(Reuters) – Real estate investment trust Public Storage forecast funds from operations for 2025 below Wall Street expectations on Monday, weighed down by pricing restrictions following the Los Angeles wildfires.
Last month, two major wildfires plus several smaller ones created the worst natural disaster in Los Angeles County history, killing 28 people and damaging or destroying more than 16,000 structures.
After the fires, California Governor Gavin Newsom signed an executive order which made it illegal to hike prices by more than 10% above the rates charged immediately before the emergency declaration on essential consumer goods and services, including housing.
“Due to the associated pricing restrictions, our guidance anticipates an approximate $0.23 per share impact to Core FFO in 2025 while portfolio operations outside of Los Angeles continue to improve,” Public Storage CEO Joe Russell said.
The company, which leases out storage spaces for both personal and business use on a monthly basis, expects core FFO in 2025 between $16.35 and $17.00 per share, short of the $17.07 expected by analysts.
Its fourth-quarter core FFO of $4.21 per share also marginally fell below analysts’ average expectation of $4.24, according to data compiled by LSEG.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Krishna Chandra Eluri)
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