Life Storage LSI shares ended the last trading session 11.3% higher at $123.05. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14.8% gain over the past four weeks.

The increased optimism in the stock stems from Public Storage’s PSA recent offer to acquire the company in an all-stock transaction. Per the proposal, holders of Life Storage shares and units would receive 0.4192 shares of PSA common stock for each LSI share or unit they own. This represents a 19% premium based on the 20-day trailing VWAPs of PSA and LSI as of Feb 3, 2023.

This self-storage real estate investment trust is expected to post quarterly funds from operations (FFO) of $1.64 per share in its upcoming report, which represents a year-over-year change of +16.3%. Revenues are expected to be $271.94 million, up 23% from the year-ago quarter.

While FFO and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in FFO estimate revisions and near-term stock price movements.

For Life Storage, the consensus FFO per share estimate for the quarter has been revised 3.1% higher over the last 30 days to the current level. And a positive trend in FFO estimate revision usually translates into price appreciation. So, make sure to keep an eye on LSI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Life Storage is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, Global Medical REIT GMRE, finished the last trading session 1.1% lower at $11.18. GMRE has returned 14.1% over the past month.

Global Medical REIT's consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at $0.26. Compared to the company's year-ago FFO per share, this represents a change of +8.3%. Global Medical REIT currently boasts a Zacks Rank of #3 (Hold).

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