Question · Q4 2025
Victor Fedyuk followed up on Public Storage's external growth opportunities, asking about recent shifts in seller expectations, how this impacts bid-ask spreads, and the conversion ratio of considered acquisitions to actual transactions. He also inquired about preferred geographies for growth, particularly Texas.
Answer
Tom Boyle, CFO and CIO, noted that while buyer and seller expectations have been evolving, a relatively tight 10-year Treasury band has allowed for more rational transactions, leading to some success in 2025 and optimism for 2026-2027 as cap rate ranges narrow. Joe Russell, President and CEO, added that generational transitions and institutionalization of ownership continue to create opportunities. Boyle emphasized a data-driven approach to identifying submarket-level opportunities across the country, rather than focusing on specific states like Texas, leveraging the company's operating platform and long-term datasets.
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