How Does Public Storage Make its Money?
Public Storage is the world’s largest owner, operator, and developer of self-storage facilities, with approximately 3,300 locations across 40 US states and 300+ locations in Europe (through its subsidiary Shurgard). The company rents storage units to residential and commercial customers on a month-to-month basis. Self-storage is a remarkably resilient business — occupancy tends to hold up even in recessions because people need storage during life transitions (moving, downsizing, divorce, death). Public Storage benefits from strong pricing power thanks to high customer switching costs (the hassle of moving stored items) and low customer awareness of pricing.
Public Storage (PSA) Business Model
Public Storage operates in the real estate sector. Below is a summary of Public Storage’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Public Storage’s 2024 fiscal year filings with the SEC.
Public Storage Competitors
Public Storage’s key competitors and comparable public companies in the real estate sector include Prologis, American Tower, and Crown Castle. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Public Storage stacks up by comparing their revenue breakdown, margins, and growth metrics.
Public Storage Competitors
Public Storage’s key competitors and comparable public companies in the real estate sector include Prologis, American Tower, and Crown Castle. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Public Storage stacks up by comparing their revenue breakdown, margins, and growth metrics.
Public Storage Competitors
Public Storage’s key competitors and comparable public companies in the real estate sector include Prologis, American Tower, and Crown Castle. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Public Storage stacks up by comparing their revenue breakdown, margins, and growth metrics.
Public Storage Competitors
Public Storage’s key competitors and comparable public companies in the real estate sector include Prologis, American Tower, and Crown Castle. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Public Storage stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Same-Store Facilities Revenue | $3,400 | $3,200 | +6.2% |
| Non Same-Store Facilities Revenue | $1,000 | $800 | +25.0% |
| Shurgard (Europe) | $400 | $370 | +8.1% |
| Ancillary Revenue (Insurance, Retail) | $300 | $280 | +7.1% |
| Total Revenue | $4,600 | $4,300 | +7.0% |
Same-Store Facilities Revenue — 74% of Revenue
Non Same-Store Facilities Revenue — 22% of Revenue
Shurgard (Europe) — 9% of Revenue
Ancillary Revenue (Insurance, Retail) — 7% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $4,600 | $4,300 |
| Cost of Revenue | $1,300 | $1,200 |
| Gross Profit | $3,300 | $3,100 |
| Operating Expenses | $700 | $650 |
| Operating Income | $2,600 | $2,450 |
| Net Income | $1,800 | $1,700 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 71.7%
- Operating Margin: 56.5%
- Revenue Growth: 7.0%
Is Public Storage Profitable?
Yes, Public Storage is profitable. The company reported net income of $1,800 on total revenue of $4,600. With an operating margin of 56.5%, Public Storage demonstrates solid profitability for the real estate sector. The gross margin of 71.7% reflects Public Storage’s pricing power and cost structure.
What to Watch
- Same-store revenue growth and occupancy trends as new supply gets absorbed
- Move-in rates versus existing customer rate increases (ECRI) pricing strategy
- Acquisition and development pipeline to grow the portfolio
- European expansion through Shurgard in a fragmented international market
Public Storage (PSA) Financial Summary
Public Storage (PSA) is a real estate company that generated $4,600 in total revenue in fiscal year 2024. Revenue grew 7.0% year-over-year. The company earned $1,800 in net income, making it profitable. For a deeper look at Public Storage’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.