Summary of Public Storage Q1 2026 Earnings Call

1Key Financial Results and Metrics

Core FFO: $4.22 per share, up 2.4% year-over-year.

Same Store Revenue Growth: Flat; Same Store NOI growth was positive at 0.4%.

Move-in Rates: Declined by 2.4%, better than expected; previously anticipated to decline mid-single digits.

Occupancy: Increased by 0.4% year-over-year, better than guidance of flat.

Expense Growth: Decreased by 1.1% for the quarter, aided by a $3 million property tax appeal benefit.

Acquisition Activity: $186 million in acquisitions or under contract year-to-date.

2Strategic Updates and Business Highlights

PS 4.0 Era: Launched a new strategic vision focusing on leveraging scale, brand strength, and data analytics.

Acquisition of National Storage Affiliates (NSA): A significant milestone aimed at enhancing scale and operational presence; structured to maintain financial strength.

PSNext Operating Platform: Enhancing customer experience and operational efficiency; digital engagement is increasing.

Value Creation Engine: Focused on multiple levers including acquisitions, development, and partnerships, such as with Welltower for data science.

3Forward Guidance and Outlook

Overall Outlook: Despite a mixed operating environment, long-term fundamentals in self-storage remain strong.

Revenue Expectations: Anticipate year-over-year revenue growth to soften mid-year due to prior pressures but expect sequential improvement.

Integration of NSA: Planning for smooth integration during peak leasing season; expected to yield $110-$130 million in synergies over time.

Busy Season: Anticipated activity in May through July; optimism about improving trends.

4Bad News, Challenges, or Points of Concern

Mixed Market Conditions: Some Sunbelt markets continue to face pressure from new supply, impacting performance.

Los Angeles Market: State of emergency continues to negatively affect revenue; expected to impact same-store performance by 80 basis points for the year.

Move-in Activity: Overall lower customer move-in activity observed in Q1; challenges in certain markets like Tampa, Atlanta, and Phoenix remain.

Expense Management: While expenses were down in Q1, future growth is expected to tick higher as the year progresses.

5Notable Q&A Insights

Churn Reduction: Significant reduction in customer churn attributed to strong customer health and improved experience; expected to enhance profitability.

Revenue Growth Cadence: Revenue is expected to decline slightly in Q2 and Q3 due to previous pressures, despite positive leading indicators.

Acquisition Strategy: Focus remains on smaller, one-off transactions; larger portfolios may be more complex and dependent on market conditions.

Lending Business: Seen as a growth area, with potential to expand significantly, though currently a smaller part of the overall business. Overall, Public Storage reported a solid start to 2026, with strategic initiatives in place to drive future growth, despite facing challenges in specific markets and an uneven operating environment. The company remains optimistic about long-term fundamentals and is focused on enhancing operational efficiencies and customer experiences.