REIT Credit Analysis: Public Storage Boosted by Operations, Opportunistic Approach

NEW YORK, NY-- Cash flows generated by Public Storage’s (PSA) sizeable portfolio and management’s opportunistic approach toward self-storage property acquisitions and refinancings through economic cycles are two integral factors that support the REIT’s Positive Outlook going forward, according to the latest credit analysis update by Fitch Ratings.

Fitch affirmed PSA's Issuer Default Rating (IDR) at 'A-' on April 18 and revised the REIT's Rating Outlook to Positive from Stable. Fitch's latest credit analysis update on PSA, which provides more detail supporting Fitch's ratings, is available on the Fitch Ratings web site at 'www.fitchratings.com'.

Fitch currently rates PSA and affiliate Shurgard Storage Centers, Inc. (Shurgard) as follows:
PSA --IDR ‘A–’.
Shurgard --IDR ‘A–’.
Primary credit strengths include the following:
--Low leverage;
--Large unencumbered asset pool;
--Solid and consistent coverage metrics;
--Strong liquidity position;
--Highly granular asset base.

Primary credit concerns include the following:
--Preference for more expensive capital;
--Occupancy below 90% in some markets.

Contact:

Sean Pattap +1-212-908-0642 or
Steven Marks +1-212-908-9161, New York.

Media Relations:

Sandro Scenga, New York, Tel: +1 212-908-0278.