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 at +0.4%.

Move-in Rents: Declined by 2.4%, better than expected; full-year expectations had anticipated a mid-single-digit decline.

Occupancy: Increased by 0.4% year-over-year, exceeding guidance of flat occupancy.

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

Acquisition Activity: $186 million in acquisitions or under contract year-to-date; $45 million in development openings.

Balance Sheet: Strong liquidity with $1.3 billion available and a debt to EBITDA ratio of 2.9 times.

2Strategic Updates and Business Highlights

PS 4.0 Era: Introduction of a new strategic vision focused on leveraging scale, brand strength, and data analytics.

Acquisition of National Storage Affiliates (NSA): Seen as a significant milestone for PS 4.0, enhancing the portfolio and operational presence.

PSNext Operating Platform: Enhancements in customer experience and operational efficiency are ongoing, with a focus on digital interactions.

Value Creation Engine: Continued investment in acquisitions, development, and partnerships (e.g., with Welltower for data science) to drive long-term growth.

3Forward Guidance and Outlook

Revenue Growth: Expected to soften mid-year due to lagging indicators from the previous year, but leading indicators remain positive.

Integration of NSA: Expected to provide $110 million to $130 million in synergies over time, with breakeven anticipated in 2026 and potential earnings growth of $0.35 to $0.50 per share by 2028-2029.

Market Conditions: Long-term fundamentals for self-storage remain strong, with expectations of improving conditions as new supply slows.

4Bad News, Challenges, or Points of Concern

Uneven Operating Environment: Mixed performance across geographies, particularly in Sunbelt markets where new supply pressures revenues.

Los Angeles Market: Ongoing state of emergency negatively impacts revenue; expected to have an 80 basis point drag on same-store performance for the year.

Move-in Activity: Lower overall move-in activity noted, with some weather impacts and modest demand affecting performance.

5Notable Q&A Insights

Churn Reduction: Significant reduction in customer churn attributed to strong customer health and improved experience initiatives under PS 4.0.

Revenue Cadence: Anticipated pressures on same-store revenue in Q2 and Q3 due to prior year comparisons, despite positive leading indicators.

Market Dynamics: Encouraging trends in coastal markets; however, challenges remain in absorbing new supply in certain areas.

Lending Business: Positioned for growth, expected to expand from $150 million to potentially $500 million-$1 billion over time, while maintaining disciplined underwriting. Overall, Public Storage's Q1 2026 results reflect a solid start to the year, with strategic initiatives in place to enhance long-term growth, despite facing some near-term challenges in specific markets.