In a bid to meet increasing storage needs in Miami, Public Storage PSA opened a new self-storage facility last Friday. This new energy-efficient facility added 922 units and is located midway between two universities.
Specifically, Public Storage is providing all climate control units at this site with Miami having high humidity and temperatures. The facility is positioned in a commercial corridor which has businesses and homes nearby, including those occupied by the students of the University of Miami and Florida International University. As such, the region witnesses high demand for storage facilities particularly during the summer months.
Going forward, we keep faith in the company’s strong brand image, which is a recognized name in the self-storage industry. Healthy performance of its U.S. portfolio, high brand value and strong presence in key cities serve as important performance drivers. Expansion and acquisition initiatives are further likely to aid growth. Yet, an expected rise in interest rates in the coming months may pose a challenge to the company.
Public Storage, along with its storage operations, enjoys a 42% common equity in another REIT – PS Business Parks PSB, and currently has a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider stocks like CubeSmart CUBE and Sovran Self Storage Inc. SSS. Both these stocks hold a Zacks Rank #2 (Buy).
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