Public Storage

Public Storage is the world's largest owner, operator, and developer of self-storage facilities, founded in 1972 by B. Wayne Hughes and Kenneth Volk Jr. Headquartered in Glendale, California, the company is a member of the S&P 500 and operates as a Real Estate Investment Trust (REIT) trading on the New York Stock Exchange under ticker symbol PSA.

As of December 31, 2024, Public Storage owns and operates 3,380 self-storage facilities across 40 U.S. states, comprising approximately 245 million net rentable square feet of space. The company owns approximately 9% of all self-storage square footage in the United States, making it the undisputed market leader in the industry. Additionally, Public Storage maintains a 35% common equity interest in Shurgard Self Storage, which operates 315 facilities with about 17 million net rentable square feet across seven Western European nations, providing international diversification.

The company's business model focuses on acquiring, developing, owning, and operating self-storage facilities that serve both residential and commercial customers for temporary and long-term storage needs. Public Storage also provides ancillary services including tenant insurance through PS Reinsurance (formed in 1984) and manages 307 self-storage facilities for other owners, generating additional fee income.

Public Storage's founding story is rooted in innovation and entrepreneurial vision. B. Wayne Hughes, a Southern California real estate developer who migrated from the Oklahoma Dust Bowl during the Great Depression, observed successful mini-storage facilities in Texas in the early 1970s. He partnered with Kenneth Volk, a Stanford economics graduate and Navy veteran who founded Volk-McLain Communities as a major home developer in California. Together, they invested $25,000 each to found "Private Storage Spaces Inc." on August 14, 1972 (Volk's birthday). The first location opened in El Cajon, California with a festive celebration featuring mariachis and distinctive bright orange doors designed to attract highway drivers. The name was soon changed to "Public Storage" to avoid confusion about accessibility.

The company's growth trajectory has been remarkable. Following an IPO in 1980 that provided expansion capital, Public Storage grew rapidly through the 1980s, opening up to 100 new centers annually and raising $200-300 million in investments each year. By the late 1980s, the company opened its 1,000th location and was three times larger than its nearest competitor. The 2020s have seen strategic acquisitions including the landmark $2.2 billion Simply Self Storage acquisition in 2023 (the largest private portfolio acquisition in company history) and the $2.7 billion BREIT Simply Storage LLC acquisition of 127 facilities.

In 2024-2025, Public Storage reported strong financial performance with record revenue of $4.72 billion in 2024 (3.74% growth year-over-year) and Q4 2024 core FFO of $4.21 per share. The company achieved an impressive 79.2% same-store direct net operating income margin. Current leadership under CEO Joseph D. Russell Jr. (since 2019) and Chairman Ronald L. Havner continues to drive innovation through digital transformation initiatives that reduced labor hours by 30% and enabled 85% digital customer interactions, while pursuing over $1.3 billion in acquisitions and developments to expand the portfolio across high-growth markets.