Summary of Public Storage (PSA-PQ) 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 Rents: Declined by 2.4%, better than expectations of mid-single digits decline.

Occupancy: Increased by 0.4% year-over-year, outperforming guidance which assumed flat occupancy.

Expense Growth: Decreased by 1.1%, aided by property tax appeal wins and operational efficiencies.

Non-Same Store NOI Growth: Increased by 27%, with ancillary income growth at 12%.

2Strategic Updates and Business Highlights

PS 4.0 Era: Initiated a new strategic phase focused on leveraging scale, brand strength, and data analytics.

Acquisition of National Storage Affiliates (NSA): A significant milestone aimed at enhancing portfolio strength and operational efficiency. Public Storage will wholly own 46% of the combined assets.

PSNext Operating Platform: Enhancing customer experience and operational efficiency, with a focus on digital engagement.

Partnership with Welltower: A strategic data science collaboration aimed at improving market targeting and portfolio construction.

3Forward Guidance and Outlook

Near-term Environment: Expected to remain uneven, with potential revenue growth pressures in Q2 and Q3 due to prior year comparisons.

Long-term Optimism: Confidence in storage fundamentals, with expectations of improved performance as supply constraints and demand grow.

Capital Allocation: Continued focus on acquisitions, development, and expansion, with a robust pipeline of $618 million in development projects targeting 8% stabilized yields.

4Bad News, Challenges, or Points of Concern

Mixed Operating Environment: Lower customer move-in activity and ongoing pressures in certain Sunbelt markets due to new supply.

Los Angeles Market: Continues to be impacted by a state of emergency, expected to negatively affect same-store performance by 80 basis points throughout the year.

Revenue Growth Expectations: Anticipated decline in year-over-year revenue growth mid-year due to prior year pressures.

5Notable Q&A Insights

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

April Performance: Continued positive trends in occupancy and move-in rates, suggesting a busy leasing season ahead.

Investment Activity: Expectation of increased transaction volume as the year progresses, with a focus on smaller, off-market deals.

Lending Program: Positioned for growth, potentially reaching $500 million to $1 billion over time, while remaining disciplined in underwriting.

Market Dynamics: Observations of improving trends in coastal and Midwest markets, with expectations that new supply will taper down, enhancing future performance. Overall, Public Storage reported solid first-quarter results while navigating a mixed operating environment, with strategic initiatives in place to drive long-term growth and value creation.