Question · Q4 2025
Viktor Fedyon asked about recent shifts in seller expectations, bid-ask spreads, and the conversion ratio of underwritten to transacted acquisitions, given Public Storage underwrote $7 billion but transacted $1 billion in 2025. He also inquired about the company's geographic growth preferences and potential for increased growth in Texas.
Answer
Tom Boyle, CFO and CIO, noted that buyer and seller expectations have been evolving with changes in debt costs and cap rates, leading to more rational transactions in 2025 and optimism for 2026-2027 as cap rates narrow. Joe Russell, President and CEO, added that diverse ownership structures are bringing larger portfolios to market, creating opportunities. On geographic growth, Boyle emphasized a data-driven approach focused on submarket-level opportunities where there's a strong fit for Public Storage's portfolio and customer demand, rather than just state-level targets like Texas.
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