage outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past one month. Over this time frame, Public Storage shares logged in a return of 2.0% against 0.7% ascend of the industry.
Investors interested in the REIT industry may consider stocks like The GEO Group, Inc. GEO, Hospitality Properties Trust HPT and Terreno Realty Corporation TRNO. Each of these stocks carries a Zacks Rank #2 (Buy).
The GEO Group’s 2017 estimates climbed 2.0% to $2.99 per share, over the past 30 days.
Hospitality Properties Trust, currently, has a long-term growth rate of 5.0%.
Moreover, Terreno Realty has a long-term growth rate of 7.3%.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.
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